LOGISTICS STRATEGIES IN THE VISEGRAD COUNTRIES: The Current State and The Development Perspectives of Logistic System in Poland Edyta Klosa, Marcin Świtała
Agenda 1. The current state of logistic system in Poland: 1.1. The Polish logistic system as a part of its national economy. 1.2. The Polish transport: an overview (road transport, rail transport, air transport, maritime transport, inland water transport, intermodal terminals, storage space). 1.3. Legal regulations related to Polish transport and storage sector. 1.4. Logistics education. 2. Directions of transport development in Poland: 2.1. Main assumptions and directions of development of the transport sector in Poland. 2.2. Forecasts for the development of the carriage of goods in Poland till 2020. 2.3. Directions of intervention in particular branches of the transport industry, taking into consideration the priority infrastructure projects. 3.The Polish logistic system and its development strategy from the perspective of V4 group.
1.1.The Polish logistic system as a part of its national economy. The Polish economy has grown rapidly for two decades at more than four percent per year, which means the fastest speed of economic growth in Europe Export is a driving wheel of the Polish economy. It increased to 152,8 bln EUR in 2013. Its share in Polish GBP was systematically increasing and is now near 40%. Polish GBP slightly increased to 370 bln EUR (8th position in EU-27, 2.9% of EU GBP). Specification 2009 2010 2011 2012 2013 Population in thous. 38167.3 38529.9 38538.4 38533.3 38495.7 Unempl. in % 12.1 12.4 12.5 13.4 13.4 GDP in mln PLN 1,344,505 1,416,585 1,528,127 1,596,378 1,635,746 GDP Y/Y in % 1.6 3.9 4.3 1.9 1.6 Exports in mln PLN 530,278 598,369 688,738 744,748 781,816 Trans&Stor. in mln PLN 68,037 68,807 76,199 88,333 98,424
1.1.The Polish logistic system as a part of its national economy. during the last years the performance of Polish transport and storage sector was systematically increasing and equalled 98,424 mln PLN in 2013 the conditions in the logistics sector were difficult in the last years but they improved slightly. The growth is mostly determined by road and intermodal transport. Moreover, new regional distribution centres were built recently to serve South-Eastern Europe. In 2012, 142,000 companies run their businesses in Polish transport and storage sector which means 2% growth comparing to 2010
1.1.The Polish logistic system as a part of its national economy. In 2014 Poland s rank in LPI list is 31 with a score being 3.49. In comparison to last years, the Polish LPI stabilized, but still slightly grows, mostly because of enhancing tracking & tracing solutions. Specification 2007 2010 2012 2014 LPI Rank 40 30 30 31 LPI Score 3.04 3.43 3.44 3.49 Customs 2.9 3.3 3.1 3.3 Infrastructure 2.69 3.1 2.98 3.08 International shipments L o g i s t i c s competence Tracking & tracing 2.92 3.47 3.22 3.46 3.04 3.3 3.26 3.47 3.12 3.32 3.45 3.54 Timeliness 3.59 4.04 4.52 4.13
1.2. The Polish transport: An overview the most important and fast growing mode is road transport. Its infrastructure and equipment is constantly developing. Lp. Specification 2009 2010 2011 2012 2013 1 Hard surface public roads in km 268,372 273,760 280,401 280,719. 2 of which motorways 849 857 1,070 1,365 1,482 3 expressways 522 675 738 1,053 1,244 4 of which improv. surface roads 245,086 249,807 257,564 258,060. 5 Road motor vehicles in thous. 22,025 23,037 24,189 24,876 25,684 6 of which: lorries 2,797 2,982 3,131 3,178 3,242
1.2. The Polish transport: An overview The share of road transport in transport performance in tkm is 72%. Polish road transport is on the second position according to market share in Europe (the leader is Germany) 14.9%, and Polish road carriers dominate in Europe (20% of market share). In recent years intensive infrastructure investment growth can be observed. In 2012-2013 1000 km of highways and express ways were built. The network of payable roads is now 2190 km long. Specification thousand tones in percent million t-km i n percent Total 1,300,608 100.0 247,594 100.0 National transport 1,117,001 85.9 100,320 40.5 International transport 183,607 14.1 147,274 59.5 Export 62,877 4.8 54,296 21.9 Import 53,699 4.0 47,878 19.0 cross-trade 44,973 3.5 37,721 15.2 o of which transit via Poland 2,755 0.2 5,123 2.1 cabotage 22,058 1.7 7,379 3.0
