New Inland Waterway Benefits Port of Hamburg

A Service of

Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics

Durgeloh, Heinz

Article — Digitized Version New Inland waterway benefits port of Hamburg

Intereconomics

Suggested Citation: Durgeloh, Heinz (1966) : New Inland waterway benefits port of Hamburg, Intereconomics, ISSN 0020-5346, Verlag Weltarchiv, Hamburg, Vol. 01, Iss. 11, pp. 24-27, http://dx.doi.org/10.1007/BF02922724

This Version is available at: http://hdl.handle.net/10419/137660

Standard-Nutzungsbedingungen: Terms of use:

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes.

Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu New Inland Waterway Benefits Port of Hamburg

By Dr Heinz Durgeloh, Hamburg

he deciding factor for any extension to a system responding investment is made in a different sector of T of waterways is not the geographical deficiency of the economy--for instance, a different method of such a network, which may be considerable when transport. There is always an increase in productivity comparisons are made with the density of a rail net- when a certain product--perhaps a carrier service-- work--but rather the economic significance of invest- can be operated after the planned investment has been ment in communications. Contrary to other types of made at a lower cost to the economy than was pos- transport, a waterway can only be utilised to the full sible without such investment. if there is a density of transports on long-range traffic The indicator for any increase in productivity is the routes. The flow of goods necessary to support these comparison of costs which must be made for both routes means that there has to be an uneven distribu- these alternative competitive methods of forwarding tion of supply and demand in the area and, since in- bulk goods. Such a comparison must take into account land shipping is mainly concerned with transporting for each method the "economic" cost of supply- goods in bulk, its sphere of operation is concentrated ing the transport service, i.e. the amount of "work- in heavily industrialised zones. In terms of the Fed- ing costs" to be allocated to the means of transport eral Republic, this means that connections between and the "external" route costs incurred by those re- industrial centres--of which the Rhine-Ruhr area is sponsible for such routes, insofar as these apply to the the largest--are the only factors which determine the transport service under consideration, i.e. are caused use of shipping. by this service. In making this economic com- It is at these focal points that density of transports is parison, the only matter of interest is the overall eco- greatest. Next in the scale come communications with nomic effect of an investment upon productivity. ether agglomerations, including overseas ports. Only Decisions about such investment must also depend thereafter come communications from the nuclei to upon whether, and to what extent, an increased yield peripheral points and, finally, trade between the is to be expected. Such a prognosis can only be made various peripheral areas. However, considered from by comparing the economic costs of transport service an economic aspect, inland shipping cannot cope as in the relationship under investigation. Considered well--let alone better--than other modes of transport thus, new investment in a shipping route can be eco- with the flow of goods caused by the uneven distribu- nomically productive even if a competitive carrier tion of supply and demand, for the high investment (the railway, for instance) disposes of sufficient alter- costs of shipping containers and waterways and the native capacity. In comparing costs, however, loss of consequently high fixed-cost charges make it impera- productivity to the existing method of transport due tive that this traffic should be on a very large scale. to either of the causes stated below must be set The costs of loading and unloading, which are normal- against the new investment: ly higher than those for rail transport, mean that longer routes are essential. a) if that part of the invested capital which has not yet been depreciated becomes valueless because Investment Criteria for Waterways there is no further demand for its services; or b} if insufficient use is now made of available capac- If the flow of goods in West Germany is studied with ity so that fixed costs cannot be covered at tariff this in mind, it becomes apparent that although the rates which are held down by competition. density of communications exists in the agglomerations, transport distances are normally too short. Pot ~vVaterway services become economic when the in- this reason, traffic between focal points and traffic come derived fully compensates for the eco- between the nucleus and peripheral concentrations nomic expenditure incurred. This means that in ad- offers more scope for the use of inland waterways. A dition to covering out of pocket expenses for main- network of canals based upon these communication tenance and operation, a proper amount is also coming lines, where the separate stretches are compatible with in for renewal of capital. On the other hand, there are more than one function, can withstand both economic basic reasons why the invested capital should not be amortised because this would mean, in the long term, investigation and investigation of its own profitability. that the users of the canal would become its owners. From the economic aspect, the criterion for evaluat- In addition, interest would cease to fulfil its function ing investment in the construction of new com- of regulating capital, although this is essential for the munication routes must be whether overall economic co-ordination of traffic. productivity is increased by investing in such routes An artificial waterway can be used in return for a or whether productivity increases more when a cor- previously established fee, the amount of which does

