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Containerisation in the Baltic Sea Region: Development, Characteristics and Contemporary Organisation Arnaud Serry

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Containerisation in the Baltic Sea Region: Development, Characteristics and Contemporary Organisation Arnaud Serry Containerisation in the Baltic Sea Region: Development, Characteristics and Contemporary Organisation Arnaud Serry To cite this version: Arnaud Serry. Containerisation in the Baltic Sea Region: Development, Characteristics and Contem- porary Organisation. European Spatial Research and Policy, De Gruyter Open, 2019, 26 (1), pp.9-25. 10.18778/1231-1952.26.1.01. hal-02290460 HAL Id: hal-02290460 https://hal.archives-ouvertes.fr/hal-02290460 Submitted on 17 Sep 2019 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. EUROPEAN SPATIAL RESEARCH AND POLICY Volume 26 2019 Number 1 http://dx.doi.org/10.18778/1231-1952.26.1.01 Arnaud SERRY∗ CONTAINERISATION IN THE BALTIC SEA REGION: DEVELOPMENT, CHARACTERISTICS AND CONTEMPORARY ORGANISATION Abstract . The main focus of the paper is on the container system development in the Baltic Sea Region studying cotemporary changes and organisation, as well as explaining the main driving forces of this situation. The Baltic Sea is a transport corridor between Eastern and Western Europe. Over the last decade maritime transport in the Baltic Sea area has changed significantly. The disintegration of the Soviet Union forced Russia to start developing its own Baltic ports and terminals and to find new routes to export its oil and gas. The Baltic ports have welcomed a remarkable growth, especially in oil trans- portation and containerised flows. The geographical configuration of the region naturally places it away from major global shipping lines. This situation is accentuated by the organisation of maritime regular lines, centred in Northern European ports. For this reason, the regional container network is mainly made up of feeder services. Key words: the Baltic Sea, containerisation, ports, maritime transport. 1. INTRODUCTION Ocean shipping is the most important mode of transport in international trade (around 90 per cent of the total). Since its introduction in the shipping industry in the 1960s, containerisation has supported the expansion of the world economy. The development of liner (containerised) shipping in the last 30 years has exceeded the growth of world trade volumes (Ducruet & Notteboom, 2012). Two factors largely explain the success of containerisation: the productivity gains in cargo handling in ports and a more gradual process which involves the refinement of the container net- works of the major shipping lines (Frémont, 2007). As container shipping is charac- ∗ Arnaud SERRY, Université Le Havre Normandie, UMR 6266 IDEES CNRS, France; e-mail: [email protected] 10 Arnaud Serry terised by a constant search for economies of scale (Merk, 2018), the introduction of mega containerships on the main international sea routes between major seaports has made it necessary to distribute containers on short-sea routes. Therefore, re- gional feeder services collect and deliver containers in a specific region with small and medium-sized container ships and feed mega containerships so as to avoid their calling at too many ports (Polat, Günther and Kulak, 2014). In a new political and competitive environment, the Baltic Sea Region (BSR) is today completing its full European integration. After innumerable and consequent po- litical and economic changes, this space has recovered its vocation of interface (Escach and Serry, 2015). In the region, transport and logistics sectors are omnipresent econom- ic challenges. The ports of the Baltic Sea Region handled in 2016 around 8.4% of the world total. Even if, as elsewhere in the European Union (EU), road transport is very widespread, it is followed by short sea shipping (SSS) distance. In the BSR, SSS can be split into two segments. On the one hand, Roro transport is one of the specificities of the Baltic area. On the other, feeder containerised services have quickly developed. Feeder services connect transhipment hubs to smaller ports and vice versa. These ser- vices can be arranged on a direct hub port to feeder port or can follow a line bundling set-up with several feeder ports of call per vessel rotation. They tend to use regular containerships, but of smaller sizes (often aptly called feeder ships) (Rodrigue, 2017). Thus Baltic ports as nodes of a regional maritime network are integrated into a larger system. Indeed, the port development and the evolution of maritime traffic are symptomatic of economic and territorial mutations. Although the maritime traffic in the area is relatively diversified, the paper will focus on containerised flows. It aims to provide an analysis and an empirical study of the container network in the region. This study is based on a literature review and mainly on the analysis of a database developed by the author. This database contains structured, comparable data (port facilities, traffic statistics, etc.) from 1989 onwards for approximately 115 Baltic ports. It also includes all regular lines in 2013 and 2015, and such details as frequencies, capacities, and operators ob- tained using AIS data, as well as some from a database on ships. The paper proceeds as follows. Section 1 covers general characteristics of mar- itime transportation in the BSR. Section 2 focuses on the feeder market, while the section 3 analyses the regional port system. 