1.2. The Polish transport: An overview Poland as a part of Trans-European Transport Networks: I: Helsinki Tallinn Ryga Kaliningrad/Kaunas/Klaipėda Warszawa/Gdańsk - Szczecin Lubeka II: Berlin Poznań Warszawa Brześć Mińsk Smoleńsk Moskwa Niżny Nowogród III: Brussels Aachen Cologne Dresden Wrocław Katowice Kraków Lwów Kijów VI: Gdynia Katowice Žilina
1.2. The Polish transport: An overview the second most important mode is rail transport. Its infrastructure and equipment is seems to shrink. Lp. Specification 2009 2010 2011 2012 2013 1 Operated railway lines in km 20,360 20,228 20,228 20,094 19,328 2 of which standard gauge 20,171 20,089 20,113 19,979 19,259 3 of which electrified 11,956 11,916 11,880 11,920 11,868 Standard gauge rolling stock 4 locomotives: electric 1,887 1,905 1,879 1,849 1,838 5 diesel 2,531 2,358 2,301 2,264 2,194 6 electric railcars 1,202 1,213 1,256 1,226 1,268 7 freight wagons 95,462 89,270 88,928 91,483 87,726
1.2. The Polish transport: An overview During last years the share of rail transport in the carriage of goods in Poland has been systematically decreasing. In 2013, not even 20% of carried goods were transported by rail 2012 2013 Type of transport share in % of total Total 100.0 100.0 National transport 71.9 70.3 International transport 28.2 29.7 export 10.8 12.4 import 15.3 15.0 transit 2.1 2.3
1.2. The Polish transport: An overview Problems: 30% of the railways should be immediately renovated; the average speed of cargo transport is about 25 km/h; high fees for using the infrastructure. Opportunities: growing demand for transport of construction materials for road system rebuilding; still second position on European market (about 14% of share); intensive investments in last years; decrease in fees for using infrastructure in 2013.
1.2. The Polish transport: An overview Air transport is one of the priorities in Polish transport policy. Main cargo operators are PLL LOT and UPS Airlines. The Polish air transport infrastructure includes 38 airports: 1 central airport in Warszawa, 7 primary regional airports, 12 secondary regional airports, which do not handle with cargo, 18 local airports. Lp. Specification 2009 2010 2011 2012 2013 1 Air routes network, kilometres 257,860 342,949 196,008 195,918 177,002 2 of which foreign 255,796 340,657 190,815 190,279 171,173 3 Transport aircrafts number 61 56 54 70 68
1.2. The Polish transport: An overview Inland water transport is of low importance in Poland. In 2012 there were 3659 km of inland waterways (3366 km of which are exploited, and only 119 km has international significance). Main inland waterways are on the rivers: Odra, Wisła, Noteć and Warta. The nominal value of barges is mostly depreciated but operators are still more interested in their modernization then in buying new ones. Specification Total Waterways according to classes of significance regional international Ia Ib II III IV Va Vb E x p l o i t e d waterways kilometres in percent kilometres % of total Total 3,655 100.0 1,08 1 893 1,07 1 396 38 55 121 3,383 92.6 Navigable regulated rivers 2,417 66.1 758 756 691 115 97 2,171 89.8 Canalised parts of rivers 644 17.6 101 137 106 207 38 55 620 96.3 Casals 336 9.2 168 106 47 15 334 99.4 Navigable lakes 258 7.1 54 168 27 9 258 100.0
1.2. The Polish transport: An overview Maritime transport In 2013 72,168.1 thousands od tonnes were carried through Polish sea terminals (9.8% comparing to 2012). Main ports are: Gdańsk (30 mln t), Gdynia (17.7 mln t.) and Szczecin-Świnoujście (nearly 23 mln t.). Gdańsk, as the only one, exceeded in 2013 1 mln TEU. The fleet includes 110 ships, main ship-owner is Polsteam.
