INVESTMENT PROJECT HUB LOGISTIC TERMINAL IN PARDUBICE LINKED TO EUROPEAN TRANSPORT CORRIDORS CASE STUDY. Helena Nováková, Ladislav Bína

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1 INVESTMENT PROJECT HUB LOGISTIC TERMINAL IN PARDUBICE LINKED TO EUROPEAN TRANSPORT CORRIDORS CASE STUDY Helena Nováková, Ladislav Bína CTU in Prague, Prague, Czech Republic, EU Abstract Roads in the Czech Republic are overloaded with truck transport. Rail isn t used adequately for freight transport. Waterways are used very little for freight transport, because of never ending postponing realization of permanent navigability of the waterway Labe. The future final port terminal on the river Labe in Pardubice (the Czech Republic) is a long prepared project which is pretty much related to the project of the permanent navigability of the river Labe and providing the inland waterway connection with Hamburg and other north European ports. Part of the upcoming trimodal logistics terminal of Pardubice is a container terminal. Part of this paper is also an overview of the existing network of container terminals in the Czech Republic and connecting network of container trains to European seaports and inland hub terminals. Keywords: Logistic terminal in Pardubice, container terminal, water way transport, oversize goods 1. INTRODUCTION On October 19, 2011 the European Commission presented a plan for improving European transport, energetic, and digital networks (new Trans-European Transport Network (TEN-T)). In this plan the waterway Labe is integrated with the final port in Pardubice among the projects of the main network. On March 14, 2012 the Czech government took into an account the status report on inland waterway transport in the Czech Republic and agreed with the development of inland waterway transport in the Czech Republic. One of the crucial materials mentioned in this government report was the analytical study, monitoring the inland waterway potential in the Czech Republic, called The expert study on the improvement of navigation conditions on the river Labe between Ústí nad Labem and state borders with Germany The navigation level Děčín, Commodity flows and transport corridors between the Czech Republic and Germany. At the beginning this study analyses the particular commodity flows to and from the Czech Republic. Then there is detailed analysis of development possibilities for different transport modes in CR according to underused potential of inland waterway and never ending increasing volume of transported goods. The study was made by the research team of the Faculty of Transportation Sciences, Czech Technical University in Prague and the company CityPlan s.r.o. 2. TRIMODAL TERMINALS IN PORTS ON THE LABE AND VLTAVA RIVER IN THE CZECH REPUBLIC Currently the situation in terms of ports in the trimodal terminals is described in the following. The port of Děčín-Loubí has currently the best navigation opportunities in the Czech Republic. Sidings of ports are connected to the rail corridor Dresden-Prague-Vienna and to the railway network Děčín-Ústí nad Labem-Cheb. The port is also used for transhipment of oversized products. Lifting capacity of a crane is 90 tons, it is necessary to use mobile cranes for heavier transhipments. The port of Děčín - Rozbělesy. The port is less accessible in depth than the port of Loubí, which will be changed after building of the level Děčín. From the point of view of transhipment of oversized mechanical engineering products, this port is used by the company from Děčín - Chart Ferox for transhipment of

