ECONOMICS OF SHORT SEA SHIPPING

8/9/2019 ECONOMICS OF SHORT SEA SHIPPING

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CHAPTER 13

E C O N O M I C S O F S H O R T S E A

SHIPPING

Enrico Musso^Ana Cristina Paixão Casaca f and Ana Rita Lynce*

1. INTRODUCTION

1.1 Purpose

The idea of promoting short sea shipping (SSS aims at a!hie"ing a more s#staina$%e

transport net&or' &here %east damaging transport modes ha"e a ro%e to p%a)* SSS

statisti!s !on!erning safet) are re%ati"e%) good &hen !ompared &ith other means of

transport*1 It is !%aimed that the de"e%opment of SSS is !r#!ia% to enhan!e %and+sea

intermoda%it) th#s p#rs#ing (i en"ironmenta% $enefits sin!e it red#!es po%%#tion %e"e%s

and road transport a!!idents and (ii e!onomi! $enefits, &ithin this !onte-t SSS red#!es

transport net&or's !ongestion %e"e%s red#!es in"estments in transport infrastr#!t#re and

in!reases port hinter%ands. !ompetiti"eness the internationa% mar'ets*/

SSS has $een gro&ing signifi!ant%) o"er the past 0 )ears main%) d#e to the gro&th of

intra+regiona% trade and the $oost of h#$+and+spo'e maritime transport* Its importan!e ishigh in the So#th+East Asia and E#rope $#t other regions of the &or%d are a%so

!onsidering it* The Ameri!an !ontinent parti!#%ar%) North Ameri!a and A#stra%ia are

%oo'ing !aref#%%) at the E#ropean e-perien!e as a %earning pro!ess so that the) !an a%so

imp%ement SSS or !oasta% shipping as it is !a%%ed in some regions of the g%o$e* 2et there

seems to $e a gap $et&een present gro&th rate and the goa%s of po%i!) ma'ers name%) in

the E#ropean nion (E* So far gro&th seems %imited to !apti"e mar'ets

i* e* !onne!tions of main%and &ith is%ands and deep+sea shipping (4SS feeder

ser"i!es* SSS does not appear to $e a rea% a%ternati"e to %and transport name%) road

ha#%age &hen intra E#ropean trade is $eing !onsidered* The %ogisti!s needs of shippers

and 5#st+in+time prod#!tion phi%osophies ha"e fostered the road transport #sage d#e to its

inherent ad"antages in detriment of &ater$orne transport ser"i!es*

64epartment of E!onomi!s ni"ersit) of 7enoa 7enoa Ita%)* Emai%8 enri!o*m#sso9#nige*it: ESPRIM Centro de A!ostagens Amarra;


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Introduction 392

%oo' at the $enefits it offers and &hat needs to $e done to&ards its imp%ementation $#t

a%so $e!a#se the %a!' of ade?#ate statisti!a% data from a regiona% perspe!ti"e pre"ents a

deeper insight into other SSS geographi!a% areas* To a!hie"e this o$5e!ti"e the present

&or' is str#!t#red in fi"e se!tions* Se!tion 1 presents the p#rpose of the &or' addresses

the !on!ept of SSS and sho&s the %a!' of !onsisten!) in &hat definitions are !on!erned*

Se!tion / !on!erns SSS mar'et information, it !onsiders moda% sp%it the demand and the

s#pp%) sides of SSS mar'ets and in doing this it %oo's at the a"erage sie of short sea

"esse%s* Se!tion 3 !onsiders SSS in a m#%timoda% !onte-t, it in"estigates the geographi!

and e!onomi! !onditions for integrating SSS in a m#%timoda% transport !hain so that a

shift of !argo from road to sea ta'es p%a!e %oo's at the fa!tors inf%#en!ing SSS

!ompetiti"eness in"estigates SSS o$sta!%es and !ha%%enges and presents a %ist of possi$%e

po%i!ies for SSS in a m#%timoda% !onte-t* Se!tion 0 in"estigates the E#ropean SSS

po%i!ies and genera% po%i!ies that s#pport its de"e%opment and Se!tion D !on!erns

!on!%#sions and f#rther !omments*

12 A definition of short sea shipping

4espite man) efforts the %iterat#re sti%% %a!'s an #nam$ig#o#s definition of SSS as pointed o#t $) an de oorde and iegas (1D and Mar%o& et al. (1B*30 Some

a#thors !onsider it to $e the same as !a$otage i*e* a%% sea$orne traffi! $et&een ports of

the same !o#ntr) sometimes in!%#ding frontier ports of ad5a!ent !o#ntries D &hi%e others

en"isage it as an a%ternati"e mode to %and transport* G Mar%o& et al. (1B presented a

tai%ored definition s#ita$%e for spe!ifi! sit#ations* The a#thors defined SSS as sea$orne

f%o&s of a%% 'inds of freight performed $) "esse%s of an) f%ag from E Mem$er States to

&hi!he"er destination &ithin the territor) em$ra!ing E#rope the Mediterranean and

%a!' Sea non+E#ropean !o#ntries (see endnote 0* In this regard Peeters et al. (1D

a!'no&%edged the e-isten!e of man) regiona%+$ased (often E#ropean+$ased definitions*B

Against this frame&or' the %iterat#re a%so proposes "er) pragmati! definitions*Stopford (1B states that SSS is norma%%) a maritime transport &ithin a region

essentia%%) ser"ing port+!o+port feeder traffi! &hi!h !an $e in !ompetition &ith %and

transport &hi%e 5orn%and (13 !onsiders SSS as &ater$orne mo"ement of goods that

does not !ross the o!ean* Sometimes this pragmatism t#rns to ta#to%og) sin!e some

a#thors !onsider that SSS in!%#des an) ser"i!es &hi!h are not !onsidered to $e 4SS or

&hi!h are re%ated to re%ati"e%) short distan!es*1.11 ithin this perspe!ti"e Papadimitrio#

(/1 !onsidered SSS a maritime transport ser"i!e that e-!%#des deep sea !rossing,

instead the a#thor a!'no&%edged that SSS em$ra!ed p#re nationa% !a$otage ser"i!es

maritime !onne!tions $et&een main%and and the is%ands internationa% !a$otage ser"i!es

as &e%% as sea+ri"er transport performed $) !oasta% "esse%s %ea"ing aside the p#re in%and

&ater&a) na"igation*1/From a te!hno%ogi!a% "ie&point some a#thors fo!#s on shipsD !hara!teristi!s* Against

this perspe!ti"e an de oorde and iegas (1D s#ggested that it &o#%d $e $etter to

define SSS in terms of trading patterns rather than ships !hara!teristi!s sin!e it is not

pra!ti!a% from an operationa% "ie&point the 1J e-!%#si"e #se of ships in SSS or 4SS

(see endnote 3* The a#thors fo%%o&ed >inde.s "ie&point that from a $road perspe!ti"e

!onsiders SSS as a g%o$a% phenomenon $#t from a narro& "ie&point re%ates the !on!ept

to the E#ropean SSS &hi!h is operated &ithin a %arge E#ropean area and managed $)

E#ropean shipping !ompanies* 13K1B


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Introduction 393

The !on!ept of !oasta% shipping is a%so addressed $) ag!h#ps and L#ipers (13

&ho defined !oasta% shipping as a%% forms of maritime transport &ithin E#rope and

$et&een E#rope and ad5a!ent regions irrespe!ti"e of &hether it in"o%"es sma%% o!ean+

going "esse%s %arge o!ean+going "esse%s or !oasters*1 Pai-ao and Mar%o& (// in an

attempt to present a ho%isti! definition defined SSS as a !omp%e- maritime transport

ser"i!e performed $) fi"e !%asses of ships !apa$%e of !arr)ing #nitised and non+#nitised

!argo offered $) different !hanne% intermediaries &ithin &e%%+defined E#ropean

geographi!a% $o#ndaries (see endnote 1G*

At a E#ropean po%i!) %e"e% the !on!ept of SSS &as addressed in the 1/

!omm#ni!ation on the E#ropean !ommon transport po%i!)* The E#ropean Commission

(hereinafter the Commission en"isaged SSS as a means to shift goods from road to sea

ma'ing #se of #nder#sed !apa!it) and the do!#ment in ?#estion does not present a

definition of the !on!ept*1 4espite this in 1/ the Commission defined maritime

!a$otage as a maritime ser"i!e that em$ra!ed (i the !arriage of passengers and goods $)

sea $et&een ports sit#ated on the main%and of one Mem$er State &itho#t !a%% at is%ands

(main%and !a$otage, (ii offshore s#pp%) ser"i!es, and (iii ser"i!es $et&een ports of one

Member tate &here one or more ports are sit#ated on is%ands (is%and !a$otage*/

Thea$o"e definition sho&s that SSS !%ear%) has a $roader meaning than maritime !a$otage

&hi!h seems to ha"e a mere%) 5#ridi!a% meaning ($ased on state $orders instead of an

e!onomi! one (potentia% !ompetition $et&een sea and %and transport*The E#ropean SSS

definition &as first presented in its 1D !omm#ni!ation on SSS* /1 In an attempt to

harmonise the !on!ept the E#ropean Conferen!e of Ministers of Transport the nited

Nations E!onomi! Commission for E#rope and the Commission got together in /1 and

defined SSS as the mo"ement of freight $et&een intra+E#ropean ports and $et&een

E#ropean ports and other ports as %ong as the %atter &ere %o!ated a%ong a !oast%ine $or+

dering E#rope as is the !ase of North Afri!a* // An insight into the definition pro"ided $)

the Commission in 1D (see endnote /1 !%ear%) sho&s that $oth definitions are simi%ar

$#t the re!ent%) motor&a)s of the sea (MoS !on!ept presented $) the Commission as the!creme de la creme of E#ropean SSS ser"i!es/3 !ontri$#ted to in!rease f#rther the %a!'

of !onsens#s regarding a SSS definition and ho& these ser"i!es !an $e de!o#p%ed from

MoS ser"i!es* Fo%%o&ing the Commission.s "ie& of the MoS !on!ept as a f%oating

infrastr#!t#re aird (/B presented the sea&a) !on!ept as the ships. de!'s &here !argo

is mo"ed &hi!h !an $e meas#red in %ane meters and !ompared &ith road and rai%

infrastr#!t#re and raises the iss#e a$o#t p#$%i! in"estment in s#rfa!e transport gi"en that

&ith a fe& e-!eptions the ship$#i%ding ind#str) !annot $e s#$sidised*/0

Conse?#ent%) it !an $e said that so far there is no genera%%) a!!epted SSS definition

sin!e different !riteria are #sed for defining it name%) (i geographi!a% !riteria ($ased on

the %ength of maritime %eg, (ii s#pp%) !riteria ($ased on t)pesie of "esse%s or on $eing

part of a %onger 5o#rne), (iii demand or !ommer!ia% !riteria (!ompetition &ith %and

transport, distin!tion $et&een feeder or intra+regiona% traffi!, nat#re of !argo, (i"

5#ridi!a% !riteria (ports $e%onging to the same state* Moreo"er some definitions are

tai%ored for a !ertain geographi!a% spa!e or for a !ertain time and !orrespondent %e"e% of

te!hni!a% progress*/D nfort#nate%) the n#mero#s and am$ig#o#s definitions imp%) the

non+homogeneit) of the (fe& a"ai%a$%e data and statisti!s %eading to some !onf#sion in

the s!ientifi! and te!hni!a% de$ate* As i5no%st et a" (13 point o#t statisti!s are often

neither re%ia$%e nor !onsistent sin!e f%o&s "ar) !onsidera$%) a!!ording to the


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394 Economics of Short SeaShiin!

definition !onsidered, definitions of import and e-port ma) a%so "ar) and differen!es

e-ist a%so in goods !%assifi!ation !riteria*/G

The so%#tion to o"er!ome this "ag#eness !an $e %in'ed &ith the possi$i%it) to !hoose

an e-isting definition or proposing an additiona% one* The $est approa!h sho#%d ne"erthe+

%ess o#t%ine t&o important 'e)points #nder%)ing a%% the definition efforts presented in the

%iterat#re* One is !ertain%) &hether %and transport is possi$%e or sea transport has no a%ter +

nati"es (one or $oth ports $eing %o!ated in an is%and &itho#t t#nne%s or $ridges !onne!ting

them* In this !ase there is a !apti"e mar'et &ith no or "er) %itt%e !ompetition from other

modes (air transport for passengers or some high "a%#e+added goods, pipe%ines for %i?#id

