Ministero delle Infrastrutture e dei Trasporti
RINA Services S.p.A TLS Europe S.r.l. Gruppo CLAS S.r.l. 30 November 2010 WEST MED MOTORWAYS OF THE SEA MASTER PLAN
Co-financed by the European Commission Directorate-General for Mobility and Transport (DG MOVE)
SUMMARY 1 INTRODUCTION ...... 8 1.1 Objective and approach followed to develop the study ...... 8 2 METHODOLOGY...... 10 2.1 Analysis on transport demand (Italy) ...... 10 2.1.1 Flows between Italy and Spain...... 10 2.1.2 Flows between Italy and France...... 12 2.1.3 Import/Export trade analysis between Italy and Malta...... 13 2.1.4 Flows with countries on the Mediterranean’s South Coastlines ...... 14 2.1.5 Flows in Transit...... 15 2.2 Analysis on transport demand (France) ...... 17 2.2.1 Potential traffic identified in the study area...... 17 2.2.2 It is also necessary to understand the structure of goods flows...... 19 2.3 Analysis on transport demand (Spain) ...... 20 2.3.1 Spain – Italy Transport Demand...... 20 2.3.2 Spain France Transport Demand...... 21 2.3.3 Spain – Malta Transport Demand ...... 23 2.4 Analysis on transport demand (Malta) ...... 24 3 MOTORWAYS OF THE SEA REQUISITES ...... 25 3.1 Historical evolution of the concept of MoS and future trends ...... 26 3.1.1 Evolution of the concept and minimum requirements that characterise the MoS...... 26 3.1.2 Other requisites coming from the development of the MoS concept...... 26 3.1.3 Future Trends...... 27 3.2 EU Commission projects for the developments of MoS ...... 29 3.3 Intervention actions and levels for the development of the MoS ...... 29 3.4 The context of the MoS ...... 30 4 MOTORWAYS OF THE SEA LINES IN THE WESTERN MEDITERRANEAN...... 33 4.1 MoS lines from and to Italian ports analysis ...... 33 4.2 Analysis of lines from/to Spanish ports ...... 42 4.3 Analysis of lines from/to Maltese ports ...... 45 5 IDENTIFYING PORT CLUSTERS...... 46 5.1 Identifying Italian port clusters ...... 46 5.2 Possible Spanish port clusters ...... 48 5.3 Possible French port clusters ...... 49 5.4 Possible Maltese port cluster ...... 49 6 PROPOSALS RECEIVED IN RESPONSE TO THE CALL FOR PROPOSALS ...... 50 7 IDENTIFIED CORRIDORS...... 53 7.1 Corridor IA ...... 54 7.2 Corridor IB ...... 56 7.3 Corridor II ...... 58 7.4 Corridor III ...... 60 7.5 Overview of the four identified corridors ...... 62 7.6 MoS Hubs Potential (Malta study) ...... 63
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7.6.1 Traffic Flows on Cluster basis ...... 63 7.6.2 Demand forecast results ...... 66 7.6.3 Comparative cost analysis ...... 69 8 DEVELOPMENT SCENARIOS TO 2020 ...... 71 8.1 Characterisation of scenarios ...... 71 8.2 Forecasts for rolling RORO-ROPAX traffic at 2020 ...... 72 8.3 Analysis of scenarios at 2020 ...... 75 8.3.1 Corridor IA...... 76 8.3.2 Corridor IB...... 77 8.3.3 Corridor II ...... 78 8.3.4 Corridor III ...... 79 8.3.5 Summary Observations on 2020 Scenarios...... 80 9 CONNECTION WITH PAN EUROPEAN INITIATIVES...... 82 10 INVESTMENT REQUISITES FOR THE MOTORWAYS OF THE SEA ...... 83 10.1 EU funds for the Trans-European networks ...... 83 10.2 The European Investment Bank’s role in allocating funds ...... 84 10.3 Project financing ...... 85 10.4 Public Private Partnerships ...... 87 10.4.1 Public and private investment in port infrastructures...... 87 10.5 The role of private investors ...... 89 10.6 The drivers of the forms of public private partnerships ...... 90 10.7 The situation in Italy ...... 93 10.8 The situation in Spain ...... 95 10.9 The situation in France ...... 102 10.10 The situation in Malta ...... 104 11 ACTIONS SUPPORTING THE MOTORWAYS OF THE SEA ...... 106 11.1 Support for the demand to provide incentives for modal shift: The Ecobonus; the Italian experience 106 11.2 Support for the demand to provide incentives for modal shift: Ecobonus; the Spanish proposal ...... 113 11.3 Support for the demand to provide incentives for modal shift: Ecobonus; the Maltese proposal ...... 117 11.4 Contributions to shipping companies for developing new routes: Marco Polo II programme, Italian analysis ...... 118 11.4.1 The Italian analysis ...... 118 11.4.2 The French Analysis ...... 119 11.5 Flanking measures and supporting actions (Malta) ...... 123 12 RECOMMENDATIONS...... 125 12.1 General Recommendations ...... 125 12.2 Proposals by project partners ...... 126 12.2.1 France...... 126 12.2.2 Malta ...... 127 12.2.3 Spain...... 128 12.2.4 Italy ...... 128 12.3 Short-term action plan ...... 129 13 ANNEX I...... 132
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List of Figures Figure 1 – Representation of approach used for development of study ...... 9 Figure 2 – Italy-Spain volume trends ...... 10 Figure 3 – Italy-Spain commercial trade that could use the MoS (data in value referring to 2009) ...... 11 Figure 4 – Italy-France commercial trade that could use the MoS (data in value referring to 2009) ...... 13 Figure 6 – Italy-Malta commercial trade that could use the MoS (data in value referring to 2009) ...... 14 Figure 7 - Analysis of potential MoS traffic in the Western Mediterranean ...... 17 Figure 8 - Evaluation of traffic - Strait of Gibraltar...... 18 Figure 9 - Calculation method of potential maximum, e.g. Sète Genoa ...... 18 Figure 10 - Italy to Spain flows by Region (% in weight) ...... 21 Figure 11 - Spain to Italy flows by transport mode ...... 21 Figure 12 - Spain - France flows by Region (% in weight) ...... 21 Figure 13 - Spain - France flows by Transport Mode ...... 21 Figure 14 - Spain - Malta flows by type of goods (% in weight) ...... 23 Figure 15 - Malta - Spain flows by type of goods (% in weight) ...... 23 Figure 16 - Maltese export, share by Country ...... 24 Figure 17 - Maltese import, share by Country ...... 24 Figure 18 - Factors that characterise the MoS requisites ...... 