International Journal for Trac and Engineering, 2012, 2(4): 380 – 390 DOI: hp://dx.doi.org/10.7708/ije.2012.2(4).08 UDC: 614.84:656.1.08 DEVELOPMENT OF INTERMODAL TRANSPORT AND LOGISTICS IN

Snežana Tadić1, Slobodan Zečević2 1, 2 University of , Faculty of Transport and Trac Engineering, Vojvode Stepe 305, 11000 Belgrade, Serbia Received 18 September 2012; accepted 23 October 2012

Abstract: Freight transport and logistics play a key role in economic and social terms by ensuring the competitiveness, economic growth and employment. Intermodal transport has received an increased ažention due to problems of road congestion, environmental concerns and tra’c safety. Strategic importance of speed, reliability and ¶exibility in the supply chain is forcing companies to re-examine traditional logistics services. As a result, interest in addressing the problem of intermodal transport and logistics is growing. In order to improve e’ciency and sustainability of freight , the European Commission has launched a series of initiatives, projects and has dened the basic directions of development of intermodal transport and logistics. e paper presents the recommendations and measures for the further development of intermodal transport and logistics in Serbia.

Keywords: logistics, intermodal transport, logistics centers, network, development.

1. Introduction the sustainability of freight transport and logistics is the promotion of intermodality Economic activity depends on the e’ciency and encourage wider and more e±ective use of logistics systems and processes along the of ICT (Information and Communication supply chain. In the Action Plan for Freight Technology) in freight transport (EC, 2007a; Transport Logistics (EC, 2007c), logistics EC, 2007b). is dened as ‘the oil in the EU’s economic machine’. It is estimated that the share of the Globalization and the trend of increasing logistics industry in Europe is nearly 14% global trade and container transport encourage of GDP. In the past few years, the logistics the growth of intermodal transport. Excluding industry had growth rates above the average disruptions to trade ¶ows that have occurred of European economies (EC, 2009b). 2008th and 2009th as a result of the global economic crisis, there has been signicant e most visible and environmentally most growth in container ¶ows. e total annual damaging part of the logistics is freight growth of container ¶ows (in TEU) is about transport. Sustainability must become a key 10% in the period since 1997 by 2007 year. feature of freight transport and the European This growth is the logical consequence of Union should devise policies that will facilitate increasing goods flows and processes of this. The current EU approach towards globalization.

1 Corresponding author: [email protected]

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Trend of the rst decade of the 21st century the region. Nevertheless, in Serbia and the was to strengthen the traditionally strong region there are many disadvantages related intermodal connections, but also to the to logistics and transport network, which expansion of intermodal transport in the represent limitation for the application of countries of Eastern Europe. The main intermodal transport technologies. measures for the development of intermodal transport in these countries are highlighted: e adoption and establishment of logistics modernization and development of intermodal center in Belgrade is a signicant initiative infrastructure; innovative technologies; of development of intermodal transport and establishment of modern logistics centers. logistics in Serbia and the region. However, for their successful development it is necessary The project “Facilitating Intermodal to adopt and implement a series of priority Transport in Serbia” was the support of the and general recommendations and measures. European Union for the long-term sustainable development of the logistics and intermodal 2.1. The Priority Recommendations and transport in Serbia. e result of this project Measures is a comprehensive feasibility study for the establishment of the logistics center in Belgrade. e priority recommendations and measures (EC, 2011) However, the logistics center in for the development of logistics and Belgrade should be seen as part of a network intermodal transportation in Serbia include: of terminals and logistics centers, whose development requires the implementation • Establishment of logistic Association of of specific measures and initiatives. The Serbia and its inclusion in the work of paper provides guidelines for e’cient and international associations. long-term development of the logistics and • Reorganization and intensication of the intermodal transport in Serbia. e network of National Society for intermodal transport. the logistics centers and intermodal terminals • Initiative for the formation of associations is an essential element of sustainable and long- for logistics and intermodal transport on term development. major corridors, transportation routes that connect Serbia with ports and commercial 2. Recommendations and Measures for and transportation centers in the region. the Development of Intermodal Transport • Intensification of work of promotional and Logistics centre for the intermodal transport. • Determination of micro location, structure In order to develop a logistics and intermodal and planning documents for the network of transportation system it is necessary to logistics centers and intermodal transport establish and develop the intermodal transport terminals in Serbia. network with logistics centers, which • Preparation of materials for the promotion represent a modern connection of di±erent and adoption of the concept of logistics modes and technologies of transportation. and intermodal transportation (materials Logistics, multimodal transportation network directed on the government, customers, has been largely developed in Europe. ere stakeholders and potential investors). are terminals with a developed infrastructure • Organization of conferences, seminars and of maritime, rail, river and road transport in promotion of the thematic areas of the

