THIRD NATIONAL COUNTERPART TEAMS (NCT3) Meeting

EuroMed Regional Transportation Programme THIRD NATIONAL COUNTERPART TEAMS (NCT3) Meeting Brussels, June 1&2-2005 Blue Paper Part II A Joint Comprehensive Regional Transport Strategy (Switching from Transport Fragmentation to Transport Integration) Presentation: Mr. Ali Anouti 1

Blue Paper - Part II Overall Structure and Organisation 1 2 The Logic behind the Strategy Integration and Cohesion of Infrastructure Networks 3 A Seamless Multimodal Freight Transport Chain 4 Exploiting the Full Potentials of Air Transport 5 Making Transport in the Mediterranean Safer and Sustainable 6 Overcoming the Headache of Funding 2

Blue Paper - Part II Section 1 1 The Logic behind the Strategy 3

Section 1 - The Logic behind the Strategy 1.1 - The Need to Change The Diagnosis (Part I) revealed that there are several core problems which severely constrain the development of the regional transport system There is a need for optimising the regional transport system, especially that MEDA region will experience in the future significant growth in both population and trade The main challenge for the regional transport system is to move from fragmentation to harmonisation and integration at both EU-MEDA and MEDA-MEDA fronts. 4

Section 1 - The Logic behind the Strategy (Cont d) 1.2 - Strategy Objectives and Pillars Strategy objectives to ensure that a sustainable, efficient and integrated multimodal transport system will be in place at both the EU-MEDA and MEDA-MEDA levels Strategy Pillars Integration and Cohesion of Infrastructure Networks A Seamless Multimodal Freight Transport Chain Exploiting full Potential of Air Transport & giving a boost to air passenger traffic Making Transport in the Mediterranean Safer and Sustainable Overcoming the Headache of Funding 5

Section 1 - The Logic behind the Strategy (Cont d) 1.3 - From Proposals to Actions MEDA countries are assumed to realign their transport legislations towards international transport conventions and bring them closer to the EU Transport legislation (Acquis). This approach has a number of advantages It does not require starting from scratch Logical choice given the strong passenger and trade traffic exchanges with the EU Promotes the success of the Euro-Mediterranean Free Trade Area Ensures the best degree of mobilisation of EU funding to assist transport reforms Careful reshaping of national transport legislation rather than mechanical duplication of the Acquis. 6

Blue Paper - Part II Section 2 2 Integration and Cohesion of Infrastructure Networks 7

Section 2 - Integration and Cohesion of Infrastructure Networks This section is still under preparation Input will be received by Infrastructure Contract and will be compiled by Main Contract At the south-south level, it will spell out the policy for making investments in the MTIN (Mediterranean Transport Infrastructure Network) At the north-south level, it will take into consideration the results of the High Level Group (HLG) Exercise on the extension of TEN-T to Neighbouring Countries 8

Blue Paper - Part II Section 3 3 A Seamless Multimodal Freight Transport Chain 9

Section 3 - A Seamless Multimodal Freight Transport Chain 3.1 - Ports as Focal Nodes A genuine reform needs to be made in the management culture of ports (3 stages) Decentralisation of port management: separating the tasks of port regulation and management, and decentralising management from the national to the local level Commercialisation of ports: injecting momentum into the competitive spirit of the port, by allowing/increasing PSP in the provision of port services and operations. Corporatisation of ports: seeking an advanced degree of PSP with even a transfer of accountability from the public sector to private sector. Landlord model should be sought as the primary model for consideration Different countries need to make different efforts to achieve this reform (approach to be adopted by country is included in the document) Intermediate steps Improving port efficiency is essential until the desired reform is completed Port authorities can make the necessary investments in equipment, and can rent-out or sell-back equipment to private sector at the appropriate point in time The concept of Port Community needs to be emphasised in all ports Communication channels between all actors involved in the port, public & private Advanced Port Management System, which supports EDI across all actors Simplifying current procedures affecting the passage of freight through ports 10