27 Figure 19 - The European Commission Agenda ...... 31 Figure 20 - EU Maritime Initiative: e-Maritime components ...... 31 Figure 21 - Volumes of rolling RORO-ROPAX traffic by region (in %) ...... 38 Figure 22 - RORO and Container traffic volumes by Region (in millions of tonnes, filtered scenario) ...... 39 Figure 23 - Number of vehicles arriving/departing by Region ...... 39 Figure 24 - Lines, departures and volumes of rolling loads (number of HGVs) – division by Region ...... 40 Figure 25 - Analysis of line and departures by area of destination and lines by type of ship ...... 40 Figure 26 - Line operators, type of services ...... 41 Figure 27 - SSS Spain-Italy connections at the Mediterranean Sea ...... 42 Figure 28 - SSS Spain-France connections at the Mediterranean Sea ...... 43 Figure 29 - Mediterranean Ports analyzed ...... 43 Figure 30 - Representation of potential port clusters ...... 47 Figure 31 - Malta, Spain, France Sea fronts definition ...... 49 Figure 32 - Routes individuated with in the West Med Corridors Call for proposals ...... 52 Figure 33 - West MED MOS Corridor IA ...... 54 Figure 34 - Loads transported in the West MED MOS Corridor IA ...... 55 Figure 35 - West MED MOS Corridor IB ...... 56 Figure 36 - Main existing lines and load flows transported along the West MED MOS Corridor IB ...... 57 Figure 37 - West MED MOS Corridor II ...... 58 Figure 38 - Main existing lines and load flows transported along the West MED MOS Corridor III ...... 59 Figure 39 - West MED MOS Corridor III ...... 60 Figure 40 - Main existing lines and load flows transported along the West MED MOS Corridor III ...... 61 Figure 41 - Lines and departures per corridor ...... 62 Figure 42 - Hypothesis of feeder services operated from / to the Malta “ MoS Hub” ...... 65
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Figure 43 - Overview of Potential MoS routes ...... 67 Figure 44 - Yearly level of services (frequency) by MoS routes ...... 68 Figure 45 - Malta links correlated to the West Med MoS Corridors IA and III areas ...... 68 Figure 46 - Route Spain – Turkey (via Trieste) ...... 70 Figure 47 - Route Spain – Turkey (via Malta) ...... 70 Figure 48 - Historical trend of rolling traffic in Italian West Med ports (2001-2009) ...... 73 Figure 49 - Increase in departures by corridor ...... 76 Figure 50 - Increase in vehicles in Corridor I A to 2020, basic scenario and high scenario ...... 76 Figure 51 - Increase in vehicles in Corridor I B to 2020, basic scenario and high scenario ...... 77 Figure 52 - Increase in vehicles in Corridor II to 2020, basic scenario and high scenario ...... 78 Figure 53 - Increase in vehicles in Corridor III to 2020, basic scenario and high scenario ...... 79 Figure 54 - Scenario at 2020 MoS Network and West Med Mos Corridors ...... 81 Figure 55 - Corridors identified in the East Med MoS that can be integrated with the corridors identified in West Med Corridors ...... 82 Figure 56 - Ecobonus, shares of national and communitarian routes 2007 ...... 111 Figure 57 - Ecobonus, shares of national and communitarian routes 2008 ...... 111 Figure 58 - Tendency scenario Spain-Italy RoRo traffic evolution ...... 113 Figure 58 B - Ecobonus scenario vs. Tendency………………………………………………………………………………….. 113 Figure 59 - Spain Ecobonus scenario vs.Tendency scenario (tons) ...... 114 Figure 60 - Spain Ecobonus scenario 2013 (tons) ...... 115 Figure 61 - Spain Ecobonus scenario 2020 (tons) ...... 115 Figure 62 - Spain Ecobonus scenario 2030 (tons) ...... 116 Figure 63 - Marco Polo II Programme, martime lines ...... 121 Figure 64 - Marco Polo II Programme, maritime lines 2004-2007 ...... 122
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List of Tables Table 1 – Reference Model, Key Performance Indicators (KPI) ...... 28 Table 2 – European Commission communications and initiatives ...... 32 Table 3 – Mos links between Italian ports ...... 35 Table 4 – Mos links between Italy and Spain ...... 36 Table 5 – Mos links between Italy and France ...... 36 Table 6 – Mos links between Italy and Malta ...... 36 Table 7 – MoS links between Italy and southern Mediterranean Countries (central - west side) ...... 37 Table 8 – Mos links between Italy and other countries – long circular services ...... 37 Table 9 – Rolling RORO-ROPAX traffic volumes by Region in tonnes and number of vehicles ...... 40 Table 10 – Analysis of lines by ship-owning group ...... 41 Table 11 – Analysis of lines from Spain to France ...... 44 Table 12 – Analysis of RORO lines that depart from Maltese ports ...... 45 Table 13 – Scenario 2009 for rolling load flows in the corridors ...... 55 Table 14 – Scenario 2009 for rolling load flows in the corridors ...... 57 Table 15 – Scenario 2009 for rolling load flows in the corridors ...... 59 Table 16 – Scenario 2009 for rolling load flows in corridor III ...... 61 Table 17 – Scenario 2009 for rolling load flows in the corridors ...... 62 Table 18 – Possible AdM services to / from Malta ...... 65 Table 19 – Real GDP trends, annual percentage variations, 2010-2015 ...... 72 Table 20 – Rolling stock flows in 2009 and increase in 2020 (basic and high scenarios) ...... 75 Table 21 – Port terminal investment and types of risk ...... 90 Table 22 – Description of the projects with indications of connections and investments ...... 93 Table 23 – Description of the projects in Spain ...... 95 Table 24 – Description of the projects in France ...... 102 Table 25 – Malta port projects ...... 104 Table 26 – Ecobonus, applications elaborated during the triennium 2007-2009 ...... 109 Table 27 – Ecobonus, main national routes (2007) ...... 109 Table 28 – Ecobonus, main EU routes (2007) ...... 109 Table 29 – Ecobonus, main national routes (2008) ...... 110 Table 30 – Ecobonus, main EU routes (2008) ...... 110 Table 31 – Ecobonus, transit in main national ports 2007-2008 ...... 112 Table 32 – Ecobonus, transit in main EU ports 2007-2008 ...... 112
