Intermodal Round Table and Road Map for Croatia

COSMOS Round Table Croatia Road Map on Intermodal Transport Zagreb, 27.03.2014 in Croatia – final – 30.04.2013

Intermodal Round Table and Road Map for Croatia Uwe Sondermann, Kai Petri KombiConsult GmbH Zagreb, 27 March 2014 (Round Table) Frankfurt am Main, 30 April 2014 (Road Map) - Final Version -

COSMOS Project

Objectives

. Fostering the development of (combined) intermodal transport in South-East Europe

. Cooperative Solutions for Managing Optimized Services (COSMOS)

. www.intermodal-cosmos.eu

. Co-financed by the European Commission in the framework of a Marco Polo Common Learning Action

page 2

COSMOS Project

Partners

KombiConsult Germany Consultancy Adria Kombi Slovenia Intermodal Operator Bohemiakombi Czech Republic Intermodal Operator Crokombi Croatia Intermodal Operator DB Schenker Austria Austria Logistics Service Provider DB Schenker Bulgaria Bulgaria Railway Undertaking DB Schenker Romania Romania Railway Undertaking Ecologistics* Bulgaria Terminal Operator Gysev Cargo Hungary/Austria Railway Undertaking HaCon Germany Consultancy, IT Lokomotion Germany Railway Undertaking Slovenian Railways Slovenia Railway Undertaking Trans Express** Bulgaria Logistics Service Provider

* until 31.08.2013; ** from 01.09.2013 page 3

COSMOS Project

Promoting and disseminating intermodal transport

. Promoting intermodal transport as such, and in particular supporting schemes for modal shift to (intermodal) rail services (administrative, fiscal, technical, financial measures) towards targeted stakeholders (market parties, operational partners and political/public stakeholders)

. Dissemination of project results (“promoting campaign”):  Round tables,  Final seminar,  Knowledge platform (www.intermodal-cosmos.eu),  Other measures such as press releases and COSMOS presentations at conferences and seminars

page 4

Round Tables

2nd Round Table Czech Republic 19 Sep tem ber 2013 3rd Round Table Hungary 16 October 2013 4th Round Table 1st Round Table Romania Slovenia 20 November 2013 23 April 2013

6th Round Table Croatia 27 March 2014

5th Round Table Bulgaria 26 February 2014

page 5

Round Tables

Co-ordinate the findings and innovative ideas of the nucleus partners and CREAM and DIOMIS studies

Intermodal Operators

Railway Ministry of Under- Transport takings Round Infra- Terminal structure Managers Table Manager

Other Stake- Customers holders

page 6

Round Table Croatia

Participants (1/3)

Name Company/Institution Present Marko Lončarević Ministryy,p of the Sea, Transport and Infrastructure Helga Bubanović Devčić Ministry of Regional Development and EU Funds Darko Peričić HZ Infrastructura Peter KONTOR Gysev Cargo excused Peter LÉVAY Gysev Cargo OK Danijel Krakić HZ Cargo excused Zeljko Cindric HZ Cargo OK Andrej Skvarča Slovenske železnice OK Phillip Marsham Adriatic Gate Container Terminal - AGCT OK Žarko Acinger Adriatic Gate Container Terminal - AGCT OK GMfdGoran Manfreda Adr ia tic Ga te C on tai ner T ermi nal - AGCT excused Robert Jukić Cargo Center Zagreb OK Ivan Pavlović Port of Ploce Vedran Devčić Port of Rijeka Janez Merlak Adriakombi OK

page 7

Round Table Croatia

Participants (2/3)

Name Company/Institution Present Mario Šarić AGIT excused Ivica Vrankić AGIT OK Nenad Kojić Crokombi OK Dario Soldo Croatian Chamber of Commerce excused Ljubica Herceg Croatian Chamber of Commerce excused Saša Subotic Croatian Chamber of Commerce OK Bosiljka Horvat Forwarders Association Marijan Banelli HUP-HCP Assosiation of road-hauliers OK Jakov Karmelić Association of shipping agents, President excused Stanko Polic Gate Express Rijeka As Agent of Yang Ming Line OK Rajna Broznic Gate Express Rijeka As Agent of Yang Ming Line OK Nikolina Ugrin MAERSK Line OK Robert Percic MAERSK Line excused Mladen Sinko MSC Croatia as agent for MSC OK Zlatka Gulam MSC Croatia as agent for MSC OK

page 8

Round Table Croatia

Participants (3/3)

Name Company/Institution Present Zvonimir Poščić Transagent, Forwarder excused Boris Rosanda Transagent, Forwarder OK Alen JUGOVIĆ Faculty of maritime studies, Rijeka excused Bazijanac Ernest University of Zagreb, College of transport science excused Eric Kenis Innovation & Networks Executive Agency (INEA) excused Kai Petri KombiConsult GmbH OK Uwe Sondermann KombiConsult GmbH OK

page 9

Round Table Croatia

Methodology

. Discuss the recent achievements, status quo and future prospects of intermodal transport in Croatia

. Achieve a consent about the growth perspective and coordinate regulative, financial and operational measures that will be necessary to foster the increase of intermodal rail services

. Identify relevant actors and time horizons for the realization of the intermodal strategy

. Summarize a “road map on intermodal transport” in Croatia

page 10

Road Map Croatia

Objectives

. Assessment of development of combined transport in countries selected by 2015/2020

. Evaluation of threats to and requirements for CT growth

. Elaboration of strategic development plan on CT

. Assessment of impact on rail infrastructure and CT terminal capacities in countries selected selected and central Europe

page 11

Round Table Croatia

Agenda

10:00 Welcome and Introduction 10:10 Status-quo of the intermodal sector in Croatia

Discussion by topic: - Rail Infrastructure - Ports and Terminal 10:45 - Port Hinterland Services - Continental Services - Incentive Schemes

12:30-14:00 Joint Lunch 14:00 Continued Discussion and Actions 15:30 Conclusions

page 12

Analysis of current CT market

General country information - Croatia

. Area: 56,542 km² . PltiPopulation: ~4, 285 mill (2011) . Density of population: ~76/km² . Most city population: > 50% in four areas  town and county of Zagreb ~ 1.1 million inhabitants,  counties of Split-Dalmatia ~ 455.000 inhabitants,  Osijek-Baranja ~ 305.000 inhabitants,  Primorje-Gorski Kotar ~ 296.000 inhabitants. . Geographically it features  Between the Adriatic Sea and the Pannonian Plane  Own sea-ports and access to navigable rivers Sava and Danube  Surrounding Bosnia-Herzegovina

page 13 Source: KombiConsult analysis

Analysis of current CT market

General country information - Croatia

. Development of economic and social indicators, 2002-2012

200

180

160

140

120 Population 100 GDP Export 80 Import

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

page 14 Source: Eurostat, Central Bureau of Statistics, KombiConsult analysis

Analysis of current CT market

Roles in the physical transport (supply- and value-) chain

Road‐only transport

Forwarder Shipper Logistics Service Provider, Shipping Line Consignee Road operator CT CT Operator Operator Rail/Road transport

