The European Commission on 18 October 2007 adopted a series of initiatives aimed at making freight transport in the EU more efficient and sustainable. This new package of measures consists of proposals concerning logistics, a rail network giving priority to freight, and European ports, as well as two documents on the barrier-free European maritime transport area and the motorways of the sea. The simultaneous adoption of all these measures gives a strong signal demonstrating the close links between logistics and the various modes of transport. The common objective of these initiatives is to promote innovative infrastructure technologies and practices, develop means of transport, improve freight management, facilitate the construction of freight transport chains, simplify administrative procedures and enhance quality throughout the logistic chain.
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The transportation of goods began with the arrival of trade. As trade spread to countries further and further away, the ways of conveying freight also changed, developing new methods and technologies and becoming an entirely separate economic activity. Today, freight transport is essential to maintain economic growth and competitiveness.
Growth rates for goods transport recently exceeded those of the economy in general, and forecasts suggest that the sector will grow by a further 50% between 2000 and 2020. The EU has every opportunity to strengthen its global position in this sector, creating benefits for the economy in general and for the labour market and standard of living of Europeans in general. But to manage the increase in volume, the industry must address the major challenge of finding out how to organise goods flows in an efficient and above all sustainable manner.
The efficiency of freight logistics has a direct impact on product prices and security of supply. However, the anticipated increase in freight transport will also increase the number of vehicles on the motorways and in towns and cities and the risks of congestion.
Such congestion could come with an economic price tag (such as higher product prices) and have social and environmental repercussions (such as pollution and noise) if rapid, effective action is not taken. By proposing measures to enhance the efficiency and sustainability of goods transport, the Commission is therefore reaching out to professionals in the industry as well as to European Union citizens whose quality of life it wishes above all to preserve and enhance.
Since freight transport is so often a cross-border activity, concerted action at European level will obviously greatly increase the chances of success.
In its efforts to promote freight transport in Europe, the Commission’s approach is based first and foremost on co-modality making it possible to enhance the efficiency of all transport modes and their combination and on innovation, simplification, quality and the concept of “corridors”. The initiatives are therefore aimed at several different transport modes and form part of a single package of measures with the following components:
* an Action Plan on freight logistics;
* several initiatives in the field of maritime transport, in particular a Communication on European ports policy;
* a Communication on a freight-oriented rail network.
Clearly, these objectives will not be attained without the active participation of all stakeholders concerned and the Commission wishes to involve these groups fully in both finding the solutions and implementing them.
The efficiency of logistics services impacts the prices and quality of products. The sectors of the economy are affected differently, but estimates put logistics costs at up to 12% of final costs in the manufacturing industry and more than 20% in the retail sector.
In recent years, efficiency gains in logistics have helped bring down the transport component in the total product price. This has increased European competitiveness on global markets by making it possible for European companies to source raw materials and components from all over the world. European manufacturers also have access to worldwide markets to sell their products.
The evolution in freight transport has, however, put a strain on infrastructures in the European Union. The visible signs of this are congestion on parts of the European transport system, including many of its roads, rail links and harbours. Some estimate these costs to be as high as 1.5% of GDP and they are likely to increase substantially in the years to come as growth is set to continue. Studies show that we can expect 50% more freight by 2020. For some parts of Europe, predictions even suggest a doubling of freight transport by 2050.
Growth in freight has also increased the dependence on imports of fossil fuels, the main energy source for transport, which now accounts for 31% of total EU energy consumption. Furthermore, there are signs that growth in transport and logistics is leading to shortages in qualified staff.
Finally, the transport sector’s carbon dioxide emissions and its contribution to global warming are a major concern. Transport emissions are still increasing, and one third of these are estimated to be caused by freight transport. This trend needs to be stopped if the EU is to meet its greenhouse gas emission targets.