1.2. The Polish transport: An overview In the last decade a 75% growth could be observed in the number of intermodal terminals in Poland
1.2. The Polish transport: An overview The market of storage space kept few-percent growth in 2012-2013 and is now well adopted to Polish companies needs and requirements. In 2012 500 thousands m2 and in 2013 300 thousands of m2 of new storage space were provided. Those investments are mostly built-to-suit and universal facilities. Significant growth is also related to so called modern storage space (9 m of height, at min. 1 gate per 1000 m2, dustproof floor of 5t/m2 endurance, sufficient firefighting system, and 5-8% of office space).
1.3. Legal regulations related to Polish transport and storage sector nowadays there is no synthetic legal act related to logistic activity, depending on range of logistics services, transport mode and type of goods, companies are obliged to comply with many laws and regulations, i.e. civil code, commercial law, tax law, labor law, custom and transport polices, postal law, act of competition and consumer protection or the law of carriage of dangerous goods. a comprehensive major law covering the entire logistics sector seems to be a very useful solution.
1.4. Logistics education The Polish education sector provides many ways of learning logistics. Obtaining the relevant knowledge can start in the high school or technical school, then be continued at the economical or technical university or college (bachelor or master courses as well as post-graduate studies). There are also plenty of training agencies offering different, more or less detailed logistics trainings. As the most important sector of education seems to be the higher education. Interesting tendencies can be also observed in the number of logistics courses offered on post-graduate studies.
2. Directions of transport development in Poland: 2.1. Main assumptions and directions of development of the transport sector in Poland to develop an integrated transport system through investments in the transport infrastructure STRATEGIC OBJECTIVES: to create favourable conditions for the smooth functioning of the transport markets and for the development of efficient transport systems SPECIFIC OBJECTIVES: 1. Development of a modern and coherent transport infrastructure 2. Improvement of the organization and management of the transport system; 3. Improvement of the safety of the road users and of the transported goods; 4. Reduction of the negative impact of transport on the environment. 5. Creation of a rational model of financing investments in infrastructure projects. Road transport Railway transport Maritime transport Inland waterways transport Air transport
2. Directions of transport development in Poland: 2.2. Forecasts for the development of the carriage of goods in Poland till 2020 Global demand for the cargo transport services will increase from 1917 million tonnes in 2010 to 2268-2320 million tonnes in 2020. Desciption maximum variant [millon of tons] minimum variant [million of tons] Increase 2020:2010 Years 2010 2020 2010 2020 max Min Rail 217.00 244.00 217.00 238.00 12.60% 10.00% Road 1588.00 1942.00 1588.00 1901.00 22.30% 19.60% Inland water 5.10 6.90 5.10 6.70 34.90% 30.70% Pipeline 56.00 59.00 56.00 57.00 5.80% 1.70% Sea 50.00 67.00 50.00 65.00 34.40% 29.90% Air 0.10 0.10 0.10 0.10 48.80% 34.50% Other 0.40 0.50 0.40 0.50 21.60% 13.90% Total 1917.00 2320.00 1917.00 2268.00 21.00% 18.30%
2. Directions of transport development in Poland: 2.3. Directions of intervention road transport transport by road will be a key element of the Polish integrated transport system the existing road network requires significant investments around 88% of the TEN-T core network will have been modernized by 2023
2. Directions of transport development in Poland: 2.3. Directions of intervention railway transport around 86% of the passenger network and 90% of freight network will have been modernized within the TEN-T by the end of 2023. Connections New Time of the journey Current Warszawa-Wrocław 1:30 5:00 Warszawa-Poznań 1:30 2:45 Warszawa-Szczecin 3:15 5:30 Łódź-Wrocław 1:15 4:00 Łódź- Warszawa 0:45 1:30 Kraków-Poznań 3:15 6:15 Kraków-Szczecin 5:00 8:30 Wrocław-Białystok 3:15 8:30 Wrocław-Lublin 3:45 8:00 Poznań-Białystok 3:15 8:00 Poznań-Rzeszów 4:45 8:15 Gdańsk-Łódź 3:30 6:00 Gdańsk- Wrocław 4:00 7:00 Lublin-Szczecin 5:00 8:45 Lublin-Kalisz 3:00 7:14
2. Directions of transport development in Poland: 2.3. Directions of intervention railway transport majority of the planned investments concerns modernization and restoration of railway lines belonging to the TEN-T network.
