Union for Mediterranean Motorways of the Sea Initiative: a way to a re-equilibrium in the Mediterranean. Transport and Urban Development Division

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2 Union for Mediterranean Motorways of the Sea Initiative: a way to a re-equilibrium in the Mediterranean Transport and Urban Development Division

3 3 UfM MoS The concept of MoS The Motorways of the Sea concept was introduced by European Union in 2001, with the purpose of reactivating Short Sea Shipping (SSS), and refers to them basically as shipping connections which avoid points of congestion like the Alps and the Pyrenees. MoS originally aimed at acting as a substitute of land motorways, to avoid congested corridors, and were considered multimodal corridors in which there were sections with different modes of transport, at least one being maritime. These would allow the realization of a service door to door but with significant gains in time and cost in comparison with the traditional transport by land. The concept of MoS included the SSS, the latter limited to the maritime route without including a land leg.

4 4 UfM MoS The MEDA-MoS I and II Initiatives In 2006, the Mediterranean Motorway of the Sea (MEDA-MoS) Initiative, financed under the ENPI (European Neighborhood and Partnership Instrument) up to EUR 4.8 million, was launched as an integral part of the Regional Transport Action Plan (RTAP) , based on the extension of the Trans-European Transport Network (TEN-T) to all Mediterranean countries, and focused on the conception and selection of a number of Motorways of the Sea to connect the Eastern (non-eu) and Southern Mediterranean Transport Systems and the Trans European Transport Network (TEN-T). In November 2009, MEDA-MoS II ( ), with a budget EUR 6 million, was launched, with the objective to allow for further improvements regarding the existent various pilot projects and for the selection of new projects.

5 5 UfM MoS Context: the Mediterranean trend The latest trends of the framework of maritime flows show, in the choice of routes, the movement from a Eurocentric model to an Inter-Mediterranean model, in which the Motorways of the Sea in the Mediterranean are assuming a decisive role in the typologies Ro-Ro, Ro-Pax, Cruise Ferry and feeder services with multipurpose and full container ships, where the principal route is by sea, and land routes (road and railway) play a role of terminal service and penetration.

6 6 UfM MoS Paris Declaration of 2008 The Motorways of the Sea project was identified as a priority in the UfM Joint Declaration of the Paris Summit for the Mediterranean adopted by the Heads of State or Governments at the Euro-Mediterranean Summit held on 13 th July The Declaration states that the Mediterranean is a sea that joins, not separates, its people. It is also a highway for commerce. Easy and safe access and flow of goods and people, on land and sea, is essential for maintaining relations and enhancing regional trade. The development of motorways of the sea, including the connection of ports, throughout the entire Mediterranean basin as well as the creation of coastal motorways and the modernization of the trans-maghreb train, will increase the flow and freedom of the movement of people and goods. The UfM Secretariat is aiming at the fulfilment of the mandate given to it by the Heads of State and Government in their Declaration.

7 7 UfM MoS Objectives of the Initiative The Transport and Urban Development Division is embarking upon the development of the Mediterranean Motorways of the Sea and is looking at an innovative approach based on the establishment of efficient and frequent maritime-based service network model for the logistics maritime services at regional level. The Union for Mediterranean Motorways of the Sea Initiative ( UfM MoS Initiative ) aims at enlarging the network of Roll on Roll off (Ro- Ro) intermodal maritime logistics chains between the ports of the Mediterranean Partner Countries (MPCs) and the European Ports of the Mediterranean. The UfM MoS Initiative will address the development of maritime services, facilities and infrastructure concerning at least two ports of which one is located in one of the Mediterranean Partner Countries, or both of them in the Southern-Eastern shores.

8 8 UfM MoS MoS and TMN-T The objective of maritime link based projects promoted by UfM Secretariat is to establish or improve Motorways of the Sea services along main Mediterranean freight transport routes, based on new maritime links or improvement of existing ones. These Motorways of the Sea should offer a door-to-door service which combines Short Sea Shipping with other forms of transport, to bring about a structural change to transport organization: door-to-door integrated logistics chains. The investments in infrastructure should be targeted towards overcoming or preventing transport bottlenecks. Railway and road connections with ports of the TMN-T are in the framework of investments aimed at building the logistics chains of the MoS.