An Action Plan based on a broad consultation of interested parties
The tasks set out in the Action Plan are the result of a long consultation process that began after the publication of the 2006 Communication on Freight Transport Logistics. Interest in the subject has been lively with the closing conference in May 2007 attracting many representatives from industry associations, national authorities and civil society. Their input has helped determine the list of specific actions now being put forward.
The Logistics Action Plan is constructed around a number of core orientations, namely
* innovation,
* simplification,
* quality,
* green corridors and
* updating of the regulatory framework.
Each of these headings introduces a range of concrete measures which are set against a concrete objective and a clear timetable. In total, the Logistics Action Plan proposes more than 30 actions to be implemented over the coming years.
To promote innovation, the Action Plan will encourage the use of information and communication technologies in freight. It outlines the vision of paperless information flows accompanying the physical shipment of goods. It will also help make traffic management more efficient by promoting intelligent transport systems as well as facilitate the roll-out of innovative services. Emerging technologies such as RFID (Radio Frequency Identification) and the possibilities offered by satellite services will revolutionise freight transport.
The paperless transfer of information on the transport of goods will also help the simplification of freight flows. Another element of this strategy is to create a single transport document to replace the many mode-based versions that currently render multi-modal transport less attractive. The Logistics Action Plan furthermore gives a new boost to efforts to simplify administrative reporting by creating a single reporting interface.
To improve the quality of logistics services it is proposed to tackle the more than 500 reported bottlenecks, which create unnecessary obstacles to the efficient flow of goods, from lack of parking spaces for trucks to red tape. Quality will also be enhanced by giving more value to professional competence and ensuring that qualifications are mutually recognised.
In terms of updating the regulatory framework the Logistics Action Plan proposes developing standards for loading units suitable for all modes of transport. It also suggests assessing the need to review the current limitations of road vehicle weights and dimensions. Further legislative proposals will be initiated by the Commission in the coming years.
Finally, the Action Plan suggests that priority should be given to the improvement of efficiency and sustainability of freight transport where pressure to do so is highest, namely in urban environments and along the major European transport corridors. The Logistics Action Plan will help ensure that Europe’s main transport arteries become ‘green’, taking account of environmental concerns as well as the growing need for safety and security.
The development of rail freight is a major challenge for the transport sector in the European Union. Although it declined significantly from the 1970s until recent years, this mode can make a significant contribution to the construction of an efficient and sustainable European transport system. Rail transport is less costly in environmental terms than road transport and may offer a competitive alternative to the latter on certain major segments of the market. However, it suffers from major drawbacks: the fact that it has to share the infrastructure with passenger traffic, the lack of interoperability and a culture which is still insufficiently customer-orientated.
Over the last 15 years or so, the European Community has launched a series of initiatives aimed at revitalising rail freight transport and giving it a more European dimension, concerning both the way in which the sector is organised (rail freight has been gradually opened up to competition, and has been totally opened up to competition since 2007) and the development of technical interoperability as well as the construction of key infrastructures for the continent of Europe through the TEN-T programme.
These measures have produced satisfactory results, but they do not go far enough. The performance of rail freight has again been improving significantly for a number of years. In the first half of 2007, it increased by 7%[1], in particular as a result of the dynamism of international traffic. However rail’s modal share of freight transport is scarcely increasing. In addition, the development of interoperability remains modest and needs to be accelerated.
In this context, it seems appropriate to supplement the Community initiatives already launched by taking further action to promote the construction of an integrated and competitive European railway area. The White Paper on Transport for 2010 already expressed the Commission’s desire to promote a European network giving priority to freight.
The Commission wishes to transform this objective into actions. It is still relevant and in keeping with the current context of the freight transport market, since it is when large volumes are transported over long distances that rail freight seems to have the best prospects of being able to compete with road transport. The growing containerisation of freight transport and the longer distances covered in the single European market should generate a growing demand for rail transport.
