Seminar on Atlantic Action PlanSMEs

experience on European projectsalong the Atlantic Arc

Liverpool, June 2014

The Company

Bases Portuarias is a technological based company focused in Business Intelligence applied to the maritime sector and specialized in port flows and freight traffic, taking in account all phases of port business:

1. The consolidation and acquisition of new import and export traffics2. The acquisition of transshipment traffics

Providing the necessary answers; from a simple question such as What behavior have a traffic had in the past? Up to Which will be the volume for the next 20 years? Which position is adequate in relation to their possible future behavior? Can we invest? Who are the customers to contact? What added value can we offer to them?

SMEs Requirements & key Factors (I)

The potential traffic flows in the 5 countries integrated in the European Atlantic Arc would be 9 million tons and would perform logistic capacity to implement SSS services for more than 8,000 SMEs. According with the data obtained from 50 big logistic groups interviews in Spain, new SSS services develop between ports in the AA would be a success:

• North Spain to North France/Benelux• North Spain to Ireland & UK• Portugal to Ireland & UK

Creation of new SSS network between ports in AA would offered to SMEs great competitiveness advantages in logistics and supply chain cost. Cost value is the key factor for SMEs to study Maritime mode as an alternative.

SMEs Requirements & key Factors (II)

SMEs in Atlantic Arc usually tend to outsource all logistic procedures to forwarders or logistic operators looking for a complete service - it is special settle for Intra-European flows-.

For this reason any action plan for an implementation of SSS service would always look for forwarders or logistic operators instead of SMEs shippers.

SSS operations in Atlantic Arc would be seen as a Multimodal service with Road transport from the different countries integrated with Maritime links. Then all implementations are welcome͵ especially accompanied Ro-Ro services.

Cooperation between ports͵ ship owners/agents͵ and road hauliers is a basic stone to guarantee efficiency͵ profitability and competitiveness for developing new SMEs business.

Logistics Operators: key Factors (I)

The majority of road transport operators have a positive consideration of the use of SSS and 5% of them are already using these services. Road haulers consider the cost and the reduction of transit times as the main advantages that intermodality and SSS may offer, new business opportunities are also regarded, and the increase of services to customers; other advantages declared, although to a lesser extend are environmental improvement, reduction in equipment investment and safety of those equipments.

To guarantee these advantages, the road hauler or logistic operator does not want to loose the SME as customer and wants to offer SSS services by themselves, to avoid that loosing customers if these services were offered by a third party.

Logistics Operators: key Factors (II)

Requirements expressed by road haulers to use SSS intermodality services:

1. Infrastructures:

A. Terminals it is remarked as essential a proper level of security, as well as a enough area for lorries and drivers and temperature controlled area.

B. Management of goods: areas for handling of goods, warehousing systems, management of customs warehouse.

C. Platforms, cranes and forklifts: the rental availability of this equipment would support the use of SSS.

Logistics Operators: key Factors (III)

2. Services:

A. The most demanded and valuated services by the polled companies are those directly linked to the vehicle and driver (parking, rest areas, etc)

B. Groupage and consolidation / deconsolidation of freight are the most demanded services in relation with transportation. The existence of specialized operators in the Ports would ease the use of SSS.

C. Tracking of goods, service that is becoming more and more demanded in recent times due to the implementation of new technologies.

D. Administrative simplification and documentary advising related to intra-European traffics, customs, taxes, safety, etc.

E. Quick solution of incidents as key factor for success.

Logistics Operators: key Factors (IV)

3. New lines and routes:

A. The majority of operators consider the importance of routes towards the North of Europe, with linking services that would improve their competitiveness.

B. In relation with the connections that might start up continuity, reliability and frequency are regarded as fundamental premises.

C. Road haulers demand a single point of contact with the Port (one stop shop), that can solve their problems without going through several spokesman.

Logistics Operators: key Factors (V)

Other considerations:

• The lack of resources to provide complementary services, in terms of intermodal transportation, is one of the main barriers for the development of these services. The majority of the sample does not have enough financial capacity, neither human resources or a proper business plan, although business opportunities may exist to offer new services.

• The availability of a single point of contact with the Port (one stop shop) is considered as a relevant factor to ease intermodal operational. This point that will allow the solution of all transportation problems and that will provide personalized attention, both for the haulers and shippers.

• This business manager might provide a relevant role in different services: Management of connections towards other routes, exchange with operators in third countries to develop business opportunities, groupaje of freight, tracking services, etc…

• In this sense, a possible business opportunity that should be object of study is the creation of a private entity (a consortium for example) which manages the relations with the operators on the national territory and the detection of business opportunities in third countries for the members of the consortium, as well as guarantee the transport operational of them.

Atlantic Arc Trade Connectivity

Connections corridor to ports

Proposed corridors

Atlantic Arc Trade Corridors

MOS Gijon-Nantes

MOS Ireland-Iberia

7

Cork

MOS UK-Iberia

8

Communications

LEÓN

VENTA DE BAÑOS

VALLADOLID

BURGOS

MADRID

173

307

348

391

596

APPROX DISTANCE IN KILOMETRES. From Gijón to:

Hinterland by rail Hinterland by road

Logistic Activities Zone (ZALIA I)

A-8

A-66

A-8

Railway

ZALIA I(North Iberia Platform)

Port of Gijón

Logistics Operator Zone (ZALIA I)Service to be developed:• Supply chain auditing. • Central purchasing agency.• Control & Cargo Security procedures.• Temperature controlled area.• Multimodal one stop shop. • E-commerce, cargo tracking.• Shuttle rail service to/from Port Terminals.

Seminar on Atlantic Action PlanSMEs

experience on European projectsalong the Atlantic Arc

Liverpool, June 2014

Thanks a lot,

Mr. Adriano CadrechaMaritime Independent Advisoracadrecha@basesportuarias.com