SOLVING THE TRAFFIC-ECONOMIC ISSUES OF THE REPUBLIC OF CROATIA
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1 Subject: INTERIM A KEY FACTOR FOR SOLVING THE TRAFFIC-ECONOMIC ISSUES OF THE REPUBLIC OF CROATIA Ivan Miloš, Ph.D,, The Polytechnic of Rijeka Nenad Dujmović,, Ph.D., Faculty of Mechanical Engineering and Naval Architecture Zagreb Marijana Jakopič,, Graduate in Economics, Polytechnic of Rijeka
2 Overview of the recent issues in the Republic of Croatia External debt: 30 billion $ or app 83% of GDP, Internal state debt: 55 billion of Kunas, Number of unemployed: (rate of 22%), Export-import ratio: app 47%, GDP per capita : app $, GDP growth per year: app 4,5%, Industrial manufacturing growth of 5,1% Work productivity in industry: 3,6%
3 Researches have shown that the solutions of the recent issues should be found in the FDI as crucial factor for initiating the development of domestic investment cycles respectively small and medium- sized entrepreneurship that dominates in Croatia. However, it was necessary to determine key resources for initiating the FDI in the Republic of Croatia and their multiplication- effects on the domestic small and medium- sized entrepreneurship. After analysing the numerous resources as possible or the most important individual initiators of the FDI, it was concluded that the development of public traffic represents a crucial strategic resource for the Republic of Croatia. WHY?
4 1. The world transport coefficient k=qt/qp; (>1) meaning that each product is being transported at least once during its technological duration and some even more often. 2. Due to the world traffic development there are no more local products. 3. Under the influence of specialization in the manufacturing processes, the decrease of industrial aggregates that produced all components for their products emerged and encouraged the development of small and medium-sized entrepreneurship which manufacture individual components and pack them in containers for their assemblage on the other location. 4. Within these circumstances the increase of transportation costs exceeded 50% in the costing structure of the individual products. 5. In order to rationalize traffic costs, plants for assembling the final products are being located in the intermodal transportation nodes or on traffic routes near consumers (the final buyers).
5 6. All this led to the significant increase of economic multiplicators on the international traffic routes but only for those that offered objects and conditions for implementation of the VALUE ADDED LOGISTICS. 7. Subsequently the development of contemporary INTERMODAL NODES on strategic traffic routes represents the best invested capital for both the parent state and entrepreneurs from the country and abroad. 8. The experiences of developed countries (the EU, the USA and Asia) have shown that the development of contemporary intermodal nodes initiated the FDI in traffic and industrial capacities that also represent a key input for accelerated and aimed development of small and medium-sized entrepreneurship. 9. The Republic of Croatia owns geo-traffic and geo-strategic resources for the development of contemporary intermodal nodes, especially on Rijeka traffic route (see the following picture)
6 Geogr aphical posit ion of the Republic of Croatia
7 PAN-EUROPEAN CORRIDORS ON THE CROATIAN TERRITORY: V, VII, X AND THE ADRIATIC-IONIC Jadransko-ionski koridor Paneur opean cor r idor s
8 Croatian traffic network as connection between the Adriatic and Eastern and Middle Europe V. Corridor: Venezzia - Trieste/ Koper - Ljubljana - Budapest - Užgorod -Lviv V.B. Corridor: Rijeka - Zagreb - Budapest V.C. Corridor: Ploče- Sarajevo- Osijek - Budapest
9
10 RIJEKA PORT S OFFER Table 1: Basic spatial features of the coastal capacities in Rijeka port TOTAL SURFACE TOTAL SURFACE OF THE OPERATIVE COASTS SEA DEPTH NEAR THE COAST NUMBER OF OPERATIVE BERTHS m m m 39
