Transit Operations in Port Szczecin

Transit operations in Port Szczecin -

Swinoujscie

Dr Grazyna Rosa Faculty Transport, University of Szczecin, ul Cukrowa #,

71-004 Szczecin, Poland, 7%ow f 48 py; ^ 22 7 J2, fbx ^& 97^ ^8 77 776, Email: [email protected]

Abstract

Port Szczecin - Swinoujscie thanks to its favourable geographical location, good railway and road connections with many industrial centres of

Central and Southern Europe and especially convenient land network is a very important transit centre. However, traditional hinterland of the ports threatens keen competition of other ports, mainly German Therefore marketing strategy and investment policy if the port shall focus on maintaining existing and obtaining new, regular cargo flows. Major advantage of Port Szczecin - Swinoujscie in aspect of transit operations is, except above mentioned favourable geographical location in corridor North- South:

• good transport infrastructure connecting port with transit hinterland i.e. motorways, railways and land water transport, • potential assuring fast, high quality operations on general and bulk cargoes in land-sea relations,

• forwarding companies co-operating with port many years have specialised in service on transit cargoes, • many years experience in mutual co-operation of both transit customers and

port, • worked out and verified transit routes. Planned undertakings, vigorous marketing, active presence on the international market combined with a very favourable location allow to

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optimistically expect the strengthening of the role of the Szczecin - Swinoujscie

Port complex as the largest centre of sea transit on the Baltic

1. Introduction

The location of Szczecin and Swinoujscie for years has determined their functions, directions and opportunities of economic growth, particularly at the land-sea boundary. The strategic position of the Odra mouth ports at the region of criss-crossing transport routes from Scandinavia to Southern and Western Europe, and from East to West, gave rise to the largest port complex on the Baltic. Another important advantage is the vicinity of the European Union border and the fact that the big Berlin conurbation is just at hand. Also essential is the most favourable location in relation to the Poland's largest industrial centre in Silesia. ,,The geographical advantage has been confirmed in the past few years. Thanks to improving economy and active marketing of the Szczecin - Swinoujscie Port Authority total throughput in both harbours is increasing. The location is only one trump in hand. Another is a good railway network linking Szczecin - Swinoujscie, via the Odra main trunk line, with business centres in Western and Southern Europe. For instance, Berlin is 135 km from Szczecin, Prague - 537 km, Vienna -740 km, Bratislava - 770 km, Kosice - 884 km"<" (figure no 1).

Figure 1. The strategic position of Port Szczecin and Swinoujscie.

Rail connections have a dense network and a remarkable traffic capacity. A large share of rail transport (over 80 percent now) is likely to be continued in

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the years to come although the role of water and road transport will supposedly be growing. The government project of motorway construction in Poland includes one which, passing by Szczecin, will connect Scandinavia with central and southern Europe. The scheduled building of Via Baltica, a motorway to run along the Baltic coast from Lubeck, through Szczecin, Gdansk, Kaliningrad and further to Riga and Tallin, is about to begin. Both Germany and other Baltic states show interest in this investment Current activities and those planned for the future promote further growth of transit turnover. Major transit partners are the Czech Republic, Slovakia and Germany.

2. Transit

For many years ports Szczecin - Swinoujscie have serving both transit cargoes coming from Central Europe in their road to export to the overseas countries, both in European and ocean relations. Similarly cargoes in export to these countries traditionally used and still use route via these ports. Over 90% of the total cargo directed to and from transit co-operators is being transported by railway transport. In shipments to and from Germany also participate barges of German and Polish owners. Road transport is served by ferry terminal in Swinoujscie. Political and economical changes transformation of the previous years have considerably changed the rules of selection of the transit route via port Szczecin - Swinoujscie. Changes in organisation and directions of the foreign trade of our transit clients were the reason for loss of many cargo flows - in annual scale many hundred tonnes of cargo. Noticed for few years decrease of transit turnover concerns in majority Czech transit. This is presented by below table no land graphs no 1, 2, 3, 4.

1993 1994 1995 1996 1997 1998 Slovakia 962 932 627 656 580 565 Czech Republic 1823 1 178 693 926 648 540

Germany 834 744 745 761 765 901 Other countries 16 4 14 6 16 16 70 Maritime transit 7 9 10 23 61 Total transit 3642 2867 2089 2372 2070 2092

Table 1. Transit operations in Port Szczecin - Swinoujscie (in Th. tonnes) Source: statistic analysis of Port Szczecin - Swinoujscie

Considerably increased competitiveness of transit via West Europe ports, mainly German and Atlantic comparing to route via Port Szczecin- Swinoujscie. Opening of channels Danube-Man also caused transition into this route and further to Rotterdam of many cargo flows. Such a situation is a huge

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challenge for Port Szczecin - Swinoujscie. One of its principal strategic targets is regaining significant position in handling transit cargo from Central Europe Countries.

