In July the European Commission reported its results on shortsea shipping revealing that over the past five years it has produced comparable growth trends for freight to that of road. VicePresident Loyola de Palacio stated that: “Shortsea Shipping has an obvious role to play in curbing the growth of road transport and providing cohesion, sustainability and safety in European transport.<\/p>\n
Improving its framework conditions and making it simpler to use are necessities”.<\/p>\n
The Commission’s White Paper, “European Transport policy for 2010, ” states the EU’s policy objective is to “achieve modal shift from road to shortsea in order to diminish unsustainable trends in transport.” The Commission proposed the development of Motorways of the Sea as a “real competitive alternative to land transport.” The concept aims at introducing new intermodal maritime-based logistics chains in Europe which will be more sustainable, and should be commercially more efficient, than road-only transport. As such it is a cornerstone of the EU’s efforts to encourage modal shift.<\/p>\n
In its latest Communication the Commission says both shortsea and road grew by 25% in terms of freight transport during the period 1995-2002. Shortsea performs around 40% of all tonne-kilometres in Europe while the share of road transport is 45 %.<\/p>\n
The Communication recaps the most significant developments at Community and national levels that have contributed to these results, including:<\/p>\n
The ongoing work with the member states to identify and eliminate obstacles that hinder the development of shortsea shipping The adoption of a Directive introducing the use of standardised facilitation forms for ships to arrive in and depart from Community ports Progress on Customs issues such as the advancement of eCustoms and two Commission explanatory Working Documents on Customs procedures: ‘Guide to Customs Procedures for Short Sea Shipping’ and ‘Simplified Customs Procedures in Short Sea Shipping: Authorised Regular Shipping Service’ Launching the Marco Polo Programme with its ambitious target to shift 12 billion tonne-kilometres of freight off the road each year Focusing on Motorways of the Sea as part of the trans-European transport network And based on the newly adopted Trans-European Transport Networks (TEN-T) Guidelines, the Commission claims it is now starting to implement its Motorways of the Sea concept. From 2005, support will be available under TEN funding for concrete projects. To help in the preparation and submission of proposals for TEN funding, the Commission will issue later this year guidance to proposers in the selection procedure. However, before doing so, it has conducted a consultation with all interested parties on the execution of Motorways of the Sea projects.<\/p>\n
NOT EVERYONE THINKS IT’S A GOOD IDEA In April the UK’s Department for Transport (DfT) published responses to their request for views from industry associations. These were largely negative and Martin Jones, head of Freight Logistics Division at the DfT, summarised the situation as follows:<\/p>\n
“The main concern raised, particularly by the ports sector, relates to the risk of distortion of competition where subsidy is introduced into a regime where private ports and operators compete with each other.<\/p>\n
“The Government shares these concerns, and expressed them to the (European) Commission while the proposal was being developed.<\/p>\n
The Commission’s proposal attempted to address the issue by allowing for competitive tenders from consortia of shipping operators and ports.<\/p>\n
“In December the Council of Ministers considered the proposals and agreed a general approach. The Government recognises that there is no obligation on the UK to implement sea motorways, and no obligation on UK ports and operators to bid for EU funding. It also recognises that the potential benefits of the sea motorway approach are probably greater for other member states than for us. The Government strongly supports the underlying objective of encouraging sea transport where this is a sensible alternative to road. We will work constructively with the Commission and other member states in helping to define the concept and implement it, to the extent that this is consistent with maintaining free competition for UK ports and operators.<\/p>\n
“The Government recognises that some ports and operators may wish to link up with partners in other member states to work up bids for funding. The Government will have to consider, on a case-by-case basis, whether to endorse such bids. I would note that a good deal of work is still needed to clarify exactly what constitutes a sea motorway project, and the Government’s views may evolve as this work develops.” This is, of course, the view of just of one of twentyfive member states.<\/p>\n
Mike Garratt who heads up UK transport consultancy, MDS Transmodal, also has some firm views on the matter which he voiced in his paper at the Gothenburg Ro-Ro conference earlier this year and which he elaborated on in an interview with PS.<\/p>\n
“The term Motorways of the Sea has several advantages. It is easier to say than ‘short sea shipping’, ” jokes Garratt. “It conveys a user-friendly concept, a turn-up-and-go approach which is superficially attractive but may not of course be realistic or even desirable.<\/p>\n