11 Table 2: Distances between Rijeka port and Hamburg and specific ports and traffic nodes Maritime distances (Nautical miles) Rail distances (km) Ports Rijeka Hamburg Traffic nodes Rijeka Hamburg Port Said Budapest Bombay Bratislava Shangai Vienna New York Linz Lagos Prague B. Aires München
12 PORT OF RIJEKA ADVANTAGES TRANSIT TIME FROM FAR EAST TO CENTRAL EUROPE Hamburg (Eurogate) : 21 days + 1 day = 22 days Rotterdam : 19 days + 1 day = 20 days Rijeka (AG) - Feedership: 15 days + 1 days = 16 days Gioia Tauro (MCT): 12 days + 2 days = 14 days
13 World shipping companies and lines between Rijeka (Croatia) and the World (today) THE CONCENTRATION The world liner fleet share in TEUs GRAND ALLIANCE NEW WORLD ALLIANCE COSCO / YANG MING / K-LINE / HANJIN ALLIANCE INDEPENDENT CARRIERS ALLIANCE
14 Table 3: Basic features of the port substructure and the capital equipment WAREHOUSE CAPACITY SILOS CAPACITY CONTAINER BRIDGES COASTAL CRANES SHIPPING RE-LOADERS (SILO) SHIPPING RE-LOADERS (BAKAR) OIL TERMINAL (OMIŠALJ) m m m 3 4 pieces 42 pieces 2 pieces 3 pieces 2 berths (max m 3 /h)
15 Location of port basins in the Rijeka port MIKLAVLJE 250 Ha Škrljevo and Kukuljanovo Rijeka-Sušak Basin For conventional cargo Container and RO - RO For woods For cereals For conditional cargo Rijeka i Sušak Bakar Omišalj BAKAR BASIN For bulk cargo Dock Extracted area of Škrljevo OMIŠALJ BASIN For oils and derivatives RAŠA BRŠICA BASIN For cattle For conventional cargo Raša- Bršica
16 Table 4: Basic individual capacities of Rijeka port according to the specialized terminals TERMINAL Capacity - tons Container and RO- RO terminal Terminal for groans and coal (silos) Terminal for iron-ore and coal (Bakar) Terminal for the artificial fertilizers Terminal for fruit (ice-box) Terminal for cattle (Bršica) Terminal for the bulk cargo (Sušak) Plant for the conventional cargo (Rijeka, Sušak) Hinterland warehouses (Škrljevo) Terminal for woods TOTAL
17 Graph 1: Freight traffic in sea ports in TERETNI PROMET (000 t) Rijeka Ploče Šibenik Zadar UKUPNO
18 Graph 2: Passenger s traffic in sea ports in PUTNIČKI PROMET (000) Šibenik Split Zadar Dubrovnik UKUPNO
19 What does the INTERMODAL NODE represent in traffic- economic system?
20 Logistic polarization and creation of the logistic poles/basins CONTEMPORARY INTERMODAL NODES SEA AND/OR NAVIGABLE RIVER
21 Logistic polarization in Benelux where is: Intermodal node or logistic zone Logistic region out of port harbour system Harbour system with multiple-legislative polarization
22 Key contents within modern intermodal node:
23 Basic contents of four-sided logistic service providers (Services) 4PL
24 Overview of value added services for goods in the intermodal nodes
25 Basic functions of Croatian intermodal nodes Almost all intermodal logistic centres in Croatia have a status of: (1) Public international traffic nodes and (2) Free zones Own four basic functions: Traffic Industrial Commercial and Distributive Strategically they connect Western Europe (the EU) with Near and Far East as the biggest world markets
26 Which economic multiplicators generate the intermodal nodes? Economic multiplicators on Rijeka traffic route for CONVENTIONAL cargo amounted 9,47. Now we can quote the statement of Croatian Minister of Traffic, Mr Božidar Kalmeta about economic multiplicators on grounds of the intermodal traffic: An example: Generated direct incomes from container traffic 40 on MALTA- RIJEKA PORT-ZAGREB are the following: 1. Port: app 100 USD. 2. Shipping companies: app 270 USD. 3. Inland carriers (trucks transport 80% of containers, so we used transportation via trucks as the reference): app 600 USD. 4. Freight forwarders: app 50 USD. 5. Agents: app 50 USD. 6. Lightning: app 20 USD. 7. Other participants in container forwarding (custom, police, harbour fees, pilotage, haulage, ship supply, garbage removal, tie up/off, control of goods, desinsection): app 80 USD 8. Total: USD =multiplicator 11 (without industrial processing and manufacture >20!)