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proposed concept of the logistics of Serbia development of a network of logistics centers, (logistics network, intermodal transport intermodal terminals, the development of price chains, logistics partnership, etc.). competitiveness of certain modes of transport and • Defining the curriculum for training transport technology, research and monitoring of in logistics and intermodal transport - commodity ¶ows, the development of technical education with practice. and technological solutions, development of • Forming an information centre for logistics cooperation and coordination in the transport, and intermodal transportation. adopting and application of legislation, • Denition of scal and regulatory policy as establishment of national associations and bodies, a stimulus for the development of logistics provision of the nancial measures and support, etc. and intermodal transportation. • Formation of the Logistics Commižee with Development of a network of logistics centers, members, representatives of public and terminals: private sector as the main advisory body to the Government of Serbia. e Commižee • Dene the concept of a network of logistics would be responsible for the promotion and centers and intermodal transport terminal in improvement of logistics and intermodal Serbia in terms of their location, structure, transportation. functions and status (international, regional, • Preparation of legal and institutional national or local); framework for multimodal transport • Build and complete the network of operators. intermodal transport terminals; • Promotion of the intermodal transport • Ensure the implementation and system. harmonization of standards adopted at • Establishment of an integrator of international level, according to an agreed multimodal transport as transport integrator development plan of multimodal European that promotes, develops, and manages transport network; supply chains. • Ensure that the various national, regional • Formation of project groups for the and local plans include the development of E-Logistics (IT infrastructure), H-Logistics intermodal terminals and logistics centers, (human resources and education), as indispensable links in trade ¶ows and I-Logistics (logistics infrastructure), logistics chains; L-Logistics (legislation), M-Logistics • Provide benefits when investing in the (marketing and promotion), S-Logistics terminals, observing the rules on state (support for small and medium enterprises support and competition; - SMEs), ECO-Logistics (ecology and • Finance focus on eliminating “božlenecks” sustainable development) and C-Logistics in the transport and logistics networks; (city logistics). • Allocate public resources directly or indirectly in infrastructure to improve 2.2. The General Recommendations and access to terminals and improve equipment Measures for handling, storage and processing of intermodal cargo units (ITU); General recommendations and measures for • Affirm and continuously improve the the development of logistics and intermodal implementation of intermodal transport transportation in Serbia are related to the technologies;