It is therefore proposed that a series of financial and legislative measures should be initiated aimed at promoting the development of a European freight-orientated rail network, corridor by corridor. This approach is based on the programmes and initiatives already launched in this area, such as the deployment of ERTMS on major European routes.
The Commission has identified a possible European network based on existing and future flows. For the corridors in the network, greater cooperation between the infrastructure managers and the Member States on the programming of investment and the management of corridors, through the corridor coordination structures, should result in infrastructure use and funding being optimised on a European scale.
Greater coordination and the common desire to give adequate priority to freight on these routes should make it possible to propose to rail freight operators high-quality train paths, and thus improve the performance of the production chain involved in provision of rail freight transport services.
The Commission is, in particular, proposing the creation of at least one international freight-orientated corridor in each Member State by 2012. For each corridor it proposes initiatives aimed at:
* improving coordination between Member States and infrastructure managers on management and investment;
* giving adequate priority to freight traffic compared with other traffic on the network giving priority to freight;
* improving access to ancillary services and transparency concerning the quality of the service offered. All the proposals will be carefully examined and assessed by an expert group at the beginning of 2008, and then transformed into legislative and financial proposals by the end of 2008.
The Commission is aware that these proposals are only part of the response to the need to revitalise rail freight. The effective restructuring of the incumbent undertakings, greater opening-up of rail freight to competition, and grater innovation in the sector, which needs to find new models more in keeping with the requirements of modern logistics, remain essential for the redynamisation of a sector which Europe needs.
* Corridor A: Rotterdam-Genoa
The objectives along the Rotterdam-Genoa corridor are to double the volume transported between now and 2020, with an increase in punctuality of 26% and a reduction in transport time of 20%. In absolute terms, these measures will allow 28 billion freight tonnes-km each year to be transported by rail rather than by road: this means, at each point along this 1 300km corridor, one lorry with 26 tonnes of freight passing by every 37 seconds, 24 hours a day, all year round.
* Corridor C: Antwerp-Lyon/Basle
On the Antwerp-Lyon/Basle corridor, the objectives are to increase the volume transported by 55% between now and 2020, with a reduction in transport time of 15%, and a four-fold reduction in the number of late trains on the Antwerp-Lyon line and a two-fold reduction on the Antwerp-Basle line. On these very dense routes where rail can have a competitive edge, this would mean that approximately 7 billion freight tonnes-km use rail rather than road.
The freight passing through European ports is increasing constantly. For example, the volume of containerised freight entering and leaving seaports has doubled within the space of several years. Indeed, around 90% of the European Union’s trade with third countries passes through the ports of Europe, with some 3.2 billion tonnes of freight being loaded and unloaded annually. The European Union’s seaports play a vital part in ensuring the competitiveness of both its internal and external trade, and they provide essential links to its islands and remote regions. Moreover, the ports generate more than half a million jobs either directly or indirectly, and they drive the dynamism and development of entire regions, including most of the EU’s remote regions.
Consequently, Europe needs a network of accessible and efficient ports. It needs greater port capacity, and existing capacity has to be streamlined. The Commission Communication on the European ports policy identifies all of the issues which European ports must resolve if they are to meet the ever-growing demand for transport, cope with technological change (such as containerised freight and new ICT technologies) and address the need to reduce emissions. The Commission wants, above all, to help European ports meet these challenges, develop their operations and become more competitive.
The Communication is the result of an eight-month consultation with interested parties. In March 2006, Vice-President Barrot decided to launch a broad-based consultation in a move to better understand the port sector. This consultation covered a wide range of issues such as port services, port funding, environmental issues, employment at ports, hinterland connections, and relations with third-country ports.
The Communication sets out an action plan and announces future legislative initiatives to meet the five main challenges facing the European port network today:
* increasing the efficiency and productivity of all European seaports;
* balancing the need to increase investment capacity with respect for the environment;
* modernising the ports network by, among other things, simplifying administrative procedures and making increased use of information technologies (e-maritime);
* guaranteeing fair competition between ports;
* addressing the human aspect within a new framework for social dialogue.