$#%'s* If a %and a%ternati"e does e-ist this sets a str#!t#ra% differen!e !ompared to 4SS

as for mar'et organisation and !ompetition $et&een s#$stit#te iss#es* The frame&or'

proposed in Se!tion 3 addresses this sit#ation* The !ase for SSS !ompeting &ith %and

transport is th#s the most interesting from a theoreti!a% "ie&point and for po%i!ies and

f#t#re de"e%opment*

The se!ond 'e) ?#estion is &hether SSS is the main %eg of a regiona% intermoda%

traffi! or a feeder ser"i!e $e%onging to a h#$+and+spo'e !)!%e $ased on 4SS* hi%e at an

intra+regiona% transport %e"e% SSS introd#!es an intermoda% option !ompeting &ith %andtransport at a feeder traffi! %e"e% it is norma%%) the opposite8 the maritime h#$+and+spo'e

!)!%e is a #nimoda% so%#tion &here SSS !ompetes &ith %and transport feeders (rai% or

road &hi!h &o#%d set an intermoda% transport* Most remar's proposed in this !hapter

app%) to $oth !ases* 2et the !#rrent de$ate and po%i!) iss#es main%) refer to the

opport#nities of enhan!ing intermoda%it) $ased on a SSS %eg &hi%e %ess interest is sho&n

for SSS as feeder traffi! to 4SS #n%ess this traffi! !an $e a%ternati"e%) s#pp%ied $) SSS or

$) %and transport*

2. S"ORT SE# S"I$$IN% R'ET IN(ORTION

O"er the %ast fo#r de!ades the importan!e of SSS has $een in!reasing a%% o"er the &or%d

espe!ia%%) d#e to the gro&th of feeder traffi! (as a res#%t of gro&ing 4SS transport and

the red#!tion of port !a%%s in the 4SS mar'et $e!a#se of in!reasing "esse% sie* ith a

!oast%ine of a$o#t 'i%ometres ('m ha"ing GBJ of the ind#stries %o!ated &ithin

a 1D+/ 'm range from a port the E has definite%) one of the most s#ited

geographi!a% areas for the de"e%opment of SSS (see endnote /1* In addition a transport

net&or' made #p of BG 'm of !on"entiona% and high speed rai%&a) %ines B/ 'm

of road infrastr#!t#re /D 'm of in%and &ater&a)s (I of &hi!h 1/ 'm are

in!%#ded in the !om$ined transport net&or' 03 ports of &hi!h 31 are seaports

(remaining ones are I ports has made E one of the most re%e"ant SSS mar'ets in

the &or%d a%ong &ith Asia* Feeder trade &i%% o$"io#s%) fo%%o& the de"e%opments intranshipment h#$s &hi!h are rapid%) o!!#rring in the Cari$$ean Midd%e East and So#th

Ameri!a* The ne-t paragraphs pro"ide information a$o#t the E#ropean SSS mar'et

moda% sp%it demand and s#pp%)*

2.1 The European Union modal split

Sin!e 1B freight transport in E#rope has gro&n signifi!ant%) (see Ta$%e 1 as a res#%t of

the E#ropean e!onomi! gro&th and !ommer!ia% e-!hanges ta'ing p%a!e at a E#ropean

and internationa% %e"e%s* This trend has $een &itnessed at a &or%d&ide


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Short Sea Shiin! &ar)et Information39*

%e"e% as sho&n in the NCTA4 Re"ie& of Maritime Transport and Fearn%e)s mar'et

reports* In !onformit) &ith Ta$%e 1 the mo"ement of freight transport trip%ed from 1B

#nti% /G* O"er this period the mo"ement of freight $) air is "er) sma%% and has

sta$i%ised re%ati"e%) to the tota% !argo $eing mo"ed and a!!ording to the data pro"ided in

Ta$%e 1 it is e-pe!ted that its share &i%% remain more or %ess the same*

Freight mo"ement $) pipe%ine has in!reased in terms of $i%%ion tonne+'m (t$+'m $#t

from a mar'et perspe!ti"e it has %ost 1*DJ $et&een 1B and /B* This !an $e attri$#ted

to the #se of a%ternati"e energies &hi!h are more en"ironmenta%%) friend%) in detriment of

the fossi% oi%s as &e%% as to the fa!t that %i?#efied nat#ra% gas (>N7 is a%so $eing

transported $) &ater$orne transport &hi!h imp%ies that the pre+ and on+!arriage %egs of

the >N7 s#pp%) !hain &i%% ma'e #se of pipe%ines to rea!h the fina% !ons#mer* A%tho#gh

the demand for I transport has in!reased o"er the )ears in terms of mar'et share it

has $een #na$%e to fo%%o& the trends of sea and road transport mar'ets* 4ata from Ta$%e 1

sho&s that its mar'et share &as red#!ed a%most $) ha%f* Freight mo"ed $) rai% has a%so

#able $% E+/D performan!e $) mode8 Freight transport (1 mi%%ion tonne+

'i%ometres2ear

Transport modesTota%

Road Rai% In%and

&ater&a)s

Pipe%inesSea

(intra+E

Air

1B: 0B* //* 1/* G0* 0B/* + 10B*

1: B1B* /* 1G* D* B* + 1B*

1: B0* /DG* 1B* B* //* + /3/*

11: 1G* /3D* 1G* B* DG* + /3/*

1D 1/* 3G* 1//* 11D* 11D* /* 3G0*

1G 133* 3/* 1/* 11* 11G/* /*1 3*

1B 13D/* 01* 1/* 11* 1/D* /*3 3/1D*

1 1010* 33* 131* 1/D* 1/03* /*0 33*

1 10B* 30* 1/* 1/0* 1/* /*D 33B*

/ 1D1* 00* 130* 1/B* 130* /*B 3D30*

/1 1DDG* 3G* 133* 13/* 10* /*B 3G1*

// 1GG* 30* 13/* 1/* 101D* /*G 3GG*

/3 1G/D* 3/* 1/0* 13* 1000* /*G 3B1*

/0 1B0B* 01G* 13B* 13/* 10D* /* 3/*

/D 1* 010* 13* 13G* 1D/* /* 01/*

/G 1DD* 00* 13* 13D* 1D0* 3* 01/*

/B 1/B* 0D/* 101* 1/* 1DBD* 3*1 0//*ource% EROSTAT ("ario#s: 4ata from 1B #p to 11 (in!%#si"e !on!erns the E+1D rather than the E+/B*


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39+ Economics of Short SeaShiin!

$een s#$5e!t to a negati"e trend e"en tho#gh freight $eing mo"ed $) rai% in!reased from

//* t$+'m (1B #p to 0D/* t$+'m (/B*

As a res#%t t&o modes ha"e $een responsi$%e for mo"ing freight and for a!!om+

modating the gro&th that has ta'en p%a!e* In 1B road transport &as responsi$%e for

mo"ing 0B t$+'m a$o#t the same as sea transport* et&een 1B and 1 freight $eing

mo"ed $) road do#$%ed re%ati"e%) to 1B (die $ase )ear and the same trend o!!#rred

$et&een 1 and /B $#t &ithin a shorter period of time (1G )ears* The reason for

s#!h a shorter !)!%e is e-p%ained $) the /0 and /B en%argements of the E and

$e!a#se data from 1D on&ards !on!erns the E+/B rather than the E+1D* From a

mar'et share perspe!ti"e this gro&th res#%ts from the a$i%it) of road transport in

a$sor$ing the mar'et share de!reases that o!!#rred in rai% and I from the SSS ina$i%+

it) to meet !#stomers. needs and from !argo deri"ed from gro&ing mar'et e!onomies*

A!!ording to /B data pro"ided $) the EROSTAT road transport is responsi$%e for

0D*GJ of the freight $eing mo"ed in E#rope*

In &hat !on!erns sea transport this mode has not $een a$%e to in!rease its mar'et

share despite the effort made $) the Commission at a po%i!) %e"e% sin!e 1/ in the ?#est

of s#staina$%e a%ternati"es to road transport* Freight $eing mo"ed $) sea a%so s#ffered anin!rease from 0B/* t$+'m #p to /B rea!hing 1DBD* t$+'m* Ho&e"er the gro&th !)!%e

appears to $e %onger* Cargo $eing mo"ed $) sea do#$%ed $et&een 1B and 11 (one

)ear more &hen !ompared to road and $e!a#se of its &ea'nesses it has in!reased on%)

G0*BJ $et&een 11 and /B* The ann#a% a"erage gro&th sin!e 1D #nti% /B is /*J

against 3*J in road transport &hi!h e-p%ains its mar'et share de!rease* After rea!hing a

mar'et share of 0*1J in 11 SSS share of goods $eing mo"ed has $een de!reasing

re%ati"e%) to road transport and in /B a!!o#nted for a 3B*3J of the mar'et* The data

a%so pro"ides no e"iden!e that a re"erse of the present trend &i%% materia%ise in the near

f#t#re #n%ess the road is s#$5e!t to f#rther stri!t r#%es and reg#%ations as it does happen in

the maritime se!tor and the sma%% medi#m sied short sea operators adopt more

!o%%a$orati"e strategies among them (see endnote 1G* The present e!onomi! andfinan!ia% !risis a%so does not !ontri$#te to !hange the a$o"e mentioned $eha"io#r and the

?#estion raised is ho& SSS is a$%e to grasp the 10J of freight $eing mo"ed $) %ong+

distan!e ha#%age*

From another perspe!ti"e SSS a!!o#nts for GJ of a%% internationa% traffi! ta'en p%a!e

&ithin the E against 1J performed $) road* SSS a"erage 5o#rne)s are %onger (13D

'm than road (1 'm (see endnote 13* The opposite sit#ation ta'es p%a!e &hen

domesti! traffi! is !onsidered, here SSS is responsi$%e for !arr)ing GJ of the tota% tonnes

$eing mo"ed against road transport &hi!h !arries o"er J of freight* 4ata pro"ided in

Ta$%e 1 and Fig#re 1 a%so s#ggest that sea and road mar'et shares sho#%d a%&a)s $e #nder

!onstant monitoring and an ana%)sis $et&een the t&o of them ma'es sense in the

E#ropean arena &here more and more fo!#s is gi"en to en"ironmenta% iss#es*

SSS !ompetition &ith %and transport parti!#%ar%) &ith road is high d#e to geograph+

i!a% reasons and d#e to !omparati"e%) high%) de"e%oped %and transport infrastr#!t#re* To

these fa!tors others !an $e added &hi!h ha"e "er) m#!h res#%ted from e!onomi! gro&th

and !risis or po%i!) !hanges* E-amp%es are the opening of the E#ropean interna% mar'et in

1/ the restr#!t#re of !ompanies. prod#!tion and distri$#tion s)stems the en%argement

of the E and in"entor) management strategies %i'e 5#st+in+time ha"e gi"en to road

transport a rea% $oost in its de"e%opment than's to its s#perior f%e-i$i%it) and re%ati"e%)

%o& pri!es*/B/ Indeed sea transport needs to $e a!!ommodated


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Short Sea Shiin! &ar)et Information39,

at spe!ia%ised infrastr#!t#res (i*e* portstermina%s $rea'ing the o"era%% %ogisti!s !hain

more often than road transportation and pre"entings sometimes the information to f%o&

smooth%) among the different a!tors* Ne"erthe%ess one m#st $ear in mind than road

infrastr#!t#re has $een finan!ed $) p#$%i! f#nds to a great e-tent* The !onsidera$%e

differen!e $et&een the a"eraged distan!es performed $) SSS and road %eads to sa) the)are partia%%) separated #p to the distan!e of 3 'm sin!e it is diffi!#%t to find an

a%ternati"e to road transport inherent f%e-i$i%it)* The rai%&a) se!tor %a!'s in"estment

&hi!h e-p%ains &h) the potentia% for SSS for s#!h short distan!es is not so high #n%ess

the thresho%d for !ompetiti"eness &ith road transport is !onsidera$%) shortened* This

point is one of the !riti!a% iss#es of the re!ent E transport po%i!) as pointed o#t in the