Road Terminal Railway Terminal Road Shipper Consignee Operator Operator Undertaking Operator Operator

Door-to-Door Infrastructure Terminal-to-Terminal Manager

The Croatian transport sector provides for various forms of logistics concepts including Combined Transport (CT) Operators for rail/road and even barge/road transport.

page 15 Source: KombiConsult analysis

Analysis of current CT market

Roles in the physical transport (supply- and value-) chain

. Combined transport operators (OP) supplying mostly multi-user CT services on account of third parties

. Logistics service providers (LSP) such as forwarding agents or shipping lines operating dedicated or multi-user CT services

. Railway undertakings (RU) providing proprietary CT services in addition to rail traction services

. Shippers, terminal and port operators (Others) supplying CT services to strengthen core business and/or distribution logistics

page 16 Source: KombiConsult analysis; 2012 Report on Combined Transport in Europe; COSMOS Round Table Croatia 2014

Analysis of current CT market

Legal Framework - Relevant Acts

1. Railway Act (OG 94/13, 148/13) 2. Act on Safety and interoperability of the rail system(OG 82/13) 3. Act on Agency for Railway Services Market Regulation (OG 79/07, 75/09, 61/11) 4. Act on the Division of HŽ Hrvatske željeznice Ltd (OG 153/05, 57/12) 5. Transportation of Dangerous Goods Act (OG 79/07) 6. Act on Railway Transportation Contracts (OG 87/96) 7. Combined Transport Act (OG 124/09) 8. Act on Reduced Fares in Domestic Passenger Transport (OG 97/00, 101/00)

page 17 Source: KombiConsult analysis

Analysis of current CT market

Legal Framework - Analysis

. Harmonisation with the European Legislation of the (Rail)- Transport Sector (recent: EC Directive 2012/34/EU on the establishment of a Single European Transport Area)

. Separating the legal entities and companies operating in it

. Creating a regulatory body ensuring equal market conditions for all operators

. Politically supported by the “Railways Committee”, established in 2012 and headed by the Prime Minister

. Aim: Restructuring, Rehabilitation and Improvement of the sector

page 18 Source: KombiConsult analysis

Analysis of current CT market

Separation of the Croatian Rail Sector

Government of the Agency for Agency for Republic of Croatia Railways Services Railway Transport (MSTI) Market Regulation Safety

HZ Infrastructura HZ Putznicki HZ Cargo d.o.o. prijevoz d.o.o. d.o.o. IM RU passenger RU freight

The Croatian rail sector provides for the legal and administrative framework for establishing CT .

page 19 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT market

Infrastructure manager(s)

. The infrastructure is owned by the Republic of Croatia. . Disregar ding loca l or reg iona l lines, pu blic ra il ne twor k is manage d by HŽ Infrastruktura d.o.o. . Based on the HZ Hrvatske zeljenice d.o.o. Separation act HZ Infra was assigned with the possession, use and management as well as construction of the railway infrastructure (for 5 years) . Conditions of use laid down in the “Network Statement”

page 20 Source: HZ Infrastruktura website, 2014

Analysis of current CT market

Railway undertakings with focus on rail freight transport

. HZ Cargo is the only licensed RU with safety certificate

. Other RU are licensed, e.g. Rail Cargo Croatia, but have not received their safety certificate, yet.

page 21 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT market

Railway undertakings - Privatisation of HZ Cargo

. Restructuring process since its separation from the incumbent

. Intention to sell about 75% of the share, but maintain 25% plus 1

. Grup Feroviar Roman S.A., Bucharest only valid offer

. Meanwhile stopped process

. Also the establishment of the “Corridor 10” railway between Slovenia, Croatia and Serbia on hold after years of preparatory work in the framework of the SEETO process (South East Europe Transport Observatory)

All in all not the best starting conditions for rail transport in Croatia, while the road sector demonstrated entrepreneurship and rapid reaction to market needs following the extensive modernisation of the Croatian road network since the access to public funds .

page 22 Source: Railwaypro; KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT market

Large forwarders active in Croatia

Service Provider Revenue 2010, Location (N° of sites) website (Country) in Mio. Euro Intereuropa logističke Zagreb (45) 35,5 http://www.intereuropa.hr usluge (SI) Centar za kombinirani Zagreb (5) 28,9 http://www.cktz.hr transport Zagreb (HR)

Gebrüder Weiss (AT) Zagreb (2) 24,2 http://www.gw-world.hr

Trast (HR) Split (23) 24,2 http://www.trast.hr

Kuehne+Nagel (CH) Sv. Nedelja (4) 24,1 http://www.kn-portal.com

DHL International (()DE) Zagg()reb (7) 16,1 http://www.dhl.hr

Lagermax AED Croatia (AT) Zagreb (7) 15,9 http://www.lagermax-aed.hr

DB Schenker (DE) Zagreb (8) 12,7 http://www.dbschenker.hr

Zagrebsped (HR) Zagreb (27) 12,5 http://www.zagrebsped.hr

AGIT Zagreb (??) ?? www.agit.hr

page 23 Source: Agency FINA, Magazin Lider, company websites according to IHK Ulm; KombiConsult analysis

Analysis of current CT market

Intermodal Operators

. Adria Kombi

. AGIT (Agency for integrated transport)

. Crokombi

. Kombiverkehr

. Metrans

. RCO

page 24 Source: 2012 Report on Combined Transport in Europe; KombiConsult analysis

Analysis of current CT market

Intermodal Operators – „local heros“

Crokombi doo AGIT doo • Intermodal Operator • Agencija za integralni transport dood.o.o. • Shareholders: (Agency for integrated transport) – Transkombi 50,13% • Shareholder: – HZ Cargo 47,09% • HZ Cargo 100% – Croatiasped 0,58% • Operates „door-to-door“ transport in – Zagrebacki 0,58% Croatia and internationally – Primacosped 0,58% • Container transport to/from seaports – Presecki 0,58% • Terminal Operator in Croatia – AGIT 0,46% • Provides also general cargo services • Member of UIRR • Heinzlova 51, 10000 Zagreb Tel: +385 1 2350 888 • Operates „terminal-terminal [email protected] transport • Heinzlova 51, 10000 Zagreb Tel. +385 1 61 51 867 [email protected]

page 25 Source: Crokombi, AGIT; KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT market

Development of total freight volume, tonnes, 1998 - 2012

. Dominance of road freight transport (after building motorways) . Drop o fttlfihtf total freight vol ume, mai ilnly due to loss o f roa d vo lume related to the economic crisis

Million Tonnes 120

100 -37%

Road Rail 60 Pipeline Inland Waterway

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

page 26 Source: Central Bureau of Statistics, yearbook 2013; KombiConsult analysis

Analysis of current CT market

Development of rail freight volume, tonnes, 1983 - 2012

. Volume stayed on a low level since fall of iron curtain . Onl y sma ll recovery from 2002 until 2008 . Only few investments in rail sector

Million Tonnes Rail 50

0 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

page 27 Source: Central Bureau of Statistics; KombiConsult analysis

Analysis of current CT market

Development of rail freight traffic - summary

. After the fall of the iron curtain, and during the „accession period“ quick wins could be realised by road transport which was often more flexible, open to entrepreneurship and promoted by truck and construction industry . The Croatian highway system is one of the most modern in EU.