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ABBREVIATIONS/ ACRONYSM / DEFINITIONS MoS Motorways of the Sea RTI - Raggruppamento temporaneo of the Companies RINA Services, TLS Consultant EUROPE, Gruppo CLAS Raggruppamento Temporaneo delle Imprese (Società RINA Services, TLS RTI EUROPE, Gruppo CLAS). Joint Venture built up for the purpose to develop the Study TEN-T Trans European Network – Transport WEST MED Western Mediterranean Sea Public and Private interested parties (among the others Public Administrations, Port Authorities, Ship-owners, Transport Operators Stakeholders Maritime, railways, road, inland water ways Operators, logistic Operators, port service operators and Authorities and body for controls, etc.) RORO Roll on Roll off (horizontal loading unloading of the ship) LOLO Lift on Lift off (ship loaded by quay crane) ICT Information and Communication Technology SWOT Strengthness, Weakness, Opportunities, Threats POT Three years Operation Plan
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1 INTRODUCTION This document is the Master Plan for the Motorways of the Sea in the Western Mediterranean. It summarises the final results of the activities carried out by the RTI set up by the companies Rina Services, TLS Europe and CLAS Group and by other studies drawn up by partner countries. In particular, the results of the studies carried out by the four project partners are brought together and summarised: Italy, Spain, France, Malta. The report also contains recommendations which emerged during the study in order to increase development of the MoS and the Communication Plan for the disclosure of the results of the Master Plan for MoS development in the Western Mediterranean.
1.1 Objective and approach followed to develop the study
The “Master Plan" is the result of integrating the most important contents of the studies drawn up in Italy, Spain, Malta and France, which then defined the MoS Master Plan for the Western Mediterranean. The study was developed by interacting with the stakeholders, outlining a European reference scenario, with the needs and priorities of the transport system, ports system and logistics, in the precise intention of contributing to the development of the MoS and improving accessibility to the latter. Based on the results of the meetings held, solutions were found aimed at helping MoS development and integration of sea transport services in the Western Mediterranean, with structures and logistics systems that can better connect Europe with the area involved in the study. In particular, possible scenarios were highlighted which could contribute to raising the level of efficiency of the intermodal logistics chains that connect the regions involved in the study, with the most important national and European logistics centres. The network nodes, at the intermediate stops (also ship-ship transhipment) could contribute to a diversification of the offer, aimed at providing services in the ports that can make intermodal transport competitive, with transfers of loads from one means of transport to another, compared to the direct connection via road or sea, origin – final destination. Interaction with public and private sector subjects involved has provided an instant image of the potential of the transport system and logistics created by developing the Motorways of the Seas (MoS) in the Western Mediterranean. It has therefore been possible to highlight the needs and priorities in the development of the MoS in the Western Mediterranean. The results contained in this document are mainly based on the following elements: Results of interaction with the stakeholders Analysis of information documents and data provided directly by the stakeholders Previous studies on the matter provided by the contractor or by the stakeholders during meetings or following said meetings Experience and documentation on MoS, that make up the consultant’s background. Studies produced by the Project Partners listed above.
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Source: Ram S.p.a. elaboration Figure 1 – Representation of approach used for development of study
An outline of the work development process is shown in the block diagram in figure 1. It must also be pointed out that the MoS do not concern all sea transport as a whole, but only the segment characterised by frequent, regular reliable services integrated in the intermodal chain and/or services that may contribute directly or indirectly to transferring the load from the sea routes.
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2 METHODOLOGY This chapter highlights the important data of exchanges between the countries involved in the study drawn up by the West Med Corridors project partners.
2.1 Analysis on transport demand (Italy)
2.1.1 Flows between Italy and Spain
The first step of the study brought to the fore the important data on exchanges between Italy and Spain, which, in the period 2000-2007 increased by 70%, reaching a value of about 43 billion Euro annually 1. In the period 2008-2009, the reduction in import-export figures was considerable, but signs of recovery were found in 2010, as shown in the figure below. Trade is extremely heterogeneous and values are not balanced, thanks to the greater inclination towards export in the Italian system, which is 30% higher than Italian import figures regarding Spanish goods. In particular, in addition to these imbalanced values in monetary flows, it is important to underline the seasonality of trade values, which heavily reduce such values during the months of August and December, and which peak in the months of April and May.
