The ports as logistics platforms

insights from international experiences

Trends in Maritime Transportation• Volatility in the global economy reduces margins

– Larger vessels (>8000 TEU) – Slower sailing

• Intermodality exerts pressure on ports– Logistics managers becoming „mode agnostic“– Face modal substitutability (rail? air-cargo?)

• Concerns about negative impact on the environment– Greenhouse Gas Emissions (EU directives)

Trends in Maritime Transportation

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Adriatic North Sea Atlantic

Sailing Days: Hamburg - ShanghaiDeparture Arrival Carrier Sailing Days

11.09.2013 20.10.2013 Hapag-Lloyd 3911.09.2013 02.11.2013 Evergreen 5212.09.2013 15.10.2013 CMA CGM Group 3312.09.2013 15.10.2013 Delmas 3312.09.2013 19.10.2013 Evergreen 3712.09.2013 23.10.2013 Yang Ming Marine Transport Corp. 4112.09.2013 25.10.2013 United Arab Shipping Company 4312.09.2013 31.10.2013 Chipolbrok 4912.09.2013 06.11.2013 Rickmers Linie 5513.09.2013 19.10.2013 Hanjin Shipping 3613.09.2013 23.10.2013 Hapag-Lloyd 4013.09.2013 23.10.2013 Evergreen 4013.09.2013 23.10.2013 Hanjin Shipping 4014.09.2013 19.10.2013 K-Line 3514.09.2013 19.10.2013 Hanjin Shipping 3514.09.2013 19.10.2013 Yang Ming Marine Transport Corp. 3514.09.2013 19.10.2013 K-Line 3514.09.2013 31.10.2013 COSCO Container Lines Co., Ltd. 4714.09.2013 31.10.2013 United Arab Shipping Company 4714.09.2013 31.10.2013 Yang Ming Marine Transport Corp. 47

2010

2013

0 5 10 15 20 25 30 35 40 45

21

40

Average Duration(sailing days)

Trends in Maritime Transportation• Volatility in the global economy reduces margins

– Larger vessels (>8000 TEU) – Slower sailing

• Intermodality exerts pressure on ports– Logistics managers becoming „mode agnostic“– Face modal substitutability (rail? air-cargo?)

• Concerns about negative impact on the environment– MARPOL Annex VI – lower sulphur standards as from 2015

Substitution of Modes• DB Schenker

– freight train ride from Zhengzou to Hamburg

– 15 days for 10,000km

• DHL – Combining maritime with air-

cargo– 50% faster than maritime

shipping; 50% cheaper than air-cargo

Responses of maritime ports• Strategic Planning & Management

– Market & catchment area focus – Focus on cargo & commodity types– Focus on providing better service to the industry

• From maritime port to multimodal hub– Inland waterways (Antwerp, Rotterdam, Venice, …)– Railroad connections (Hamburg, Barcelona, …)– Extended Gateway Concepts

• Port Community Coordination– Interoperable Port Community Systems – Providing additional services (Performance Indicators)– Enhancing supply chain efficiency: NLIP

Strategic Planning & Management• Focus on cargo & commodity types

– Bremerhaven (Automotive exports/imports)– Atlantic range (Le Havre, Dunkirk, …) (Wind turbines)– Amsterdam (bulk cargo) vs. Rotterdam (containers)

• Regional markets & catchment area focus • Focus on providing better service to the industry

– Efforts to reduce turn-around time – Efforts to manage the business using performance indicators

Austria, a contested catchment area

0

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

16.000.000

18.000.000

2004 2005 2006 2007 2008 2009 2010 2011 2012

Export Import

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

2004 2005 2006 2007 2008 2009 2010 2011 2012

Rotterdam Antwerp Koper

Rijeka Hamburg Bremen

Reasons for selecting more expensive ports

0 10 20 30 40 50 60 70 80 90 100

Frequency & quality of services

Port Efficiency

Port Location

Risk of Delays in Other Ports

Hinterland Connection

Port Equipment

Customer Focus of Port

Freight Forwarders Shippers

A renewed focus on efficiency & service levels• DG MOVE initiative to develop port performance indicators

– Beyond monthly reports on cargo throughput – ESPO Port Performance Dashboard

• Mixed reception of performance benchmarks of terminals – Recent debate on the usefulness of productivity rankings comparing

ports around the world

• Efforts to reduce turn-around time and to improve productivity– Increasing the number of moves / hour – Impact on the performance of the door-to-door supply chain

Responses of maritime ports• Strategic Planning & Management

– Market & catchment area focus – Focus on cargo & commodity types– Focus on providing better service to the industry

• From maritime port to multimodal hub– Inland waterways – Railroad connections – Extended Gateway Concepts

• Port Community Coordination– Interoperable Port Community Systems – Providing additional services (Performance Indicators)– Enhancing supply chain efficiency: NLIP

Hinterland Railroad Connections• Response to road congestion & calls for a sustainable

transport system • Increasingly a market for independent carriers

– Baltic Rail, IMS, TX-Logistik, boxXpress, ….

• Regular and reliable train services to economic centers contribute to the attractivity of ports

Selection Criteria: Hinterland Connectivity • Hamburg

– 74 pairwise & quai specific block trains

• Rotterdam– Shuttle train connecting

Rotterdam - Wels – Bratislava– Rhein-Main-Danube inland

waterway connection

• Antwerp– Cooperation with Duisburg– Shuttle Connecting Vienna-

Duisburg-Antwerp (plan)– Rhein-Main-Danube inland

waterway connection

• Koper– Daily connection Koper – Graz– 2 trains per week Koper-

Vienna-Poland

Extended Gateway Concepts„port entry“ shifted to an inland location

• Separate area, zone offering logistics services– Stuffing, stripping, warehousing

• Response to congestion in ports– Expected increase in the wake of increased containerization

• Increase productivity & efficiency in ports

Responses of maritime ports• Strategic Planning & Management

– Market & catchment area focus – Focus on cargo & commodity types– Focus on providing better service to the industry

• Hinterland access – from maritime port to multimodal hub– Inland waterways (Antwerp, Rotterdam, Venice, …)– Railroad connections (Hamburg, Barcelona, …)– Extended Gateway Concepts

• Port Community coordination– Interoperable Port Community Systems – Providing additional services (Performance Indicators)– Enhancing supply chain efficiency: NLIP

Port Community SystemsInteroperability

• Coordination of a community via standards based communication– Optimizes, manages and automates logistics processes – Not only pertaining to maritime shipments but with a multimodal scope

• Single Windows … at national and European level– Increases operational efficiency of a trade

• Carrier strategies and port cooperation require interoperability of PCS

Providing additional services (Performance Indicators, Analytical Support)

Neutral Logistics Information Platform• Funding program to support

the development of ITS for synchro-modality

• All communication between companies & public authorities via NLIP by 2020

• DHL (LSPs), ECT, EVO, Havenbedrijf Rotterdam (HbR), KLM (air freight), Schiphol, VRC, TLN, Cargonaut, Portbase, Port of Amsterdam, Handling agents, Horticulture, Logius, Ministries

Summary: Quo Vadis European Port System?• Ports are transforming into comprehensive logistics platforms

– Considering supply chain requirements– Developing services and providing coordination

• Ports are living up to the challenges of the markets and are become more competitive

• EU will have to find a balance between oversight and equal access opportunities– Blue Belt Legislation – Framework on market access to port services …