/1 hite Paper*3

The present moda% sp%it &here road and sea are responsi$%e for a$o#t /*J of a%%

freight $eing mo"ed in /B (SSS has $een a$%e to 'eep #p &ith road transport gro&th

!an a%so $e e-p%ained $) the %a!' of in"estment in transport infrastr#!t#re sin!e 1BD

res#%ting in n#mero#s $ott%ene!'s and a dai%) !ongestion of BD 'm e"en tho#gh the

Commission has em$ar'ed on the de"e%opment of a !omprehensi"e trans+E#ropean

transport net&or' to promote the moda% shift to #nder#sed !apa!it) (rai% SSS and I

and of a po%i!) that res#%ted in the %i$era%isation of freight rai% freight ser"i!es in an#ar)

/B* As for !ompetition &ith %and transport the !hoi!e of %ift+on+%ift+off (>o+>o or ro%%+

on+ro%%+off (Ro+Ro operations &i%% depend #pon the distan!es to $e !o"ered and port

!osts in!#rred (see endnote 1G*

2.2 The demand side of the European short sea shipping market

For the p#rpose of the present st#d) on%) data re%ated to !argofreight &i%% $e !onsidered

&hi!h imp%ies that the mo"ement of passengers is %eft o#t of the ana%)sis* In the E#ropean

nion BJ of its e-terna% trade and 3J of its interna% trade goes $) sea* Of this 3J

a!!ording to 4re&r) (13 t&o+thirds !on!erns intra+North E#ropean traffi! 3J

re%ates to trade $et&een North and So#th E#rope %ea"ing 5#st a 3*3J of the tota% short sea

trade as p#re intra+So#th E#ropean mo"ements*31 This di"ision of the SSS mar'et !an $e

e-p%ained $) the higher !on!entration of !argo in the ports %o!ated in the >e Ha"re+

Ham$#rg range a$o#t BJ of the E#ropean ind#str) is %o!ated main%) in the si- origina%

fo#nder E Mem$er States and $e!a#se the North and a%ti! Seas "er) m#!h promote

the #se of SSS In &hat !on!erns the mo"ement of !argo to&ards

&igure $% Moda% sp%it in J:

1970 1995 2007

Rai% rww Rai% I Rai% I

ource% EROSTAT ("ario#s:4ata from 1B !on!erns the E+1D rather than the E+/B


8/39

39- Economics of Short SeaShiin!the So#th of E#rope !ompetition &ith %and transport is stronger $oth for feeder and intra+

regiona% traffi!* Channe% ports are fa!ing o"er!apa!it) d#e to !ompetition from the

Channe% T#nne% &hi%e the opening of road ha#%age to Eastern E#ropean firms has

pro"ided %o& !ost a%ternati"es to $oth shipping and rai%&a)s* This has !ontri$#ted to a

fa%% in the freight rates s?#eeing the SSS ind#str) profita$i%it) &hi!h has $een fostered

$) the press#re that 4SS operators e-ert o"er short sea operators &hen negotiating

standard shipping ser"i!es to the fina% destination*

The pro$%em re%ated &ith the ana%)sis of the SSS demand side !on!erns the %a!' of

a"ai%a$%e data at E#ropean %e"e%, on%) re!ent%) has this iss#e $een addressed s#$5e!t to

Co#n!i% 4ire!ti"e DG0EC of *1/*1D* Ta$%e / sho&s the ?#antit) of !argo $eing

mo"ed $) SSS ann#a%%) $et&een / and /G* 4ata !on!erning E+1D is a"ai%a$%e

sin!e / and its ann#a% a"erage gro&th is a$o#t 3J and s#pports the idea that SSS has

not $een a$%e to grasp !argo from road transport* From an E+/B perspe!ti"e %itt%e

!on!%#sions !an $e ta'en sin!e data is on%) a"ai%a$%e from /0 &hen the former Centra%

and Eastern E#ropean !o#ntries (CEECs Ma%ta and C)pr#s $e!ame E Member States*

The on%) !on!%#sion possi$%e to $e dra&n at the present moment is that its ann#a% a"erage

gro&th is a$o#t /*GJ &hi!h !an $e e-p%ained $) these !o#ntries geographi!a% %o!ationsin!e the former CEECs re%) on road and rai% modes rather than on SSS* In /G the tota%

goods transported $) the E+/B SSS a!!o#nted for more than 1* $i%%ion tonnes

!orresponding to G/J of the maritime trade* oth the North and Mediterranean Seas

p%a)ed a ma5or ro%e in the mo"ement of goods inside the E reporting D mi%%ion tonnes

(/*1J and DG mi%%ion tonnes (/G*3J respe!ti"e%)*3/

From a !o#ntr) perspe!ti"e Ire%and Spain and Fin%and ha"e &itnessed the $iggest

ann#a% a"erage gro&ths $et&een / and /G G*GJ B*DJ and 0*3J respe!ti"e%) (see

endnote 3/* The Spanish ann#a% gro&th is e-p%ained $) the trade performed $et&een the

main%and and the is%ands and $e!a#se some ne& ports ha"e $een added to the statisti!s*

This sit#ation high%ights that the data gathered at an E %e"e% m#st fi%% in some gaps e"en

tho#gh it pro"ides a good indi!ation of the !argo $eing mo"ed* The !argo mo"ed fa%%s&ithin fi"e different !ategories8 %i?#id $#%' dr) $#%' !ontainers RO+RO #nits and the

!argo &hi!h refers to a%% #n'no&n !argo* The ana%)sis that fo%%o&s has $een !arried o#t

from an E+/B perspe!ti"e*

A!!ording to /G data the $#%' mar'et represents G*/J of the !argo $eing mo"ed

$) SSS and seen from an indi"id#a% perspe!ti"e the %i?#id $#%' and the dr) $#%' short

sea mar'ets a!!o#nt for 0*DJ and 1*BJ respe!ti"e%) of the &ho%e !argo $eing mo"ed

$) sea (see endnote 3/* These fig#res are in %ine &ith the /B statisti!a% data pro"ided

$) 4re&r) &here the %i?#id $#%' and dr) $#%' short sea mar'ets a!!o#nted for DJ and

/J of the o"era%% !argo $eing mo"ed on that )ear*33 The main a!ti"e !o#ntries in the

%i?#id $#%' mar'et are Fran!e Ita%) the Nether%ands and the nited Lingdom (L*

Together the) hand%ed G/0*3 mi%%ion tonnes e?#i"a%ent to GG*/J of

the %i?#id $#%' short sea mar'et* As far as the dr) $#%' short sea mar'et is !on!erned

Spain Ita%) the Nether%ands and the L dominate and most dr) $#%' !argo is transported

#able '% 7oods !arried $) short sea shipping /+/G (in mi%%ion tonnes

/ /1 // /3 /0 /D /G

E+1D 1DD*D 1DG3*G 1G*1 1GD*G 1B/D*D 1B/* 1/*B

E+/B 11*0 1/*B 1B*3


9/39

Short Sea Shiin! &ar)et Information399

in !argo sies of 1 and / tonnes s#$5e!t to %ong term and spot "o)age !ontra!ts*30

>i'e&ise the) hand%ed /*B mi%%ion tonnes (D3*3J of the dr) $#%' short sea mar'et*

Ro+Ro #nits fo%%o& the dr) $#%' short sea mar'et (1/*J* This !an $e e-p%ained $)

the high !on!entration of ferr) "esse%s. operations in the North and a%ti! Seas* 7erman)

Ita%) S&eden and the L are responsi$%e for the $iggest share of #nits $eing hand%ed*

Together the) hand%ed /G* mi%%ion tonnes e?#i"a%ent to 0*/J of the Ro+Ro short sea

mar'et* Interesting to see that the data for E+1D and E+/B are "er) !%ose to one another

&hi!h s#ggests that the ne& !o#ntries had a "er) %o& impa!t on the !argo $eing mo"ed in

this mar'et segment* Most of the !o#ntries !ases are se%f e-p%anator) $#t in the !ase of

the L it sho#%d $e high%ighted that the !o#ntr) is a gate&a) for !argo originated

fromdestined to Ire%and &hi!h ma'es #se of a sea+road transport s)stem tofrom

main%and E#rope*

Container short sea mar'et ran's in the fo#rth p%a!e and has presented a 1*DJ mar'et

share for $oth /G and /B (see endnotes 3/33* 7erman) Ita%) the Nether%ands and

Spain dominate the !ontainer short sea mar'et and this is high%) e-p%ained $) the

geographi!a% %o!ation* In the !ase of Ita%) the !o#ntr) is strategi!a%%) %o!ated in the

Mediterranean to the e-tent that di"ides it into t&o na"igationa% areas the Eastern Medand the estern Med and this !an "er) m#!h $e attri$#ted to the position of 7ioia Ta#ro

!ontainer termina% that ser"es a$o#t DD different Mediterranean ports* 7erman) is a

gate&a) to the a%ti! and to the CEECs* The fo#r !o#ntries hand%e 1D/*/ mi%%ion tonnes

&hi!h represents BG*/J of the mar'et* 4espite $eing in fo#rth p%a!e the mar'et for the

E+1D has &itnessed an J ann#a% a"erage gro&th rate (see endnote 3/* This e-p%ains

&h) the !ontainer short sea mar'et is reported to $e one of the most d)nami! mar'ets of

the shipping ind#str) $oth in feeder traffi! and intra+regiona% trade*

The n#m$er of !ontainers $eing mo"ed on an ann#a% $asis !an $e seen in Ta$%e 3* The

ann#a% a"erage gro&th rate is not pro"ided $) Amerini (/ $#t the data pro"ided

sho&s that the n#m$er of !ontainers did not in!reased !onsidera$%) after the en%argement

&hi!h s#ggests that &e%% strategi!a%%) %o!ated ports in the E+1D geographi!a% area &erea%read) responsi$%e for hand%ing !argo parti!#%ar%) destined to the Centra% Eastern

E#ropean Co#ntries* Moreo"er the n#m$er ofTEs reported empt) pro"ides empiri!a%

e"iden!e to s#stain the presen!e of #n$a%an!ed trades as sho&n in other st#dies !a#sed $)

densit) of pop#%ation separation of prod#!tion and !ons#mption mar'ets t)pe of goods

and a%ternati"e infrastr#!t#re*3D+3G 7erman) Spain the Nether%ands and the L great%)

!ontri$#te to this sit#ation d#e to their h#$+and+feeder stat#s and &hi!h !ontri$#tes to

in!rease the freight rates !harged to the fina% end #ser*

#able (% Containers !arried $) short sea shipping /+/G (in 1 TEs

/ /0 /D /G

E+1D 100G/* /31/*3 /10G*3 ////*3

E+/B /11*/ //BD1*B /3B*


10/39

Fina%%) Spain Ita%) the Nether%ands and the L are responsi$%e for the $iggest share of

other !argo tota%ising B/* mi%%ion tonnes or D*J of the mar'et*

A$so%#te trade "o%#mes !ontin#e to rise in E#rope* 7ro&th of trade patterns &i%%

!reate additiona% demand for SSS mo"ements and additiona% demand for feeder "esse%s*

The e-panding e!onomies of the Common&ea%th of Independent States (CIS !o#ntries

present f#rther opport#nities for the E#ropean SSS se!tor &hi!h !an on%) $e fostered

thro#gh the imp%ementation of stri!t en"ironmenta% !ontro%s to red#!e the amo#nt of emissions into the atmosphere* Ro+Ro and the !ontainer mar'et offer potentia% for moda%

shift as together the) a!!o#nt for /3*3J of the goods $eing mo"ed $) sea and $e!a#se

the mar'et is far from ha"ing rea!hed a mat#re state* In the !ase of !ontainerised !argo

the mar'et sho&s a ser"i!e gap sin!e shippers ha"e not $een offered the desira$%e ser"i!e

fre?#en!) the) !%aim sin!e the "o%#mes $eing mo"ed are ins#ffi!ient and that e-p%ains