. In contrast to that the rail sector lacks coherent infrastructure investments, both in maintenance, refurbishment and new builds - which can be exploited fully only after their entire implementation - while improved roads can be used on sections, already

. Old and general poor state or repair of rolling stock

. General mind-set towards road operation in the logistics sector

page 28 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT market

Development of intermodal traffic, tonnes, 2000 – 2011

Generally large dependency on transit traffic, both for accompanied (RoLa) and unaccompanied intermodal transport, while international (im/export) gained some market share domestic plays only marginal role.

page 29 Source: KombiConsult analysis; COSMOS Round Table 2014

Analysis of current CT market

Development of „RoLa“-Transport, tonnes, 2000 – 2011

. Accompanied CT (RoLa) in transit through Croatia disappeared and could not be replaced by other RoLa or unaccompanied services.

page 30 Source: KombiConsult analysis

Analysis of current CT market

Development of „RoLa“- Conclusions

. RoLa services are rather a political than a market measure . DdiDepending on a coup lfftle of factors, e.g.  Transport permissions for international traffic, Visa regulations  Driving bans at night, weekends, holidays, or for specific type of goods or trucks  Subvention by the state to compensate operational losses (real or full rail costs vs. marginal truck costs) . Hardly impossible to forecast . Traditionally in transit through Hungary/Slovenia/Austria:  Szeged – Ljubljana (only until 2006)  Spazva – Ljubljana/Wels (2006-2008), about 650 shipments . Have become obsolete after the end of the Austro-Hungarian subvention was terminated and Ökombi stopped service

page 31 Source: DIOMIS Country Report on Croatia, 2010; KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT market

Development of intermodal traffic - summary

. Large importance of international transport, transit in particular . Minor ro le o f domes tic tra ffic . Accompanied intermodal transport (RoLa), in transit only until 2006 practically until accession of Romania and Hungaria to EU . Unaccompanied combined transport with a focus on transit through Croatia to Serbia/Turkey/Greece (Pan-EU-Corridor X) . Generally small quantities of freight compared to both road and rail . Volatile development in recent years . Few volumes of containers to/from Port of Rijeka by rail . Continental intermodal transport still to be developed further . Growth of intermodal transport is directly depending on the country‘s ability to efficiently organise transit (like in Switzerland or Austria) . And create opportunities depending on own economic performance, e.g. to/from Port of Rijeka, economic center of Zagreb

page 32 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT market

International intermodal traffic by country, TEU-Share, 2011

18,4 % 6,3 %

Relations TEU Share HR - AT 32 02%0,2% HR - DE 88 0,5% 74,7% HR - HU 3.212 18,4% HR - SI 1.092 6,3% HR - RS 13.040 74,7% Total 17.464 100,0%

Large role of the neighbouring countries Serbia and Hungaria where economic relations exists and the Croatian port serve is the maritime door to this economies.

page 33 Source: 2012 Report on Combined Transport; KombiConsult analysis; COSMOS Round Table 2014

Analysis of current CT market

Intermodal Services offered, 2013/2014

Country Relations Service Main Operator RS Rijeka Belgrade 2 x per week* AGIT RS Rijek a NiNovi SdSad On request CkCrokom bi HU Rijeka Budapest On request RCO HU Rijeka Budapest On request Crokombi Ljubljana/Koper Single Wagon Load Crokombi/ SI All terminals Adria Express Block Train Adriakombi Total * Marco Polo Project „Go Rail – Go Green“ of AGIT, AGCT, BCT

Only a few regular intermodal services offered, mainly “on request” or as single wagon load.

page 34 Source: company websites; Crokombi, KombiConsult analysis

Analysis of current CT market

Intermodal Services offered, 2013/2014

GERMANY SLOVAKIA AUSTRIA Budapest

Trieste Selected internat. services Croatian services

Ljubljana Padova Koper Arad ? West Romania ? ITALY ? East Croatian Terminals Rijeka Zagreb Novi Sad Belgrade

Ploce BOSNIA/HERZEGOVINA TURKEY

page 35 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT market

Current situation of intermodal traffic - summary

. While other ports of the North Adriatic Port Association (NAPA) such as Trieste and Koper are linked to their hinterland by CT services already, the offer to/from Rijeka is to be developed further, which is possible after the increase of the ports capacity (AGCT-terminal); . Croatian trade partners, first of all Bosnia-Herzegovina, are already connected, while a service to Italy (another important trade partner) is lacking due to the bad rail connection via Slovenia; . East Croatian terminals are not connected, yet, although the distance would generally allow for competitive rail freight services;. . The road distance (~ 160 km) and the favourable motorway connection is a challenge for rail freight services (mountain rail, distance ~ 220 km) and can only be implemented if Zagreb is used as a Hub combining various national and international services;. . A lack of industrial centres in Croatia (small exports, large imports) leads to services to neighbouring countries (Budapest, Serbia, West Romania) until the economy and logistics sector improves.

page 36 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Round Table Croatia

Agenda

10:00 Welcome and Introduction 10:10 Status-quo of the intermodal sector in Croatia 10:45 Discussion by topic: Rail Infrastructure Ports and Terminals Port Hinterland Services Continental Services Incentive Schemes 12:30-14:00 Joint Lunch 14:00 Continued Discussion and Actions 15:30 Conclusions

page 37

Analysis of current CT: infrastructure

Railway network

. Owned by HZ Infrastruktura d.o.o.

. Characteristics:  total length of network: 2,605 km of track ~ of which 2,468 km single ~ of which 254 km (27%) are double-track lines ~ of which 980 km (40%) are electrified

 Power supply: 945 km AC 25 kV/50Hz, 35 km DC 3 kV

. Infrastructure generally suffering from a lack of maintenance and investment due to focus on corridors or main railway lines and even greater focus on development of road rather than rail network in the past decade.

page 38 Source: HZ Infrastruktura Network Statement 2014; KombiConsult analysis

Analysis of current CT: infrastructure

Line Classification

page 39 To improve visibility on following maps this part is hidden without any political ambition!