Source: Italian-Spanish Chamber of Commerce Figure 2 – Italy-Spain volume trends
In the year 2009, 42% of Italian imports coming from Spain were destined to the North West, 23% to the North East, 35% to the Centre-South and the islands. Percentage shares of Italian exports to Spain are divided as follows: Centre-South and the islands represent 31% of exports, while the North West and North East represent 41% and 28% respectively. To sum up, the import-export trade between Spain and Italy is concentrated on routes to North Italy, with a value adding up to 67% of the total.
1 The source of these international trade statistics is the Istat Coeweb databank.
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In order to narrow the analysis filed to the project's specific objective, i.e. the development of intermodal traffic using the MoS, it was decided to exclude some categories of goods from the evaluation of potential demand, which are transported in bulk by their very nature, and which are not potentially suitable for travelling by scheduled sea services of this type. Some of the product categories not considered here are mineral extract products from mines and quarries, base metals and metal products (excluding machinery, plants, coke and refined petroleum products). Although it is not possible to state certainly that none of these products travel by MoS scheduled services, in any type of conditions, it is estimated that it is however, a negligible part, compensated by other loads considered suitable for MoS services, that may travel in bulk or on specific ships for this type of load (e.g. CE category – chemical substances and products). This limitation of the analysis subject allows the percentage of import-export trade that may potentially use the MoS in different ways among the various Italian macro-regions to be reduced (data in value referring to 2009): 84% of the total for the North West, 94% for the North East, 91% for the Centre, 86% for the South, 10% for Sardinia and 43% for Sicily. There are various useful points for the later phases of the study coming from market evaluations on transport demand for MoS on this route. In particular, it is noted how 41.3% of the demand from specific import and export (expressed in value) for MoS is concentrated in the North West. The North East, which also has a possible outlet in the Tuscan ports in the North Tyrrhenian Sea, in addition to Liguria ports, makes up 28.5% of the demand. Central Italy, the South and the islands account for 30.2% of the demand.
Source: CLAS Group elaboration on COEWEB data Figure 3 – Italy-Spain commercial trade that could use the MoS (data in value referring to 2009)
More specifically, regarding food-agricultural industry imports-exports, it can be stated that Italy imports goods worth more than 2 billion Euro (2.043 billion Euro in 2009) and exports only 738 million Euro. In this case too, most of the traffic is concentrated in North Italy where 63.3% of import-export trade takes place and in the Centre-South and the islands where 36.7% in value of the import-export trade involving food-agricultural products takes place.
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Potential MoS services for the Ligurian port system cannot offer particular advantages in terms of time compared to all-road transport, but may be economically worthwhile for the loaders, based on the actual transport cost. Other types of logic are also used, such as the certainty of time that sea transport can guarantee and the possibility of unaccompanied transport, thus saving in terms of staff and transport costs (that are calculated on linear metres, therefore the board of trailers alone is about 25% more worthwhile economically). To the contrary, sea distances between Italian ports in the central and southern Tyrrhenian Sea and Spanish ports (although there are obviously big differences depending on the geographical areas that the ports are connected with) and the basin shape of the Western Mediterranean allow transport to mostly have positive detour factors 2 for O/D pairs compared to road transport. Currently, (considering 2008 data in terms of weight), the main ports used for Ro/Ro import/export trade on the Italy-Spain route are Barcelona, that sees 68% of the traffic and Valencia that accepts 28% of the goods. The traffic for Barcelona comes from or is mainly heading towards Civitavecchia (41%), Genoa (39%) and Livorno (20%), while the main origins/destinations that involves the port of Valencia are Salerno (73%) and Livorno (24%). The attempts begun in the first three months of the year 2010 to use other Spanish ports, in particular Alicante and Almeria in southern Spain for regular RORO cargo-only connections from and to Civitavecchia have been suspended due to commercial difficulties.The factors linked to the unbalanced traffic, seasonality and variability, which can be seen in the import/export trade data over the last three years, justify the ship-owners’ choice to diversify risk by using fleets suitable for both passenger and cargo traffic. Indeed, passenger traffic can both compensate moments of reduction in cargo traffic in August and December and increase possible revenue in the summer months with greater tourist traffic. Choosing this type of fleet, however, means some operational restrictions as the sea traffic for passengers is only competitive compared to other types of transport if the journey by sea takes less than 24 hours. The trading of goods between Spain and other countries that may use the North Tyrrhenian ports as transit points, such as Austria, south-east Germany, Slovenia, Croatia, the Czech Republic, Slovakia, Hungary etc, may be an interesting addition to current loads in the future, which may be absorbed by the MoS lines. The competition with road traffic can be highlighted for these origins/destinations, which is currently strong due to the actual distances and for the transport times, especially considering the fact that the main Spanish destinations are concentrated in the central part of the country (Madrid area) and the North (Catalonia). Actual equality in load control procedures (to be hoped for throughout the EU as stated in the communication “sea transport without barriers”), greater standardisation of regulations among member states on driving times, and tighter controls may contribute towards fairer competition between sea traffic and land traffic.
2.1.2 Flows between Italy and France France is a privileged partner for Italy regarding import/export trade: This country is, in fact, the leading destination for Italian exports, while it is in second place, behind Germany alone, for imported goods to our country. ISTAT data for 2009 show an export value that is higher than the import value by about 29%, recording a positive trade balance of about 7 billion, 673 million Euro, part of a total of about 60 billion Euro of import/export trade. However, in the period 2000-2009, import figures were reduced by about 12%, while export figures remained more or less the same during the same period (+1.8%). Export trend analysis for the period January-April 2010, the
2 The detour factor is the ratio that represents the part of additional transport created in changing the road method for the sea method, within the same door to door shipment. In other words, when the goods transport mode is changed, the goods must travel a lower number of kilometres (if the detour factor is positive) to reach the final destination. The detour factor can also be negative.