2 products that cannot be transported to the Loubí. In future the company thinks over using it as the main the transhipment pier. The port of Lovosice. The port is also used for transhipment of oversized products. Lifting capacity a crane is up to 180 tons. Central location with direct connections to the D8 motorway and to the railway corridor to Germany provides to the port a position of a trimodal terminal of combined transport. Combination of cranes is given by the opportunity of transhipment of oversized products to 300 tons. The port of Mělník. It is a trimodal logistics terminal with connections to rail, road and water transport. A ground part of the terminal has an area of 42 hectares. It has own tariff rail point, including extensive rail and siding network. It is connected to the Prague ring road via motorway D8 Prague - Dresden with very good access road. So it is also the perfect place for transhipment of heavy and oversized products and investment units both in terms of its geographic location, and due to their facilities. There is a sufficiently large area for handling and break bulk, a crane with capacity of 300 tons and transhipment pier adapted to loading of these oversized products. The container terminal which is rented by the company Maersk Czech Republic, s.r.o. is also a part of the port. The port of Prague Radotín is situated on the left bank of the river Berounka, km and it is designed for business and transhipment activities with a connection of road and water transport. 3. MULTIMODAL LOGISTICS CENTER IN PARDUBICE AND PORT OF PARDUBICE (MLC PARDUBICE) On October 19, 2011 Siim Kallas, the Commissioner for Transport presented in Brussels new Trans- European Transport Network TEN-T, which aims in terms of water transport to connect 83 of European ports to rail and road network. Ports of Děčín, Lovosice, Melnik, Prague-Radotín and the end port of Labe waterway - Pardubice are marked on the Labe - Vltava waterway on the related map of the Czech Republic. TEN-T and project of full navigability of the Labe river to the end port of Pardubice. Preparation and implementation of Multimodal logistics center East Bohemia in Pardubice (MLC Pardubice) including the end port on the Labe waterway and support of navigability of the Labe river were the reasons that led to formation of joint stock company Přístav Pardubice, a.s. in late Significant shareholders are Czech ports, as, the Pardubice Region, the city of Pardubice and the town of Přelouč. The Přístav Pardubice, a.s. is a project coordinator of MLC Pardubice, which should become a part of a network of public logistics centers in the near future, not only in the CR but also in Europe. The supporting arguments for the location of center to Pardubice include among other possible connections to transit railway corridor, the prepared connection of Pardubice to the Czech motorway network and connection to the European network of waterways. Future MLC Pardubice is located in the vicinity of the international public airport Pardubice ( Ecological benefits of MLC Pardubice for the environment are also considerable, because the realization of this project will allow the transfer of part of goods transportation from/to the East Bohemia from road to other transport modes, especially to railway and to the Labe waterway with condition of realization of the planned hydraulic structures, which will allow year-round navigability of the Labe waterway. A modern container terminal will be also a part of MLC Pardubice. For the possibility of water transport of containers in up to three layers and other oversized products, adjustments of road bridge Poděbrady, railway bridge Nymburk and the railway bridge Kolín (to ensure underpass height 5.25 m) are implemented. For ensuring year-round navigability of the Labe from Hamburg seaport to the end port of Pardubice, at least two water structures must be implemented in the Czech Republic. But the construction is a long dispute between environmental initiatives and supporters of construction coming mainly from business and municipal sector. According to the investor of both water structures the Directorate of Waterways of the CR - the current situation of preparation is as following:

3 Navigation level Děčín. On May 29, 2012 the EIA documentation was repeatedly returned by the Ministry of Environment of the Czech Republic for completion. Negotiations with the Ministry of the Environment of the Czech Republic and the Ministry of Transport are ongoing to avoid unclarity in the requirements to complete the documentation with an assumption of submission of completed documentation for the EIA to the Ministry of Environment of the Czech Republic in May 2013 and with an assumption of completion of the EIA process in January Navigation level Přelouč II. On June 13, 2012 renegotiation of planning permission of the project Přelouč II started. All derogation from specially protected species and intervention in important landscape element are issued, and the solution prepared according to issued exceptions is included in the documentation. All estates except estate of the Railway Infrastructure Administration (SŽDC) are bought up. The assumption for the start of implementation of the building is 2013/2014. Both hydraulic structures and their investment costs are shown in the Figure 1. Fig. 1 Navigation level Děčín and Přelouč II Source: the Directorate of Waterways of the CR In 2009, the Faculty of Transportation Sciences of the Czech Technical University in Prague processed on request of Directorate of Waterways CR a study called "Improving navigational conditions on the Elbe River in the section between Ústí nad Labem the state border of the Czech Republic/Germany - navigation level Děčín. Commodity flows and transport corridors between the Czech Republic and Europe. One of the many findings is the fact that by implementing of prepared hydraulic structures on the river Labe it is possible to obtain transportation capacity to northern seaports at least of 8.5 million tons / year in the near future. According to the Transport yearbook 2007, the total export of goods from CR was million tons / year, which would significantly affect future predicted deficit of other transport modes. Basic information about the MLC Pardubice The total land area for multimodal logistics center including port and container terminal is up to 70 hectares. Within the public multimodal logistics center is planned the construction of a container terminal and of course, the future use of the harbor on the river Labe, which will be an integral part of the logistics center. For air cargo will be used a nearby airport Pardubice. As mentioned above, the company Přístav Pardubice, a.s. in cooperation with the Pardubice Region is the coordinator of the project. In the first half of 2008 "Preliminary Master Plan for multimodal logistics center in Pardubice" was prepared. Subsequently, in late 2008 the investment project "Rail, road and water connection of multimodal logistics center East Bohemia in Pardubice" was prepared according