Section 3 - A Seamless Multimodal Freight Transport Chain (Cont d) 3.2 - More Efficient Maritime Legs Public shipping companies Relaxing government control over public shipping companies Restructuring programs aimed at enhancing the viability of these companies. Privatisation can be considered afterwards Private shipping companies Supporting the private sector through improved government regulations (e.g. eliminate share holding majority, soft loans, etc) This allows renewing vessel fleets, and improves the economic dimension, as well as the safety, security and environment dimensions of shipping Promoting fair competition Eliminating all state aids and unfair treatments All carriers (public or private, domestic or foreign) compete on equal grounds 11

Section 3 - A Seamless Multimodal Freight Transport Chain (Cont d) 3.3 - A Professional Road Freight Transport Industry Two main improvement axes Restructuring the trucking sector at the national level Reconfiguring the framework for agreements on international road transport Restructuring the national sector Revising and improving the licensing mechanisms that are currently in place, whether for the licensing of companies, drivers or trucks. Promoting the consolidation of individual owners-drivers into companies, to benefit from economies of scale, thereby providing better service at lower prices EU regulations pertaining to the above could be used Reconfiguring the International Framework Replacing the bilateral agreements with a comprehensive multilateral agreement Ensure harmonisation of all fundamental aspects of international road transport across all MEDA countries, and between these countries and the EU Might take some time to materialise given its scope and geographic coverage 12

Section 3 - A Seamless Multimodal Freight Transport Chain (Cont d) 3.4 - Putting the Railway System in Perspective Structural reforms Relaxing government control and intervention over the sector Separating the tasks of infrastructure management and commercial operations Opening up the market for private operators and ending the public monopolies. Different countries need to make different efforts to achieve this reform (approach to be adopted by country is included in the document) Selected investments in infrastructure At the national level, investments to focus on improving physical interfaces between the rail network and the major ports (rehabilitation or new construction) At the (sub)regional level, investments to focus initially on least trouble areas, such as the Maghreb rail network or rail corridor between Turkey and Syria Rail Interoperability This issue should be given attention from now to ensure that any rail corridors that would be instated in the future at the (sub)regional level are interoperable The EU technical specifications for interoperability and the ERTMS (European Rail Traffic management System) would be very useful in this respect 13

Section 3 - A Seamless Multimodal Freight Transport Chain (Cont d) 3.5 - Innovative Solution; Motorways of the Sea The potentials Majority of trade between the MEDA and EU regions is sea-borne Shipping might play an important role in the future between MEDA sub-regions Mediterranean basin is a priority area for developing Motorways of the Sea (MoS) Improving existing links or creating new links (EU-MEDA or MED-MEDA) Enhanced economic efficiency, environmental sustainability & regional cohesion The application At the national level, investments to focus on improving physical interfaces between the rail network and the major ports (rehabilitation or new construction) At the (sub)regional level, investments to focus initially on least trouble areas, such as the Maghreb rail network or rail corridor between Turkey and Syria Rail Interoperability MoS are extensively discussed in the framework of the High Level Group (HLG) Consensus on using MoS for linking the TEN-T to the MEDA region 1-2 ports per MEDA country will be identified for inclusion in MoS projects MoS projects to include a whole range of door-to-door improvements Specific guidelines would be considered in selecting and prioritising MoS projects 14

Section 3 - A Seamless Multimodal Freight Transport Chain (Cont d) 3.6 - Border Crossing; Not a Problem anymore! Simplifying customs procedures The Single Administrative Document (SAD) to be adopted in all countries Computerisation of customs procedures to be extended to all countries, and sharing of data between customs and other border authorities to be possible Customs computer systems to permit EDI interfacing with port authorities, service providers and economic operators (e.g. banks) Risk management concepts to be supported by computer systems in all countries, and for the results to be actually implemented Administrative obstacles to be ironed out (adopt single window, eliminate truck convoys, harmonise work hours of inspection authorities across countries) Appropriate infrastructure and equipment to be available at the border points 15

