Rationale for the development of high speed Ro-Ro services in

Western Europe

Competitiveness of high speed Ro-Ro

services compared to road haulage

Profitability of High Speed Crafts

(HSC-BGV)

HSC-BGV competitiveness : Speed Road Standard Ferry HSC-BGV

Kilometers per hour / kphHSC-BGV cargo ships have a service speed comparable to road haulage

Speed and distances

Distance

0

200

400

600

800

1000

1200

1400

1600

0 2 4 6 8 10 12 14 16 18 20

Hours

Kilo

met

ers

road

standard ferry

HSC-BGV

Speed and consequences (1)

• European transport quality standards are based on the respect of schedules and short transit time allowed by road transport

• Road haulage is organised to minimize transit time :– It is what the clients are asking for (« zero

stock » and « just in time » concepts)– It is the key to the profitability of road haulage

Speed and consequences (2)

• Most of the time standard Ro-Ro services ( as opposed to HSC-BGV) are not competitive with road transport in terms of quality standards :– Whether when competing head-on (Belgium/Spain)– Or in indirect competition (Tunisia / Romania)

CONSEQUENCES for standard Ro-Ros :• Difficulties in the start-up and sustainability of

Motorways of the SeaCOMMENTS for HSC-BGV :

• HSC-BGV cargo ships are very close to the desired service level

Can HSC-BGV effectively compete with road haulage ?

Even though HSC-BGV cargo ships deliver a good quality standard :

• Can HSC-BGV ships offer haulage costs (loading+unloading+fare) lower than the direct cost (sub-contracting) of road haulage ?

• Is this competitive edge stable or will it vanish in the future ?

Competitivenes in terms of prices and costs

Average European figures (on a distance basis) :

– Road transport price (to shippers): 1 € / km

– Road transport sub-contracting price

(direct haulage cost) : 0.65-0.85 € / km

– BGV haulage (fare+loading+unloading) : 0.55 to 0.67 € / km

(i.e. 1 to 1.2 € per nautical mile for mid distances depending upon traffic level and type of BGV cargo ship)

Review of unit costs

• (1) fuel :– Gas oil consumption of a refrigerated truck+trailer :

• Consumption : 36.7 l/100 km• Price of gas oil (net European average) : 0.89 €/lit• Cost for 100 km : 32.66 €

– Fuel consumption per trailer on HSC-BGV ship• Consumption per hour / per trailer : 67-78 kilos• Price of HFO 380 : 230 € / ton• Speed : 59 kph• Cost per trailer for 100 km : 26.10 – 30.51 €

Review of unit costs

• (2) cost of labour :– Truck driver (basis : French Convention)

• Salary + social charges : 3,139.91 €• Number of hours worked per year : 2,115• Number of drivers per truck : 1.081• Cost of one work hour : 19.26 €• Cost for 100 km : 27.55 €

– BGV Crew (basis : French Convention)• Crew cost for one work hour : 182.54 €• Crew cost for one hour per trailer : 1.94 € - 1.04 €• Cost for 100 km : 3.28 € - 1.76 €

Review of basic unit costs

• (3) cost of vehicle for the haulage of one trailer :

– Truck :• Cost : 68,500.00 €• Years of use : 6.1• Interest rate : 6%• Depreciation + financial charges : 13,739.60 € /year• Days in use : 231.9 / year• Cost per day : 59.25 €

– HSC-BGV cargo ship :• Cost : 65 –

92,000,000 €• Years of use : 25• Interest rate : 6%• Depreciation + financial charges /trailer : 42,026.00 – 32,184.00 €• Days in use : 300• Cost per day : 107.28 € - 140.09 €

Trends in favor of HSC-BGV

1 2 3 4 5 6 7 8 9 10 11 12 13

HSC-BGVRoad transport

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

100,00

Cost elements1 = fuel / 2 = tyres / 3 = maintenance / 4 = tlls / 5 = salaries and charges

6 = trip expenses / 7 = insurance / 8 = taxes / 9 = cost of truck / 10 = trailer / 11 = operations management

Road / HSC-BGV comparison

HSC-BGV

Roadtransport

Benefits for transport safety (1)

• inherent to all Ro-Ro services (as opposed to 100% road transport)

– Less time on roads means less accidents for drivers and for the general public

– Possibility to use smaller ports and by-pass congested areas

– Economic consequences : • Lower infrastructure costs• Losses and insurance

Benefits for transport safety (2)

• Specific to HSC-BGV cargo ships:– Separation of cargo and passengers will improve

passenger safety and security– Reasonable speed (less than current passenger

vessels – catamarans)– Credible alternative on week-ends and holidays for

refrigerated transport– European crews– Highest standards for crew training and management– HSC safety standards for ships– Modern navigational equipment