27 Intermodal nodes in the Republic of Croatia VARAZDIN! VELIKA GORICA RIJEKA! KARLOVAC!! OSIJEK VUKOVAR PULA! ZADAR KNIN SIBENIK SINJ SPLIT! MAKARSKA! Intermodal terminal Current industrial sources Other sources Future potentials Problems (Infrastructure, capacities, etc.) DUBROVNIK
28 Table 5: Resources allocation structure in,,rijeka Gateway Project Component A Port restructure and modernization B Development of bordering area between the port and the city C Improvement of the international highways D Approved resources for project preparation (pre-loan) Total resources Indicative costs (in billion USD) Financed by the bank (in bil. USD)
29 Development of the largest intermodal centre in Europe MIKLAVLJE intermodal logistic center and free zone MLC RUPA-MATULJI (RIJEKA West) -Total surface m 2, ( m 2 more then Rijeka port surface) -Distance to Rijeka port amounts 20km -Rail height 360 m / above the sea-level -Near ports of KOPER and TRIESTE -Own spatial documentation and energy resources -Area is declared as the public good
30 ALL IN ONE PLACE INDUSTRIAL PRODUCTION CUSTOM Trieste INSPECTION SERVICES Koper FORWARD-FREIGHTERS FREIGHTERS PARKING RESTAURANT AND MOTEL POST BANK STORES OPENED AND CLOSED WAREHOUSE LOCATIONS FOR ALL SORTS OF GOODS INDUSTRIAL-RAIL RAIL TRACKS REMOUNT CENTRE FOR HEAVY VEHICLES SPORT-RECREATIONAL RECREATIONAL CONTENTS MIKLAVLJE
31 Development plan for the rail infrastructure
32 Croatian inland navigable routes and rail connection to Rijeka port
33 In proceeding the good long-term business cooperation with business partners from the EU-area, the research team from the Polytechnic of Rijeka, within frames of the INTERIM-related researches and the EU developing projects that are related to the traffic corridors and commodity flows through the Republic of Croatia; according to the first projections of the forth-coming traffic demand that have been evaluated according to the operation-research mode: V 1 ij = V 1 1 = V ij V ik i j P ( P j 1 k P ( P ) b k j ) b k Where is: Q = Total commercial quantity f country "j", i = 1, j = number of monitored countries, P j = gross product of country "j" in the year "n", k Q = Quantity of foreign-trade activity k for country j, j = Commerce volume of country i per year j (n+p), 1 V ij V i = Volume of commerce between countries i and j for year n, = Domestic product for country "j", 1 P j b j = Elasticity coefficient of total commerce for country "j", = Commerce elasticity by branches k for country "j". k e j Traffic demand amounts m tons of dry cargo per year, dependently upon the completion of Parent terminal, intermodal node Miklavlje, new railway track Rijeka-Zagreb-Botovo and navigable channel Danube River- Sava River.
34 Which strategic goals of the Republic of Croatia can and should be achieved through the development of intermodal system? 1. Traffic growth of bulk cargo for m tons yearly in the next mid-term developing period - up to More then 5,5 billion Euros for new foreign currency income per year, 3. More then new work places, 4. Decrease of import and increase of export for more then 35% in comparison to the existing situation, 5. GDP increase for 1,5 2% in comparison to the present situation, 6. Income growth for state budget and budgets of local self-regulation units on main traffic routes for more then 1,5 million Euros yearly, 7. GDP growth for more then EUR per capita', 8. Decrease of foreign assignment and return of the accepted foreign debt rates etc.
35 THANK YOU FOR YOUR ATTENTION!
36
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