Section 3 - A Seamless Multimodal Freight Transport Chain (Cont d) 3.6 - Border Crossing; Not a Problem anymore! (cont d) Implementing International Agreements All countries to sign and implement relevant UNECE conventions that they have not joined so far (CCC, ADR, ATP, etc). Egypt and Palestine to join TIR agreement, and Algeria to properly implement it Encourage Saudi Arabia (and any country along regional TIR chain) to join TIR Developing the Standard of the freight forwarding industry Creation of national Freight Forwarding Associations where these do not exist Activating the role of existing national Freight Forwarding Associations All Associations (existing and new) to focus on training Forwarders on EDI Encourage regional coordination between all national Associations Close relation between Freight Forwarders and Customs Brokers Associations 16

Section 3 - A Seamless Multimodal Freight Transport Chain (Cont d) 3.7 - Other Prerequisites for Success Integrated Transport Plans Providing Transport Authorities with sufficient resources (technical and financial) Coordinating the plans of transport sub-sectors between domestic authorities Coordinating national transport plans of each country with its neighbor Advanced Transport Logistics Enhanced use of containers in maritime shipping (greater awareness of freight forwarders and making available required infrastructure) Investments in logistics platforms, both at the ports and in the hinterlands Promoting the use of hub ports rather than direct shipping (greater awareness of freight forwarders, regional plan for hub ports and feeder services) Harmonised legal framework regarding the liability of multimodal carriers (based on the UN convention, EU Freight Integrator scheme) Advanced IT Solutions To ensure the smooth flow of information across all actors and all modes involved in the multimodal chain EDI Technology is very useful in this respect, and all countries should implement it, at least at the major ports that are of regional significance Gradual upgrading to Port Management Systems that link all actors (including customs) and allow for all applications to be made electronically (e-payment) 17

Blue Paper - Part II Section 4 4 Exploiting the Full Potentials of Air Transport 18

Section 4 - Exploiting the Full Potential of Air Transport 4.1 - A Fair and Open MEDA Market Internal Market All countries should end the monopolies of their national flag carriers and/or enhance the further development of private national airliners. All preferential and discriminatory treatments for the public flag carriers should be eliminated (e.g. state subsidies). This ensures fair competition between public and private airlines, both domestic and foreign External Market Moving away from bilateral Air Services Agreements to Open Market Policy Gradual adoption taking into account commercial interests with other countries Highest priority is to open up the international air transport market between the MEDA countries, as well as between these countries and the EU. Liberalisation of air transport between MEDA countries can be achieved through completing ACAC Program and extending its geographic coverage Liberalisation of air transport between MEDA and EU will require each country to negotiate a new global aviation agreement with the European Commission In parallel, focus may be given to opening the market between MEDA countries and other countries with which high traffic is exchanged (e.g. USA, Africa, etc) 19

Section 4 - Exploiting the Full Potential of Air Transport (Cont d) 4.2 - Towards an EU-MEDA Common Aviation Area Why EU-MEDA Aviation Area? Geographic proximity of the EU and MEDA regions High air traffic exchanges between EU and MEDA regions Imperative to create a common Civil Aviation Area where all dimensions of air transport are mutually shared by the two regions First Step Bringing existing agreements between EU Member States and MEDA countries into conformance with the European Community Law Either through traditional bilateral negotiations, where each EU Member State provides for the insertion of Community Clause into the agreement in question Or through Horizontal Mandate whereby a single agreement is negotiated between the MEDA country and EC in which the Community Clause is inserted Horizontal mandate is more practical due to time and effort savings Second Step Making new global air transport agreements between the EU and each MEDA partner (Vertical Agreements) Agreements include the opening-up of markets, fair operating conditions and also more safety, security and respect for the environment 20

Section 4 - Exploiting the Full Potential of Air Transport (Cont d) 4.3 - A Consolidated Air Space Benefits of ATM Harmonisation Enhances air traffic safety Optimises the use of airspace and consequently stretching the capacity of airports Due to geographic proximity and traffic exchange patterns, ATM integration is needed at both the MEDA-MEDA and MEDA-EU levels Gradual Approach provide support (technical and financial) to the implementation of the existing sub-regional ATM agreements; EMAC and AEFMP Gradually extend the geographic coverage of these agreements, in a coordinated manner, to include all MEDA countries Continuously coordinate and integrate these initiatives with EU Single Sky Programme, to ensure ATM harmonisation between EU and MEDA regions 21