2. Directions of transport development in Poland: 2.3. Directions of intervention air transport because of the already implemented investments, mainly during the organization of the 2012 UEFA European Championship, the financial support for the air transport projects in the coming years will be limited. include airports in the intermodal connection network. adjusting the infrastructure of regional ports to the requirements of logistics services
2. Directions of transport development in Poland: 2.3. Directions of intervention maritime transport The development of the port infrastructure requires the following measures: extension of the approach fairways (including their deepening), construction and modernization of the transport infrastructure which connects ports with service buildings to increase their transport accessibility, construction and development of terminals for strategic raw material handling (coal, petroleum, LNG) in the largest facilities of this kind. Rank Description Total cost [PLN in millions] Funds 1 Modernization of the fairway Świnoujście-Szczecin to a target depth of 12.5m 1 384.98 UE, national funds 2 Implementation of the Tricity Agglomeration Northern Bypass (multimodal project) 1 100.00 UE, national funds 3 Improvement of the infrastructure of rail access to the Port of Gdańsk (multimodal project) 800.00 UE 4 Modernization of breakwater constructions in the Northern Port in Gdynia 660.00 UE, national funds 5 Improvement of rail access to the sea port in Gdynia (multimodal project) 650.00 UE
2. Directions of transport development in Poland: 2.3. Directions of intervention inland waterway transport will not play a significant role in the transport system in Poland. A fundamental barrier to the development of this branch of transport is the poor condition of the river system, which prevents waterway transport over longer distances. Rank Description Total cost [PLN in millions] Funds 1 2 3 4 5 Modernization of the Gliwice Channel the sailing route and the shore protection Repair and modernization of the control construction on the free-flowing Oder River waters reconstruction and modernization of the control construction Construction of the Niepołomice barrage on the upper section of the Vistula River Modernization of hydro-engineering structures on the channeled waterway of the lower section of the Noteć River Modernization of the Gliwice Channel equipment and facilities functionally associated with the sailing channel 600.00 UE 509.00 UE 500.00 UE 238.00 UE 200.00 UE
2. Directions of transport development in Poland: 2.3. Directions of intervention intermodal transport in the next few years the share of the weight of the intermodal transport cargo in the railway transport will double, to cover the entire country with intermodal transport a new railway terminals and new regional logistics centres should be opened near large urban agglomerations, the activities aiming at inter-branch integration will mainly focus on the development of multimodal platforms within the framework of the TEN-T network, designed for handling cargo transported with the use of at least two means of transport
3. The Polish logistic system and its development strategy from the perspective of V4 group 1. The interconnection of economies within the V4 group is traditionally strong. 2. Poland is an attractive logistic partner for other members of V4 group: Poland is an important part of TEN-T Networks system being a member of its two corridors: North Sea-Baltic Core Network and Baltic-Adriatic Core Network, Poland is the biggest railway freight transport operator in V4 group, Poland offers access to modern warehouses space and new terminals. 3. The main directions of Polish transport system development will affect the V4 logistic operations: intensification of multi-modal connections between Warsaw and the provincial capitals, as well as with the European network, creation of effective transport connections between the provincial capitals and major centres in Poland and abroad, improvement of transportation between the border areas and the growth centres, and in the areas along the EU external borders, development of a crossborder network of connections, improvement of road safety.