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Inland Waterway Transport in the Baltic Sea Region

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Inland Waterway Transport in the Baltic Sea Region Inland waterway transport in the Baltic Sea region Service implementation guideline © HHM © EUREX s.r.o. © RCNK February 2019 CONTENT Introduction 3 Best practices: how to make IWT operationally and economically possible? 5 How to increase Inland navigation in the BSR? 8 How to set-up a new inland waterway service? 12 Business case: Sweden 16 Business case: Lithuania 18 This guideline is part of the Interreg Baltic Sea region project EMMA, work package 4 “Making the market more acquainted with the potentials of inland waterway transport in the Baltic Sea Region”, activity 4.4. For more information please visit www.project-emma.eu. 2 INTRODUCTION Inland waterway transport (IWT) is safe, Small inland ships generally carry up to 500 t of environmentally friendly and economically bulk commodities, whereas medium and large feasible. However, for many decision makers ships carry up to 2 000 t of dry bulk and up to responsible for setting up transport chains in the 3 000 t of liquid bulk. A pusher convoy with two Baltic Sea Region (BSR), IWT is not considered barges can carry over 7 000 t of dry bulk. This as an alternative to rail and mainly road equals approximately 175 railway wagons of transportation. This has also to do with limited 40 t each or 280 road trucks of 25 t payload knowledge about IWT and its integration into each. The largest inland container ships can international transport chains. They see it as too today load over 400 TEUs. Large shipments complicated and too risky. Furthermore, make sense with a deliberate policy of bundling acquisition efforts of inland navigation shipping volumes driven by digitalisation and fed by lines are often weak. Inland barge operators are sustainability concerns (better use of capacity of faced with unsure future infrastructure assets and land, decarbonisation, less energy developments, which hinder larger investments use…). When it comes to smaller rivers, clean in floating equipment and a modernisation of the modular barges with higher frequency could fleet. In consequence IWT does not mobilize its supplement the European waterway network. full potential to contribute to an efficient and By that inland navigation and river-sea shipping reliable European transport network of the could help to save external costs, reduce future. emissions and decongest roads and railways. The guideline summarizes results and Inland navigation labour market in Europe and experiences of various stakeholders in the the gross value of the sector Baltic Sea region: IWT best-practice cases, an Around 45 000 people are directly employed in overview on IWT affine in the industry and the private inland navigation sector in Europe, customer needs, new potential IWT services without counting those working in the public and a service set-up guideline. It demonstrates sector. This includes all forms of employment the potential IWT could play and aims at (employed persons, self-employed, family changing the way of thinking and acting by all workers). However, it needs to be considered stakeholders. that inland navigation is a part of the logistics Inland Navigation: the mode of transport with chain and that the operation of inland navigation great potential requires entities to be involved. This could be port authorities, handling facilities like ports, Using inland navigation is a way to shift stuffing and stripping companies, tally-men, 3rd transport of goods from road to waterways in the party logistics providers etc. The amount of future. The navigable inland waterway network people involved in this sector is consequently within the EU exceeds 40 000 km and covers all much higher and results in regional welfare by important economic areas in Central Europe. providing jobs and income (Source: CCNR in Many industrial and population centres are partnership with the EU COM, in: Annul Report located along inland waterways. 2016. Inland Navigation in Europe. Market Observation, p. 84). An increase in inland 3 navigation activities in areas with a lower inland new jobs and welfare for regions. The latter also waterway transport share (such as the Baltic results in better multimodal network and with Sea Region) therefore provides potential for that increases the attractiveness of the region. Important economic areas connected to inland waterways. Source: via Donau, 2013, EMMA Project 2018. Remark for Sweden: Inland navigation is time being allowed in lake Mälaren and lake Vänern including Göta river. 