Section 4 - Exploiting the Full Potential of Air Transport (Cont d) 4.4 - Optimising the Exploitation of Airports Airport Reform 3 stages Separate the tasks of airport regulation & management to avoid conflict of interest Ensure that Airport Management Authority is not obstructed by government control Decentralise the management function from the national level to the local level, at least for the major airports Different countries need to make different efforts to achieve this reform (approach to be adopted by country is included in the document) Private Sector Participation To enhance competition in airport operations and services, and obtain better services for lower costs In MEDA airports, the priority for PSPS is related to ground handling Different countries need to make different efforts in this domain (approach to be adopted by country is included in the document) PSP in providing services related to air traffic control, surveillance and meteorology should also be sought, but after liberalising ground handling 22

Blue Paper - Part II Section 5 5 Making Transport in the Mediterranean Safer and Sustainable 23

Section 5 - Making Transport in the Mediterranean Safer and Sustainable 5.1 - Safer Ships on a Cleaner Sea Peculiarity of the Mediterranean Enclosed sea with a fragile ecological balance Great deal of oil tanker traffic Preservation and protection of this sensitive maritime region is a must Institutional Measures All countries should sign some important IMO conventions that have been largely neglected (CSC, SAR, INTERVENTION, etc.) All countries should ensure the proper implementation of the international maritime conventions, through adequate FSI/PSC Building the capacities of MEDA maritime administrations in terms of staff, know-how and funds availability The Mediterranean MOU to be improved and realigned with the standards of the Paris MOU, in addition to coordinating the work of these two MOUs 24

Section 5 - Making Transport in Mediterranean Safer & Sustainable (Cont d) 5.1 - Safer Ships on a Cleaner Sea (cont d) Legislative measures MEDA countries to start converging with EU regulations related to maritime safety, security and environment protection (Erika packages go further than IMO) This would ensure that MEDA vessels would not be detained at EU ports when these latter regulations are in force MEDA countries should play an active role in SAFEMED regional project which would assist them in implementing international maritime legislation MEDA countries could join as observers or associate members in the European Maritime Safety Agency (EMSA) to facilitate the legislative convergence Eventually set up Euro-Mediterranean Institute for Maritime Safety and Security Vessel Traffic Systems (VTS) All countries need to ensure the full and comprehensive VTS coverage of their national coastlines, and gradually upgrade to a VTMIS The ultimate objective is to achieve an integrated VTMIS system covering the whole Mediterranean, and linked to the European system SAFEMED Project would assist MEDA countries in this respect 25

Section 5 - Making Transport in Mediterranean Safer & Sustainable (Cont d) 5.2 - Sustainable Air Transport Legislative convergence MEDA countries to start converging with EU regulations governing civil aviation (i.e. regulations of EASA and JAA) This brings benefits not only to safety, security and environment protection dimensions, but to the economic dimension Avoiding multiplication of audits of MEDA aircraft at the airports of EU member states, and consequently reducing the delays and costs incurred by these aircraft. MEDA countries could join as observers or associate members into the EASA/JAA to facilitate such legislative convergence Eventually set up Euro-Mediterranean institute for Aviation Safety and Security Other initiatives promoting air safety and sustainability The integration and harmonisation of ATM The adoption of Satellite Navigation technology based on Galileo 26

Section 5 - Making Transport in Mediterranean Safer & Sustainable (Cont d) 5.3 - Sustainable Land Transport Sustainability of Road Transport would be improved through: Revised licensing mechanisms for companies, drivers and trucks Harmonising regulations governing international road freight transport (carriage of dangerous goods, drivers working hours and professional standards, etc.) Harmonising road signs, markings and signals Adequate monitoring and enforcement of the imposed regulations Implementing traffic management systems and Intelligent Transport Systems Sustainability of Rail Transport would be improved through: Signing and implementation of relevant international conventions (e.g. Regulation concerning the International Carriage of Dangerous Goods by Rail - RID) Ensuring the future interoperability of rail networks among MEDA countries 27