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latest data available, show a recovery compared to the same period in 2009, with +8.0%, while this figure increased by 11.9% with regards to import trends. Traffic (expressed in value) was concentrated from and to the northern areas of Italy, with 57% of imports and 45% of exports in the North West and 21% of imports and 29% of exports in the North East. About 24% of trade was concentrated in the Central-Southern areas of the country. As in the case of Spain, the analysis field for the specific objective of the project was narrowed, only analysing the categories of goods that are potentially suitable for travelling by sea on a MoS type line. This limitation of the analysis subject allows the percentage of import-export trade that may potentially use the MoS between Italy and France to be reduced ( data in value referring to 2009): 87% of the total for the North West, 89% for the North East, 84% for the Centre, 92% for the South, 70% for Sardinia and 67% for Sicily.
Source: CLAS Group elaboration on COEWEB data Figure 4 – Italy-France commercial trade that could use the MoS (data in value referring to 2009)
More specifically, regarding food-agricultural industry imports-exports, it can be stated that traffic between Italy and France is substantially balanced and have an overall value of 5.35 billion Euro, 2.82 of which in imports and 2.52 in exports (values in billions of Euro, referring to 2009). In this case too, most of the traffic is concentrated in North Italy where 79.2% of import-export trade takes place and in the Centre where 8.5% in value of the import-export trade involving food- agricultural products takes place. The distribution of potential traffic may provide (for many of the main origins/destinations) more favourable conditions not only for road traffic but also for rail traffic (freight rail connection between France (Aiton) and Italy (Orbassano)) rather than sea traffic, due to actual distances and transport time.
2.1.3 Import/Export trade analysis between Italy and Malta. Although import/export trade between Italy and Malta (amounting to 1.2 billion Euro in 2009) is not comparable with figures from the countries analysed previously, it is however significant, as it places our country as being one of Malta’s main trading partners. ISTAT data for 2009 show an export value that is more than 5 times the import value, recording a trade balance that is clearly
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favourable (positive), by more than 785 million Euro. However, in the period 2000-2009, import figures increased by about 67%, while export figures increased by about 24% during the same period. As in the case of the other countries taken into consideration here, the analysis field for the specific objective of the project was narrowed, only analysing the categories of goods that are potentially suitable for travelling by sea on a MoS type line. This limitation of the analysis subject allows the percentage of import-export trade that may potentially use the MoS between Italy and Malta to be reduced ( data in value referring to 2009): In particular, it is noted how 30% of the demand from specific import and export (expressed in value) for MoS is concentrated in the North West, an area that is the reference catchment basin for Ligurian ports. The North East, which also has a possible outlet in the Adriatic ports and in the Tyrrhenian Sea, accounts for 35% of demand. The Centre-South of Italy expresses 20% of demand. With regards to Sicily and Sardinia, the import/export trade exchange of goods that could potentially use the MoS with Malta is 14.5% of the Italian total.
Source: CLAS Group elaboration on COEWEB data Figure 6 – Italy-Malta commercial trade that could use the MoS (data in value referring to 2009)
More specifically regarding food-agricultural industry imports-exports, it can be stated that traffic between Italy and Malta is highly unbalanced and have an overall value of 113 million Eur, only 3 of which in imports and 110 in exports (values in millions of Euro, referring to 2009). In this case too, most of the traffic is concentrated in North Italy where 62.3% of import/export trade takes place. The second area in import/export trade importance is Sicily, where 23% in value of import- export operations with products from the food and agricultural sector are originated or destined.
2.1.4 Flows with countries on the Mediterranean’s South Coastlines The import/export trade values between Italy and North-West Africa, in particular with Morocco, Tunisia and Algeria are extremely significant. ISTAT data for 2009 show an export value of about 60% of all import/export trade, recording a positive trade balance of about 1 billion, 995 million Euro, part of a total of about 15 billion Euro of import/export trade.
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As in the case of the other countries taken into consideration here, the analysis field for the specific objective of the project was narrowed, only analysing the categories of goods that are potentially suitable for travelling by sea on a MoS type line. This limitation of the analysis subject allows the percentage of import-export trade that may potentially use the MoS between Italy and the stated African countries to be reduced ( data in value referring to 2009): The “purified” import/export trade figure, therefore of goods potentially suitable for being transported by MoS services is less than 7 billion Euro, 4.5 billion of which from actual exports and the rest due to imports. If the import/export trade is divided by macro-regions, it can be seen that northern Italy has a share of about 56% while Central Italy, the South and the islands have 33%.
2.1.5 Flows in Transit As part of the overall analysis of the import/export trade, the trade between third-party countries, in transit from Italian ports, were also evaluated, which can potentially involve a sea connection in the Western Mediterranean. With regards to France, it can be hypothesised that there are third-party country goods flows in the macro-area that characterises the development in Corridor VII and Greece, which is potentially interesting for a sea connection in the Western Mediterranean. The theory of a dual mode change, first in the Adriatic basin and then in the Tyrrhenian one, would be competitive with the single- mode in terms of time and costs 3. However, the efficiency targets set for the MoS ports, and the improvement of the infrastructures and intermodal services contained in the development plans could make this option more competitive in the near future. For Eastern European countries, in particular the ones located further north, the road transport alternative from and to France is often the most convenient. The same applies to import/export trade between Great Britain and Ireland and the macro-areas of the South of Italy and the larger islands and the countries in the South Mediterranean, which already need to use sea/road intermodal transport to cross the Channel, in French and Belgian ports most of all; the goods then continue by road (or by rail, in some cases) as far as Italian boarding ports and a further mode change can be organised in the Mediterranean to reach the final destination ports. Flows from Central-Northern Europe (Denmark, Sweden, Norway, and above all the extent of volume from Germany, Austria, Holland and Belgium), which reach various destinations in Italy and the Western Mediterranean via Italian ports, are even greater. In particular, import/exports with third-party countries that could potentially involve sea connections in the Western Mediterranean can be found on the Italy-Spain route. Trade between Italy – Portugal and Spain – countries in the centre and south of Eastern Europe are concentrated on these routes. The value of import/export trade between Italy and Portugal in 2008 totalled 4.8 billion Euro, according to Eurostat data. The 2009 figure is slightly lower. This value, according to Eurostat, amounts to 1.48 million tonnes of goods imported/exported in 2008, and 1.27 million tonnes of goods in 2009. If import/export flows in 2008 are also considered, the overall weight of imports was 593 thousand tonnes, while the overall weight of exports was 892 thousand tonnes. In addition, by identifying the specific product categories suitable for travelling on MoS, the values
3 Each mode change implies handling costs which are on average quantifiable at 160 Euro per trailer for loading/unloading (80+80) plus taxes and port duties, in addition to uncertainty as to time involved.