9 9 UfM MoS Investment The UfM MoS Initiative can contribute to various form of investment, in relation to: facilities and infrastructure for ports and hinterland connections; information and communication technology (ICT) investments for traffic management or electronic reporting systems; start-up aid if a financial support is deemed necessary for the financial viability of the maritime services; feasibility studies identifying market potential for new services and analyzing new and existing cargo flows for new services, as well as impact assessment, implementation and financing.

10 10 UfM MoS Involved actors The projects should involve: at least two ports (one core or comprehensive from TEN-T and one from MPCs, or both from MPCs), one maritime operator and ideally hinterland transport operators. Broader consortia involving terminal operators, logistics companies or ship brokers are expected as appropriate. Involvement of shipping companies and other transport operators should be demonstrated through their direct participation in the project as beneficiaries or through letters of support/intent.

11 11 UfM MoS Assessment criteria (1) A series of quality criteria will be pre-established to guarantee the competitiveness of the maritime chains supported by the UfM MoS Initiative, establishing a certification for the services in question. In relation to these criteria, the areas we consider that should be primarily paid attention are: image of quality covering the entire transport chain and possible certification of services; frequency, regularity and continuity of the services; vessels technologically equipped to increase efficacy and safety; effective infrastructure and equipment in ports; well-sized, safe intermodal terminals; effective port services, with the emphasis on costs; appropriate port-hinterland connections;

12 12 UfM MoS Assessment criteria (2) advanced information systems, including cargo tracking and tracing and transport equipment; simplified and harmonized customs and inspection procedures (a pre-agreement between the involved Port Authorities and the relevant Ministries will be an advantage); preferential use of the train as transport mode for the continuation of the journey. Quantifiable criteria will be used in the identification and assessment of UfM MoS proposals. Key Performance Indicators will be established in order to assess the impact of MoS of UfM MoS Initiative within the full transport market.

13 13 UfM MoS Proposed ways of funding (1) Two different ways of funding are contemplated: To the users (transport operator or shipping companies), introducing a start up aid, which could be extended to the Mediterranean Motorways of the Sea that fulfil the UfM MoS Initiative criteria; To the Port Authorities, promoting the investment aimed at building or upgrading the port facilities and infrastructure, in case they don t have sufficient capacity to host a Ro-Ro terminal of the kind demanded by MoS services. In this regard, main condition is that investment for building or adapting port terminals is associated with at least a Motorway of the Sea service included in the UfM MoS Initiative. The most potentially promising project proposals will receive the UfM support during the launch stage.

14 14 UfM MoS Proposed ways of funding (2) The start-up aid is a means of providing MoS financing directly to end users of the Motorway of the Sea. This is an incentive to directly support transport companies that frequently use a MoS service. The start-up subsidies will be designed to achieve sufficiently good initial conditions so that they can continue, after a certain maturity period, without requiring further aid. Aid will be granted to a maximum of 30% of the seaway price. Apart from direct financial aid, there are other interesting measures that could be taken both at national level and for the port environment, such as port discounts and measures to improve efficiency in the provision of port services. Moreover, the UfM MoS would benefit from an increased coordination between the different funding schemes supporting the different UfM MoS project proposals. Through the UfM MoS Initiative, the UfM Secretariat will ensure this coordination.

15 15 UfM MoS UfM funding strategy Consolidation of dialogue and coordination with multilateral donors (The World Bank, European Investment Bank, European Bank for Reconstruction and Development, Islamic Development Bank, Arab Fund for Economic and Social Development, etc.) and bilateral development Agencies. Synergies with the Connecting Europe Facility (CEF) funding mechanism, designed to fund the Trans-European transport, communications and energy (Regulation (EU) No 1316/2013), and with the Transport Sector Support Facility (TSSF) of the NIF will be established to fund the MoS services supported by the UfM MoS Initiative. The money budgeted for the TSSF in the NIF South pipeline 2015 would be increased from 5 million to 10 million.

16 16 UfM MoS Roadmap: on-going contacts As a first step of the UfM MoS Initiative, the UfM Secretariat is planning to hold meetings with the main Port Authorities of the Mediterranean (Barcelona, Bari, Brindisi, Taranto, Rades, Alexandria, Damietta, Izmir, Mersin, Palermo, Malta, Porto Torres, Beirut, etc.) in order to draw a first tentative map of the service network model for UfM MoS Initiative. Knowledge and information will be provided by other stakeholders, such as intermodal operators, logistics services providers and shippers, helping them to reflect together on possible services and projects within the UfM MoS Initiative. Ports will be requested to come up with ideas on specific infrastructure requirements that are relevant for the Motorways of the Sea implementation (Ro-Ro docks, dedicated berths and terminals, IT infrastructure, land connections, etc.).