4 BEST PRACTICES: HOW TO MAKE INLAND NAVIGATION OPERATIONALLY AND ECONOMICALLY POSSIBLE? IWT is characterised by its reliability, energy efficiency, environmental friendliness and major capacity for increased exploitation. However, IWT still does not play an adequate role in the transport system and is often not even considered as transport alternative by many forwarders and stakeholders in the sector. However, there are good examples on how a modal shift to inland navigation was made possible and how it helped to secure business and protect the environment. The challenges for IWT in the BSR are as unit weights of up to 300 t are transported diverse as the area itself. In the whole region almost every week. Plant manufacturers in the physical bottlenecks and problems caused by Elbe’s catchment area regularly use this inland locks and ship lifts are hot topics. In the Nordic waterway for shipments to seaports like countries also strong weather conditions in Hamburg. winter times, smaller transport volumes, a less However how to reach the next inland port, dense IWT network, insufficient RIS when the next generation exceeds the applications and limited coverage of the area mentioned limitations? The challenge arose for classified as inland waterways play an a producer of gas turbines for power generation. important role. In Central Europe partially low The innovation secured the company market water levels, clearance height restrictions of leadership status. It also led to a more relatively low bridges and a lack of new complicated logistic chain. As an additional business locations for ports and terminals close challenge, the distance of 9 km between to the waterfront are key. production side and inland port includes a bridge over train tracks. It only allows transport Facing these challenges, it is useful to look at crossing with a maximum weight of about best practices: how were these overcome in 250 tons. specific locations? How do the related business models look like? In the cases presented in this The port operator developed a transport chapter using inland waterway transport in solution from the factory to the port, which enables the deliveries in accordance to the supply chains has created true added value for requirements of both customers and authorities. the shippers by saving costs, implementing In order to bring the turbines on the water, first, environmental protection measures, dissolving a road route was defined. The route was chosen bottlenecks and preserving local businesses of by shortest distance and low restrictions. inland shipping companies. Second, at the channel a special roro-ramp was constructed by the port authorities and a corresponding drive-in roro-barge. The barge, A transport concept for turbines from Berlin to called URSUS, was constructed to allow German seaports handling on every known roro-ramp in Europe. The equipment can be used with standard The trend among European plant push-boats. The investments, including also a manufacturers is easy to see: Plant and heavy-duty modular transporter were in the machinery elements are growing ever more range of 10 million powerful and accordingly even larger and/or Euros. For the heavier. For the Czech and German return on manufacturers along the Upper Elbe, inland investment, the port waterway shipping therefore plays a major role authority negotiated in freight transport. long term contracts with the shipper. Whereas project and heavy-lift shipments by Arriving at the port, road often require traffic lights to be uprooted, a crane puts the crash barriers dismantled, or sign bridges lifted, the transport of e.g. gigantic turbines, generators or elements for wind power units often proves simpler on the river Elbe. Objects More information? with a height of up to 6.0 m, a width of 7.5 m and 5 turbines on an ordinary inland barge that ships high customer loyalty and reliable reinvestment it to the seaport. opportunities. Why is this concept a success model? The new transport concept allows the shipper to develop his product range. This secures the maintenance of the production site in Berlin and corresponding jobs. The port operator becomes an important part in the shipper’s logistic chain and ensures the utilization of the existing equipment for heavy cargo. Based on long-term contracts, this solution brought a win-win- © BEHALA situation for the shipper and logistic provider, Shipping cellulose on the Saimaa canal The Saimaa canal connects Lake Saimaa with However, a cellulose mill still created a Gulf of Finland. The vessel size is limited due to business case, using inland navigation for the the capacity of the canal locks. IWT cargo traffic transport of cellulose to seaports and smaller in Lake Saimaa are divided in three type. inland ports near the customers in Europe Vessels and pusher barge combinations (Germany, Belgium). The company is located carrying round wood inside Saimaa, collecting it about 50 km north from inland port of Joensuu. from ports and directly from islands to forest Cellulose units are of standardized size and industry mill sites situated around lake area. designed especially for efficient transportation Another IWT traffic in Saimaa is based on and material handling purposes. The transport Russian river boats that are importing round from the mill to the inland port is done by rail and wood from Russian river systems to forest industry located in Saimaa area. Normal road. Then there is one vessel approx.
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