Analysis of current CT: infrastructure

Pan-European corridors

page 40 Source: HZ Infrastruktura Network Statement 2014; KombiConsult analysis

Analysis of current CT: infrastructure

Pan-European corridors

The following Pan-European Transport Corridors are intersected in the country: . Corridor N° X (Salzburg – Villach – Ljubljana / Graz – Maribor) – Zagreb – Novska - Vinkovici – (Beograd – Skopje – Thessaloniki): ~317 km length in Croatia . Corridor N° Vb : Rijeka – Zagreb - ( Budapest) . Corridor N° Vc: Ploce – (Sarajevo – Osijek – Budapest) . Corridor N° VII: Danube river with tributaries / Sava river

page 41 Source: KombiConsult analysis

Analysis of current CT: infrastructure

Pan-European and Trans-European Core Net Corridors

Only corridor Vb was maintained in the attention of the EU and became part of the “Mediterranean” TEN- T core net corridor now. The link with Serbia was cancelled neglecting the former routing of Corridor X and the important trade. Mediterranean TEN-T

page 42 Source: HZ Infrastruktura Network Statement 2014; KombiConsult analysis

Analysis of current CT: infrastructure

New TEN-T and CEF Regulations

page 43 Source: European Union Official Journal

Analysis of current CT: infrastructure

Nine Trans-European Core Network Corridors (extract)

page 44 Source: COM 2011/650; KombiConsult analysis

Analysis of current CT: infrastructure

Connecting Europe Facility (CEF) - Budget

. €26.2 billion for TEN-T (-40% vs EC proposal) . €14.9bn available to all Member States . €11.3bn to be transferred from the Cohesion Fund . To be allocated exclusively to projects in Cohesion Fund eligible Member States . Respect of National allocations under the Cohesion Fund until end 2016 . Specific Programme support actions for MS experiencing difficulties in proposing projects . To be spent via: . Grants . Innovative financial instruments (€2 billion estimated market uptake) . Call for proposal:  Published: September 2014  Deadline for submission of projects: Feb 2015

page 45 Source: European Commission Announcements; KombiConsult Analysis

Analysis of current CT: infrastructure

Co-funding rates under the TEN-T/CEF Regulations

All Member Member States eligible for Types of Projects States Cohesion Fund (a) Studies (all modes) 50% 85% (b)Works on Cross border 40% 85%Croatia Rail Bott lenec k 30% 85% Other projects of common interest 20% 85% Cross border 40% 85% Inland waterways Bott lenec k 40% 85% Other projects of common interest 20% 85%

Inland transport connections to ports and airports (rail and road) 20% 85%

Development of ports 20% 85% Development of multi-modal platforms 20% 85% Reduce rail freight noise by retrofitting of existing rolling stock 20% 20% Freight transport services 20% 20% Secure parkings on road core network 20% 20% Motorways of the sea 30% 85% SESAR, RIS, VTMIS (ground/onboard) 50/20% 85% Traffic management ERTMS 50% 85% systems ITS for road 20% 85% Cross border road sections 10% 85% New technologies and innovation for all modes of transport 20% 85%

page 46 Source: European Commission Announcements; KombiConsult Analysis

Analysis of current CT: infrastructure

Pre-identified Projects for TEN-T inCroatia

Project Mode Main Tasks Rijeka – Zagreb – Rail Studies and works (including construction of new Budapest track and second track between Rijeka and HU border ) Rijeka Port Infrastructure upgrading and development, development of multimodal platforms and interconnections Ljubljana – Zagreb Rail Studies and works Slavonski Brod Port Studies and works Danube (Kehlheim IWW studies and works on several sections and - Constanța/ bottlenecks; inland waterway ports:multimodal Midia/Sulina) interconnections Sava IWW Studies and works on several sections and bottlenecks (including cross-border bridge) Pre-identified projects in favour of rail are a good starting point but need to be substantiated , co-financed, priorized in the scope of the “Corridor Work Plan” by end of 2014 and applied for.

page 47 Source: European Commission; KombiConsult analysis

Analysis of current CT: infrastructure

Single/Double lines of the main network

Zagreb – Novska practically “double line” with two routings

page 48 Source: HZ Infrastruktura Network Statement 2014; KombiConsult analysis

Analysis of current CT: infrastructure

Railway network – Electrification systems

Main routings are electrified

page 49 Source: HZ Infrastruktura Network Statement 2014; KombiConsult analysis

Analysis of current CT: infrastructure

Traffic Control Systems

Traditional Control System Problem? ERTMS Needed?

page 50 Source: HZ Infrastruktura Network Statement 2014; KombiConsult analysis

Analysis of current CT: infrastructure

Intermodal Loading Gauges

P/C 52/368 High Cube Containers possible at low speed by special permission

Main Routings generally “better” Rijeka – Ogulin “worth” Neighbouring countries?

page 53 Source: HZ Infrastruktura Network Statement 2014; KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT: infrastructure

Intermodal Loading Units – Semi-trailers

13.6 m long 4m4 m external height 3 m internal height Flexible to use For different cargo Required loading profile „P400“

Semi-trailers became standard equipment in international road transport and thus intermodal operation

page 54 Source: KombiConsult analysis

Analysis of current CT: infrastructure

Impact of „P400“ profile on intermodal development

. The „P400“ loading gauge became effective on Brenner line München (DE) and Verona (IT) by the year 2000

Loading units p.a.

Total unaccompined CT Semi-trailers

Due to enlargement the number of transported semi- trailers increased by 600% in eight years.

page 55 Source: KombiConsult analysis

Analysis of current CT: infrastructure

Intermodal Loading Gauges - conclusions

. The loading profiles of the Croatian railway lines are favourable for combined transport since they offer PC80/410 on all sections along the TEN-Corridor X . Corridor Vb and in particular the port of Rijeka as well as the Dalmatian connector line have a considerable lower loading profile. PC 52/368 on the worst section between Rijeka and Ogulin. That part will be by-passed by the planned new double track railway Rijeka – Ostarje line; until its construction and putting in operation the transport of high cube containers on ordinary wagon requires a temporary permission for “off standard loading” at very limited speed (20 km/h, on relevant tunnels); . Also the connector line north of Zagreb are of smaller gauge (PC 72/398), which should be considered when assessing the potential for additional transport flows via the „Krapine“ line to Maribor / Graz.

page 56 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT: infrastructure

Weight limits

Favourable weight class D4

page 57 Source: HZ Infrastruktura Network Statement 2014; KombiConsult analysis

Analysis of current CT: infrastructure

Line Parameters and maximum permitted train length

Generally short “maximum permitted train length” on entire network allowing practically ~ 500 m trains, only

page 58 Source: HZ Infrastruktura Network Statement 2014; KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT: infrastructure

Impact of the maximum permitted train length

Maritime Continental Train length 500 m 700 m 500 m 700 m Wagon length 26 m 26 m 34 m 34 m N°of wagon 19 26 14 20 Capacity 4 TEU 4 TEU 2 ST 2 ST Total Capacity* 76 104 28 40 Difference 28 TEU 12 Semi-Trailers (ST) Efficiency +27% +30% Wagon type Sggnss/Sggr/ss 80‘ T3000 104‘ * Maximum train weight may reduce the total capacity