17 17 UfM MoS Roadmap: other steps Drafting of the Technical Dossier of the UfM MoS Initiative Presentation of the Initiative to the next Senior Official Meeting and to the first meeting of the UfM Permanent Financing Committee Detailed assessment of the Project Proposals in the TUDD pipeline (June - September 2015) Labelling of the project proposals (starting from October 2015)

18 18 UfM MoS The MoS proposals in the pipeline The first proposal of MoS aims to link Turkey with Maghreb area with calls in the Ports of Bari, Brindisi and Taranto in Italy as strategic junctions to connect the maritime services with the Maghreb ports of Tunisia. The second proposal of MoS aims to link Europe with Maghreb area by using the integrated logistics platform of Bologna, in Italy, as the main inland logistics hub and the ports of Palermo and Termini Imerese, in Sicily, as strategic junctions to connect the maritime services with the Maghreb ports of Tunisia. The two projects consist of two main phases: the conception phase, which regards the realization of the feasibility studies, and the implementation phase. The feasibility studies will allow quantifying the transportation and socio-economic impacts of the project.

19 UfM MoS MoS Turkey-Italy-Tunisia 19

20 20 UfM MoS MoS Turkey-Italy-Tunisia The project proposal aims to propose and develop a Motorway of the Sea, namely a seamless intermodal goods transport service bridging Turkey with Maghreb area with calls in the Ports of Bari, Brindisi and Taranto in Italy as strategic junctions to connect the maritime services with the Maghreb ports of Tunisia. Turkey, Italy and Tunisia are the interested countries, but the others Maghreb countries could take advantage of the new maritime services, which will be developed in the framework of the Trans- Mediterranean Transport Network (TMN-T) implementation strategy and of the connection between the TMN-T above mentioned and the Trans-European Transport Network (TEN-T). The Promoter of the Project is the Turkish Chamber of Commerce in Italy, with the technical support of the Italian College of Railway Engineers (CIFI) and of Titi Shipping, a maritime company based in Brindisi, under the patronage of the Honorary General Consulate of Turkey in Brindisi.

21 21 UfM MoS MoS Turkey-Italy-Tunisia The project has two main objectives: to shift part of heavy goods traffic from the road to the sea, in the first section of the proposed route from Turkey and Italy, and to facilitate exchanges between the two rims of the Mediterranean via daily and efficient connections where formalities would be extremely reduced, in the second section of the proposed route between Italy and Tunisia. The first phase of the project, regarding its conception, includes a Feasibility Study aimed at analyzing the state of play of the maritime services along the route and the potentialities of a Motorway of the Sea service from Turkey to Italy and to the final destination in the Maghreb area. In this regard, the creation of a fully developed logistics system capable of intercepting also the flows from and to European logistics centers through the Italian railway system and provide them value-added services will be studied in depth.

22 22 UfM MoS MoS Turkey-Italy-Tunisia Project duration 6 months for the Feasibility Study aimed to designing services (Business Plan ready after 9 months) 6 months for the Start-up phase (pilot phase consisting of the preparation of investment needed to activate the Motorway of the Sea services) 15 years for the Motorway of the Sea services implementatio Total Cost Euros for the Feasibility Study Costs for the Start-up phase and for the normal regime working time of MoS services: to be defined as a result of the Feasibility Study Contribution of the promoter to be defined the contribution of the promoter.

23 UfM MoS MoS Italy-Tunisia 23

24 24 UfM MoS Conclusions The following aspects will be combined for the success of the Initiative: the existence of a potential market interested to the new proposed maritime lines. This circumstance encourages to support these projects, which can receive start-up subsidies designed to achieve sufficiently good initial conditions so that they can continue, after a certain maturity period, without requiring further aid; the consensus of the Public Institutions to the UfM MoS Initiative; the compliance of the MoS projects with the development plans of the Ports, if they are designed to progressively respond to the increase of traffic flows; the availability of the private sector to finance the MoS projects and to take business risks.

25 25 THANK YOU FOR YOUR ATTENTION Salvatore D Alfonso Senior Project Manager at Transport and Urban Development Division

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