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traded as imports are limited to 82%, with a total weight of 484 thousand tonnes, and by 63%, the values traded as exports with a weight of 562 thousand tonnes. Although such flows are not comparable with flows between Italy and Spain (which were six times greater in 2009), they are still important as they make a part contribution to increasing the potential demand basin for sea services in the Western Mediterranean. Goods trade between Spain and the other countries analysed belonging to Central and Eastern Europe, more specifically Austria, Slovenia, the Czech Republic, Slovakia, Hungary and Croatia, which does not currently produce high values, could become very important in the future if more competitive intermodal connections were developed which included the horizontal crossing of the Italian peninsula from the Tyrrhenian to the Adriatic, then continuing by intermodal sea service and road/rail transport towards the final destination. The fact that road transport competition is especially strong today for traffic heading towards northern Spain must be taken into consideration.
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2.2 Analysis on transport demand (France) This section contains the results from the French study, which complete the picture of traffic between France and European countries in the area and between France and the other countries standing on the southern coast of the Mediterranean.
2.2.1 Potential traffic identified in the study area Two recent studies take a good macro-economic approach: 2007, MEDA MOS in its Euro-Mediterranean Transport Project report - Call for projects - October 2007 (EuropeAid/121468/C/SV/Multi, estimated the overall traffic in the EU - MEDA zone to be 70 million tonnes per year (in 2004) out of a total of 232 million tonnes (including bulk trade). Containers are the most common method used (71% of the 70 million tonnes per year), followed by Ro-Ro (10%, or 7 million tonnes) focusing on a few partnerships (Turkey/Italy, Tunisia/France, Tunisia/Italy, Morocco/Spain). In the same report, it is stipulated that although the possibility of large movements of Ro-Ro is small because it is limited to a small number of partnerships, port containers can be sent to many ports, particularly in the eastern Mediterranean. The study carried out by Eurogroup on behalf of the Circle for Optimodality in Europe (COE)
Figure 7 - Analysis of potential MoS traffic in the Western Mediterranean
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From this graph, we see that traffic volume is on routes parallel to the coast, making it more problematic (sea time is less attractive than road).
Source: Report West MoS Master Plan France Figure 8 - Evaluation of traffic - Strait of Gibraltar.
Source: Report West MoS Master Plan France Figure 9 - Calculation method of potential maximum, e.g. Sète Genoa
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2.2.2 It is also necessary to understand the structure of goods flows.. Analysis of the flow of goods between France and Spain: From South to North, fresh produce, fodder, ceramics and construction material account for more than 2/3 of cargo tonnage. Apart from ceramics, these are products with low added value. Apart from fruits and vegetables, they are products that do not require high transport speeds nor a just-in-time logistics policy. From north to south three categories of products (wood, chemicals, metal products) represent 50% of tonnage. There is greater diversification. The analysis of the number of vehicles confirms the hierarchy of types of goods, this hierarchical view, however, is somewhat modified mainly because of the density differential between the products (the case of ceramics related to forage) or packaging constraints (for cars compared with other palletised and/or stackable products for the most part). Light vehicle transport (to the south and north), ceramics (to the north), fodder (to the north), chemicals (to the south) are of almost equal numbers (between 3800 and 4500 HGVs per year). In terms of fruits and vegetables, more than 8500 HGVs travel to the North. Mediterranean Sea trade has one of the fastest potentials for development in the world: It is supported by the overall economic growth in the region and the high level of GDP growth forecasts for most countries in the area. in the current context of globalisation, it benefits from the central location of traffic flows between east and west, north and south. These volumes should reach about 25 million TEUs by 2015.
The challenges of containerisation stem above all from a desire to standardise industrial shippers and to integrate transport in their production/distribution processes. By thus standardising their flows (supply, but also distribution), they give themselves the opportunity to amalgamate, to transfer from one mode to another by pooling means based on volume, deadlines and the remoteness of their markets or supply sources. Optimising the entire supply chain is expected, not just one of its links.
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2.3 Analysis on transport demand (Spain)
This section contains the analyses taken from the Spanish study, which complete the picture of traffic in the area taken into consideration with the Spanish view. In particular, the results described show the central nature of trade between Spain and Italy with regards to the development of the MoS in the Western Mediterranean.