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• Apply benchmarking intermodal terminals the condition of non-discrimination, and define a set of static and dynamic harmonization and simplification of indicators of terminals with the aim of legislation and administrative procedures comparing, dening recommendations and in this form of transportation; establishing codes of best practice. • Promotion of intermodal transport technologies and specific intermodal Development of the competitiveness price/costs of transport chains; transport: • Support the development of information centers such as already established in some • Establish fair conditions for the market European countries, regions and ports; competition between different modes • Support the creation of a comprehensive of transport (especially through the information centre for combined internalization of external costs), and transport in order to ensure equal access provide the transparency of conditions to information to all interested users. competitiveness and cooperation within each form of transport; Development of technical and technological solutions: • Encourage the development of cheaper and more e’cient connection of the di±erent • Take measures to improve the quality of modes of transport. logistics services through the use of modern technical and technological solutions Research and monitoring of commodity ows: transhipment, storage and transportation; • Equip terminals with adequate infrastructure • Systematic explore real market needs and and equipment for handling of intermodal, requirements for technologies of intermodal logistics units; transport; • Support research, design and optimization • Continuously monitor and investigate in all parts of the logistics chain, either characteristics of existing and potential related to logistics, intermodal transport cargo ¶ows between the certain markets unit (ITU), the terminal or information and regions; systems; • Take measures for the availability of clear • Ensure the compatibility of individual and reliable statistical data; links in the multi-modal transport chain, • Regularly and as accurately as possible, with the aim to dimension the ¶eet to stay record and monitor the “bottlenecks” compatible with the infrastructure and that may endanger the development of intermodal transport units, regardless of intermodal transport; the innovation; • Take steps to ensure that all modes of • Implement the standards for cargo units, transport have the same treatment in the means of transport, transshipment and combined transport market, by favoring, storage equipment; rst of all, a bežer network connecting and • Apply modern telematic systems and at the same time developing new markets, information technology on the complete particularly the introduction of competition logistics chain; between carriers; • In order to improve the performance of • Continue the policy of liberalization of logistics and intermodal chains and systems, access to European transport routes under and in consultation with stakeholders, to

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define a set of indicators to measure and intermodal transport units in the eld of monitor (such as sustainability, e’ciency, international road transport; etc.). e formation of a unied database • Liberalize the international combined promoted the transition to more e’cient transport, at least on a reciprocal basis, and cleaner transport modes and generally transport to the initial and nal phase of improved the logistic, intermodal road vehicles; performance. • Support all e±orts towards the reduction, standardization and simplification of Development of cooperation and coordination in documents required for the regulation of logistics and transport: combined transport; • Improve regulations to carry out customs • Develop the various cooperative procedures and controls at the border relationships and partnerships between and at places of loading and unloading rail, road, maritime and river transportation (including veterinary and phyto-sanitary and also between other participants in the control) in order to accelerate the operation logistics chain; of combined transport and achieve shorter • Define and develop measures of delivery time. Create reliable schedule of coordination work of individual modes combined transport; of transport, logistics centers and other • Rigorously apply existing regulations in important participants in the logistics chain; road transport, particularly regulations • Develop the cooperative relationships with concerning driving and rest period of a companies and customers; driver, speed limits, weight and dimensions • Dene logistics strategy for the industry, of vehicles, increase their control and apply within which are included: the identication appropriate penalties, to ensure greater road of opportunities, methodologies and safety and fair competition in and between tools to implement logistics strategies and di±erent modes of transport; technologies of the intermodal transport in • Bring set of measures that will reduce the the eld of logistic ¶ows (supply logistics, burden on road transport network. production logistics, distribution logistics and reverse logistics). This strategic Establishment and work of national associations concept, because of specifics, should be and bodies: defined for particular industries in the gravitational area of the intermodal network • Intensify the National Society for in Serbia, i.e.: agro-industry, energy, intermodal transport, which will create manufacturing materials, chemical industry, a healthy institutional framework and pharmaceutical industry, metal processing conditions for the development and industry, etc. promotion of specic intermodal transport technologies; Adoption and implementation of legislation: • Establish a national association for logistics; • Establish a national association of logistics • Define procedures and harmonize centers and initiate inclusion in European legislation, standards and documents in association; the multimodal transport chain; • Intensify the cooperation of scientic and • Consider the possibility of priority professional institutions with business

