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IMDO Landbridge Report 2018

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IMDO Landbridge Report 2018 THE IMPLICATIONS OF BREXIT ON THE USE OF THE LANDBRIDGE The Irish Maritime Development Office The Irish Maritime Development Ofce (IMDO) is Ireland’s national dedicated development, promotional and marketing agency for the shipping and shipping services sector. The IMDO is the Irish government agency which provides support to national and international maritime businesses in Ireland. It is the aim of the IMDO to be the focal point for maritime business in Ireland. The IMDO provides government and industry with a range of information and reporting across the sector and works with international businesses to help them set-up or expand in Ireland. The IMDO is also Ireland’s designated Shortsea Shipping Agency and provides independent advice and guidance on EU funding initiatives. The IMDO was established by the Fisheries 4. To carry out policy as may be specified by the (Amendment) Act 1999, as part of the Marine Minister for Transport relating to the shipping Institute, under an amendment to the Marine and shipping services sector and seafarer Institute Act 1991 in December 1999. The training. IMDO commenced operations in July 2000. 5. To advise the Minister for Transport on the After subsequent amendment in the Harbours development and co-ordination of policy and (Amendment) Act 2009 its legislative mandate to carry out policy, as may be specified by that includes the following functions: Minister, relating to ports and the ports services sector, and; 1. To promote and assist the development of Irish 6. any additional functions relating to the shipping shipping and Irish shipping services and seafarer and shipping services sector conferred on the training. Institute under section 4(4) of this Act. 2. To liaise with, support and market the shipping and shipping services sector. Shipping services is defined as: sea routes, ship 3. To advise the Minister for Transport on the management, technical management, commercial development and co-ordination of policy in the management, crew management, ship finance shipping and shipping services sector so as to and mortgages, marine insurance, maritime legal protect and create employment. services, shipbroking and ship chartering. Authors: Editorial Team: Dr. Ben Breen Liam Lacey Economist, IMDO Director, IMDO Dr. Paul Brewster Dr. Edel O’Connor EU Policy Adviser, IMDO Business Development Manager, IMDO Dr. Andreas Tsakiridis Éamonn O’ Connor Research Associate, SEMRU, NUI Galway Cullen Fellow PhD Candidate, NUI Galway Ciarán O’ Driscoll Philip Stephens Economic Researcher, IMDO Business Development Consultant, IMDO IMDOIreland irishmaritimedevelopment www.imdo.ie This study was carried out by the Irish Maritime Development Ofce (IMDO), under terms of reference set by the Department of Transport, Tourism and Sport. The study quantifies the volume of Irish import and export trafc that uses the Landbridge. It also establishes the drivers of the choice to use the landbridge The authors acknowledge the assistance of the Irish Exporters Association (IEA), the Irish Road Haulage Association (IRHA), the Freight Transport Association of Ireland (FTA Ireland) for facilitating access to their members. The authors would also like to acknowledge the academic assistance Dr. Stephen Hynes, economics lecturer at NUI Galway, director of the Socio-Economic Marine Research Unit (SEMRU), Dr. Amaya Vega, economic lecturer at GMIT, and research afliate at SEMRU; and Dr. Andreas Tsakiridis, research associate in marine economics at SEMRU, for his assistance in providing the landbridge choice factor analysis for this study. The Implications of Brexit on the Use of the Landbridge Published by: Irish Maritime Development Office Wilton Park House Wilton Place Dublin 2 D02 NT99 Ireland Tel: +353 1 775 3900 www.imdo.ie [email protected] Disclaimer: This report has been produced by the Irish Maritime Development Ofce (IMDO), a state agency under the auspices of the Department of Transport, Tourism and Sport (DTTAS). Whereas every efort has been made to ensure that information provided in this report is accurate, the IMDO and DTTAS accept no liability whatsoever for loss or damage occasioned, or claimed to have been associated, in part or in full as a consequence of any person or corporation acting or refraining from acting, as a result of a matter contained in this publication. All or part of this publication may be reproduced without further permission, provided the source is acknowledged. How to cite this report: Breen, B., Brewster, P., O’ Driscoll, C., Tsakiridis, A., (2018) The Implications of Brexit on the Use of the Landbridge, Dublin: Irish Maritime Development Ofce. THE ‘UK LANDBRIDGE’ DESCRIBES THE MOVEMENT OF IRISH IMPORTS TRADE VOLUMES (2016) AND EXPORTS BETWEEN IRELAND AND THE EUROPEAN CONTINENT VIA THE 8m 