&h) so man) !ontainers are $eing mo"ed $) road*

From a port perspe!ti"e Rotterdam a!!o#nts for the $iggest share of !argo hand%ed

thro#gh ports (B*0J to $e fo%%o&ed $) Ant&erp Marsei%%es Ham$#rg and >e Ha"re

most of them %o!ated in the >e Ha"re+Ham$#rg geographi!a% range* hat is interesting to

see in this o"era%% pi!t#re is that Rotterdam hand%ed more SSS !argo (10*0 mi%%ion

tonnes than deep sea !argo (1G*0 mi%%ion tonnes (see endnote 3/ &hi!h sho&s ho&

important Rotterdam is to the o"era%% E#ropean SSS mar'et*

2.3 The supply side of the European short sea shipping market

The high n#m$er of 5o#rne)s (of norma%%) %ess than fo#r da)s e*g* the ferries that p%) the

a%ti! Sea and the Eng%ish Channe% ma'es management and organisation !osts of SSS

!omparati"e%) high a%tho#gh the !ost str#!t#re is "er) different for feeder and intra+

regiona% mar'ets* In the first !ase !osts are main%) "esse% re%ated8 !apita% (or !harter

operating and "o)age !osts* O"erhead and administration !osts are re%ati"e%) sma%%*

Conse?#ent%) feeder !arriers re%) most%) #pon !hartered "esse%s (&ith the e-!eption of afe& Asian !arriers*3B In the se!ond !ase the !arrier in"o%"ed in intra+regiona% intermoda%

SSS &i%% $ear high !osts for hand%ing !argo and pro"iding %and transport* Administrati"e

o"erhead !osts &i%% a%so $e higher* 4espite these te!hni!a%ities the definition of &hat is a

short sea "esse% is a s#$5e!t of m#!h de$ate sin!e different a#thors present different

definitions*

Hooger$eets and Me%issen (13 state that the E#ropean SSS !an $e di"ided into

three main shipsD !ategories8 the traditiona% sing%e+de!' $#%' !arriers the !ontainer+

feeder "esse%s and the ferries*3 Cri%%e) and 4ean (13 report that "esse%s operating in

the SSS mar'et ha"e fre?#ent%) $een defined as sea+going !argo+!arr)ing ships that

transported $oth freight and passengers &ith a gross tonnage (7T %ess than D and

that ships &ith a 7T %ess than 1 non+prope%%ed "esse%s and har$o#r or I "esse%s&ere not part of the definition*3 Peeters et at. (1D !reated a sp%itting %ine $et&een

short sea and deep sea "esse%s* The a#thors !onsidered that the former !omprehend a%%

ships &hose dead&eight !apa!it) is %ess than or e?#a% to 1 dead&eight tonnes (d&t

&hi!h is e?#i"a%ent to an a"erage ship of a$o#t of a$o#t 7T (see endnote B*

Mar%o& et al. (1B pointed o#t that the SSS f%eet is norma%%) identifia$%e as a n#m+

$er of !arriers &ith simi%ar !hara!teristi!s (SSS is #s#a%%) performed $) "esse%s #p to a

!ertain sie and !on"erse%) "esse%s #p to a !ertain sie are #s#a%%) dep%o)ed in SSS*

E"en if these parameters are %i'e%) to !hange signifi!ant%) o"er time the) estimate that

SSS in!%#de tan'ers and $#%' !arriers #p to 13 7T andor / d&t, genera%


11/39

!argo and $rea' $#%' !arriers #p to 1 7T andor 1 d&t, and !om$ined

passenger!argo ships and Ro+Ro "esse%s $et&een 1 7T andor D d&t and 3

7T andor 1D d&t (see endnote 0* Stopford in 1B !onsidered SSS "esse%s to $e

&ithin the 0 to G d&t range against some a#thors that ta%' a$o#t 1 d&t (see

endnote *

Pai-Qo and Mar%o& (// identified fi"e t)pes of SSS "esse% !ategories (i*e* the tradi+

tiona% sing%e+de!' $#%' !arriers the ferries !ontainer feeder "esse%s a f%eet of $#%' !arriers and tan'ers and sea+ri"er ships often &ith retra!ta$%e &hee%ho#ses pro"ided and

indi"id#a% des!ription of ea!h of the "esse%s and in"estigated the differen!es $et&een >o+

>o and Ro+Ro operations (see endnote 1G*This !%assifi!ation &hi!h part%) agrees &ith

the one pro"ided $) Hooger$eets and Me%issen (13 is simi%ar to the one pro"ided $)

er%aat (/ (see endnote 3 *0 The differen!e $et&eener%aat and Pai-Qo and Mar%o&

is that the former !onsidered the f%eet of tan'ers dr) $#%' !arriers and traditiona% sing%e+

de!' $#%' !arriers often #sed in the !arriage of neo $#%' &ithin the same !ategor) of

!on"entiona% ships*

esides the traditiona% ships mentioned in the a$o"e paragraphs the short sea mar'et

has $een &itnessing a trend to&ards the introd#!tion of faster ships s#!h as &a"e pier!e

!atamarans air !#shion "ehi!%es h)drofoi% s#rfa!e effe!t ships and the sma%% &aterp%ane

area t&in h#%% (SATH* Their main pro$%em !on!erns their !ons#mption %e"e%s to

perform their designed ser"i!e speed, an) in!rease in their speed means an in!rease in the

!ost of $#n'ers a de!rease in their !argo !arr)ing !apa!it) meaning a re"en#e red#!tion*

The ?#estion to $e raised at this point is to as' shippers a$o#t their interest in ha"ing their

!argoes $eing mo"ed $) this t)pe of "esse%s* 4espite $eing a$%e to shorten !argo transit

times and pro"ide high ser"i!e %e"e%s ho& far the) are &i%%ing to pa) higher freight rates

&hen e!'er et al. (/0 re!ognised that the high speed "esse% mar'et offers potentia% to

!ompete &ith !ertain road transport mar'et segments*01

O"era%% short sea ships are norma%%) m#!h sma%%er than deep sea ones a%tho#gh there

is a trend to&ards an in!reased "esse% sie* Se"era% reasons e-p%ain &h) s#!h "esse%s aresma%%8 (i demand is norma%%) &ea' for SSS ro#tes, and (ii the high n#m$er of short

5o#rne)s re?#ires sma%%er ships in order not to spend too m#!h time in port !a%%s* The %a!'

of an #nam$ig#o#s definition to&ards the sie and t)pes of ships that &or' in the SSS

mar'et !a#ses additiona% pro$%ems &hen a#thors tr) to !hara!terise the f%eet operating in

this mar'et &hi!h ma) $e a reason &h) most st#dies on f%eet ana%)sis set the di"iding

%ine $et&een SSS and 4SS at 1 d&t or G 7T*

A!!ording to a >%o)d.s Register s#r"e) ?#oted in Peeters et al. (1D $) the end of

1/ the &or%d SSS f%eet amo#nted to G*DJ of the e-isting f%eet !orresponding to *GJ

in terms of 7T *J in terms of the tota% d&t !arr)ing !apa!it) &ith an a"erage sie

e?#a% to 131 7T From a E#ropean perspe!ti"e the same s#r"e) estimated that the

E#ropean SSS f%eet amo#nted to DB*3J of the e-isting E#ropean f%eet !orresponding toB*J in terms of 7T G*BJ in terms of the tota% d&t !arr)ing !apa!it) &ith an a"erage

sie e?#a% to 1GD0 7T The fig#res reported on ships &hi!h are s#pposed to $e emp%o)ed

in SSS sho& that on a &or%d&ide $asis there seems to $e a ?#ite !onstant share of ships

emp%o)ed in SSS as &e%% as in terms of 7T and d&t* The same s#r"e) sho&ed that

genera% !argo and %i?#id $#%' !arriers pre"ai% in the E SSS f%eet* Peeters et al. &ent on

sa)ing that the a"erage age of the &or%d SSS f%eet &as 1 )ears t&o )ears )o#nger than

the E#ropean one that amo#nted to / )ears (see endnote B*

The Co%ton Compan) (1B estimated that the E#ropean SSS f%eet &as made #p of

DGD #nits em$ra!ing D sea+ri"er ships often &ith a retra!ta$%e &hee% ho#se 0


12/39

!ontainerships ranging $et&een 1 and B TEs and /D Ro+Ro ships* Most pop#%ar

!ontainer ships mo"ed / TEs and the most pop#%ar sies of sea+ri"er ships presented

dead&eight !apa!ities $et&een 1D and // tonnes*0/ Ho&e"er the data pro"ided

presents t&o main pro$%ems sin!e the short sea dr) and %i?#id $#%' !arrier f%eet &as %eft

o#t of the !a%!#%ations and there is no referen!e to the )ear that the data re%ates to* The

Commission in its report on the imp%ementation of Co#n!i% Reg#%ation 3DBB/

presented data re%ati"e%) to the 1G and 1 SSS f%eet (see Ta$%e 0 and !onsidered for this p#rpose ships of %ess than 1 d&t*03

The data s#pp%ied $) the Commission does not dis!riminate the t)pe of ships $eing

!onsidered &hi!h pre"ents from ha"ing a rea% per!eption of the !omposition of the a!t#a%

f%eet* hat t)pe of ships predominate in ea!h gro#p of Mem$er States is #n'no&n and

e"en if the ratio of d&t to 7T &ere to $e #sed to identif) if the f%eet is main%) formed $)

passenger!argo ferr) and Ro+Ro (ratio of d&t to 7T $e%o& 1 or $) tan'ers and dr)

!argo "esse%s (ratio of d&t to 7T a$o"e 1 its o#t!ome &o#%d $e far from $eing a re%ia$%e

one* The data s#pp%ied $) the Commission a%so sho&s no e"iden!e that sea+ri"er ships

ha"e $een in!%#ded in the !a%!#%ations and so the n#m$er of ships !a%!#%ated for 1 are

&e%% $e%o& those estimated $) the Co%ton Compan) in 1B*

The on%) possi$%e !on!%#sion is that the SSS f%eet has in!reased in n#m$ers and in

dimension $#t "er) s%ight%)* The a"erage SSS "esse% sie in terms of 7T and d&t for 1G

&ere 0/GB and 0 respe!ti"e%) and that the fig#res for 1B amopnt to 0/ and

D10 respe!ti"e%)* ario#s st#dies on the SSS ha"e o$ser"ed a grad#a% in!rease in the

a"erage sie of the SSS "esse%* A!!ording to 4)namar ?#oted in Peeters et al. the SSS

"esse% a"erage sie in!reased from 10 d&t in 1B #p to / d&t in 1 and #p to

/0 d&t in 1 (see endnote B*

A!!ording to >%o)d.s Marine Inte%%igen!e nit (>MI ?#oted in i5no%st (/D the

/3 E#ropean SSS f%eet from a%ti! Sea to the %a!' Sea !omprehended 1 ships

$et&een D and 1 7T of &hi!h 3/D and /11 ships &ere o%der than /D and 3

)ears respe!ti"e%) and that a tota% of 30G shipo&ners operated in the E#ropean shortsea mar'et*00 Part of the /0 &or%d short sea f%eet !an $e seen in Ta$%e D sin!e "esse%s

operating on the SSS &ere aggregated in eight different !ategories rather than in ten as

sho&n in Ta$%e G* Smits %eft o#t the genera% !argo and ropa- f%eets &hi!h a!!ording to the

/B data represent a$o#t 0BJ of the &or%d short sea f%eet and a%% "esse%s $e%o& 1

d&t &hi!h are a$o#t 1 "esse%s0D and s#!h a sit#ation

#able )% E+1D short sea shipping f%eet (7T and d&t 1

1G 1

N#m$er 7T 4&t N#m$er 7T 4&t

Northern Mem$er States

/1 G 13/ /1 D/ 1130

So#thern Mem$er States

1/D/ D303 D1/ 10/ GDB GBB/

3/B 13D/ 1GD/ 3D1 1D 11/1


13/39

#able % /0 or%d short sea shipping f%eetesse% t)pe

N#m$er of

vessels

Tota%dead&eight

(d&t

A"eragedead&eight

(d&tTota% !argo

transported (tonnes

#%' f%eet /D/3 0//B101 1GBD0 D13BG1/DReefer f%eet 1/B 0/3/1 01// 1

Container f%eet 1D/ 1GG1/ 1DG 0D1//

Oi% tan'er f%eet 3DB 3DD1 /G/1B 1D33GB/

Prod#!t !hemi!a%f%eet

//G 13103D// DD 31/0

Ro+Ro f%eet 11D BGBBD G0/ /033G

>N7 f%eet 1D //D 1/10 0G1B

>P7 f%eet 0D 0B33 D/G 0/

Tota% D B0DD 111B 111B30Dource% Adapted from Smits (/B (see endnote 0D

#able +% /B or%d short sea shipping f%eet at the end of the )ear Vessel type

N#m$er of vessels

Totaldead&eight

(d&t

A"eragedeadweight

(d&t

Total cargotransported

(million tonnes)