An increase of the maximum permitted (wagon) train length from 500 to 700 m would bring a gain in efficiency by 30% in continental and 27% in maritime traffic.

page 59 Source: KombiConsult analysis

Analysis of current CT: infrastructure

Impact of the maximum permitted train length

Maritime Continental Train length 500 m 700 m 500 m 700 m Wagon tara 21.5 t 21.5 t 35 t 35 t N°of wagon 19 26 14 20 Tare weight 408 t 560 t 490 t 700 t Total Capacity 76 TEU 104 TEU 28 ST 40 ST Ø Weight 12 t/TEU 28 t/ST Load weight 912 t 1.248 t 784 t 1.120 t Total weight 1.320 t 1.808 t 1.274 t 1.820 t Difference 488 t 546 t Efficiency +27% +30% Wagon type Sggnss 80‘ T3000 104‘

page 60 Source: KombiConsult analysis

Analysis of current CT: infrastructure

Border crossing stations EU border

Lendava (SI) / External border Sredisce (SI) / Mursko Sredisce Cakovec Murakeresztur (HU) / Important station Rogatec (SI) / Kotoriba Durmanec Gyekenyes (HU) / Imeno (SI) / Botovo Kumrovec Magyarboly (HU) / Dobova (SI) / Beli Manastir Savski Marof Ilirska Bistrica (SI) / Metlika (SI) / Kamanje Bogojevo (RS) / Sapjane Erdut Rakitovec (SI) / Buzet Sid (RS) / Tovarnik Dobrjlin (BA) / Bosanski Samac (BA) / Volinja Slavonski Samac Brcko (BA) / Drenovci Martin Brod (BA) / Problems encountered for?: Licko Dugo Polje . Opening Time . Transition Time . Hand-over procedure . Capacity

. Availability of tracks, Capljina (BA) / shunting persons, locos Metkovic

page 61 Source: HZ Infrastruktura Network Statement 2014; KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT: infrastructure

Border crossing stopping times – examples 2009

4 hours

page 62 Source: CREAM project, HaCon analysis, 2009

Analysis of current CT: infrastructure

Border crossing – challenges discussed in Round Table

. Infrastructure managers (IM) and railways (RU) have accepted the traditional, relatively long processing times; . Croatia has not entered the Schengen-Area and has joint border with non-EU member Serbia, as well as EU Member States SI, HU; . The impact of the malfunction was a search of alternative routings bypassing Croatia/Serbia, namely via Hungary/Romania on the one side and Motorways of the Sea (ferries) via Trieste on the other; . Efficient border processes agreed upon (both) infrastructure managers, railway undertakings and customs/border police remains an issue for European coordination; . Examples in other countries have demonstrated that faster processes (“trust agreements”) are generally feasible, and could boost international rail freight volumes.

Border crossing remains on the agenda of infrastructure managers and railway undertakings, in particular when customers needs on fast and reliable international train services are taken into account.

page 63 Source: COSMOS Round Table Croatia 2014

Analysis of current CT: infrastructure

Maximum permitted speed on main lines

Ø80 Ø140 Ø60 Ø50

Ø60 Ø50-75 Ø100-110 Ø80 Ø100 Ø160 Ø120 Ø120-140 Ø60-80 Ø70 Ø70

>120 km/h 100 km /h 80 – 50 km/h

Design Speed! Operational Speed? Commercial Speed? Commercial speed „50 km/h“ is far below design speed.

page 64 Source: Network Statement 2014; KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT: infrastructure

Maximum permitted speed on main lines

. The operational speed on many line sections is far below design speed and not in favour of fast and reliable train services which can compete with road transportation . The current „Excuses“ are also future action points:  lack of track maintenance or re-investment in the past,  lack of traffic management systems  use of old wagons  operational stops of railways  Lack of a „performance regime “ including penalties . Findings confirmed by SEETO analysis (next page) on status of the infrastructure („medium“ or „poor“)

page 65 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT: infrastructure

Track condition in SEETO network

page 66 SEETO Comprehensive Network Development Plan – Multi Annual Plan 2014

Analysis of current CT: infrastructure

Railway network – overall actual status

Parameter Unit Objective* Actual value**

P/C 80/410; Lauding gauge P/C 70 / 400  P/C 52/368 (Rijeka-Ogulin) ! Nominal speed km/h 120 ~ 50 ! Mass per axle t/axle 22,5 v≤100 km/h 22,5  Minimum useful m 740 ~ 500 ! siding length Gross tonnage t 1.500 ~ 1.200 of trains ()

* Regulation (EU) 1315/2013 and 1316/2013 and market need for efficient rail freight service ** Network Statement

page 67 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT: infrastructure

Infrastructure access charges for freight trains (2011) in €

€ per train-km

page 68 Source: RailwayPRO article, July 2011

Analysis of current CT: infrastructure

Modernisation of railway network – projects

N° Name of project Status Cost [m€] 1 Upgrade and Construction of 2nd track on line Eligible for 198.03 Dugo Selo – Krizevci funding 2 Rehabilitation of section Krizevci – Koprivnica Works ongoing 31 5 Machinery and Tools for modernisation on whole Completed 19.57 HZ Network 6 Remote rail traffic control system Savski Marof - Completed 23.43 Zagreb – Tovarnik 7 Rail overhaul on Vinkovci – Tovarnik section Completed 60.43 8 Zagreb Main Station signalling/interlocking Completed 11.64 27 Rail rehabilitation Okucani to Novska Ongoing (2007- 40.10 2016) 28 Upgrade rehabilitation and new construction of Finance secured 573.00 section Dugo Selo – Novska (2016-2012)

page 69 Source: SEETO Comprehensive Network Development Plan 2014; KombiConsult analysis

Analysis of current CT: infrastructure

Modernisation of railway network - projects

Improved Port access, not yet secured. 2 8 1 28 6

6 27 7

Port of Rijeka 1 Number to previous slide Container terminal Completed 2nd phase completed Ongoing Port of Ploce container terminal Planned and bulk terminal

page 70 Source: SEETO Comprehensive Network Development Plan 2014; KombiConsult analysis