2. GENERAL CHARACTERISTICS OF THE BALTIC REGULAR LINE TRAFFIC The Baltic Sea is very transport-intense. Maritime traffic is relatively diffused through- out the whole of the Baltic Sea, despite a distinction of maritime and port activities within the Baltic Sea, mostly between southern and northern shores. Baltic Sea traffic growth is particularly significant in the field of containerisation (Serry and Transnav, 2017). Containerisation in the Baltic Sea region: development, characteristics... 11 2.1. From shared growth to more competition? Since the mid-1990s flows in the ports of the Baltic Sea have been grown quite constantly which (inevitably) demanded a necessary modernisation of harbour facilities and their extensions. That dynamism has been, with a few exceptions (Ventspils), closely shared by the whole BSR (Fig. 1). Thus the maritime traffic almost doubled between 1997 and 2018, from 420 million tons (Mt) to nearly 800 Mt while during the same period, the growth of world maritime traffic increased by nearly 65%. This development can be attributed to three factors: – Global economic growth has led to an increase in the volume of goods car- ried by sea; – The deep geopolitical changes in the region have (re)opened the eastern shore to the market economy; – The vital needs of port capacity for Russia to export raw materials and im- port manufactured products. Indeed after the collapse of the USSR the main Baltic ports were outside the Russian Federation (Pavuk, 2017). The BSR has an interesting geographical po- sition within the Eurasian transport system, connecting Russia with the European markets (Kabashkin, 2012). Fig. 1. Evolution and traffic in 2017 of the top 20 Baltic Sea ports Source: own work based on European Sea Ports Organisation, Eurostat, Port Authorities. 12 Arnaud Serry Container volumes around the world have witnessed a tremendous growth in the last 50 years, with an accelerated growth since the mid-1990s (Notteboom and Rodrigue, 2008). That rise of containerisation was the result of the interplay of macroeconomic, microeconomic and policy-oriented factors (Notteboom, 2004). The amount of containers shipped in the Baltic Sea is determined by the prox- imity of consumer markets, Russia being the key destination point. Only a handful of ports handle large quantities of containers. The largest regional container port, Saint-Petersburg, stands only 15th in Europe. In 2017, the number of containers handled among Baltic Sea ports amounted to 9.5 million TEUs. The composition of the 20 largest container ports remained stable: St. Petersburg is clearly the un- disputable leader in this segment, while Gdansk recorded considerable and con- tinued growth in container traffic (Serry, 2017). Furthermore, the number of ships in the Baltic Sea has increased. It is also the case of the ships’ sizes, even if the shallow depth of the Kiel canal and the Den- mark Straits limit vessels to 15 metre draught. The example of the containership size in the Lithuanian port of Klaipeda clearly shows that evolution (Fig. 2.) Using Automatic Identification System (AIS) data, the average sizes of containerships in the port during the last decade were calculated, as well as the size of the biggest ship. Even if Klaipeda is not the largest container port in the region, ship size is steadily growing as throughout the BSR. 10000 9000 8000 7000 6000 TEUs 5000 4000 3000 2000 1000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average ship size Largest Ship Fig. 2. Containership size in Klaipeda from 2007 to 2017 Source: IHS Maritime, 2018. Containerisation in the Baltic Sea region: development, characteristics... 13 2.2. Concentrated containerisation The Baltic Sea Region has a regular rise in containerised transport. Today, con- tainers are handled in more than 60 ports across the region (Wolff, Herz and Flamig, 2011). But in the BSR, cargo requirements remain modest even though the eastern shore is making significant progress. This partly explains the diffi- culty in build sizable ports in the region. Thus, in 2017, the container traffic of Gothenburg reached 644,000 TEUs, Hamina-Kotka 690,000 TEUs, and St. Pe- tersburg 1,920,000 TEUs, with a decline due to the crisis in Russia (Fig. 3). Container flows in the Baltic Sea were growing roughly in line with the world- wide market from 2010 until 2014 but suffered a severe downturn in 2015.
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