7enera% !argo f%eet1GG1 BGDG/DD 0G1/

1B/

4r) $#%' f%eet B3GG 30B3DB3 D//31 /G3

Reefer f%eet 1/1B GD0/ D0// 1/

Container f%eet 0/D 13D1 /3BD 1/

Oi% tan'er f%eet /DD /33D 103G1 1D0

Prod#!t !hemi!a%f%eet

3G/G DGB/BB3 1DGG 03

Ro+Ro f%eet /3G 1GB3113G B DB

Ropa- f%eet /B/ 3030 100G

>N7 f%eet /0 1BBD/ GD0 B

>P7 f%eet 1 1/311 110 1D/

Tota% 010G G13/0 333GD 1G


14/39

es a distortion re%ati"e%) to the /3 data* Ne"erthe%ess if the per!entage sp%it pro"ided $) Peeters et al. (1D i

ied (i*e* the E+/B short sea f%eet amo#nts to 31*DJ of the &or%d short sea f%eet &hat !an $e said is that the E#ropea

t sea f%eet em$ra!es a$o#t 1GG "esse%s in!%#ding those &ith a dead&eight $e%o& 1 tonnes* Shipo&ners $ased i

man) the Nether%ands 7ree!e and Ita%) dominate the mar'et and !ontro% G/J of this short sea f%eet* 0G

a$%e D a%so pro"ides the a"erage dead&eight for the eight "esse% segments and &hat !an $e said is that short sea

e%s. sies ha"e in!reased for the past )ears &hi!h meet the findings rea!hed $) Mar%o& et al. in 1B (see endnote 0

added "a%#e of Ta$%e D rests on its a$i%it) to pro"ide more detai%ed information for the different t)pes of !argo $eing

ed $) sea rather than the statisti!s pro"ided $) the EROSTAT $#t pre"ents possi$%e !omparisons &ith the dat

ered $) other !ons#%tan!) ho#ses and or e"ent#a%%) EROSTAT*

he >%o)d.s Fairp%a) data of the &or%d&ide short sea f%eet ?#oted in >indstad (/ sho&s that at the end of /B th

d short sea f%eet in!%#des 1 "esse% !ategories and is m#!h more a!!#rate than the /0 data* 0B ith the ass#mptio

the E+/B short sea f%eet represents 31*DJ of the &or%d short sea f%eet it !an $e estimated that the E+/B short se

has a$o#t 13D #nits &hi!h means an a"erage )ear%) gro&th of B*GJ re%ati"e%) to /3 &here data ?#oted

i5no%st (/D &as pro"ided $) >MI* The a"erage sie of short sea "esse%s goes on in!reasing and against th

ngs of Corres and Psaraftis &ho estimated the a"erage sie of short sea "esse%s to $e aro#nd 11 d&t $) /B

0 the a"erage sie appears to $e &ithin the range of a$o"e 3 d&t m#!h at the e-pense of the tan'er f%eet sie

%o)ed in the SSS mar'et*he $iggest pro$%em of the E#ropean short sea f%eet is sti%% its age and the main !on!ern of an ageing short sea f%eet is

o%%#tant emissions &hi!h in / a!!o#nted for 3GJ of the tota% nitrogen o-ide (NO - and GJ of tota% greenho#s

sions* The pro$%em of an ageing short sea f%eet is not ne& sin!e it has a%read) $een mentioned $) "re$o in 1G (se

ote /D and more re!ent%) $) >o&r) in / &ho identified that the dr) $#%' short sea f%eet had an a"erage age of 31

s (see endnote 30* This s#ggests that a rene&a% s!heme is desira$%e for SSS to $e !ompetiti"e &ith road transport an

integrated into m#%timoda%intermoda% transport !hains* The a$sen!e of %egis%ati"e meas#res enfor!ing the rene&a% o

%eet has $een a negati"e inf%#en!e sin!e #nti% re!ent%) the d&t of most short sea "esse%s &as #nder D* Moreo"er

t sea operators do not possess s#ffi!ient f#nds*fo em$ar' on a short sea f%eet rene&a% programme the !osts of $#i%din

a%% ship are fo#r+and+a+ha%f times more per d&t and $an' !redit is "er) e-pensi"e (see endnote 0*

he res#%tant red#!ed profita$i%it) is therefore a serio#s strategi! !on!ern in !apita% intensi"e !ompanies p%anning fo

&th and the rene&a%s that ha"e ta'en p%a!e res#%t more often than not from the e-isting ri"a%r) $et&een shipo&nerating in this mar'et from port state !ontro% inspe!tions and the enfor!ement of important %egis%ation to prote!t th

ronment* Most fo!#s has $een gi"ing to the de"e%opment of effi!ient "esse%s ranging from 3 #p to 3 d&

e the SSS f%eet has $een more or %ess neg%e!ted* Ne"erthe%ess this trend has started to re"erse d#e to the n#mero#

ar!h and de"e%opment pro5e!ts $eing f#nded $) the E#ropean Commission in %ast )ears in the ?#est for more effi!ien

s s#!h as the CREATE3S ne& generation of short sea "esse%s0 the ENIS2S ship !on!eptD or generi! short sea "esse%

d on a !ommon p%atform and $#i%t in series as it happened in the past (see endnote 0*

0 i5no%st et al. had a%read) a!'no&%edged that SSS te!hno%og) and operations needed to $e !hanged $efore an

fi!ant moda% sp%it materia%ised*D1

he point is that ne& ships are needed to !ompete &ith road transport on !ost D speed f%e-i$i%it) re%ia$i%it) &itho#

ardising safet) and the en"ironment attra!ti"e sai%ing times maintained transit times and g#arantee of de%i"er)* T&aspe!ts that these ships m#st target are the red#!tion of the t#rnaro#nd time in port and the a$i%it) to de"e%op

moda% so%#tions that meet the needs of the entire %ogisti!s !hains* If signifi!ant red#!tions of /+/DJ are a!hie"ed i

s of !ost and %ead time a moda% shift is e-pe!ted to o!!#r (see endnote D an impro"ement re%ati"e%) to the 3DJ

!tion re?#ired to shift !argo from road to sea as s#ggested $) APAS in 1G* D/ nder the present en"ironment an

ng into a!!o#nt the moda% sp%it presented in Fig#re 1 an ana%)sis of SSS in a m#%timoda% s#pp%) !hain !onte-t ma'e

e in the E#ropean arena as !ompetition &ith %and transport is higher d#e to geographi!a% reasons and to th

parati"e%) high%) de"e%oped %and transport infrastr#!t#re*


15/39

3. S"ORT SE# S"I$$IN% IN # &UTI&OD# SU$$/ C"#IN

CONTE0T

Geographic and economic conditions for deeloping short sea shipping! a theoretical

frame"ork

time transport is norma%%) part of a transport !)!%e in"o%"ing other transport modes* The maritime %eg !an $e p%e- !)!%e &hen organised from a h#$+and+ spo'e perspe!ti"e in"o%"ing ships of different sie to attain e!onomies o

edensit) on some ro#tes* Sin!e the goa% is to attain the !heapest fastest and most re%ia$%e transport !onditions (i*e* t

mise the genera%ised !ost the demand for sea transport is re%ated to the genera%ised !ost of the &ho%e transport !)!%e

m a mi!roe!onomi! approa!h the #se of genera%ised !osts e-p%ain the #sers !hoi!e (i*e* pro"iding transport so%#tion

rod#!ers $#t the #se of tota% !osts (in!%#ding infrastr#!t#re and e-terna% !osts from a ma!roe!onomi! approa!

ain genera% #ti%it) ena$%ing a shift of "o%#mes from !ongestioned %and infrastr#!t#re to sea*

he proposed frame&or' !onsiders 5oint%) geographi! and e!onomi! !onditions in"o%"ed in the mode !hoi!e and

tifies the !riti!a% thresho%ds in %andsea distan!es and %andsea genera%ised !osts &hi!h determine SSS potentia

petiti"eness* It app%ies either to the !ase of a SSS intermoda% !hain !ompeting &ith %and transportation or to feede

i! for 4SS* The $oost of intermoda%it) o"er the %ast 3 )ears is d#e $oth to in!reasing $enefits and de!reasin

hipment !osts as8 (i the gro&th of &or%d trade a%%o&ed e!onomies of s!a%e not !on!ei"a$%e $efore a%so $e!a#s

#!tion f#n!tions are more !apita% intensi"e and in"o%"e re%e"ant fi-ed !osts, and (ii ne& hand%ing te!hni?#es red#!e

s times and ris's of transhipment* If SSS rep%a!es a part of a 5o#rne) other&ise performed $) a sing%e "ehi!%e the

tiona% moda% !hange imp%ies higher genera%ised !osts* Tota% time in!reases &hi%e re%ia$i%it) p#n!t#a%it) and safet) ar

ardised $) $ott%ene!'s !ongestion mista'es damages among others* These !osts are !ompensated $) sa"ings that th

rent modes"ehi!%es a%%o& in the different part of the 5o#rne) $e!a#se of !hanging !argo "o%#mes and e!onomies o

densit)* SSS is !hosen &hen the optimisation of modes"ehi!%es on the different


16/39

%egs generates $enefits higher than the additiona% transhipment !osts* In $oth 'e) areas

(feeder traffi! and intermoda% traffi! !ompeting &ith %and transport a simp%e !)!%e is

rep%a!ed $) a !omp%e- one* n%i'e SSS !apti"e mar'ets &here there is no #ser.s !hoi!e

and the goa% is to minimise genera%ised !osts of moda% !hange: SSS is !hosen on%) if it

a%%o&s genera%ised $enefits higher than the genera%ised !osts of additiona% transhipments*

Therefore the pro$%em #nder st#d) fits &ithin the approa!h a la Hoo"er D3 as it

a!!o#nts for different termina% and ha#%age !osts of the different modes &hi!h !a#se

different !osts per mi%e &hi!h e-p%ains &h) different modes ha"e a different !ompeti+

ti"eness for different distan!es and therefore different mar'ets and &h) at a E#ropean

%e"e% the different modes are !ompetiti"e in different distan!es*D0 hi%e road transport

has %o& termina% !osts $#t re%ati"e%) high %ine ha#% !osts sea transport has high (gen+

era%ised termina% !osts $#t !omparati"e%) %o&er transport !osts and rai% has intermediate

%e"e%s for $oth termina% and transport !osts* Sin!e termina% !osts do not "ar) &ith

distan!e road transport &i%% $e !heaper on shorter 5o#rne)s and sea transport on the

%onger ones* S#!h a frame&or' points o#t the !onditions for SSS !ompetiti"eness* The

paragraph that fo%%o&s !onsiders the !ase of SSS as a main %eg of an intra+regiona%

transport !hain !ompeting &ith %and transport* The approa!h is simi%ar if a feeder traffi!!ase &as $eing !onsidered*

In Fig#re / a 5o#rne) O4 is !onsidered &here in the !entra% %eg A, $oth road and sea

transport are a"ai%a$%e &hi%e on%) road transport is a"ai%a$%e in -A and ,. The f#n!tion

a sho&s tota% transport !ost if on%) road ha#%age is !hosen* The f#n!tion b sho&s the !ost

of transport #sing SSS in the !entra% %eg* hi%e moda% !hange !osts are added in A and in

a %o&er !ost is paid on the %eg A* SSS is then ad"antageo#s &hen A, is %ong eno#gh

to !ompensate higher termina% !osts*

n%ess O A/ , and are a%igned Fig#re / on%) a!!o#nts for e!onomi! !onditions

and not for geographi! !onditions &hen !ompetition is $eing !onsidered* To find o#t the

!om$ination of e!onomi! (transport and termina% !osts and geographi! "aria$%es (%and

and intermoda% distan!es &hi!h 5oint%) a!!o#nt for SSS !ompetiti"eness a %andtransport - $) mode m$ (e*g* road ha#%age and an a%ternati"e -A, $ased on mode m 0for -A and , and on SSS indi!ated as mode m' for A, m#st $e !ompared* Ports A and