Perhaps most important, it creates an image which the non-maritime specialist can understand. One of the greatest political hurdles this industry faces is that, unlike rail, it is largely invisible to the general public (voters) and poorly understood.<\/p>\n
“There is no doubt that politicians and political institutions have bought into the idea of increasing the amount of freight moving by sea. But can that idea be transformed into a market-based reality acceptable to the commercial companies which are actually delivering services already? Of crucial importance is finding a formula that is acceptable to both the industry, which already contributes hugely to pan-European freight mobility and is expected to expand that role, and the political institutions expected to provide the additional funding to deliver the vision.” And he adds the EU hasn’t yet got a grip on what it actually means by Motorways of the Sea.<\/p>\n
The European Seaport Organisation (ESPO) has argued that Motorways of the Sea should not be ‘artificially’ developed (i. e.<\/p>\n
irrespective of market demand), investment in facilities and ships should not distort competition, and each project should be considered on its merits.<\/p>\n
And the European Community Shipowners Association (ECSA) supports the Commission’s efforts in terms of simplifying administrative procedures in ports and establishing shortsea promotion centres. However, it sets out the following warning signals:<\/p>\n
support measures should not distort competition information on any project should be set out in the Official Journal so that it can be stopped immediately if it can be shown competition will be distorted container and bulk services should enjoy the same financial benefits as ro-ro services.<\/p>\n
It goes on to state: “Transferring Motorways of the Sea into a public service context is strongly opposed by industry. Public services should remain the exception. Reintroducing the concept in the context of Motorways of the Sea would have the same disastrous effect as experienced in rail transport.”<\/p>\n
Furthermore Garratt senses that, in France anyway, politicians are hijacking the initiative to push their own agenda. “You have regional politicians trying to make themselves useful to certain commercial interests. What we see in France is just an excuse for building new ships in French shipyards. None of this will ever happen, ” he says referring to some of the more outlandish shortsea routes being mooted. “It’s just a means of drumming up votes” in regions where shipyard jobs are at stake.<\/p>\n
“On the other hand, ” he continues, “it’s a little depressing to think that the DfT are taking a ‘Dear me, I’ll leave it to the market’ position. We don’t want the British government just to think that it’s easier to put its head in the sand and simply preach that the market should decide.”<\/p>\n
HOW CAN GOVERNMENTS INTERVENE WITHOUT WRECKING THE MARKET?<\/p>\n
So what we have is two extremes and what’s needed, says Garratt, is for someone to get their head around how governments can intervene without wrecking the market but still with the objective of promoting the sensible use of the sea and ports.<\/p>\n
When the market is left to its own devices, some promising developments emerge, particularly around the UK coast where Southern Discomfort in the country’s southern ports and road networks has prompted carriers to open up coastal and shortsea feeder routes. Ports on the Humber, Tees, Tyne, Forth, Clyde, Mersey and Bristol Channel are all now served by regular feeder services in what could best be described as Free Motorways of the Sea. No subsidies here.<\/p>\n
But Garratt points to the other end of the spectrum and to an alarming possibility: “If you follow the broad principle of the European Commission which is not to distort competition, therefore there is a danger that the only Motorways of the Sea to develop will be in places where there isn’t any market. So for example the idea of a Bilbao to Nantes service makes little sense yet it is conceivable that a huge amount of French public money will get hurled at it.”<\/p>\n
He also points to the SAMS idea having failed. French shipowning consortium SAMS tried hard to launch a sea motorway ro-ro service to and from Fos Marseilles and Savona. SAMS was unable to secure a two-year package of aid totalling ?9m to launch the service due to what it called ‘a lack of visibility on the traffic outlook’.<\/p>\n
It said road hauliers were not willing to pledge their commitment to the service and this had scuppered any prospect of public funding crucial to the start-up phase. The service, due to be launched in the summer, was being developed within the framework of the TENS programme. The project outline made provision for two ro-ro vessels operating on the route six days weekly.<\/p>\n
Earlier this year Nantes and Bilbao also declared themselves candidates for the launch of a sea motorway ro-ro service between the two ports. “I fully suspect the Bilbao to Nantes idea will also die a death, ” reckons Garratt. “What that means is that the Motorways of the Sea idea will itself die as an idea and that is a real shame in the sense that politicians will get it into their heads that coastal services are a bad idea period. So the baby gets thrown out with the bathwater.<\/p>\n
There’s absolutely no point in our industry supporting silly ideas because it will all end up in the bin and nothing will ever happen!”<\/p>\n","protected":false},"excerpt":{"rendered":"
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