Analysis of current CT: infrastructure

Railway network – Summary and Conclusions

. Alignment of “Mediterranean” TEN-T Core Network Corridor in order to continue development of Pan-European Corridors V and X on Croatian territory . Involvement of ports, intermodal operators, forwarders and shipping lines as vital users in the priorisation of activities, incl. transparent monitoring of their realisation; . Loading gauge analysis and eventually stepwise enlargement starting from Port of Rijeka to Ljubljana and to Zagreb . Facilitate at least 700m (wagon) train train length in coordination with neighbouring IM and RU on main trade lanes HU, RS and SI . Improve border crossing procedures in close cooperation with customs/border police, IM and RU . Continue with – low – train path costs to compensate the low quality of the present rail network until its full modernisation

page 71 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Round Table Croatia

Agenda

10:00 Welcome and Introduction 10:10 Status-quo of the intermodal sector in Croatia 10:45 Discussion by topic: Rail Infrastructure Ports and Intermodal terminals Port Hinterland Services Continental Services Incentive Schemes 12:30-14:00 Joint Lunch 14:00 Continued Discussion and Actions 15:30 Conclusions

page 72

Analysis of current CT: ports & intermodal terminals

Intermodal terminals - overview

Zagreb Vrapce Osijek

Vukovar Rijeka Braidica Sisak Sl. Brod Spacva

Terminal in use

Sea / Inland port Zadar Terminal rarely used

ex RoLa terminal Solin

Ploce

page 73 Source: KombiConsult analysis

Analysis of current CT: ports & intermodal terminals

Intermodal terminals - overview

. Intermodal terminals  owned by HZ Cargo & HZ IfttInfrastructura  operated by AGIT d.o.o., Zagreb,  Rijeka – Braidica operated by AGCT . Vrapče (Zagreb): equipped for handling of containers, exchange of truck cases (boxes), and for road semi-trailers up to 40 tonnes . Brajdica (Rijeka): equipped for handling and storage of containers, RO-RO (Roll on – Roll off) trailers and other vehicles, as well as for handling of heavy pallets and stones . . Spačva: located in the zone of Spačva train station near Zagreb - Lipovac motorway (Corridor X); primarily destined for RO-LA

page 74 Source: HZ Infrastruktura Network Statement 2014; KombiConsult analysis

Analysis of current CT: ports

Port of Rijeka: Adriatic Gate Container Terminal (AGCT)

Draught: Berth: 11.7 m, 14.2 m (Panamax) Space: 16.8 ha Quay-Length: 164 + 350 m Quay Cranes: 4 Capacity: 450.000 TEU p.a. Railsiding Length: 900 m

page 75 Source: Adriatic Gate Container Terminal; KombiConsult analysis

Analysis of current CT: ports

Port of Rijeka: Adriatic Gate Container Terminal (AGCT)

. Terminal Area: 16.8 hectares . BthBerth  Length of quay: 628 meters ( 2 berthing positions)  Controlling depth: Berth 1 - 11,7m; Berth 2 - 14.2m . Container yard:  Storage areas: 6.1 hectares (additional 5 hectares is being developed for a total of 11.1 hectares upon completion)  Reefer facilities: 150 reefer outlets (expansion: +150 outlets) . Container freight stations: 151.5 hectares . Number Equipment:  2 Panamax cranes 2 Post-Panamax cranes  6 RTG, 9 Reach stackers, 9 Tractors, 17 Trailers, 4 Forklifts  2 RMG for railside handling

page 76 Source: Adriatic Gate Container Terminal; KombiConsult analysis

Analysis of current CT: ports

Port of Rijeka: Adriatic Gate Container Terminal (AGCT)

Rail Yard

GtGate

page 77

Analysis of current CT: ports

Container traffic in Port of Rijeka and Ploce

page 78 Source: Port statistics; KombiConsult analysis

Analysis of current CT: ports

Ports – Summary and Conclusions (1/2)

. Maritime container traffic developed with steady growth rates over the past years. Reasons are the growth of the world economy and the integration of CEE countries in transcontinental trade flows after the fall of the iron curtain and end of the Balkan war. . The total volume of container traffic of Rijeka was almost 180.000 TEU in 2008, dropped in the crisis and inclined since then to 130.000 in 2013. The AGCT capacity is 450.000 TEU. . Northern Adriatic port operators claim to safe sea days to/from South East Asia compared to Northern European ports and have realised to be inclu ded in mother and feeder ship rou tings. . Port of Rijeka has recently completed an investment programme to modernize and expand the ports infrastructure. However the port is trapped by mountains which hamper the efficient access by rail. . In Zadar, further south on the Adriatic cost, another Croatian port will be expanded, among other with funds of the EIB and German Kfw- bank but mostly for (passenger) ferry services and cruise ships.

page 79 Source: KombiConsult analysis; COSMOS Round Table 2014

Analysis of current CT: ports

Ports – Summary and Conclusions (2/2)

. The port of Ploce in the south of the country is not connected to the main land of Croatia , but to Bosnia/Herzegovina by rail; thus it could be seen as an entry point for that trade. . The connection to the Bosnian rail network was not analyzed due to the currently low volume and dependency on Bosnia. . In Zadar, further south on the Adriatic cost, another Croatian port will be expanded, among other with funds of the EIB and German Kfw- bank but mostly for (passenger) ferry services and cruise ships.

page 80 Source: KombiConsult analysis; COSMOS Round Table 2014

Analysis of current CT: intermodal terminals

Cargo Centre Zagreb - reasoning

. In Croatia only three inland transhipment sites are existing for unaccompanied intermodal transport: Zagreb, Osijek, Slavonski Brod  non of them is matching current state-of-art at all . The existing transhipment facility in Zagreb is not very much frequented because of several disadvantages  Insufficient transhipment equipment (only 1 reach stacker)  Low capacity for storing containers (about 650 TEU)  Location near city centre (difficult access for trucks)  No possibilities for extensions  Block trains can not be made at once due to short rail-tracks

page 81 Source: COSMOS Good Practice “Cargo Center Zagreb”

Analysis of current CT: intermodal terminals

Cargo Centre Zagreb - Concept and components

Vienna Budapest V Starti ng positi on – neeGrazd/hllds / challenges

Xa Vb •To achieveMaribor a Vc satisfying shareLjubljana of rail Tri este X Zagreb transport in the Rijeka Osijek Koper region (due toRijeka X Belgrade extended capacity of Banja Luka Vc (motorway E73) the Rijeka port and Sarajevo Zadar Niš expected increasing Split continental transport Ploče flows for Croatia Podgorica through EU member Skopje accession), a capable terminal is needed Tirana

page 82 Source: COSMOS Good Practice “Cargo Center Zagreb”

Analysis of current CT: intermodal terminals

Intermodal terminals – Details on handling tracks, equipment, annual capacity (and volume)

Assumptions: 12 hours per day; 250 days p.a.; RMG 25/RS 15 LU/hr; 1.5 LU/wagon; flow factor 1,5 (which is high and requires storage tracks nearby) further limitation by small storage space not considered, yet Generally sufficient handling capacity for the currently (low) handling volumes. The rail terminal in the port of Rijeka is under construction and will provide for additional capacity in 2014.

page 83 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT: intermodal terminals