Section 5 - Making Transport in Mediterranean Safer & Sustainable (Cont d) 5.4 - Incorporating Safety/Environmental Cultures into Transport For new transport investments, perform an impact assessment at the pre-design phase and an audit at the design phase. For existing transport infrastructure, perform inspections to allow identifying any current dangers (e.g. black spots on roads) and to consequently eliminate them. If safety, security and environmental audits were performed in the early stages of planning, the costs of intervention would be negligible In making these audits, give priority to transport infrastructure of regional significance 28

Section 5 - Making Transport in Mediterranean Safer & Sustainable (Cont d) 5.5 - Harnessing the Full Potentials of Galileo The European Satellite Navigation System (Galileo) will bring enormous benefits in relation to making the Mediterranean safer and sustainable Galileo has specifically designed applications for the maritime route navigation, aircraft landing and ground guidance, security of ports and airports, tracking of truck fleets, etc MEDA countries should attempt to harness the potentials of Galileo to the fullest, for the transport and other sectors Euro-Med GNSS Project to be successfully implemented, with the greatest possible participation of MEDA countries MEDA countries can even have more involvement by investing in Galileo, as Galileo Joint Undertaking is open to participation of third countries 29

Blue Paper - Part II Section 6 6 Overcoming the Headache of Funding 30

Section 6 - Overcoming the Headache of Funding 6.1 - Developing National Funding Plans MEDA countries to establish National Investment Plans that define the magnitudes of funds allocated to each sector in coming years, including transport, from the General Government Budget. Strong coordination needed between all involved ministries, including Ministries of Transport and the Ministry of Finance, to map-out priorities of sectors and allocate funds. MoTs would be able to anticipate the national budgets to be pumped into the transport sector in the future, and to consequently commit to the transport projects as needed 31

Section 6 - Overcoming the Headache of Funding (Cont d) 6.2 - Exploring the Notion of Sectorial Mechanisms of Funding MEDA countries to explore the feasibility of adopting specific financing mechanisms for each transport sub-sector Road transport Charging users for using road infrastructure Consolidating charges in a road fund dedicated for rehabilitating and/or extending the strategic road network EU has extensive experience in this domain that would be useful Beneficial to share the experience of some MEDA countries in this domain Ports and Airports Retaining the revenues generated within each sub-sector, or at least part of the revenues, for the specific purposes of upgrading and developing this sub-sector Strategic choice of whether revenues produced from profitable facilities would be used to cross-subsidise the non-profitable facilities under a sub-sector Implementation Maybe be somewhat difficult, due to the potential opposition that would be expected from users of the system and/or Ministries of Finance MEDA countries to focus on Pilot projects (strategic motorway section, major port, hub airport) to explore the feasibility and possibility of these concepts 32

Section 6 - Overcoming the Headache of Funding (Cont d) 6.3 - Mobilising Regional & International Sources of Funding Coordination of Funds Consolidation and synchronisation of efforts of the major international lenders (EU, EIB & WB) and regional donors that are active in the area. Avoids duplication among funding sources and ensures optimal utilisation of precious financial resources Conclusion of MoUs between donors for coordinating financial support aimed towards the region (inline with the MoU between EC, EIB & World Bank) MEDA countries have a critical role to play in requesting and promoting this coordination Concentration of Funds Focusing the disbursement of resources on priority projects that are of importance to the regional transport system as a whole Priority projects at the MEDA-MEDA level will be identified within the ongoing exercise for the Mediterranean Transport Infrastructure Network (MTIN) Priority projects at the EU-MEDA level will be identified within the framework of the HLG exercise on the extension of the TEN-T to the neighbours the EU Identifying priority infrastructure projects will increase the capacity of attracting funds from regional and international donors 33

Section 6 - Overcoming the Headache of Funding (Cont d) 6.4 - Reassuring Private Investors MEDA countries should seek further Partnerships with the Private Sector in relation to implementing major transport projects MEDA countries need to promote confidence among private investors, both national and foreign investors, to invest in transport infrastructure and facilities. The PPP project should be endorsed at high political levels The tendering procedures should be transparent and well defined A fair spread of risks between the private and public sectors should be in place In major projects, guarantees need to be granted to the private sector Transparency of governments in relation to their financial and political obligations Stable environment for implementing and operating the project MEDA countries should capitalise on the previous history of PPP projects in the region to understand the reasons for success and failure and design the partnerships accordingly 34