4 to the methodology of the Ministry of Transport CR and includes essential part of the economic assessment (CBA - Cost Benefit Analysis). The author was the company SUDOP PRAHA a.s. The investment project was funded by the State Fund for Transport Infrastructure (SFDI) and by the Pardubice Region. This investment plan was approved by the Council of the Pardubice Region on April 2, By joint letter of the Chairman of the Board of the company Přístav Pardubice a.s. and of the President of the Pardubice Region, the investment plan of MLC Pardubice was submitted to the Minister of Transport in beginning of June Due to long-term problems with ensuring navigation levels Děčín and Přelouč II, the current situation can be characterized as follows: the end port on the Labe river in Pardubice is generally accepted project (including involvement in the new European network TEN-T). It is considered as an essential part of the MLC Pardubice and its implementation depends on condition of construction of navigation level Přelouč II, according to the Directorate of Waterways of the CR, beginning of the construction work of Přelouč II is expected in 2013/2014, a condition of the multimodal logistics center is also financing. Financing from public funds in the amount of billion CZK excl. VAT is expected according to the investment plan in parts of the rail and road connection of own logistics center. Two variants: were evaluated to assess the economic efficiency: a) A variant without a project b) A variant with a project, it includes building of new road and rail siding to the MLC Pardubice. An important part of the MLC Pardubice will be a container terminal with an expected capacity of 150 thousand TEUs / year. The need for this container terminal is based on forecasts of transport development of containerized goods, which are presented in the following chapter. The operational program Transport for the period is under preparation of the Ministry of Transport. There should be also included issues of public logistic centre (PLC) including the MLC Pardubice. A very important argument for the preparation of the MLC Pardubice is its future use. Standard logistics activities related to all transport modes, including the use of a nearby airport will be the scope of activities of this multimodal logistics center. As mentioned above, economic assessment considers with following major logistics activities: a) A container terminal. According to the forecast of UIC [1], the number of transported containers should increase from the value of TEU in 2009 to the value of TEU in The container terminal MLC Pardubice will complement the network of terminals in the area of East Bohemia along with the newly built terminal Metrans in Česká Třebová. b) Transhipments and related transportation of oversized products on the Labe waterway. Ports and terminals of Děčín, Mělník and Lovosice, all located in the northern part of Bohemia, are currently used for transhipment and related water transport of oversized goods. The MLC Pardubice will offer this option for the east region of Bohemia and the entire Moravia. This means saving of about 150 km of very difficult road transport to the nearest port of Mělník. c) New commodity flows. An example of the new commodity flow could be a transportation of liquefied natural gas (LNG), including follow-up LNG terminal. It could be implemented in the Czech Republic within the logistics terminal at the Labe waterway and use this transport corridor (with condition of realization of long term discussed hydraulic structures in order to achieve year-round navigability) for ship transport of LNG from Northern European seaports. According to latest news, the construction for LNG terminals in the Polish ports of Szczecin and Gdansk is being prepared. The construction of LNG terminal in a new PLC in the Czech Republic would be economically efficient project. River boats or special tank-containers might be used for LNG transport from seaports.

5 4. NETWORK OF CONTAINER TERMINALS IN THE CZECH REPUBLIC AND WHOLE TRAINS OF COMBINED TRANSPORTATION FROM THE CZECH REPUBLIC TO SEAPORTS AND CONTINENTAL HUB TERMINALS In the Czech Republic there is a network of container terminals from which the function of hub terminal fulfil terminals of in Lovosice, Mělník, Prague (METRANS and ČSKD INTRANS), Paskov and Senov (currently 6 terminals). This network could be suitably completed with upcoming MLC terminal in Pardubice with catchment areas of East Bohemia and West Moravia. An overview of operators and is provided in the following. BOHEMIAKOMBI spol. s r.o. operator of combined transportation Connections: Duisburg Ruhrorthafen, Ostrava Paskov - Verona, Hamburg Billwerder. ERS - European Rail Shuttle B.V. - operator of combined transportation for terminal Mělník Connections: Rotterdam, Bremerhaven, Hamburg, Bratislava, Budapest, Koper. METRANS, a.s. Praha - operator of combined transportation, operator of container terminals Praha Uhřiněves, Plzeň Nýřany, Zlín Želechovice/Lípa, Ostrava Šenov, Dunajská Streda, Košice. Connections: Hamburg, Bremerhaven, Rotterdam, Duisburg, Koper and connections to other terminals of METRANS Other rail/road activity: Hamburg / Bremerhaven - Poland, Germany, Austria. Trieste - Czech Republic, Poland, Germany, Austria. Skandinavia - central Europe ČSKD INTRANS s.r.o. operator of combined transportation, operator of container terminals Praha Žižkov, Přerov, Brno, Bratislav, Žilina, Košice Connections: Praha Žižkov - Hamburk/Bremerhaven. Follow-up connection to the terminal Přerov and Brno, Bratislava, Koper. Specialized intermodal projects: Hamburk Sládkovičovo, Koper Žilina, Koper Paskov, Koper Dobrá, Žilina - Kaliningrad and back. Terminal AWT Ostrava-Paskov Connections: Rotterdam (via Mělník), Hamburg, Trieste, Koper, Verona. Following to the given terminal network, a network of all currently existing container terminals in the Czech Republic and a network of trains of operating combined transportation from the above mentioned hub terminals, is drawn in Figure 2.