Intermodal terminals in the Network Statement

. Railway Act defined “freight terminal” as arranged and organized area where the receipt , storage, preparation, transhipment and dispatching of various types of goods is carried out. . For the purposes of this definition HŽ Infrastruktura does not operate any freight terminal. . However, HŽ Infrastruktura enables to all railway undertakings in a non-discriminatory way and at their request the use of all stations and forwarding where it is possible to carry out loading, unloading as well as reloading of goods. . The use of stations and forwarding includes the use of track capacities and switches including signalling and regulation, as well as the use of centenary when required. . For the use of special facilities or equipment required for loading, unloading or reloading of intermodal transport units, reference is made to the terminal operator: AGIT d.o.o., Zagreb

page 84 Source: HZ Infrastruktura Network Statement 2014; KombiConsult analysis

Analysis of current CT: intermodal terminals

Intermodal terminals – summary and conclusion

. In the light of the low quantity of intermodal volume the terminal capacity is sufficient . On the other hand modern and capable terminals are a prerequisite for attracting forwarders, shipping lines and shippers to change their cargo transport to intermodal rail - road transport . However, a terminal strategy, should take into consideration the distance to the seaport Rijeka and the freight centers in the hinterland as well as the need to form “block” or “shuttle trains” between the terminals, thus it is not the quantity but the quality of the site . A transparent dialogue between public and private sector is required to provide a guidance for future investments and involve private sector financial engagement to foster the later utilisation of the infrastructure

page 85 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT: intermodal terminals

Design Parameters . Efficient rail access

tory . Efficient road access a . Non-exclusive, so open to all users . Capability of receiving full trains mand  740m minimum, 2 tracks . Surface with extension option . Inclusion of empty container depot . Sufficient Stacking capacity . 24/7/52 year round operation

optionally . Handling of dangerous goods . Secured, accommodating extended customs gate solution . State-of-art ICT connections

page 86 Source: Photo: DUSS Frankfurt am Main (Ost); COSMOS Round Table Croatia 2014

Analysis of current CT: intermodal terminals

Intermodal terminals – operators can update their data

www.intermodal-terminals.eu/database

This is my terminal I want to update this entry.

page 87

page 88

Round Table Croatia

Agenda

page 89

Analysis of current CT: Intermodal services

Intermodal Services offered, 2013/2014

GERMANY SLOVAKIA AUSTRIA Budapest

Trieste Selected internat. services Croatian services

Ljubljana Padova Koper Arad ? West Romania ? ITALY ? East Croatian Terminals Rijeka Zagreb Novi Sad Belgrade

Ploce BOSNIA/HERZEGOVINA TURKEY

page 90 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT: Intermodal services

Continental intermodal services – Loading units

Type of loading units for almost all types of goods page 91 Source: COSMOS project website

Analysis of current CT: Intermodal services

Large forwarders active in Croatia

Gebrüder Weiss (AT) Zagreb (2) 24,2 http://www.gw-world.hr

Trast (HR) Split (23) 24,2 http://www.trast.hr

Kuehne+Nagel (CH) Sv. Nedelja (4) 24,1 http://www.kn-portal.com

DHL International (()DE) Zagg()reb (7) 16,1 http://www.dhl.hr

Lagermax AED Croatia (AT) Zagreb (7) 15,9 http://www.lagermax-aed.hr

DB Schenker (DE) Zagreb (8) 12,7 http://www.dbschenker.hr

Zagrebsped (HR) Zagreb (27) 12,5 http://www.zagrebsped.hr

AGIT Zagreb (??) ?? www.agit.hr

page 92 Source: Agency FINA, Magazin Lider, company websites according to IHK Ulm; KombiConsult analysis

Analysis of current CT: Intermodal services

Strategic competition on land and short sea routings

Frankfurt LdLudwi gsh hfafen

Trieste

Operational Parameters: Pendik Fast transport by train and ferry 3x Local pick-up/delivery by truck Suitable for 4-m high semi-trailers („P400“) 3 / 6 departures / week x direction Multi-client train open for forwarders 6x Patras Synchronised services Complementary to existing services

page 93 Source: Kombiverkehr/KombiConsult

Analysis of current CT: Intermodal services

Strategic competition on land and short sea routings

Routing Road-km Round-trip [days] TkTurkey – Europe vv Road only 7.000 15 Ferry – Road 4.000 18 Ferry – Rail 2.000 16 Rail only - Road 200 24+

Rail land routing via the Balkan is by far the longest duration and thus less attractive for Turkish market.

page 94 Source: CREAM Final Conference; KombiConsult analysis

Analysis of current CT: Intermodal services

Intermodal services – summary (1/2)

. Despite its strategic location with own seaport and inland ports at the cross roads of trade lanes the development of the intermodal sector in Croatia is at the starting point; . A few regular services connecting the port with hinterland destinations in Bosnia/Herzegovina, Serbia and Hungary have been developed; . There is potential to improve this since the Port of Rijeka has been modernised and provides for sufficient handling capacity was well as rail terminal. . The domestic distances are short (Zagreb) or medium (e.g. Vukovor) and challenged by road transport on modern roads; nevertheless developing the Cargo Centre Zagreb as a Hub would facilitate a mix of container and continental loads as well as domestic and international services.

page 95 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT: Intermodal services

Intermodal services – summary (2/2)

. For capturing continental load (liquid and dry bulk, packed and palletized as well as specific commodities a variety of loading units have been developed and are available for purchase or lease. . The ownership and use by Croatian forwarders is however low. . The demand allowing intermodal operators or railways to offer regular continental intermodal services is thus not stabile enough, although the existence of intermodal operators such as Crokombi or AGIT provides a sound basis for further growth. . Transit services have disappeared due to the competition between strategic intermodal routings, which favoured to bypassing the “Balkans” by ferry services; . Significant improvements in the rail infrastructure, the border crossing operations in order to make the services faster and in particular more reliable would be required from the infrastructure managers and railways.

page 96 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Round Table Croatia

Agenda

page 97

Analysis of current CT: Legal Framework

Catalogue of incentives for CT and their application in HR

No . Financial aid for CT operations: start-up or continuous support of CT services; No . Financial aid for investments in infrastructure, e.g. CT terminals; No . Financial aid for investments in CT equipment; No . Financial aid for investments in information systems, training etc; No . Derogation from Directive 96/53/EC governing the weights and dimensions of heavy good vehicles. No . Any special treatment as far as maximum dimensions and weight is concerned in force for vehicles moving in CT  . Exemption from driving bans for road vehicles, e.g. weekend ban . Vehicle tax exemption of up to 100% for vehicles used exclusively in  terminal pick-up and delivery operation** No . Exemptions from road usage fees or tolls for vehicles in CT *Council Directive 96/53/EC “Maximum authorized weights and dimensions” **Directive 92/106/EEC “Establishment of common rules for certain types of combined transport “

