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CITY of BYDGOSZCZ BUSINESS PLAN for a New Potential Shipping

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CITY of BYDGOSZCZ BUSINESS PLAN for a New Potential Shipping CITY OF BYDGOSZCZ BUSINESS PLAN for a new potential shipping service in Poland on the Lower Vistula, from Tricity to Warsaw Bydgoszcz, February 2019 ECONPROJECT Dariusz Rajczyk Page 1 Table of Contents: INTRODUCTION ......................................................................................................................... 4 1. MARKET POTENTIAL FOR DEVELOPMENT OF WATERWAY TRANSPORT IN POLAND ON THE LOWER VISTULA, FROM TRICITY TO WARSAW ....................................................... 5 1.1 A geographic scope of the analysis, the studied transport routes - the area of the Lower Vistula from Tricity to Warsaw, geographical description of the analysed river waterway, taking into account physical limitations to sailing. ......................................................................................... 6 1.2 Cargo transshipment capacities in monthly periods, characteristics of goods covered by the study, a potential for increase in the shipped cargo. ................................................................ 11 2. POTENTIAL FOR NEW INLAND SHIPMENT SERVICES ..................................................... 12 2.1 Potential customers (goods owners) ..................................................................................... 14 2.2 Shipping services (initial and final stage) .............................................................................. 17 2.3 Characteristics of the transshipment ports ........................................................................... 18 2.4 Organisation of the last mile transport ................................................................................... 27 2.5 Competition in the possible new market ............................................................................... 27 2.6 Conclusions: potential for new shipping services ................................................................ 28 3. CONCEPT FOR A MODEL FOR LAUNCHING NEW SHIPPING SERVICES ....................... 29 3.1 Characteristics of the new service ......................................................................................... 29 3.2 Market and customer requirements ....................................................................................... 31 3.3 Technical requirements for barges ........................................................................................ 31 3.4 Indications of potential manufacturers of barges, their equipment and costs of purchase 32 3.5 Description of the organisation during launching of the new service ............................... 32 3.6 Legal and legislative background ........................................................................................... 33 3.7 An analysis of legal background for operation of the inland waterways transport market and quality control ................................................................................................................................ 35 3.8 Conclusions - a plan for launching the new service ............................................................ 35 4. FINANCIAL EVALUATION: ECONOMIC FEASIBILITY OF THE PROJECT RELATED TO LAUNCHING OF A NEW SERVICE .......................................................................................... 36 4.1 An analysis of costs for starting-up the pilot project ............................................................ 36 Source: Own elaboration ............................................................................................................. 39 4.2 Operating costs of the new service ........................................................................................ 39 4.3 A comparative analysis of costs related to start-up of a new service and operating costs with costs of alternate modes of transport ............................................................................ 40 4.4 Profitability analysis .................................................................................................................. 43 4.5 Summing up of the economic feasibility for the new service .............................................. 43 5. MARKETING AND DISTRIBUTION ACTIVITIES REQUIRED FOR LAUNCHING OF NEW SERVICES ........................................................................................................................... 44 6. RISK MANAGEMENT ASSESSMENT FOR LAUNCHING OF A NEW SERVICE ................. 45 7. SWOT ANALYSIS ................................................................................................................ 46 REFERENCES AND SOURCES ............................................................................................... 47 LIST OF MAPS.......................................................................................................................... 47 LIST OF DRAWINGS ................................................................................................................ 47 LIST OF TABLES ...................................................................................................................... 47 Page 2 Page 3 INTRODUCTION The aim of this Study is to specify options for a possible increase in cargo transport by inland waterways from Warsaw to ports in Tricity within a short time (within 3 years), taking into account current economic conditions, on a basis of an analysis and review of specific needs of enterprises concerning increasing demand for transport services. The aim of this study is a section between Warsaw and Tricity ports, with a particular focus on the Lower Vistula waterway. It would allow to use the economic potential of centres such as: Warszawa, Płock, Włocławek, Toruń, Bydgoszcz, and Grudziądz, with an option for an increase in cargo shipping services on courses servicing the above-mentioned centres, and the Tricity ports, particularly, container terminals in Gdańsk and Gdynia. In the study it was assumed that a target place for loading, unloading and transshipment could be a centre located at the Vistula Meander between Solec Kujawski and Bydgoszcz, with an access for traffic (national road DK-10, railway line Kutno–Piła, and nearness of the railway line Chorzów Batory – Tczew (Gdańsk), national road DK-80, and the express road S-5, as well as A-1 motorway). In the localisation study for the investment project “Multimodal platform based on water, railway, road, and air transport with a logistic centre and a river port located in a selected area of the left Vistula bank (km 766–771), taking into account the City of Bydgodzcz and the Solec Kujawski commune, prepared by WYG INTERNATIONAL Sp. z o.o. from Warsaw, localisation of the multimodal port in Solec Kujawski was specified as an optimal for the Lower Vistula section. This study focuses on aspects related to customer needs related to transport and shipment services performed as a part of inland waterway transport, and in particular, concerns costs of this project from the point of view of customers for transport and shipment services in such way that the use of inland waterway transport services become a cost-efficient solution for them. In Western Europe, a predominating trend in contemporary inland waterway transport is transport of cargo in containers. This business plan focuses on this trend, analysing its application to the waterway transport on Vistula. Environmental aspects and logistics operations are solely of auxiliary and supplementary nature, and as such are not a main subject of the analysis. The section of interest, from Warsaw (the exit from the Siekierkowski Port) to Gdańsk (the Vistula estuary) is 431 km long. The aim of this analysis is to identify a new regular shipping service servicing container shipments, with an option for transport of -size cargo or big-bags in place of unused cargo hold. Page 4 1. MARKET POTENTIAL FOR DEVELOPMENT OF WATERWAY TRANSPORT IN POLAND ON THE LOWER VISTULA, FROM TRICITY TO WARSAW The analysed transport route is a section of two international waterway transport routes: - E40 is an international waterway connecting the Baltic Sea with the Black Sea; it starts in Gdańsk and leads through Tczew, Bydgoszcz (Fordon), Toruń, Włocławek, and Płock to Warsaw, from Modlin it leads over the Narew and Bug to Brest (Belarus), and then over the Mukhavyets, Pina, Pripyat and Dniepr it reaches the Black Sea (Ukraine); - E70 is an European East-West traffic route connecting the Atlantic Coast with the Baltic Coast, leading from Antwerp (Belgium) through the Netherlands, northern Germany, Poland, and Russia to Klaipėda in Lithuania. In Poland the E70 waterway starts at a lock in the border village of Hohensaaten on the Oder leading to Kostrzyn, and then over the Warta passes through Gorzów Wielkopolski to the Noteć, the Bydgoszcz Canal and the Brda, and joins the Vistula in Bydgoszcz. Over that river it runs to the Nogat and the Vistula Lagoon to the Strait of Baltiysk (Kaliningrad Oblast in the Russian Federation) and then along the coast of Baltic to Klaipėda in Lithuania. Map 1. International waterways in Poland Source: Wikipedia Page 5 1.1 A geographic scope of the analysis, the studied transport routes - the area of the Lower Vistula from Tricity to Warsaw, geographical description of the analysed river waterway, taking into account physical limitations to sailing. The analysed length of the route is 431 km. There are two locks in this area: - at the barrage in Włocławek (at the Włocławek Barrage lock, recreational vessels are serviced at: 08:00; 11:00; 14:00; 17:00; 20:00, and when at least 3 vessels gather,
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