24 INTER]ECONOMICS, No. 11, 1966 not depend on the density of traffic. If dues are kept at the same level, total takings are dependent only upon the density of traffic and the canal operation PUBLICATION FROM THE HAMBURG becomes economic when such takings cover total INSTITUTE FOR INTERNATIONAL ECONOMICS costs. With the considerable minimum capacity and developing traffic functions of a new canal it is quite possible that initially, even if its use is free of charge, Wilhelm G. Franken full capacity will not be achieved and that the canal will be unable to function economically on the basis of any LEASING feasible charge. If dues are established on the basis of average costs when the canal is working to capacity, E;ne neue Form der Anlagenfinanzierung it is possible, in some cases, to achieve economic (A New Form of Investment Financing) working by means of suitable subsidiary effects. Even if this is not the case, canals may be justified in working at a loss where increasing economic growth means A Bibliography that the necessary density of traffic will be reached Leasing came to us from the United States within a foreseeable period. and it is relatively new. But literature on The relatively easily calculated criterion of economic hand is already comprehensive. The pres- operation plays an important role in present-day trans- ent bibliography, the most comprising one port policy. The last few years have offered a plethora hitherto published: 600 titles of books and of examples and the results of discussions on transport articles from newspapers and journals, policy have resulted--inter alia--in a construction published in 10 languages in approximate- programme which embraces the Nordsfidkanal. Invest- ly 15 countries, outlines the whole inter- ment cost estimates, which are the basis for economic national discussion on leasing. evaluation, have been made more than once and their results--which are important not least for the local- 130 pages, 1966, paperbound, price DM 14.50 ities situated on the canal--can give considerable support to our remarks. ~ So the decisive factor for the extent of public investment in communications is not VERLAG WELTARCHIV GMBH only the desire for an efficient canal; the economic 2 HAMBURG 20 . EPPENDORFER LANDSTR. 106 advantages of a new combination of production factors are also important. considerable obstacles to shipping on the Central Elbe, The Role in Communications of the North-South Canal high transport costs would be insuperable vis-A-vis a If we relate the above outline to the waterways of shorter and more direct route, and plans to construct a West Germany, it can be seen that the existing net- new canal finally hardened into the Nordsfidkanal pro- work--in reality, it is less a network than a linking ject. The advantage of this project is that it combines up of large rivers--cannot completely fulfil all the three communication functions: functions required of it. Rotterdam is connected with Q the functions of an Elbe lateral canal; the West German industrial area by the most im- a connective function for the Lower Saxony indus- portant waterway in Western Europe--the Rhine. trial region; Emden is connected with the Eastern Ruhr by the a connective function with the Rhine/I~estphalia Dortmund-Ems Canal. The canalisation of the Weser industrial region. from the Midland Canal as far as Bremen has been There are many deficiencies in communications be- completed. Only Hamburg and the Baltic port of tween the ports at the mouth of the Elbe, Hamburg and Lfibeck have no efficient connection with the Western Lfibeck--via the Elbe-Lfibeck Canal, which was con- German canal system. structed at the turn of the century--with their hinter- As soon as such a connection has been realised all land. Ignoring the political division, there is still a important traffic requirements in the West German quite considerable deficiency which always works to area will be met by artificial or natural inland water- the disadvantage of the location: the very frequent ways. Plans were drawn up years ago to give the acutely low level of water in the Central Elhe. To Port of Hamburg a more attractive waterway for a construct an artificial waterway merely because of better development of its hinterland. The fact that the this political division is an example of the short-term Central Elbe was connected to the Midland Canal planning of long-term projects. Naturally, after re- shows that the improvement of the former also played unification the significance of such a canal would a role in these plans. However, the detour which this increase from the communications aspect. For the time route would entail is so long that even if it cut out the being it is impossible to overcome the difficulties in the way of eliminating the problem of the low water- 1 On this subject, see articles published by the Institut ffir Ver- kehrswirtsdlaft, University of Miinster, in particular R. F u n c k ; level, But--if we accept the estimates of the hydro- H. D u r g e 1 o h , "Die volkswirtsdaaftliche Beurteitung des Baues k~nstlid~er Wasserstragen--insbesondere des Nordsfidkanals" (An technologists--even should this become feasible at a economic Evaluation of the Construction of Artificial ~Vaterways later date, costings show that it would still be better --in particular the North-South Canal), Vol. 27 of the series, G6ttin~en 1962. to construct a canal.