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systems through planning, implementation Given that the proposed priority and general and development of logistics strategies and measures are initial activities in the promotion intermodal transport technology; of logistics and intermodal transport in Serbia, • Develop cooperation with other national in subsequent proceedings, with a greater and international institutions and degree of the detail should be processed certain organizations relevant to the development topics and make action plans. of intermodal transport; • Strengthen cooperation, both nationally and In cooperation with users and providers of internationally, related to the coordination logistics services, relevant ministries and state of environmental policy, land use and institutions should identify specic obstacles, transport policies. problems and božlenecks that hamper the implementation of logistics activities and Providing nancial measures and support: intermodal transport technologies. On the other hand, they should dene the relevant • Facilitate, through nancial and / or scal performance indicators and measures, as well support, the initial purchase of transport as techniques to collect and update them for equipment such as fleet and intermodal statistical purposes. transport unit; • Bring tax policy and define stimulating e prerequisite for successful implementation measures for the purchase of assets that and development of intermodal transportation will be used in intermodal transport (cargo involves a change of behavior of all participants units, vehicles, manipulative and related involved in the logistics chain. Many actors equipment); in the field of logistics and intermodal • Define and adopt economic stimulus transportation lack professional sta±. Expert measures for the introduction and operation Commission, in cooperation with relevant of intermodal transport chains; stakeholders, should prepare a list of minimum • Approve funding for certain operating costs, qualifications and training programs at and the rst phase of new combined transport di±erent levels of specialization and to issue services, taking into account the current acknowledged certicates. conditions and competition rules (until the implementation of cost internalization on 3. The Network of Logistics Centers and transportation costs and taxes); Intermodal Transport Terminals • Provide assistance in case of measures to improve e’ciency and quality of combined Measures, solutions and priorities of development transport services; of logistics and intermodal transportation in the • Approve partial or total exemption from economic system of Serbia are linked to increasing taxes, tolls and fees for the use of road market competitiveness of the economy and infrastructure for vehicles engaged in the infrastructure and logistics networks and centers. combined transport operations, particularly in the initial and nal stages of transport In order to increase market competitiveness, that is carried by road vehicles; it is necessary to develop methodologies and • Ažract private capital, which is, in any case, tools to implement logistics strategies in the needed for development of logistics and eld of logistics ¶ows (supply, production, combined transport. distribution and return of materials and

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materials for recycling). It is necessary to justies the application of environment friendly form a database of the logistic performance modes of transport (rail, river). On the other of the logistics chains and logistics systems. hand, tendency of business with small stocks, On the other hand, the state should stimulate small and more frequent deliveries require and support the introduction and operation development of intermodal logistics centers, of intermodal transport chains with certain as place of combination and synchronization economic measures. However, more intensive costly, but fast and ¶exible road transport and and rational use of intermodal transport transport modes, which are cheap, but slow technology involves the development of the and in¶exible. In this sense, some of the basic network of logistics centers and intermodal aims of the network of logistics centers and transport terminal. In this regard, in addition to intermodal terminals are: (Zečević, 2006) the terminal, which is the subject of this project and is a signicant initiative and economic • Rational and cost-e±ective investment in development of the transport system of transport infrastructure for all modes of Serbia, it is necessary to look at opportunities, transport; requirements for development and justication • Optimal reallocation of labor between of some other terminals, logistics centers and di±erent transport modes; the formation of networks. • Regulation of transport supply and demand through the coordination of the overall Here it is especially important to note that transport market in the state and region; market analysis conducted in this project has • Reduction and rational use of energy shown the existence of potential flows for resources; the implementation of intermodal transport • Bežer use of transport means and systems technologies in the regions of Serbia, that do through a coordinated issuance dispositions not gravitate greatly to a terminal in Belgrade. for the long and short distances transport; In addition to the potential of commodity • Expansion of markets for providers of flows, there is interest of certain business transport and logistics services with greater entities for the development of terminals and cost-e±ectiveness; logistic centers. In order of e±ective and long- • Development of modern intermodal term development of intermodal transport transport technologies by establishing and the creation of networks, it is necessary economic, technological and organizational to do more research and dene the optimum co-operative links between all participants location of terminals and logistics centers. in the transport chain; • Unburdening of urban areas from the heavy 3.1. The Objectives of Development road transit and reducing urban tra’c with of a Network of Logistics Centers and enhanced servicing and supplying urban areas; Intermodal Transport Terminals • Consolidation of ¶ows and the development of city logistics concepts; Development of a network of logistics centers • Reduction of the negative impacts on the and intermodal transport terminals provides environment (air pollution, noise, etc.); the ability to reduce logistics costs and improve • Reduction of the time of distribution and the quality of logistics services. Summing goods transportation; and transport flows in terminals, logistics • Reduction of capital tied up in logistics centers, has achieved the economies scale that systems;