page 98 Source: KombiConsult analysis; COSMOS Round Table Croatia 2014

Analysis of current CT: Legal Framework

Catalogue of incentives for CT - conclusions

. From the „catalogue“ of incentive scheme for the promotion of intermodal rail freight transport eexperiencedxperienced in other countries at different times and arrangements, only two are applicable in Croatia. . According to the Round table participants the „tax exemption“ was never used because the low volume of CT transport does not allow road transport operators to dedicate trucks to just CT. . In addition to these, the European Commission provides for financial aid in the SEETO process as well the Cohesion process (see above regulations EU 1315/2013 and 1316/2016). . The intermodal sector should align in order to prepare convincing project application in the call announce for Autumn 2014 (see next page) . However, a coherent promotion scheme for intermodal transport in Croatia is lacking

page 99

Analysis of current CT: Legal Framework

page 100

Round Table Croatia

Agenda

page 101

page 102

Evaluation of CT market: SWOT-Analysis

SWOT Analysis

Strengths Weaknesses . Integration into European trade . Not competitive railway network lanes via corridors (outdated and worn railway means) . Railway gauge compatible with . Different power system from SI neighbours, loading gauge high . Deep-sea access via the Port of . Mountain railway line with limited Rijeka on own territory loading gauge . Enlarged capacity of the container . Small scale terminals in the terminals serving also neighbouring hinterland and lack of focal point countries (Serbia) with international recognition . EU railway law in place with . Critical financial situation of HZ potential open access Cargo (limited self-financing power) . Competent international and . High share of import over export national companies in the rail and and lack of own industries logistics sector

page 103 Source: KombiConsult analysis; COSMOS Round table Croatia 2014

Evaluation of CT market: SWOT-Analysis

SWOT Analysis

Opportunities Threats . Geographical position with respect . Redirection of transit flows to to important European parallel networks due to slow development axis development of public rail infrastructure . Further stabilisation of Eastern . Increase of number of bottlenecks Balkans and Turkey; European in rail network due to slow integration will bring increase of improvement transport flows, incl. Rail in transit . Shorter sea transport time to/from . Port competition in Northern far East compared to Northern Adriatic, North Europe ports Ports . Effects of EU/European integration . Lack of confidence in implementing not fully realised due to recent originally agreed “plans” and membership, only absorption of available EU funds

page 104 Source: KombiConsult analysis; COSMOS Round table Croatia 2014

Evaluation of CT market: Evolution of transport

Conclusions (1/3)

. The Croatian transport sector provides for various forms of logistics concepts including CT-Operators for rail/road transport. . Although the rail legislation would allow for HZ Cargo is the only railway undertaking in Croatia. . After the fall of the iron curtain, and during the „accession period“ quick wins could be realised by road transport which was often more flexible, open to entrepreneurship and promoted by truck industry. . In contrast to that the rail sector lacks coherent infrastructure investments, both in maintenance, refurbishment and new builds while improved roads can be used on sections, already . Due to the accession only in 2013, Croatia is not part of the Rail Freight Corridors (Regulation EU 913/2010), but should be able to benefit from the Trans-European Transport network and the financing via the Connection Europe Facility (regulation EU 1315/2013 and 1316/2013) to continue modernisation of railways.

page 105 Source: COSMOS Round Table Croatia 2014, KombiConsult analysis

Evaluation of CT market: Evolution of transport

Conclusions (2/3)

. Accompanied intermodal transport (RoLa) in transit and only until 2006 the Hungarian and Romanian accession to EU. . Intermodal market dominated by container traffic from the seaport and three mayor trade partners: Serbia, Hungaria and Slovenia . Growth of intermodal transport is directly depending on the country‘s ability to efficiently organise transit (like in Switzerland or Austria) . And create opportunities depending on own economic performance, e.g. to/from Port of Rijeka, economic center of Zagreb . Semi-trailers became standard eqqpuipment in international road transport and thus intermodal operation where the Croatian infrastructure provides for sufficient high loading profiles . Intermodal terminals, generally, provide for sufficient handling capacity for the currently (low) handling volumes. . Training of personal engaged with transport decisions on the merits of intermodal transport would be required.

page 106 Source: COSMOS Round Table Croatia 2014, KombiConsult analysis

Evaluation of CT market: Evolution of transport

Conclusions (3/3)

. An intermodal strategy is needed at country level to guide public and private investment. Round table participants would appreciate to joining into a structured dialogue with political stakeholders; . The strategy should investigate (re-)activating incentive scheme in favour of intermodal transport such as  Derogation from Directive 96/53/EC governing the weights and dimensions of heavy good vehicles (“44 tonnes”).  Exemption from driving bans for road vehicles, e.g. weekend ban  Vehicle tax exemppption of up to 100% for vehicles used exclusivel y in terminal pick-up and delivery operation  Exemptions from road usage fees or tolls for vehicles in CT  Incentive scheme for purchase and use of intermodal equipment (e.g. Craneable semi-trailers)

page 107 Source: COSMOS Round Table Croatia 2014, KombiConsult analysis

Conclusions

What‘s next?

. KombiConsult will send the (updated) transparencies to all invited participants by March 31, 2014. . All invited participants were asked to validate the facts, findings and conclusions and send additional information or modification requests to KombiConsult by April 14, 2014. . KombiConsult will consolidate the comments received by than and send the final version to all participants by April 30, 2014. . Participants are invited to use the joint findings whenever possible to promote intermodal transport in Croatia. . Final Conference will take place in Wien on 12 June 2014. (see next page)

page 108

Round Tables Series

Praha, 19.09.2013

Wien, 12.06.2014 (Final Conference)

Budapest, 16.10.2013

Ljubljana, 23.4.2013

Zagg,reb, 27.03.2014

Bucuresti, 20.11.2013

Sofia, 26.02.2014

page 109

KombiConsult Profile

page 110

Intermodal Road Map Croatia

Sources of Information

. CREAM Project Reports, www.cream-project.eu . DIOMIS P roj ect R eport s, www.ui c.org/DIOMIS . Report on Combined Transport in Europe 2012, www.kombiconsult.com . HZ Infrastruktura Network Statement 2013, http://www.hzinfra.hr/network-statement02 . Croatian Bureau of Statistics, www.dzs.hr . Implementation Plan for RFC7 . KombiConsult GmbH , Kai Petri (front page photo) . Websites, information and data provided by the Round Table Participants

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Intermodal Road Map Croatia

Disclaimer

The present Road Map presentation has been compiled by one or more COSMOS partners with the support of third parties and may contain business sensitive information. You may use the content totally or selectively without changing the content of the single slides, if clearly identifying the source: COSMOS Project, Intermodal Road Map Croatia, KombiConsult, 2014, www.cosmos-project.eu

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Thank you for your attention..

Klaus-Uwe Sondermann KombiConsult GmbH Zum Laurenburger Hof 76 60594 Frankfurt am Main, Germany Email: [email protected] Phone: +49 69 244 32 93 172