INTERECONOMICS, No. ll, 1966 25 kilometer disadvantage will be balanced by the Nord- sfidkanal's cos~ advantages. PUBLICATIONS FROM THE HAMBURG INSTITUTE FOR INTERNATIONAL ECONOMICS The importance of the Canal in Encouraging Industry

V,Zhen the NordsiidkanaI is built, the industrial region of Braunschweig/Hannover will gain an efficient H, Peter Kehrberger waterway to the seaports and the canal -*'ill thus fulfil a second important communication function. Ham- burg and L/ibeck, on the other hand, will find that LEGAL AND POLITICALIMPLICATIONS their trans-shipment facilities will gain in attraction for a region which, compared with the Ruhr--partic- OF SPACERESEARCH ularly because of its political division--has to accept certain (locational) disadvantages. The reason why the Space law and its background: canal can only in the long term enter fully into its Political, military, economical aspects functions is because of the growth potential of the Lower Saxony region. Certain conversion processes and techno-scientlfic problems of astronautics in manufacturing techniques lead us to believe that the importance of sea ports for the inflow and out- This bibliography comprises more than 6,000 flow of goods is growing. Additionally, the canal can titles from 55 countries in 30 languages. A make a contribution to the industrial development of the region and this, in turn, will react positively total of more than 900 periodicals from East upon the demand for trans-shipment services. and West has been evaluated. We must not forget that the industrial area of the Braunschweig/Hannover region has a peripheral nu- 421 pages, 1965, poperbound, price DM 34,--- cleus of heavy industry and that the flow of goods from this centre, with its forward position vis-~-vi's the Ruhr, will have a decisive influence not least upon VERLAG WELTARCHIV GMBH the demand for transport. Besides potash, the goods 2 HAMBURG 20 EPPENDORFERLANDSTR. 106 traditionally carried by inland waterway to the Elbe seaports are products of non-metallic minerals industry, salts and products of the heavy industry in the Hannover, Hildesheim and Braunschweig regions, whilst fodder, In former years, Hamburg's hinterland was determined fuels and industrial raw materials should be on the re- by the Elbe and the waterways in Central and Eastern ceiving end. These loads will not mean that the canal Germany with which it was connected. Statistics show is working to capacity, but the new route will be of that before political division took place, more than the greatesL importance in helping to open up the half the goods trans-shipped in Hamburg were trans- hinterland of the Port of Hamburg to traffic and thus ported via the Elbe waterways in trade with the in improving its locational position. hinterland. Even if this hinterland had remained, there would still have been some post-war shifts in the flow An efficient mode of communication between the ports of goods, for even inland shipping has been ration- at the mouth of the Hlbe and the Ruhr will eliminate alised and the tendency towards larger motorised one of the locational disadvantages for these ports-- ships and all those other developments which are which is particularly serious for Hamburg and those typical of current production also apply to modern ports with a simiIar geographical position as long as inland shipping. Thus the question of regulating the Germany is politically divided. Because of the Rhine, Central Elbe would still have had to be solved in the the Rhine/Ruhr industry looks mainly to Benelux long term. Over the last hundred years works under- ports--- to the dismay of the German North Sea ports. taken to achieve better river regulation have improved tn order to start off on equal conditions it would be the waterway considerably, but it is by no means ade- necessary to extend their "catchment area". This quate to satisfy the present-day requirements of mod- certainly does not mean relocating large quantities ern shipping. of transport. If important industrial areas in Germany could make use of ports at the mouth of the Elbe on On the other hand, the new canal fulfils all the re- reasonable terms, this would certainly make for a more quirements without which it is impossible for present- stable level of transshipment business. Coal will be day inland shipping to become an efficient means of the most important seaward-travelling item. The traffic transport. In communications with the West it short- to the Ruhr will deal mainly with the dispatch from ens transport distances and circulation; it thus makes seaports of imported industrial raw materials, food- a contribution to decreasing running costs, dues and stuffs and manufactured goods and the dispatch of charges. The Elbe is still there as an additional water- processed agricultural products from Schleswig-Hol- way. In times of sufficient flow of water it can be the stein. Since these goods are shipped only in small regulator of competition. The distance Berlin/Hamburg loads, inland waterways will be of only minor impor- is a somewhat longer stretch (47 canal kilometers), the tance for their transport. The position will be different