7,760,007 7m 6m UK ROAD & PORTS NETWORK 4,901,984 5m 4m 3m 2,024,169 JOURNEY TIMES TO CONTINENTAL EUROPE (MILLION) TONNES 2m 1,031,384 IRE 1m 0 GB LOLO (1) LOLO LOLO EU LANDBRIDGE EU LOLO LOLO RORO IMPORTS EXPORTS LESS THAN UP TO UP TO TRADE VALUES (2016) 50m €44,669,000 20 40 60 40m HOURS HOURS HOURS 30m €24,776,000 VIA THE LANDBRIDGE ON RORO SERVICES LOLO SERVICES VIA (4) (MILLION) €18,138,000 VIA DIRECT SEA-ROUTE DIRECT SEA-ROUTE € 20m 10m €3,293,000(3) 0 TIME SENSITIVE PRODUCTS EU(1) LANDBRIDGE(2) IMPORTS EXPORTS (1) Not including Great Britain and Northern Ireland (2) Estimate based on average value of good imported from the EU excluding UK SUCH AS THOSE IN THE AGRI-FOOD SECTOR (3) Estimate based on average value of good exported to the EU excluding UK RELY ON THE LANDBRIDGE Trade values reflect merchandised trade (see glossary) TRANSPORT MODES (2016) LANDBRIDGE BY PORT OF UNITISED EXPORTS 30m TO EU CONTINENTAL PORTS TRANSIT VIA THE UK LANDBRIDGE 25m % Unitised trade is Roll-on/Roll-off and Load-on/Load-off traffic shipments (see glossary) 16 38% 20m 15m 10m % TONNES (MILLION) TONNES 84 5m IRISH TRAFFIC VIA UK LANDBRIDGE 0 RO/RO* LO/LO** BULK LANDBRIDGE† * Total = 1,073,403 freight units, Great Britain = 908,665 freight units TOTAL GREAT BRITAIN ** Total = 701,836 TEUs, Great Britain = 91,637 TEUs DUBLIN ROSSLARE-EUROPORT IRL =3 MILLION TONNES † a component of the RoRo figures THE ‘UK LANDBRIDGE’ DESCRIBES THE MOVEMENT OF IRISH IMPORTS TRADE VOLUMES (2016) AND EXPORTS BETWEEN IRELAND AND THE EUROPEAN CONTINENT VIA THE 8m 7,760,007 7m 6m UK ROAD & PORTS NETWORK 4,901,984 5m 4m 3m 2,024,169 JOURNEY TIMES TO CONTINENTAL EUROPE (MILLION) TONNES 2m 1,031,384 IRE 1m 0 GB LOLO (1) LOLO LOLO EU LANDBRIDGE EU LOLO LOLO RORO IMPORTS EXPORTS LESS THAN UP TO UP TO TRADE VALUES (2016) 50m €44,669,000 20 40 60 40m HOURS HOURS HOURS 30m €24,776,000 VIA THE LANDBRIDGE ON RORO SERVICES LOLO SERVICES VIA (4) (MILLION) €18,138,000 VIA DIRECT SEA-ROUTE DIRECT SEA-ROUTE € 20m 10m €3,293,000(3) 0 TIME SENSITIVE PRODUCTS EU(1) LANDBRIDGE(2) IMPORTS EXPORTS (1) Not including Great Britain and Northern Ireland (2) Estimate based on average value of good imported from the EU excluding UK SUCH AS THOSE IN THE AGRI-FOOD SECTOR (3) Estimate based on average value of good exported to the EU excluding UK RELY ON THE LANDBRIDGE Trade values reflect merchandised trade (see glossary) TRANSPORT MODES (2016) LANDBRIDGE BY PORT OF UNITISED EXPORTS 30m TO EU CONTINENTAL PORTS TRANSIT VIA THE UK LANDBRIDGE 25m % Unitised trade is Roll-on/Roll-off and Load-on/Load-off traffic shipments (see glossary) 16 38% 20m 15m 10m % TONNES (MILLION) TONNES 84 5m IRISH TRAFFIC VIA UK LANDBRIDGE 0 RO/RO* LO/LO** BULK LANDBRIDGE† * Total = 1,073,403 freight units, Great Britain = 908,665 freight units TOTAL GREAT BRITAIN ** Total = 701,836 TEUs, Great Britain = 91,637 TEUs DUBLIN ROSSLARE-EUROPORT IRL =3 MILLION TONNES † a component of the RoRo figures THE IMPLICATIONS OF BREXIT ON THE 5 USE OF THE LANDBRIDGE TABLE OF CONTENTS Executive Summary 8 1.0 Introduction 12 2.0 Methodology 16 2.1 Quantitative analysis 17 2.2 Consultations 18 3.0 Analysis 20 3.1 Analysis of Shipping routes 21 3.2 Average Unit Weight (AUW) of Landbridge trafc 22 3.3 Analysis of CSO Trade and Port Statistics 23 3.4 Survey Summary 25 3.5 Comments from survey respondents 27 3.6 Landbridge Choice Factor Analysis 28 4.0 Findings 32 5.0 Conclusions and Recommendations 36 Annex A - Air Freight 38 Bibliography 43 Glossary 44 Appendix A 46 EXECUTIVE SUMMARY 8 THE IMPLICATIONS OF BREXIT ON THE USE OF THE LANDBRIDGE EXECUTIVE SUMMARY The UK Landbridge is a term used to describe a route to market that connects Irish importers and exporters to international markets via the UK road and ports network. It is a strategically important means of access to the single market that is favoured by traders in high value or time sensitive goods because it ofers significantly faster transit times than alternative routes. The estimated volume of goods transported via the landbridge is 3,055,553 tonnes, which consists of 1,031,384 tonnes of imports and 2,024,169 tonnes of exports. The re-introduction of customs or border controls as a consequence of Brexit will increase transit times and place an additional cost burden on Irish importers and exporters that will undermine their competitiveness in accessing international markets. This study answers two questions set out in its terms of reference. It quantifies the volume of trafc using the UK landbridge and assesses the factors that determine the transport route to the European continent. The study involved both quantitative and qualitative many sectors of the Irish economy, including but components. Landbridge volumes are estimated not limited to agri-food, seafood, and other sectors using CSO trade and trafc statistics for the Republic trading in time sensitive produce, will be adversely of Ireland.
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