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• Reduction of the total cost of distribution Based on previous research and market analysis and logistics and their share in total costs that was performed in the project “Facilitating of product which increases competitiveness Intermodal Transport in Serbia”, the three of products on the market; scenarios are proposed for the development of • Reduction of the total investments in a network of logistics centers and intermodal logistics systems using concentration and terminals in Serbia. e scenarios are dened cooperation; to support the development of the network in • Reduction of the risk of investment in phases. e rst scenario involves development logistics systems; of core network, with a minimum number • Possibility of giving a complete and complex of terminals, whose primary function is logistics services; involvement in regional, European intermodal • Development of the stock market models transport system. The following scenarios for the adjustment of supply and demand; represent expansion of the core network, rst in • Bid a variety of “value added” services; the corridor, and then to the whole economic • Create preconditions for technological territory of Serbia. quality inclusion in the international transport system, etc. Scenario 1: Involves development of two or three bimodal or multimodal terminals. ese 3.2. Development Scenarios of the terminals would be the places of concentration Network of Logistics Centers of all intermodal ¶ows in Serbia. Certainly, the scenario primarily involves orientation Key issues in intermodal transport are related of the terminal on the corridors X and VII, to: the number of terminals (one or more and potential sites are in the larger economic terminals), the macro terminal location relative centers (Belgrade, Niš and ). e to the national transportation and economic main advantage of this scenario is rationally space, micro location relative to urban areas, investment in a smaller number of locations commercial and industrial complexes and and concentration on the strong tra’c ¶ows transport infrastructure, or modality (unimodal, and infrastructure. Lack of scenarios is the bimodal, multimodal). loss of potential intermodal ¶ows from the other Serbian regions and economic centers, e network of logistics centers and intermodal primarily South-Western Serbia. transport terminal in Serbia is dened multiple times in the past, but partial approach to solving Scenario 2: is scenario could be called a the problem did not allow the achievement of scenario Corridor. It includes development of specic e±ects and benets provided by these four to six intermodal terminals at corridors systems. Many places, cities in Serbia were VII and X (Fig. 1). The advantage of this designated as potential sites for development of scenario is the concentration of ¶ows in the logistics centers. Some locations have reached terminals located on the corridors. However, a certain level of physical development of the in this scenario there is a possibility of loss terminal. Some sites have had the planning of intermodal ¶ows from and to economic documentations, and some have neither centers that are not on the corridor. the physical nor the planning elements of development (Vidović et al., 2011; Zečević Scenario 3: This scenario involves et al., 2004). development of the optimal number of

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Fig. 1. Fig. 2. Scenario Corridor Scenario Network intermodal terminals and larger number interest of the economic system, should support of the logistics centers throughout the the development of logistic centers that should territory of Serbia and could be called be included in the network. a scenario Network (Fig. 2). Locations for development of logistics centers and Development of logistics centers in any region intermodal transport terminals should be of Serbia supports economic development sought in all major business centers in Serbia. of the region. Network scenario is a scenario e main advantage of this scenario is the of regional development of Serbia and it coverage of the entire territory of Serbia with should be encouraged because it supports a choice of the optimal number of terminals the economic development of cities. and cargo flows that justify construction of the terminal. Of course, all terminals Number and location of logistics centers and would not have the same structure, but in intermodal transport terminals is the subject accordance with the requirements should research, which need to be implemented be trained for the efficient handling of with the analysis of commodity flows and intermodal cargo units. feasibility study for each potential site. A project should review the real ¶ows, to dene Each of the proposed scenarios has its own potential structure of the logistics centre or advantages and disadvantages, and the optimal intermodal terminal, dene micro location and solution of the network is the combination connectivity to the transport infrastructure of the proposed scenarios. In the rst phase, of certain types of transport and show the terminals should be developed on the strongest economic justification of development of transport routes and, in accordance with the terminal, logistics centre at a specic location.