Slovakia

1993 1994 1995 1996 1997 1998

Graph 1.Transit operations in Port Szczecin - Swinoujscie (Slovakia) Source: statistic analysis of Port Szczecin - Swinoujscie

Czech Republic

1993 1994 1995 1996 1997 1998

Graph 2.Transit operations in Port Szczecin - Swinoujscie (Czech Republic) Source: statistic analysis of Port Szczecin - Swinoujscie

Germany

2000

1993 1994 1995 1996 1997 1998

Graph 3.Transit operations in Port Szczecin - Swinoujscie (Germany) Source: statistic analysis of Port Szczecin - Swinoujscie

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Total transit

4000

1993 1994 1995 1996 1997 1998

Graph 4.Transit operations in Port Szczecin - Swinoujscie (Total transit) Source: statistic analysis of Port Szczecin - Swinoujscie

In order to satisfy the requirements, efforts undertaken by port shall be connected with similar activities of land carriers, mainly with Polish State

Railways, and also with sea carriers, especially in scope of land water transport. Establishment of regular, effective railway connections between main industrial centres and creation of cargo flows in relation North-South is the chance for maintaining and gaining operations on transit bulk and general cargoes. Major advantage of Port Szczecin - Swinoujscie in aspect of transit operations is, except above mentioned favourable geographical location in corridor North- South:

in land-sea relations, • forwarding companies co-operating with port many years have specialised in service on transit cargoes, • many years experience in mutual co-operation of both transit customers and

port, • worked out and verified transit routes. Analyse of demand for transit services in Central Europe shows, that it has considerable volume and can be expected its further development as function of economical growth of countries like: Slovakia, Czech Republic, Hungary, Ukraine or Eastern lands of Germany. This also concerns countries on the opposite side of the Baltic sea i.e. Sweden and Finland. Economical analysis estimating trade development between those countries univocal indicate increasing demand for transport services. That is also related to visible trend of economical changes on the world in direction of fast growth of export comparing to values of GNP (Gross National Product).This will contribute increase of demand for transport services not only

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in relations between countries of Northern and Central or Southern Europe, but also in other directions, including ocean relation from the side of Slovakia, Czech Rep., Hungary and Ukraine. The major issue is to cause, that contact of demand for transit services with supply of transhipment abilities of the port takes place just here, in Szczecin and Swinoujscie. Activities undertaken by Port Szczecin - Swinoujscie in sphere of organisation, investment and of course marketing, lead to this, so just share of ports in Szczecin and in Swinoujscie was foreseen double increase of transit shipments up to the year 2010. Transhipment and storage activities connected with transit are concentrated in few regions of the port:

1) Port in Swinoujscie located directly on the enter from the sea can serve vessels with draught 12,8 m , up to 240 m long and of capacity to 70,000 tonnes. Considering provision in handling equipment and storage places, and also favourable icing conditions in the winter period, this port shall be considered as biggest and most comfortable centre for bulk cargo operations of total handling capacity about 10 million tonnes. Two quays: Hutnikow and Chemikow operate per year more than 2 million tonnes of imported iron and are in position to offer very competitive service for much larger quantities of this product, especially in transit relations to steel mills in Slovakia, Czech Rep, Hungary, Austria and East Germany.

2) Port of Szczecin is located deep inland, what means, closer to transit clients, can operate ships with max. draught 9,15 m and length up to 210 m. Activity of the port of Szczecin is closely connected with the history of the city and Odrariver .Historicall y just Odra river was the main transit route between North and South and though in course of time its importance considerably diminished, then still it is a very competitive port for some German receivers, i.e. steel mil! complex EKO-stahl in Eisenhuttenstadt or in the Berlin region, or in opposite direction for export from steel mills in Brandenburg region or paper plant in Schwedt. Thanks to Odra and its connections with European land water network, Szczecin port successfully competes in transit services with European land water network. Szczecin port successfully competes in transit operations with subsidised in million marks German ports and railways. Activity of

Szczecin port concentrates on two isles. First region of the port is Isles ,,Lasztownia". They focus transit operations of metallurgic products from Slovakia and Czech Rep sending both in European relations, and in large shipments of ocean relations. The cargo is mainly cold- rolled sheets demanding special care during storage and handling ,,Lasztownia" serves all linear connections to West Africa, Finland, Ireland, Norway, Great Britain and Germany. Handling of containers takes place on quays. Czeskie and Slowackie. Located there terminal is equipped with modern warehouses offers competitive possibilities for service on cargo destined to receivers in Slovakia, Czech Rep., Hungary, Austria and Germany. Substantial element of this region are Duty Free Zone and terminal. ,,Elewator Ewa" of capacity of 73.000 nr*.

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Second region of the port is ,,Basen Gorniczy" specialised in bulk cargo operations. In this region are being served many transit cargoes both in export and imoortimport.

3. Conclusion

Presented in brief handling potential of Port Szczecin - Swinoujscie is estimated on 25 million tonnes per year and its utilisation reaches 70% of this value, i.e. considerably lower the optimum level. Transit turnover in year 1997 coming to 2,1 million tonnes makes 13% of the total handling. The basic tools of competition for buyer are: 1. product - service, 2. price - tariff,

3. promotion of services, 4. distribution of services. Planned undertakings, vigorous marketing, active presence on the international market combined with a very favourable location allow to optimistically expect the strengthening of the role of the Szczecin - Swinoujscie Port complex as the largest centre of sea transit on the Baltic.

References l.At Europe's Crossroads, Szczecin - Swinoujscie. Port Handbook 1999, p 15 2 Statistic analysis of Port Szczecin - Swinoujscie