2.3.1 Spain – Italy Transport Demand In 2008 the total volume of goods traded between Spain and Italy up to 29.9 MTon. In Spain- Italy traffic typology of goods varies widely depending on the flow sense. Thus, in Spain to Italy flows (exports) the six main categories of goods account for 80% of traffic. In first term, Metal and steel products traffic, especially steel, accounts for 21% of the total exports in Tons. Those goods are followed by the group of fruits, vegetables and other plant products (mainly fruits and cereals), which represents 19% of the total. At a second level are placed chemicals (13% of total), plastics (10% of total) and bulk solids (salt, sulphur and concrete, 8%). On the other sense, flows from Italy to Spain (imports) are highly concentrated in the traffic of the two main types of goods. Mineral fuels account for 51% of total import flows from Italy, while metals and steel account for 20%. Then fall in imports of chemicals, plastics and paper (with rates between 3% and 8%), while other types of goods have a much lower weight. Concerning the distribution by region, 81% of Spanish trade with Italy is concentrated in six Autonomous Communities. The main one is Catalonia (that assumes 35% of the total traffic), which is followed by Madrid (17%) and Comunidad Valenciana (10%): At provincial level, the flows are concentrated in the two coastal provinces with the greater economic weight and hosting the most crowded shipping lines (Barcelona and Valencia), and in two of the interior with a financial and logistical relevance (Madrid and Zaragoza). Barcelona represents 29% of the Spain-Italy flows. Behind it, as well as Madrid, Valencia represents 6% of the total and Zaragoza 5%. In Italy for 78% of flows are geographically concentrated in six regions, which are mostly located in the northern third of Italy. In that sense, Lombardy is the major partner in the flow of goods with Spain, assuming 29% of total traffic. At a second level are located the regions of Veneto (12%), Emilia-Romagna (12%) and Piedmont (11%), while with a lower weight are Tuscany and Lazio. In the 29.9 MTon exchanged in 2008 between Spain and Italy, the predominant transport mode in these exchanges is the sea transport: it involves 74% of total flows, while the road is practically the remaining 26% (because rail participation in these flows is very low). If maritime transport is broken down, it can be found that the conventional shipping weight is 54% of the total, while RoRo weight is 19% of total flows. Besides considering the weight on RoRo transport vs RoRo + Road flows, it can be observed that the 5,5 MTon exchanged in 2008 by RoRo represents 42% of total truck traffic. This high rate is related to the development of SSS lines between the main Spanish ports at the Mediterranean and the Italian ones. In 2004 RoRo traffic between the two countries was 2,2 MTon, which involved a modal share of 20% compared to the road. Focusing in RoRo transport, in 2008 there were moved 5.5 million tons between Spain and Italy by RoRo. Italy is Spain's main partner in this type of transport and accounts for 60% of all Ro-Ro at the Spanish port system. The exchanges are nearly balanced by sense: 53% are departures, 46% input and 1% correspond to transitions. The main port in these flows is Barcelona, which accounts for 68% of total traffic. Flows from Barcelona are spread almost entirely between the Italian ports of Civitavecchia (41% of Barcelona
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RoRo), Genoa and Livorno (39% and 20%, respectively). The second-biggest port is Valencia (28%), which flows down to Salerno and Livorno (73% and 24% of Ro-Ro from Valencia to Italy). In the Mediterranean remains Tarragona (4%, with Livorno), while in the Atlantic port of Vigo is a 1% of total. The main types of products traded by Ro-Ro are included within the chapters on "Rest of goods” (general merchandise of various types), Vehicles and their parts (which represent 7% of total), oils and fats (4%), appliances, tools and spare parts (3%) and chemicals (3%).
Figure 10 - Italy to Spain flows by Region (% in weight) Figure 11 - Spain to Italy flows by transport mode
2.3.2 Spain - France Transport Demand In 2008 the total volume of goods traded between Spain and France up to 58 MTon. The majority transport mode in these exchanges is the road: it assumes 82% of the total transported. Meanwhile, the maritime mode (considering the conventional transport and by RoRo) accounts for 15% of the total, while the share of rail is very low (means around 3%). The first data of trafic are positive. This line joins the port of Nantes-Saint Nazaire (France) to the port of Gijon (Spain) twice each week. It is operated by GLD Atlantique (Louis Dreyfus Armateur). If shipping flows are broken down, it can be found that the conventional shipping weight is 14% of the total, while RoRo share is 1%. Besides considering the weight of RoRo transport over RoRo + Road it can be observed that the 0.7 MTon exchanged by RoRo in 2008 represent 2% of total truck traffic. This share reflects the lack of development and penetration of SSS scheduled services between Spain and France against Italy's existing.
Figure 12 - Spain - France flows by Region (% in weight) Figure 13 - Spain - France flows by Transport Mode
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France is the third partner in terms of flows RoRo of Spain, since the 0.7 MTon account for 8% of total. RoRo output flows account for 59% of the total and are concentrated in the ports of the Atlantic arc. These RoRo traffic is many times carried out through services that can not be considered Motorways of the Sea. Regarding their geographical distribution, flows between Spain and France are almost balanced (52% imports to Spain and 48% exports). In Spain, 84% of trade with France is concentrated in six autonomous regions. As happens with Italy, the main ones are Catalonia (accounts for 26% of total) and Madrid (21%). Besides, Madrid and Barcelona are the provinces with a more significant weight in total flows with France. At the second level are located Galicia (12%) and Castilla y Leon (11%) from flows associated with the automotive industry (Pontevedra and Valladolid are the third and fourth provinces in the flow of goods to France). In France the freight flows are concentrated in Ile de France, representing 36%. After that, the concentration stresses in the border regions and in the Mediterranean area: The three regions of the Mediterranean arc are responsible for 18% of the total. The weight of Provence-Alpes-Cote d'Azur (3%) is much smaller than those of Languedoc Roussillon (8%) and Rhone-Alpes (7%). Then, among the top ten regions are the border regions of Aquitaine (6% of total) and Midi-Pyrenees (3%). Consistent with the total traffic, the type of products at Spain-France flows is also similar in both directions. There is a large concentration in flows, since the first two types account for 58% of total traffic. In addition, the seven main categories of goods account for more than 90% of traffic on weight. Fruits, vegetables and other vegetable products account for 30% of the total (and they are mainly cereals), and the metals and steel products weight 28%. Then there can be found the paper and pulp, mineral fuels and chemicals, which in aggregate represent 24% of Spain-France total flows.