, are not a%igned &ith O4*

If - is the maritime distan!e $et&een ports A and ,1 T the transhipment genera%ised

!ost in ports, tm^ tm' transport rates per mi%e of a gi"en !argo #nit, and C and S. termina%

!osts in - and 4, then tota% transport !osts are8

C 2 tm^ - 2 3$4

for road transport O4 and8

C tm$ 5 -A # tm' : A, # tm$ , (/

for intermoda% transport OA4* The !ompetiti"eness of the %atter is then gi"en $) (1

> (2):


17/39

Tota% !osts

s the differen!e $et&een road distan!e - and feeder road %egs -A and , of SSS transport the (3 !an $e &ritten as

tm6 ' # y > L 'X + - -

tml tml

ng the !om$ination of geographi! and e!onomi! !onditions for !ompetiti"eness of SSS as in Fig#re 3* Ea!h 5o#rne)

dentifies a set of 3x( y4 satisf)ing or not the !ondition (0 a!!ording to transhipment !osts and rates per mi%e of mode

nd m f O$"io#s%) the !ompetiti"eness in!reases $) red#!ing # or rm/ or $) in!reasing tmr A 'e) point is that if m

&s more re%e"ant e!onomies of s!a%e than m 7 as is norma%%) the !ase for short sea !ompared to road transport th

ease in traffi! f%o&s red#!es the s%ope of the (0 th#s in!reasing !ompetiti"eness of the former* This is 5#st a 5oin

esentation of geographi! and e!onomi! !onditions &hi!h ma'e "ia$%e a SSS+$ased a%ternati"e to %and transport* Th

oa!h a la Hoo"er a%%o&s finding o#t ea!h transport mode e!onomi! distan!e sin!e (i termina% and transport !ost

ht

&igure '% Tota% transport !osts8 a%%

road "s* SSS Tota% !osts

(0


18/39

rent%) in different modes, (ii !osts in different modes are a f#n!tion of !argoes and !argo #nits !hara!teristi!s, (iii!ing termina% !osts in ports %o&ers the thresho%d distan!e for SSS as it mo"es do&n&ards the (0, and (i" highe

ns to s!a%e in SSS !a#se a gro&th in traffi! to red#!e SSS thresho%d distan!e $) a rotation of (0*

h#s SSS e!onomi! !ompetiti"eness re%ies #pon the !ontemporaneo#s o!!#rren!e of fi"e !onditions &hi!h are8 (1

o "o%#mes in"o%"ed !a#se p#re transport !osts for sea transport %o&er than for road transport, (/ different origin

or destinations do not a%%o& to emp%o) the so%e maritime transport (sin!e !argo "o%#mes do not f#%fi% the !ondition

(3 distan!es in"o%"ed are %onger than the thresho%d distan!es for sea transport, (0 %o!ation of originsdestinations o

e shipments a%%o& the #nifi!ation of par!e%s on some %egs in order to satisf)

ition (1, and (D %o&er genera%ised !osts of #sing the $est transport mode on ea!h

re higher than additiona% genera%ised !osts deri"ing from transhipment* A!!ording to

d (1B for a !oasta% ser"i!e in the L to $e s#!!essf#% it &o#%d need to g#aranteethe !osts &ere !ompetiti"e goods de%i"er) times &ere maintained and the ser"i!e

re%ia$%e re%ati"e%) road transport a%one (see endnote 3D*

hen referred to SSS as feeder traffi! different ret#rns to s!a%e a!!o#nt for the h#$+

spo'e organisation* >imits to e!onomies of s!a%e are no& on the demand side and

easing ret#rns to s!a%e !an $e p#rs#ed on%) $) gro#ping !argoes on the main %eg*

#mes and !osts per mi%e $eing e?#a% the %ongest is the main %eg A the most

petiti"e is the h#$+and+spo'e so%#tion #sing SSS* Conditions (1 (/ and (D &i%% $e

referred to thresho%ds for ships of different sies* Condition (D &i%% refer to

hipment from SSS to 4SS*

As for !ompetition $et&een SSS and road transport for the feeder ser"i!e sin!e a

age feeder ser"i!e is norma%%) needed for the fina% part of the 5o#rne) the !ompari+s $et&een sa"ings a%%o&ed $) maritime feeder and !osts of an additiona% tranship+

t (from the feeder to the deep+sea ship that is8

37 f i 8 9 tm' 4 * -A 9 #: ; 34

&igure (% 7eographi! and e!onomi! !onditions for !ompetiti"eness of SSS

tm<

3

A

re8

t!aP

ir

!,

$si

fri

ti

Th(of s

fore

woi

pet

not

&it

stri

the

a!!

p#i

no:

pe%

me%i'

si!

!h

tin

ge,

thU

!h,«i

ge,an3

in,

re

of

or

hi


19/39

same !onditions app%) sin!e there are !om$ined effe!ts of e!onomi! distan!e sie of shipments and %o!ation o

nsdestinations*

his approa!h o#t%ines the !onditions that ma'e SSS !ompetiti"e e"en &hen not for!ed $) geographi!a% (or in th

t r#n infrastr#!t#ra% !onstraints* The same frame&or' app%ies to $oth main !#rrent strategi! areas of SSS8 a

moda% transport !ompeting &ith %and transport or a feeder traffi! !ompeting &ith roadrai% feeders* As a%read) noted

frame&or' a%%o&s $oth a mi!roe!onomi! and a ma!roe!onomi! approa!h &ith different imp%i!ations* In the former

t term genera%ised !ost (gi"en the infrastr#!t#re a!!o#nt for $eha"io#r of transport operators and !onse?#ent moda

In the %atter tota% dire!t and e-terna% %ong r#n !osts (in!%#ding infrastr#!t#re and energ) a!!o#nt for

roe!onomi! !omparison res#%ting in a !ost+$enefit assessment &hi!h p#rs#es a higher &e%fare*

n its mi!roe!onomi! approa!h the proposed frame&or' refers to genera%ised not to o#t+of+po!'et !osts* 7enera%ise

s !orrespond to prod#!tion !osts on%) in perfe!t !ompetition* In freight transport shippers happen not to de!id

port mode neither se%e!t the ro#te and m#%timoda% transport operators (MTOs are %i'e%) to !hoose modesro#te

rding to their !on"enien!e* Monopo%) or !o%%#sion $et&een pro"iders (e*g* d#e to horionta% and "erti!a% integratio

e s#pp%) !hain !an !a#se a s#$stit#tion $et&een time and !ost red#!ing !osts and in!reasing times &itho#t (or &ith

red#!tion of pri!es for shippers* The !ase for passenger transport is different sin!e #sers dire!t%) !hoose the mi- o

es $) !omparing the genera%ised !ost of ea!h so%#tion and their preferen!e &i%% th#s a!!o#nt for their !hoi!e* It i

a$%) no a!!ident that intermoda%it) is $are%) !hosen #n%ess for!ed $) geographi!a% !onstraints or $) h#ge sa"ings inetar) !osts or #n%ess other options are tota%%) !ongested or restri!ted*

n other &ords intermoda%it) a%%o&s in!reasing prod#!ti"it) $#t ma) !a#se a de!reasing ?#a%it) (for the !argo no

ssari%) for the "ehi!%e &ith higher time and %o&er re%ia$i%it) p#n!t#a%it) and safet)* If there is not a high %e"e% o

petition this trade off ma) en!ompass a transfer of !osts from the prod#!er to the !ons#mer* The mar'et organisatio

hen !r#!ia% for the $enefits to spread on the demand side a%%o&ing higher a!!essi$i%it) of regiona% mar'et

ia%isation of prod#!tion and !#m#%ati"e gro&th of regions in"o%"ed*

#actors influencing the competitieness of $$$

ording to S#$+se!tion 3*1 the more SSS &i%% $e !ompetiti"e the more s#$stantia% red#!tion in genera%ised port !osts i

ned, the %onger is the maritime %eg &ith respe!t to the tota% %ength of the 5o#rne), the higher is the ratio of y to x in (0igger are !argo "o%#mes, the higher is the ratio of %and transport genera%ised !osts to sea trans port ones*

esides these 'e) iss#es some additiona% remar's are &orth&hi%e* First the gro&ing importan!e of ports and thei

orman!eeffi!ien!) in"o%"es not on%) effi!ient moda% !hange and hand%ing $#t %ogisti! and distri$#tion f#n!tions

!es !on!erning n#m$er and %o!ation of ports and %ogisti! p%atforms on &hi!h the SSS net&or' &i%% hinge are strategi!

e the) p#rs#e the optima% trade off $et&een e!onomies of densit) p#shing for !on!entration of f%o&s &hi!h red#!e th

in (0, and minimisation of

feeders p#shing for dispersion of f%o&s &hi!h !a#se higher "a%#es of y and positi"e%) affe!ts (0* Case+$)+!as

!h for optima% e?#i%i$ri#m is a ma5or operationa% resear!h iss#e and a 'e) iss#e for SSS de"e%opment strategies* It i

$%e that "irt#a%%) a%% iss#es high%ighted + thresho%d distan!es demand "o%#mes and their origin destinations ret#rns t

e in !ompeting modes n#m$er and %o!ation of intermoda% nodes et!* + ha"e $een addressed so far in a %arge%)

iri!a% &a) fr#strating most of the potentia% of SSS* There has $een no strateg) at a%% and SSS nodes ha"e fo%%o&ed

e often than not strategies of $ig transport operators*

Another point imp%i!it in (0 is that imp%ementing SSS sho#%d not res#%t in fragmentation and !omp%i!ations of re%ation

een shippers and transport operators diffi!#%ties in organising and !ontro%%ing the %ogisti! !hain pro$%ems arising

m %ia$i%ities damages or %osses among other iss#es* This means that imp%ementing SSS re?#ires the integrate

agement of the entire SSS+$ased %ogisti! !hain* On one side the ris' is that e!onomies of s!a%es!ope re%ated to th

agement of the &ho%e %ogisti! !)!%e !an set re%e"ant $arriers to entr) iss#e of a%%ian!es and !o+operation strategies* O

other side if the !ontro% of the !hain is ta'en #p o#tside the maritime %in' this ma) s?#eee profita$i%it) and %imi

ationa% !ontro% of SSS operator &ho fa!es in a door+to+door !)!%e re%e"ant fi-ed !osts and does not en5o) an) spatia

e!tion of its mar'et th#s !o#p%ing high !ompetition and %o& profita$i%it)* Moreo"er $) operating on one %in' of th


20/39

n there is no inf%#en!e!ontro% o"er the ?#a%it) of the door+to+door ser"i!e and no !ontro% on 'e) fa!tors inf%#en!ing

emand, !omparison $et&een SSS and !ompeting modes re?#ires that the &ho%e !)!%es are !ompared*

he a$o"e mentioned fa!tors a%tho#gh not e-p%i!it%) mode%%ed in the proposed approa!h are %i'e%) to inf%#en!e deep%

ost e%ements of (0 &hi!h !an "ar) &ith high %e"e%s of #n!ertaint) not proportiona%%) to distan!e and !hange rapid%

time* In this !onte-t* Pai-Qo Casa!a and Mar%o& (/D in"estigated the ser"i!e attri$#tes re?#ired $) shippers &he

ing #se of m#%timoda% transport !hains !omprising a sea %eg* The a#thors fo#nd o#t eight dimensions &hi!h differe

the ones ad"o!ated in the se"era% po%i!) do!#ments of the Commission and &hi!h !omprised $) de!reasing order o

ortan!e (i !arrier.s %ogisti! net&or' design and speed, (ii !ost of door+to+door ser"i!e its re%ia$i%it)?#a%it), (iii th

er.s $eha"io#r d#ring sa%es and after+sa%es, (i" !arrier.s in"o%"ement in the for&arding ind#str), (" ser"i!

antee, ("i !arriers. !orporate image, ("ii !arriers. !ommer!ia%operationa% po%i!ies and their re%ationship &it

pers and fina%%) ("iii in"estment po%i!)*DD

Putting short sea shipping in operation! o%stacles and chaiienges

f#rther SSS de"e%opment &i%% ne!essari%) re%) #pon its possi$%e mi!roe!onomi! !ompetiti"eness (in terms o

ra%ised !osts more than #pon its ma!roe!onomi! desira$i%it)* 2et sin!e most resear!her and po%i!) ma'ers agree o

need of enhan!ing SSS it is #sef#% to res#me a !he!'%ist of main $enefits and !osts from the ma!roe!onomi! andi!a% "ie&point* Pai-Qo and Mar%o& (// ha"e %isted SSS strengths and &ea'nesses (see endnote 1G and a s#mmar

e $enefits offered $) SSS !an $e s#mmarised as fo%%o&s8 1

ow environmental costs: it generates much less emissions per tonne-kmm) caused by the average transport (average goods, average road and raadient, average energy split) in Europe than road and rail transport, asown in Table !