26 INTER~CONOMICS, No. 11, 1986 for timber, grain, petro-d~emical products and, pos- canal will be able to zssume a fully economic func- sibly, for iron ores, since with the new route the tion. Detailed studies--_~ which the author has col- lop-sided dependence of the Ruhr upon the Benelux iaborated--have alread= been made of these points. ports could be broken down, to the advantage of the But the inclusion of th~ yroject in the plan to extend ports at the mouth of the Elbe. This would mean North West Germanys canal system points up the that Hamburg would no longer be left in its present urgency of extending -.he communication network. peripheral position. This means that the c:_~petitiveness of the Port of It is not for us to say what quantities of goods will Hamburg vis-~-vis the Nort~h-West European seaports be transported by the new canal or when the new wilt be greatly increas='d.

World Business Trends

Department for Business Trends Research, The Hamburg Institute for International Economics

Investment in West Europe Increasing only Slowly It is remarkable that the investment volume in Italy in the current year is still by 10 % smaller than t the growth of the West Euro- Among the most important West I pean national product in the cur- European economies the two big- in 1963, whereas, the national prod- rent year can be estimated at ap- gest, namely the Federal Republic uct has risen by more than 11% since then; consequently the over- prox. 3,5 ~ at constant prices ac- of Germany and the United King- all investment rate fell from more cording to the present data, this dom, at present are marked by a than 24 % to 20 ~ of national out- means a further slight decrease of strong decline of their investment put. In industry alone the diver- the growth rate as compared with activity. So in 1966 investment in the previous year. Thus former ex- gency between investment and pro- the FR of Germany will grow less pectations were disappointed, which duction development is yet more than half as rapidly as in the pre- were rather anticipating a slight distinct; at any rate, total equip- vious year. Here above all the de- acceleration. Regionally seen the ment investments in 1966 are sup- cline is a result of the decreased decisive factor for this were the posed to remain below the volume investment propensity of entre- distinct retarding forces not ex- of 1963 by even more than 20%. preneurs. This applies equally to pected in their strength in the On the one hand this shows how the United Kingdom, where the Federal Republic of Germany and great the unutilised capacities of the United Kingdom. From another total investment activity in 1966 the Italian economy were at the point of view, namely seen from will probably hardly exceed the beginning of the present expansion expenditure, investment proves ob- last year's volume, altough the phase. On the other, profits and viously to be a relatively weak corresponding expenses of public profit expectations--the latter per- point. industries and services are still haps due to anxieties concerning constantly growing. Granted, especially this aggre- international policy--had been de- gate shows particularly great defi- With an estimated real growth of pressed so considerably that only ciencies of short-term statistical re- 5 and 4 ~ respectively, in France a very effective improvement of gistration in international compar- and Italy the increase of invest- the sales and profit situation may ison. But the present estimates bring the investment propensity up make suppose that investments in ments in the current year is greater. to i[s former height. West Europe will only increase to The expansion in this field in the the same exent as the national two countries compared with the According to the presently re- product, that is by approx. 3,5~ increases in total production, is cognisable tendencies in the year at constant prices--somewhat less still dull. But a detailed observation to come the differentiation of in- than in the previous year. So the gives an explanation. Thus in vestment activity in the most im- expansive forces expected because France the acceleration of the in- portant West European economies of a changing tendency in this field vestment growth in business enter- will still increase. On the one hand have not materialised. Here comprises, especially in private ones, investment in France and Italy is pletely different single factors act is really remarkable. Simultaneous- together which are not only the ly, however, housing has brought likely to increase by 7 to 8~ in result of the regional differentia- dampening influences. Similar ten- volume. Acceleration will start in tion of the economic trend in %Vest dencies are prevalent in Italy, the private field, where improved Europe, but also above all of the where at the same time the annual income expectations become effec- different motives for private and result of public investment shows tive, as well as in the public sector, public investment. a downward tendency. where the urgency of the so-called

INTERECONOMICS, No, 11, I966 27