The common aim of these initiatives is to set up a framework enabling European ports to achieve sustainable development and to obtain the investment they need for modernisation. The modernisation of port facilities should help attract new customers and play a crucial part in providing real intermodal solutions for European carriers. The action plan will thus contain a set of indispensable practical tools for investors, including guidelines on environmental regulations (and how to apply them to port development projects) as well as on State aid for ports.
The Communication also includes legal guidelines on access to the port services market (port concessions, technical nautical services and boatage) and on employment in ports. The Commission has focused particular attention on the latter. It is working to make the profession more attractive and ensure that there is a well-trained workforce in this sector by proposing a directive on the training of port employees, by closely monitoring the application of health and safety rules and by helping to create a sectoral dialogue committee.
Unlike road transport, which has been reaping the benefits of the internal market since 1993, shipments of goods by sea between the ports of the European Union are treated in the same way as shipments to third countries. Consequently, maritime transport between Member States involves many documentary checks and physical inspections by the customs, health, veterinary, plant health and immigration control officials.
The fact that modes of transport should be treated differently is no longer justified. It penalises maritime transport, which is cheaper and has less of a negative impact on the environment, even though maritime transport should be used to cut the number of lorries on an increasingly congested road network. It is paradoxical, for example, that goods shipped by sea between ports as close together as Antwerp and Amsterdam should be considered to have left the territory of the European Union whereas lorries can drive unhindered throughout Europe.
To rectify the situation, the European Commission has introduced the idea of a European maritime transport area with a view to eliminating or reducing the numerous administrative procedures which apply to goods shipped by sea between European ports. The general use of ship tracking systems will mean that national authorities will be able to monitor the area to ensure that it is operating correctly. The aim of this is to allay fears of an increase in fraud resulting from the lifting of controls.
On 17 October, the Commission is launching a two-month consultation period with interested parties to discuss the idea of a European maritime transport area. The Commission will present the results of this consultation, as well as an impact analysis of the various scenarios for implementing this maritime area and other relevant proposals, in 2008.
The establishment of a European maritime transport area is absolutely crucial in ensuring the effective development of the “motorways of the sea” key sea routes between the Member States of the EU. Combined with other modes of transport, they provide regular, high-quality services which offer an effective alternative to transporting goods only by road. The motorways of the sea represent a cleaner, more cost-effective solution for transporting freight and will reduce congestion at the main bottlenecks on Europe’s roads. What is more, they also provide effective, viable links to the remoter regions of Europe. A whole network of motorways of the sea will have to be established to absorb a significant portion of the growth expected for road freight traffic. At the same time, short-sea shipping will have to continue improving its performance.
Six years after announcing this initiative in the White Paper on European transport policy, the Commission is publishing a report on the progress made in developing the motorways of the sea. The report shows that the Member States are actively involved in setting up support mechanisms for the motorways of the sea. It also demonstrates that the private sector has shown great interest in the idea, and not just in the financing options offered through Community instruments.
In order to address these developments, the Commission is launching a consultation on a number of new ideas. These include devising performance indicators, benchmarking the various options for getting goods from their point of origin to their destination, and recognising some existing services as motorways of the sea.
The Commission is very hopeful that a first list of “motorway of the sea” projects can be adopted in 2010. The Commission believes in this policy and is ready to play its part. It has set up financial instruments such as the TEN-T (trans-European transport network) and Marco Polo programmes which enable greater financial Community support to be given to developing motorways of the sea. In a move to facilitate cooperation between all the public and private sector parties involved, the Commission has appointed Luis Valente de Oliveira as European coordinator for these projects.
The ball is now in the court of the public and private sectors. They need to come up with good “motorways of the sea” projects which will shift a significantly greater share of freight transport to the seas and thus reduce congestion in our transport system as well as making it cleaner and more energy-efficient.
