Trade & Transport Corridors. European Projects & Initiatives

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1 Trade & Transport Corridors European Projects & Initiatives

2 Trade Corridors A concept in evolution WORLD BANK Assisting land-locked countries which depend on overland routes to access sea-ports for international trade Neighboring countries have to provide access to infrastructure (Cost?) Vehicle and driver access rights, licensing & insurance US/CAN NAFTA products, services, and information moving in geographic patterns according to a matrix or "culture of trade" agreements and treaties, statutes, delegated legislation, and customs that govern and guide trading relationships and structures EU TEN-Corridors Infrastructure, interoperability, multimodal services strengthening of economic, social and territorial cohesion seamless, safe and sustainable mobility of persons and goods contributing to economic growth, competitiveness in a global perspective. Source: Connecting Landlocked Developing Countries to Markets -Trade Corridors in the 21st Century, World Bank, REGULATION (EU) No 1315/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 11 December 2013 Page 2

3 Silk road an early instance of a trade corridor Page 3

4 Trans European Network corridors Source: TENTec Database, DGMOVE

5 Selected corridor projects in Europe East West Transport Corridor Probing land based alternatives to maritime routes between China and Scandinavia AB Landbridge Pre-feasibility analysis for intermodal transport links between Europe and global markets (Eastern Med/SE Asia) SONORA - SOuth-NORth Axis Improving multimodal freight logistics services Business plan development South East Transport Axis Accessability of regions to main transport corridors (SK, CZ, CR, HU, AT)

6 East West Transport Corridor Expected benefits Shorter lead-time by reducing transport distance by 50%. Competitive duration 30 days, deep sea shipping about 50 days. Competitive price and stable transport charges Frequency requested varies from 4 times per month to daily services. Very well developed monitoring system of Transsiberian Railway Convenient and efficient freight transport between Denmark, Sweden and Lithuania Issues and Concerns Transshipment because of different rail gauges necessary Additional documentations because of different rules in railways: CIM- SMGS Different languages, documentations The lack of shared containers, empty containers sent before No service organized Slow and complicated Russian Customs procedure. Page 6

7 Commercial services along a trade corridor Source: Page 7

8 Adriatic Baltic Landbridge / SONORA Results Freight forwarders and transport service providers are looking for alternatives to existings routes; Value not only freight cost benefits but consider total cost of door-todoor delivery. Sufficient space on vessels, safety and security, guaranteed and reliable departures are critical Freshfood warehousing, reload facilities, tracking & tracing are among the top logistics requirements. Issues and Concerns Railroad carriers (mostly still state owned) show only scant interest in the development of new transport services Private operators who have already developed services are conscious not to cannibalize their current business. Legal obligation to use low-sulfur fuel expected to results in higher fuel costs Page 8

9 Cross Border Delays South East Transport Axis Source: SETA BOTTLENECK ANALYSIS, Version 2, Page 9

10 South East Transport Axis Issues and Concerns Delays resulting from cross-border procedures of passenger and freight trains is the major organizational constraint of the implementation of the SETA corridor If traction/electrification is different across the border (electric/diesel) a change of locomotive is required. Even when multi-system locomotives are available, the lack of mutual acceptance of drivers may prevent the same locomotive to travel across the border and hence border-crossing is delayed. Technical wagon inspection (e.g. breaks) is carried out to ensure that the condition of the wagons entering a country conform to national regulations. Documents concerning the train and the cargo are exchanged. If it is not done electronically, it will add to the time needed for border procedures. Page 10

11 Baltic Adriatic Corridor Comprehensive Network Milestones 2004 Identification by EC of priority projects PP 23 and PP 25 (railway and motorway axis Gdańsk Warszawa Brno/Bratislava-Wien); 2006 Letter of Intent on the Development of the Baltic-Adriatic Transport Corridor signed by the Ministries of Transport and Infrastructure of Poland, Czech Republic, Slovakia, Austria and Italy; 2009 Declaration by the representatives of 14 regions on the extension of the TEN-T PP23 from Gdynia/Gdansk to Bologna/Ravenna; 2010 Regulation EC 913/2010 concerning a European rail network for competitive freight 2013 Release of the two Regulations 1315 /2013 on Union guidelines for the development of the trans-european transport network and repealing Decision No 661/2010/EU and 1316 /2013 Page 11

12 Identified barriers and bottlenecks High utilization and resulting capacity constraints (road/rail) Speed constraints between urban nodes Lack of intermodal and multimodal connections connecting ports to hinterland Rail interoperability issues: energy, control-command and signaling, and infrastructure (loading gauge, train length) Interoperability issues related to road, air and rail telematics applications (VTS, Toll Collection, Air Traffic Control) lack of the harmonization of procedures for railway vehicles authorizations; lack of mutual acceptance of drivers lack of coordination between agencies and country specific regulatory and operational requirements for international trade and transport. Page 12

13 Baltic-Adriatic Corridor selected OEEB Investments Rahmenplan Projekte Budget (Mio ) Fertigstellung ERTMS Tracks Electr. Speed (km/h) Semmering Graz Klagenfurt KORALM Hauptbahnhof Wien Terminal Inzersdorf Source: "OEBB Rahmenplan ", OEEB Infra, Page 13

14 Expected impact on economic value add Source: OEBB Baltic-Adriatic Axis : Macroeconomic Evaluation as part of the expanded Cost-Benefit Analysis for Rail Final Report September 2011

15 Expected impact Economic indicator Unit Value Additional GDP (Austria) Present value 2010 Bio. 5.5 Additional GDP (EU) Present value 2010 Bio Additional Employment (Austria) Number of jobs 15,000 Additional Employment (EU) Number of jobs 46,000 Fiscal returns (Austria) Present value 2010 Bio Environment Unit Value Reduction in climate costs Present value 2010 Bio Reduction in pollution costs Present value 2010 Bio Source: OEBB Baltic-Adriatic Axis : Macroeconomic Evaluation as part of the expanded Cost-Benefit Analysis for Rail Final Report September 2011

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