6 Fig. 2 A network of container terminals in the Czech Republic and a network of trains of combined transportation into seaports and European logistics centers Source: authors and websites of operators Bad condition of rail and road infrastructure which does not correspond to the situation in the developed EU countries is a big disadvantage of the Czech Republic in terms of transport. Forecast for future development of this infrastructure do not make good prediction to improve this situation (particularly in financial terms). CONCLUSION This paper provides an overview of trimodal logistics terminals in ports on the Labe and Vltava river in the Czech Republic. Planned multimodal logistics center in Pardubice and port of Pardubice as its part should be the addition of this network for region of East Bohemia and Moravia. A very important argument for the preparation of the MLC Pardubice is its future use. Standard logistics activities related to all transport modes, including the use of a nearby airport will be the scope of activities of this multimodal logistics center. The project with following major logistics activities: Container terminal will complement existing network of container terminals in the CR for the area of East Bohemia along with the newly built terminal Metrans in Česká Třebová. Transhipments and related transportation of oversized products on the Labe waterway. Ports and terminals of Děčín, Mělník and Lovosice, all located in the northern part of Bohemia, are currently used for transhipment and related water transport of oversized goods. The MLC Pardubice will offer this option for the east region of Bohemia and the entire Moravia. This means saving of about 150 km of very difficult road transport to the nearest port of Mělník. New commodity flows. An example of the new commodity flow could be a transportation of liquefied natural gas (LNG), including follow-up LNG terminal. It could be implemented in the CR within the logistics terminal at the Labe waterway and use this transport corridor (with condition of realization of long term discussed hydraulic structures in order to achieve year-round navigability) for ship transport of LNG from Northern European seaports. Furthermore, in this paper a network of container terminals from which the function of catchment terminal fulfil terminals of in Lovosice, Mělník, Prague (METRANS and ČSKD INTRANS) and Paskov is mentioned. From these terminals network of trains of combined transportation is led into some catchment European logistics terminals and seaports.

7 LITERATURE [1] Project DIOMIS: Evaluation of intermodal rail/road traffic in Central and Eastern European Countries by 2020, Czech Republic, UIC - International Union of Railways, November 2009 [2] European Energy and Transport, Trends to 2030 Update 2007, European Commission, Directorate General for Energy and Transport [3] Intereconomics, July/August 2007 [4] AGTC European agreement on important international combined transport lines and related installations, Geneva February 1991 [5] DIOMIS: Evaluation of intermodal rail/road traffic in Central and Eastern European Countries by 2020, Czech Republic, UIC - International Union of Railways, November 2009 [6] DIOMIS: Benchmarking Intermodal Rail Transport in the United States and Europe, June 2009 [7] Nestler, S., Uhlman, J.: Boosting Cooperative Intermodal Freight Clusters. Chamber of Commerce Piazza della Mercanzia, Bologna, [8] UIRR - International Union of combined Road-Rail transport companies, Annual Report 2009 [9] Koch, H., Mūnch, S., Nestler, S., Nobel, T.: Ranking der europäischen GVZ-Standorte - Benchmarking der europäischen Erfahrungen, Wissenschaftlicher Verlag Berlin, 2010, ISBN B [10] World Energy Council 2007: Transport Technologies and Policy Scenarios to 2050 [11] PAN-EUROSTAR (Pan-European Transport Corridors and Areas Status Report), Final Report, HB- Verkehrsconsult GmbH, 2005 [12] E U R O P E A European strategy for smart, sustainable and inclusive growth. European Commission, [13] Štědroň B.,Svatoš J.: Systémové pohledy na technologické prognózy Sdělovací technika p.5-7, 9/2011, ISSN [14] Štědroň B., Potůček M. a kol.: Prognostické metody a jejich aplikace, C.H.BECK Praha 2012, ISBN [15] Lánská, M., Horák, T.: Current Supply Chain Security Technologies in Context. In: Perner's Contact. Vol. VII, No. 2, pp ISSN: X. [16] Horák, T., Lánská, M., Vařacha, P.: Aktuální evropský pohled na security logistických řetězců. In Logistika v teorii a praxi IV. Sborník přednášek a příspěvků. Zlín: Univerzita Tomáše Bati ve Zlíně. Fakulta logistiky a krizového řízení, ISBN: s [17] Lánská M.: Supply Chain Security. In: Proceedings of The 9th International Conference on Logistics & Sustainable Transport. Celje: University of Maribor, Faculty of Logistics, 2012, p ISBN