21/39

he other side the de"e%opment of SSS a%so $rings a$o#t some disad"antages s#!h as8

partia% in!rease of po%%#tion8 #n%i'e other emissions s#%ph#r dio-ide (S/ emissions are m#!h higher than in other

modes (see a$o"e,V partia% in!rease of a!!idents name%) &ith ma5or en"ironmenta% damages,

!ongestion in port nodes,

negati"e impa!t on other transport se!tors as &e%% as on the ind#str) of infrastr#!t#re !onstr#!tion and re%ated

se!tors,e %o& f%e-i$i%it) in ser"i!e times d#e to %arger #nit !apa!it) and !onse?#ent %o&er fre?#en!) of ser"i!e for an)

origindestination (O4 %in',

%o&er re%ia$i%it) of s!hed#%ed depart#re and arri"a% times (main%) d#e to &eather !onditions,

higher ris' of damages and %oss*

not s#re a 7riori that the !omparison $et&een !osts and $enefits is a%&a)s positi"e e"en if most po%i!) ma'er

ider !osts %arge%) e-!eeded $) $enefits sin!e to a$sor$ road traffi! a minim#m distan!e of 1D 'm is re?#ired*erthe%ess some points sho#%d $e high%ighted8

(1 As for en"ironmenta% effe!ts the $a%an!e is %i'e%) to $e positi"e sin!e S/ higher emissions !an $e red#!ed (se

$e%o&* Ne"erthe%ess no$od) !an e-trapo%ate this statement on a %ong term as no fore!asts on f#t#re %e"e%s o

po%%#ting emissions are high%) re%ia$%e name%) for %and transport &here a ma5or resear!h effort is $eing done t

attain prop#%sion s)stems en"ironmenta%%) friend%)*

(/ As for !ongestion of transport infrastr#!t#re the !ongestion of %and transport net&or' is !%ear%) more damagin

and %ess remedia$%e for the e!onom) as a &ho%e than the !ongestion of e-isting port nodes*

(3 nder the "ie&point of e!onomi! effe!ts name%) in tota% prod#!tion !osts of transport !%ear%) the %o&e

f%e-i$i%it) of %and transport !osts is rep%a!ed $) a %o&er f%e-i$i%it) in transit times and a %o&er p#n!t#a%it), ther

#able =% Po%%#ting emissions (grams for tonne+'m

Transport Energ) Car$on Nitrogen S#%ph#r Non+ 4#st:!ons#mption dio-ide o-ide dio-ide methane (mg

EC ('5t'm CO emissions emissions h)dro t'm

(gt'm NOx so" !ar$ons

(mgt'm (mgt'm NMHC

(mgt'm

Road traffi!: (W30+

0 t, E#ro 3

1/ B/ DD3 D0 1G

Rai% transport1

a"erage e%e!tri! 0DG 1 3/ G0 0 0Gtrain

a"erage diese% D3 3D D0 00 G/ 1Btrain

Air transport BG GDG 3/D3 G0 3 0G

ater&a)(#pstream

do&nstream

B/B03 0/ 3DG /0 0D1 /G1G

ource% Lnorr and L#tner (/DG

: for additiona% data see Ta$%e 1 in Lnorr and L#tner (/* $ased on the E+/B energ) sp%it*

: ,y dust is meant !total ex"aust 7articles from >e"icles and from energy 7roduction and 7ro>ision 3mainly 7o?er 7lants/ refineries/ sea trans7ort of 7rimary energy carriers4/com7osition% all 7article sies/ about ;B PM './ 6;B PM $; 3by mass466.


22/39

is a trade off $et&een ?#a%it) and !ost and the effe!ts on demand are %i'e%) to $e different for different segment

of the mar'et (as for t)pes of !argoes and !argo #nits d#e to different "a%#es of pri!e+e%asti!it) and time

e%asti!it)*

(0 As for ma!roe!onomi! Le)nesian impa!t the rep%a!ement of a demand in %and transport and infrastr#!t#r

!onstr#!tion &ith a demand in maritime transport ship)ards and port infrastr#!t#re !onstr#!tion needs to $

!aref#%%) in"estigated and ?#antified, )et it does not appear a reason to stop a possi$%e !hange if other&is

desira$%e*

n if !ase+$)+!ase assessments and s#r"e)s !an %ead to res#%ts sometimes different it seems a!!epta$%e that in

roe!onomi! "ision SSS sho#%d de"e%op f#rther and that po%i!ies aiming at imp%ementing it are !onse?#ent%) &e%

ded*

Possi%le policies for short sea shipping in a multimodal conte&t

e"io#s paragraphs sho&ed that some !onditions inf%#en!ing SSS are gi"en (on the geographi!a% side %and and se

n!es, as for demand the nat#re of !argoes and to some e-tent their "o%#mes most other e%ements inf%#en!in

petiti"eness of SSS !an $e !hanged thro#gh s#ita$%e po%i!ies* Ne"erthe%ess it m#st $e !%ear that &hat 5eopardises th

petiti"eness of SSS is the #nfair !ompetition p%a)ed $) %and transport name%) road ha#%age in terms of m#!h higheronmenta% !osts and m#!h higher p#$%i! finan!ing of infrastr#!t#re* Stri!t%) spea'ing e?#a%ising en"ironmenta% and

% e-terna%ities of a%% transport modes sho#%d $e the #%timate goa% of an) po%i!) aiming at a fair moda% sp%it (and no

%) at the gro&th of SSS &hi!h might &e%% $e not desira$%e* As a !onse?#en!e first $est po%i!ies for SSS do no

ern ne!essari%) SSS $#t sho#%d fo!#s on interna%ising ma5or e-terna% !osts of %and transport*

n the %ight of the a$o"e paragraphs and ta'ing into a!!o#nt the frame&or' o#t%ined a$o"e a n#m$er of a!tions &hi!

) to different areas !an $e identified* First%) ports are 'e) nodes for the effe!ti"eness of SSS sin!e ships. times in por

high and amo#nt to more than GJ of ships. tota% "o)age time and represents B to J of &ater$orne transpor

i!es tota% !ost or more than ha%f of maritime freight (see endnote /1* G A &e%%+defined port strateg) !an great%

en!e a moda% shift to&ards the #se of SSS* Instead of fo!#sing on%) on inter+port !ompetition ports sho#%d determin

SSS hinter%and %oo' at shippers. re?#irements in order to fa!i%itate short sea operators* The a!tions %isted $e%o& t

mote moda% shift sho#%d in!rease f%#idit) of transit in ports re%ia$i%it) and on time de%i"er) $) minimising ?#a%it)

ponents of genera%ised !ost*

e!ond !omparisons $et&een transport rates high%ight t&o areas &here positi"e a!tions !an $e dep%o)ed8 interna%isin

osts fo%%o&ing the #ser pa)s prin!ip%e or at %east e?#a%ise the %e"e% of e-terna% !osts* These a!tions in"o%"

str#!t#re t#rn to %and #sep%anning po%i!ies de"e%oped either for optimising transport performan!e or for reinfor!in

ohesion and e!onomi! pro-imit) of different regiona% e!onomies* Fina%%) po%i!ies !an in"o%"e the transport ind#str

pro"iders of transport ser"i!es $) ind#!ing !hanges $oth into the mar'et and te!hni!a%ind#stria% organisation and o

oes and shippers. organisation* Po%i!ies and a!tions appear to fa%% into se"en main strategi! areas name%) infrastr#!t#r

!ies %a& and reg#%ations !ommer!ia% a!tions organisationa% a!tions and po%i!ies pri!ing po%i!ies te!hno%ogi!a

ns and %ogisti!s strategies* The paragraphs that fo%%o& des!ri$e ea!h of these po%i!ies*

astructure 7olicies* Infrastr#!t#re po%i!ies address $oth p%anning!onstr#!tion and %o!ation of infrastr#!t#re tha

en!e SSS !ompetiti"eness* Main a!tions in!%#de8

impro"ement of ports to the needs of SSS name%) &idening spa!e for SSS traffi! (most present termina%s &o#%d $

inade?#ate if SSS attra!ted re%e"ant traffi! f%o&s modifi!ation of ports. %a)o#t and !reation of dedi!ate

termina%sareas, impro"ement of hand%ing p%ants in ports name%) thro#gh a f#rther diff#sion of !ontainerisation in SSS,

V enhan!ement of port a!!essi$i%it) and !onne!tions $et&een ports and %and net&or's (road and rai%, sin!

!ompetition $et&een road and rai% has $een estimated aro#nd 1B+/D 'mG1 !onne!tions &ith rai% net&or's ar

!r#!ia% for e-panding ports. mar'et areas,


23/39

I de"e%opment and promotion of a $etter $a%an!ed moda% sp%it $et&een %and transport and I &hos

integration &ith SSS is easier and more effi!ient than for %and transport,

V redesign port pro!ed#res to e%iminate a!ti"ities that !reate !osts, ma'e #se ofTMIS to !ontin#o#s%) monitor "esse% arri"a% in port and as s#!h introd#!e 5#st+in+time pro!ed#res to

impro"e port !apa!it) management*

and regulations. These aim at enhan!ing !ompetition to in!rease the effi!ien!) and attra!t f#rther in"estment and at e%iminating distortion

d $) e-!ess of reg#%ations for SSS and %a!' of en"ironmenta% reg#%ations (or of their enfor!ement on road transport* Main a!tions sho#%

de meas#res targeting at8

%i$era%ising a!!ess to mar'et name%) a$o%ishing f%ag reser"ations on domesti! traffi! in!%#ding the !on!ept of p#$%i! ser"i!e,e integrating $#rea#!rati! (!#stomsadministrati"e pro!ed#res in order to sim+ p%if)red#!e diffi!#%ties and times (th

MarNIS E resear!h pro5e!t o#tp#t !an $e a means to a!hie"e this end,

e?#a%ising e-terna% !osts,

integrating different !ontra!ts and %ia$i%ities,

reg#%ating port ser"i!es and their inp#ts th#s a%%o&ing a higher effi!ien!) of port operations*

mercial actions. The) see' to o"er!ome the per!eption of SSS as an o$so%ete not transparent and not s#ita$%e modansport for the present needs of prod#!tion and %ogisti!s &ith %o& f%e-i$i%it) re%ia$i%it) fre?#en!) and speed

s#res needed in!%#de8

restoring the image of SSS from that of an o%d+fashioned s%o& and !omp%e- transport mode to a modern e%emen

in the %ogisti! !hain !hara!terised $) high speed re%ia$i%it) f%e-i$i%it) reg#%arit) fre?#en!) and !argo safet),

!%ear%) sho& the differen!e $et&een SSS and other modes of transport in parti!#%ar%) road,

information aimed at restoring tr#st, %ogisti! operators and shipo&ners sho#%d fight for mar'et transparen!) and t

promote information on !onditions of s#pp%),G/

e spe!ifi! information on safet) (see a$o"e he%ping to promote a positi"e image,

V define and p#$%i!ise 'e) performan!e indi!ators*

anisational actions and 7olicies. These a!tions in"o%"e either the ind#stria% or the te!hni!a% organisation &ith th

ose of reorganising SSS+re%ated operators* S#!h a!tions sho#%d8

reorganise and a%%o& a $etter moda% integration to f#%fi% 5#st+in+time re?#irements and !ompensate the addition