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2.3.3 Spain – Malta Transport Demand Because of its insular nature, Spain-Malta flows of goods are almost entirely done by the maritime mode. In 2008 533,752 tons were exchanged between Spain and Malta by sea. Within this total, 2,741 tons were transported by RoRo, representing 1% of total flows. Import flows were higher than export (60 - 40%). Additionally, 81% of Spanish traffic with Malta is concentrated in six autonomous regions, predominantly those located on the Mediterranean coast. Thus, the Comunidad Valenciana is the largest trading partner and accounts for 27% of total traffic (Valencia means 14% of total and Castellon 7%). After them, Catalonia accounts for 26% of flows from the weight of Barcelona (which represents 21% of trade with Malta). Besides volume, on Spain-Malta trades the types of products also varies depending on the sense. In Spain- Malta flows (exports) the five main categories of goods account for 88% of total traffic. The main types are the Animals and animal products (mainly food preparations) which account for 38% of flows, followed by Mineral fuels (24%) and Fruits, vegetables and other vegetables (19%). Regarding flows from Malta to Spain (imports), 65% is concentrated in the three main types of products (86% in the top six). The principal item is the Animals and animal products (mainly fish) which represent a 25%. That type is followed by the category of various products (toys) that account for 20% and optical instruments and appliances (which account for 20% of total imports).
Figure 14 - Spain - Malta flows by type of goods Figure 15 - Malta - Spain flows by type of goods (% in weight) (% in weight)
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2.4 Analysis on transport demand (Malta)
This section contains the analysis of the traffic picture in the area from Malta’s point of view, referring to the contents of the Malta report as above. Considering the strong roles played by the EU and the position of Malta, this study focuses on the share of import-export flows between Malta and South European countries (Italy, France and Spain), as well as on the flows with countries on the coast of North Africa and the Middle East. The importance of each country can be identified by looking at the following charts. In considering Malta’s export flows, one notes that Italy is the most significant partner. The countries of North Africa and the Middle East are also strong partners for export flows (especially Libya and Tunisia). France and Spain together account for more than 10%. The main exported commodities include foods, manufactured goods, machinery and transport equipments, mineral fuels and chemical products. In considering Malta’s imports, it is evident that Italy has a dominant position as one of Malta’s main export partners. Furthermore, Italy, France and Spain together account for more than 90% of traffic flows towards Malta.
Figure 16 - Maltese export, share by Country Figure 17 - Maltese import, share by Country
One notes that Malta has very limited imports from North African and Middle East countries. The main imported commodities are manufactured goods, mineral fuels, and foods. In 2008, Malta imported nearly 480.000 tonnes of manufactured goods (i.e. 34% of the total imported flows and 77% of the flows from the countries within the West Mos study) from Italy. From an analysis of the previous figures, it can be stated that the Maltese economy is centered on exchanges and trade with foreign countries (although imports are more important than exports). Nevertheless, it is worth noting how these figures are - in absolute terms – not significant enough to generate sustained freight traffic flows. Therefore, a development of a Motorways of the Sea service might currently not be feasible considering only direct traffic to and from Malta, but, through the creation of a transport network that would allow Malta to become a hub port with direct links between Western and Eastern Mediterranean countries.
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3 MOTORWAYS OF THE SEA REQUISITES The MoS are a mature “concept” that is continuously evolving. In its White Paper issued in September 2001, the EU Commission proposed the development of the Motorways of the Seas as an option in intermodal transport based on Short Sea Shipping. The development of Short Sea Shipping, in turn was the subject of a support policy that gave rise to actions and measures and to the Commission’s Communication, COM (204) 453 final on "Short Sea Shipping" in July 2004. Promotion Centres of Short Sea Shipping were also set up in all the EU countries involved. The guidelines for the definition of a Master Plan for MoS in the Mediterranean sea were discussed during the meetings in Malta and Ljubljana in the summer of 2004, and the first question was whether the Master Plan should concern the entire Mediterranean or not. The definition of the requisites that the MoS services must correspond to, in particular the requisites for the service network structure, and deciding which ports could be considered as corridor or network junctions and departure/arrival points for MoS sea connections, were the main subjects to be addressed at the start of work to define a Master Plan. The study in question aims to make some technical contributions, in a final phase of this work, in the context of the West Med Corridors project. The European Commission is now strongly committed to initiatives aimed at developing sea transport that is especially linked to the MoS. - The Final COM Communication (2009) 11 dated 21-1-2009 – “Communication and action plan for the creation of a European space for sea transport without boundaries”; - The launch of EU and - Maritime Initiatives (a widespread initiative in the sea transport sector aimed at helping and supporting the development and adoption of the most recent enabling ICT technologies for improving maritime security within the integrated EU transport system). - The COM (2009) 8 “Final Strategic Goals and Recommendations for the EU’s Maritime Policy until 2018" dated 21.1.2009;
The initiatives above show the recent commitment to continuity with what was produced in previous years, also expressed via the following two communications: - COM (2007) 616 on the European Ports Policy - COM (2007) 575 – on the European Union’s Integrated Maritime Policy dated October 2007. A wider documentation on the EU Commission’s commitment on these matters is summarised in table 2 and in figures 3 and 4.
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3.1 Historical evolution of the concept of MoS and future trends
3.1.1 Evolution of the concept and minimum requirements that characterise the MoS The continuous evolution of the “concept” of MoS has matured over the years, also through experiments and pilot projects. The most significant steps of the evolution process of the MoS concept are summarised in the following points: Port-Port – sea transport service between two ports with the following characteristics: - frequent, - reliable, - efficient, - sustainable from an economic, environmental, safety and security, and social point of view. Origin – final destination – transport service that includes crossing two ports, that requires compliance with specific requisites for: - Intermodal transport service - Connection of ports to port’s – or internal remote –logistics platforms.