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4. Conclusion References

Trends and experiences clearly show the need, European Commission. 2007a. Freight Transport Logistics importance, objectives, directions, measures Action Plan. Brussels, COM(2007) 607 nal. and solutions of development of logistics and intermodal transport. In developed countries, European Commission. 2007b. e EU’s eight transport logistics and intermodal transport have long agenda: Boosting the eciency, integration and sustainability of been the main factors of economic development, eight transport in Europe. Brussels, COM(2007) 606 nal. spatial connectivity and market integration. Inclusion of Serbia into the European transport European Commission. 2007c. An Action Plan for Freight and logistics system, international goods and Transport Logistics. Brussels. transport flows is not possible without the use of intermodal technologies. Project and European Commission. 2009a. A Sustainable Future for Transport: development of intermodal terminal in Belgrade Towards an Integrated, Technology-led and Useriendly System. is very important initiator of the development Publications O’ce of the European Union, Luxembourg. of the entire economic system in Serbia. In this regard, it is necessary to take a series of measures European Commission. 2009b. EU Energy and Transport in and recommendations that support the further Figures – Statistical Pocketbook 2009. Brussels. development of logistics and intermodal transport technologies. European Commission. 2011. Facilitating Intermodal Transport in Serbia. EU funded project under the frame e e±ective development concept of logistics of the IPA 2008 national program for Serbia. Belgrade. and intermodal transport requires the formation of a special research team consisting of the leading Federal Ministry of Transport, Building and Urban A±airs. experts from science and practice and relevant 2008. Freight Transport and Logistics Masterplan. Berlin. providers and users of logistics services. is team should propose specific measures and Federal Ministry of Transport, Building and Urban dene solutions and priorities in the process Development. 2010. Freight Transport and Logistics Action of development of logistics and intermodal Plan – Logistics Initiative for Germany. Berlin. transportation i.e. the network of logistics centers and intermodal transport terminals. Vidović, M.; Zečević, S.; Kilibarda, M.; Vlajić, J.; Bjelić, N.; Tadić, S. 2011. e p-hub Model with Hub-catchment Areas, Except the plan of network development, it is Existing Hubs, and Simulation: A Case Study of Serbian necessary to develop a benchmarking system Intermodal Terminals, Networks and Spatial Economics. DOI: for intermodal terminals and logistics centers. A 10.1007/s11067-009-9126-7, 11(2): 295-314. set of static and dynamic indicators of terminals operations should be dened with the aim of Zečević, S. 2006. Robni terminali i robno-transportni centri. comparing, defining recommendations and University of Belgrade, Faculty of Transport and Tra’c establishing codes of best practice. In fact, Engineering, (in Serbian). measures and actions referred in this paper are designed to help long-term e’cacy and growth Zečević, S.; Kilibarda, M.; Tadić, S. 2004. City logistika of intermodal transport and logistics in Serbia. i robno transportni centri Beograda, Tehnika – Saobraćaj, e Serbian government and relevant ministries 51(3): 215-222, (in Serbian). have to participate and help these processes.

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RAZVOJ INTERMODALNOG TRANSPORTA I LOGISTIKE U SRBIJI Snežana Tadić, Slobodan Zečević

Rezime: Teretni transport i logistika igraju ključnu ulogu u ekonomskom i socijalnom smislu obezbeđujuć i konkurentnost, ekonomski rast i zapošljavanje. Intermodalni transport je dobio veću pažnju zbog problema zagušenja drumskih saobraćajnica, zaštite životne sredine i bezbednosti saobraćaja. Strateški značaj brzine, pouzdanosti i ¶eksibilnosti u lancu snabdevanja primorava rme da preispitaju tradicionalne logističke usluge. Kao posledica toga, interesovanje za istraživanje problema intermodalnog transporta i logistike raste. U cilju poboljšanja ekasnosti i održivosti teretnog transporta na području Evrope, Evropska komisija je pokrenula niz inicijativa, projekata, i denisala osnovne smernice razvoja intermodalnog transporta i logistike. U ovom radu dat je prikaz preporuka i mera u cilju razvoja intermodalnog transporta i logistike u Srbiji.

Ključne reči: logistika, intermodalni transport, logistički centar, mreža, razvoj.

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