$rea's of $#%', fre?#en!) and re%ia$i%it) of s!hed#%ed times are the 'e) iss#es &hi!h imp%ies the e-isten!e of /0

port ser"i!es and a $etter organisation of storagedistri$#tion areas,

stim#%ate !o+operation and !o%%a$oration of SSS operators as s#ggested $) Corres and Psaraftis (see endnote 0

stim#%ate !o+operation of SSS operators &ith shippers and for&arders to offer !omprehensi"e net&or's and door

to+ door ser"i!es at !ompetiti"e pri!es th#s integrating the strengths of different modes into seam%ess !#stomer

oriented ser"i!es* Either SSS operators need partners to !arr) o#t the %and %egs of intermoda% !hain or %an

operators m#st $e read) to #se SSS for a re%e"ant part of their 5o#rne)s at the e-pense of short sea operators %osin!ontro% o"er the mar'et* A good e-amp%e is the T#r'ish !ompan) N Ro+Ro that operates se"era% trade ro#te

$et&een T#r'e) and Ita%),

!on!entrate SSS f%o&s on a %imited n#m$er of ports in order to a!hie"e higher e!onomies of densit) and pro"id

more fre?#ent ser"i!es, possi$%) %o!ate them !%ose to ma5or metropo%itan areas in order to $e more !ompetiti"e i

de%i"er) times, the MoS !on!ept is an opport#nit) to a!hie"e this o$5e!ti"e so that a g#aranteed ser"i!e ?#a%it) an

fre?#en!) is o$tained,G promote spe!ia%isation of termina%s and a%%ian!es $et&een port operators,

promote !on!entration in the road ha#%age ind#str) to in!enti"e road+SSS intermoda% 5o#rne)s &hi!h are mor

!ompetiti"e for non+a!!ompanied trai%ers,


24/39

e promote standardisation of !argo #nits (e*g* Xe#ropa%%ets do not a%%o& a standard ISO% maritime !ontainer to $

fi%%ed &ith t&o ro&s of pa%%ets in order to red#!e !osts of moda% !hange in those trades &here these standardised

!argo #nits are possi$%e,

%o!ate "a%#e+added ser"i!es (AS in SSS ports to $etter integrate port f#n!tions &ith %ogisti!a% ser"i!es pro"ide

$) for&arders and MTOs*

ing 7olicies. Sin!e the ?#a%it) !omponent of genera%ised !ost is !omparati"e%) high SSS m#st $e !heaper in monetar

s*G3 Some possi$%e pri!e+$ased a!tions are8

!ompensating %o&er ?#a%it) (higher times for ships and !argoes $) %o&er pri!es, Pettersen Strandenes and Mar%o&

(/ s#ggest a t&o+parts port tariffs part%) re%ated to port sta) and &aiting time8 pri!es in"erse%) re%ated to

?#a%it) sho#%d enhan!e !ompetiti"eness of SSS and in!enti"e port operators to impro"e ?#a%it)G0,

pri!ing po%i!ies promoting fair !ompetition $et&een transport modes $)8 !harging for the !ost of $#i%din

infrastr#!t#re in a%% modes (the #ser pa)s prin!ip%e, harmonising finan!ing and pri!ing po%i!ies in different ports

interna%ising e-terna% !osts parti!#%ar%) in road ha#%age,

%o&ering port ta-es (&hi!h #n%i'e pri!ing for #sing infrastr#!t#re does not !orrespond to a rea% re!o"er) o

prod#!tion !ost indire!t%) to attain the same res#%ts*

nological actions. The age and the %o& spe!ia%isation of SSS ships are !onse?#en!es rather than !a#ses of %o&

ta$i%it)* Higher in"estments in ne& ships and RY4 and genera%%) in te!hno%ogi!a% ad"an!e are needed* Some #sef#

n !an $e8

de"e%opment of high speed ships to red#!e the gap &ith road in terms of time, e"en if !ompetition $et&een faste

and more e-pensi"e road ha#%age and a s%o&er and !heaper SSS re%) so%e%) on the "a%#e of time for the #ser,

ne& "esse%s and ad"an!ed f%e-i$%e ship designs to $etter integrate SSS (name%) &ith high speed ships &ithi

%ogisti! !hains,

harmonisation of standards for information and !omm#ni!ation te!hno%ogies (ICT and de"e%opment o

X!omm#nit) s)stems to red#!e !osts of information inp#t,harmonisation of standards !on!erning !argo #nits (see a$o"e to a!hie"e higher o!!#pan!) rates and high%) o

f#%%) a#tomated hand%ing te!hni?#es,

resear!h red#!ing po%%#ting emissions of ships %i'e S/ name%) $) %o&ering the s#%ph#r !ontent in $#n'er f#e% oi%

or e?#ipping the ships &ith e-ha#st gas !%eaning s)stems (see endnote /1*

stics strategies* The fo%%o&ing %ogisti!s strategies !an $e !onsidered to imp%ement SSS in a m#%timoda% !onte-t an

h meet the findings of Pai-Qo Casa!a and Mar%o& (/D8

adoption of a tota% ?#a%it)+management phi%osoph),e !onsider the transport !hain from an integrati"e perspe!ti"e,

!onsider freight+for&arding a !ore !ompeten!),

de"e%op partnerships and a%%ian!es to pro"ide door+to+door transport,

thin' a$o#t the importan!e of in%and !%earan!e depots and termina%s in order to !reate net&or's,+ ma'e #se of o#tso#r!ing and adopt a time+management strategies to !omp%) &ith shippers. re?#irements*GD

4. T'E EU()PEA* $')(T $EA $'+PP+*G P),+ /.1 European Union short sea

shipping policies

d in!reased moda% share and its !ontin#ed gro&th in freight (see Se!tion / is %eading E#ropean road transport s)stem

serio#s pro$%ems &ith regard to !ongestion and safet) and as a !onse?#en!e en"ironmenta% impa!t of road transport i


25/39

ing p#$%i! !on!ern* nder the gi"en !onditions the E has $een de"e%oping and s#pporting a more s#staina$%

port po%i!) from e!onomi! so!ia% and en"ironmenta% "ie&points*GG

A%tho#gh the Commission addressed the iss#e of SSS in 1D &hen proposing freedom in pro"iding maritime transpo

!es for !a$otage and intra+E trades the matter &as %eft $ehind #nti% 1/* The 1/ hite Paper re%eased $) the

mmission !onsidered that transport sho#%d adopt a ho%isti! approa!h rather than one $ased on the indi"id#a

a!teristi!s of the modes espe!ia%%) &hen road freight transport is e-pe!ted to gro& $) GJ #nti% /13* hat &as $ein

d &as the de"e%opment of !o%%a$orati"e attit#des $et&een the different transport modes so that ea!h one !omp%e

ted the other in s#!h a &a) that the effi!ient r#nning of transport ser"i!es &as $eing promoted* Thro#gh this a!tion

Commission &as tr)ing to promote the de"e%opment of m#%timoda% transport ser"i!es o"er the %ong distan!es in

osition to #nimoda% transport name%) road transport* Ho&e"er if these a!tions are not tr#thf#%%) s#pported $) a

rs and in the a$sen!e of ne& po%i!) meas#res gro&th &i%% $e !on!entrated on road transport for $oth goods and

engers* Road is the on%) mode !apa$%e of offering the tai%ored %ogisti!s needs of transport #sers and $e!a#se stri!te

ronmenta% r#%es regarding road transport are $eing imp%emented #p to /10 (the E#ro and E#ro I to red#!e the

a!t of road transport on the en"ironment*

he shift of goods from road to #nder#sed transport !apa!it) in parti!#%ar rai% SSS and I $e!ame one th

!ti"es of the E#ropean Common Transport Po%i!) (see endnote 1*The Commission o#t%ined f#t#re priorities $ase

he need to re!on!i%e the demand for mo$i%it) &ith the re?#irements of the en"ironment in %ine &ith the prin!ip%e oaina$%e mo$i%it)* This Comm#ni!ation e-amines SSS potentia% !ontri$#tion to the a!hie"ement of s#staina$%e mo$i%it)

!%#des a series of re!ommendations addressed to Mem$er States their regiona% and %o!a% a#thorities as &e%% as th

time ind#stries themse%"es* It a%so in!%#des ideas for a!tions &hi!h !an most appropriate%) $e #nderta'en at nion

%* It is intended to see' the po%iti!a% s#pport of the Co#n!i% for these re!ommendations* In &hat !on!erns th

a%isation of SSS the Commission em$ar'ed on a promotion programme*

n 1D the first !omm#ni!ation on SSS &as presented $) the Commission and it targets at $ringing SSS to an e?#a

ng &ith other modes of transport $) fo!#sing on three important areas8 (i impro"ing the ?#a%it) and effi!ien!) of SSS

!es, (ii impro"ing port infrastr#!t#re and port effi!ien!), and (iii preparing SSS for a &ider E#rope* Th

mm#ni!ation presented an a!tion programme em$ra!ing a !omprehensi"e %ist of meas#res to $e #nderta'en $) th

mission Mem$er States go"ernment %o!a%regiona% a#thorities port a#thorities and maritime ind#stries p%a)ers (se

ote /1* The reasons for enhan!ing SSS in the E are (i promoting the genera% s#staina$i%it) and safet) of transportro"iding an a%ternati"e to !ongested road transport a%so in order to rea!h COZ target #nder the L)oto Proto!o%, (ii

gthening the !ohesion of the !omm#nit) fa!i%itating !onne!tions $et&een Mem$er States and E#ropean regions an

a%ising periphera%s regions, and (iii in!reasing the effi!ien!) of transport in order to meet !#rrent and f#t#re demand

ng from e!onomi! gro&th*

A progress report from the Commission &as presented in 1B fo%%o&ing a Co#n!i% reso%#tion on SSS*This repor

&ed that impro"ements to SSS ro#ndta$%es sho#%d $e organised at a nationa% %e"e% &ith the parti!ipation of a%

ested sta'eho%ders so that the pe!#%iar pro$%ems that affe!t SSS !o#%d $e sorted o#t* GBThe 1 Comm#ni!ation o

e-amined its potentia% in the frame&or' of s#staina$%e and safe mo$i%it) its integration in E#ropean %ogisti! transpor

ns its image and e-isting $arriers to the de"e%opment of SSS* It re!ommends f#rther a!tion and identified three main

ons &h) SSS sho#%d $e promoted at a Comm#nit) %e"e%8 (i !o promote the genera% s#staina$i%it) of transport, (ii tngthen the !ohesion of the !omm#nit), and (iii to in!rease the effi!ien!) of transport in order to meet !#rrent and

re demands arising from e!onomi! gro&th* In this regard the Commission p#$%ished a %ist of f#rther a!tions (se

ote 13*

As an en"ironmenta%%) friend%ier a%ternati"e to road transport SSS m#st $e integrated into the %ogisti!s !hain its %in'

other modes m#st $e impro"ed and the ?#a%it) of ser"i!e m#st $e !%oser to the !#stomer.s needs* Port insta%%ation

%d $e organised in s#!h a &a) so that the) !an mat!h $etter the re?#irements of SSS* A!!ording to the Commission

s sho#%d integrate SSS into door+to+door ser"i!es, intermoda% %ogisti! !hains sho#%d $e !reated to attra!t !argo in th

term* The s#!!ess of SSS re%ies on the !ooperation and !oordination of a%% sta'eho%ders (i*e* p#$%i! a#thorities

ping operators ports for&arders freight !onso%idators and %ogisti!s !ompanies* A!tions to&ard


26/39

dardisationsimpiifi!ation in administrati"e pro!ed#res of Mem$er States are needed and ports are en!o#raged t

mote SSS &ithin their !ommer!ia% strategies*

n #ne 1 the Commission a!'no&%edged that SSS needed to $e!ome a tr#%) inter+ moda% door+to+door !on!ept, a

ntia% e%ement in its de"e%opment &as its integration in the E#ropean %ogisti! s#pp%) !hains to f#%fi% its #sers

irements and $e per!ei"ed &ith a ne& d)nami! image (see endnote 13* This se!ond t&o+)ear%) progress repor

r%ines that t#rnaro#nd de%a)s infrastr#!t#re !onstraints and non+transparent !harges are a re%e"ant pro$%em for SSS* I

s#ggests that (i ports sho#%d !onsider to set #p dedi!ated short sea termina%s in %arger ports and pro"iding othe

ia%ised ser"i!es to SSS, (ii the o$%igations in some ports to #se separate pi%ots !o#%d $e re+e-amined &here the ship.

er is !ertified to !arr) o#t the pi%otage on his o&n,

administrati"e pro!ed#res sho#%d $e standardised and simp%ified sin!e do!#me

Documents

ECONOMICS OF SHORT SEA SHIPPING