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A neutral, industry perspective across all transport modes

on the EU Transport policy 2050 White Paper on Transport published 28th March 2011

Implications of the European Commission’s Freight Transportation Priorities for 2050

OTM User Conference Europe, 29th January 2013

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ROAD Andreas GEORG, Mars Commercial Director Global International Freight Martin KVYCH, LKW-WALTER Director INTERMODAL Rainer MERTEL, Kombiverkehr Director Dieter ROGGE, BASF Senior Manager Global Procurement and Logistics

2012 F&L Think Tank Members RAIL Armand TOUBOL, NEWOPERA Aisbl Vice Chairman Philippe ROBERT, GEFCO Director Operations INLAND WATERWAYS/SHORT SEA Jürgen HASLER, Imperial Logistics International Director Corporate Development Norbert ZWICKER, Stora Enso Manager Procurement Sea Services

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White Paper:

Vision =10 goals

Strategy = 40 measures

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Ten Goals for a Competitive and Resource-Efficient Transport system – Benchmarks for Achieving the 60 % GHG Emission Reduction Target”

Developing and deploying new and sustainable fuels and propulsion systems

1. Halve the use of ‘conventionally fuelled’ cars in urban transport by 2030; phase them out in cities by 2050; achieve essentially CO2-free city logistics in major urban centres by 2030;

2. Low-carbon sustainable fuels in aviation to reach 40 % by 2050; also by 2050 reduce EU CO2 emissions from maritime bunker fuels by 40 % (if feasible 50 %);

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Ten Goals for a Competitive and Resource-Efficient Transport system – Benchmarks for Achieving the 60 % GHG Emission Reduction Target”

Optimise performance of multimodal logistic chains, including making greater use of more energy-efficient modes

3. 30% of road freight >300 km should shift to other modes such as rail or waterborne transport by 2030 and more than 50% by 2050, facilitated by efficient and green freight corridors. To meet this goal will also require appropriate infrastructure to be developed.

4. By 2050, complete a European high-speed rail network. Triple the length of the existing high-speed rail network by 2030 and maintain a dense railway network in all Member States. By 2050 the majority of medium-distance passenger transport should go by rail.

5. A fully functional and EU-wide multimodal TEN-T ‘core network’ by 2030, with a high-quality and capacity network by 2050 and a corresponding set of information services.

6. By 2050, connect all core network airports to the rail network, preferably high-speed; ensure that all core seaports are sufficiently connected to the rail freight and, where possible, inland waterway system.

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Increasing the efficiency of transport and of infrastructure use with information systems and market-based incentives

7. Deployment of the modernised air traffic management infrastructure (SESAR) (12) in Europe by 2020 and completion of the European common aviation area. Deployment of equivalent land and waterborne transport management systems (ERTMS) (13), (ITS) (14), (SSN and LRIT) (15), (RIS) (16). Deployment of the European global navigation satellite system (Galileo).

8. By 2020, establish the framework for a European multimodal transport information, management and payment system.

9. By 2050, move close to zero fatalities in road transport. In line with this goal, the EU aims at halving road casualties by 2020. Make sure that the EU is a world leader in safety and security of transport in all modes of transport.

10. Move towards full application of ‘user pays’ and ‘polluter pays’ principles and private sector engagement to eliminate distortions, including harmful subsidies, generate revenues and ensure financing for future transport investments.

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TT Reflection

The VISION is perceived to be positive, ambitious and

enthusiastic

The STRATEGY needs to have concrete, practical, tangible and achievable

measures

The KEY PROBLEM AREAS and challenges, although addressed in previous documents,

remain the same and broadly unsolved

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TT Reflection on the White Paper

1. Industry NEEDS policy consistency and continuity to enable long term investment

2. Set achievable targets! Technology required to achieve the goals does not yet exist Future changes in society/different mindset of future consumers?

3. Building and financing of network-infrastructure ?

So FOCUS on optimizing the use of the existing network

Remember - the goal is to ENHANCE European

competitiveness

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TT Reflection on the White Paper

4. European law and European policy should prevail over member local policies Let market forces develop new technology and the most suitable and

sustainable solutions…… 5. Forced modal shift does not work!

Interconnectivity between modes and within modes is vital

6. Blue belt initiative (short sea) is excellent 7. Climate initiatives are in line with the ideas that already existing in the industry

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Five Priorities for Industry

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Priorities for TT in the White Paper

LUCERNE May 2012

EUROPEAN PARLIAMENT

June 2012

WEB BROADCAST

Oct 2012

LONDON

8-9 Nov 2012

1. Dedicated Freight Corridors and Terminals

2. TEN-FT

3. Financing, Taxation, Earmarking Revenue for the Environment

4. Harmonisation

5. Sustainability

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Dedicated Freight Corridors/Terminals

1. Use existing infrastructure more efficiently! Reliability is key

2. Corridors/Infrastructure for ALL modes needed!

3. Dedicated freight lines prioritizing freight - essential for competitiveness.

4. Passenger/Freight Trade-off: enhance freight priority in mixed traffics to meet future requirements related to volume, capacity, speed and reliability.

5. Terminals Hinterland Terminals – Multimodal Terminals Terminal - Services Feeder Concepts: --> expand best practices such as Duisburg Terminal

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TEN T Network Status May 2010

(ALL modes)

Time for a TEN-FT

Existing TEN-T (Trans-European Network – Transport)

What is TEN-T about?

EU Commission contributes money to transport infrastructure

investment of EU Member States

Key purposes:

Develop an efficient infrastructure for freight and passenger

transport on defined European corridors

Integration of EU Member States into a common network

Time for a TEN-FT

Will the future TEN-T programme serve freight transport properly?

Time for a TEN-FT

EU co-financing rate too low:

Today: 10-20%

Planned: 10-40%

No incentive for EU Member States to realize transport infrastructure

investments, which are not anyway on the national agenda:

Therefore budget mainly used for infrastructure for passenger transport

(high-speed rail etc.)

EU Budget too small for a too large network: according to EU Commission

€ 500bn are required to realize “core network” by 2030;

Commission may contribute € 31bn (6%)!

Programme entirely dedicated to eliminate or alleviate bottlenecks in

transport infrastructure, which particularly hamper international freight

transport (increased cost; reduced reliability)

Simple criteria for selecting projects, for example:

Relevance for existing international freight (not based on “visionary” forecasts)

To be implemented on short-term time horizon

Simplified benefit-cost assessment, e.g. how much additional capacity do we get

with € 1m investment?

No “watering-down” of priorities by country quotas

EU co-financing rate of min. 75% to convey an incentive for Member States

Estimated annual budget: € 5bn

What Freight Transport (Road, Rail, Barge, Intermodal) really needs is a

TEN-FT (TEN – Freight Transport)!

Time for a TEN-FT

Sustainability

1. A global approach is needed! CO2 is a global issue and not restricted to Europe! European policy which puts too much emphasis on just one pillar (GHG) will negatively impact the economic and thus social dimension

2. “Useful Unit Measurement” to measure all modes equally and realistically 3. Wary of targets where viable solutions do not yet exist……

4. Sustainability of alternative fuels is questionable - source of energy to be taken into consideration. Electric vehicles running on current produced in coal-power stations are NOT an option! 23

Financing, Taxation, Earmarking

Ten Goals for a Competitive and Resource-Efficient Transport System: Benchmarks for Achieving the 60% GHG Emission Reduction Target

Goal 10. “Move towards full application of ‘user pays’ and ‘polluter pays’ principles and private sector engagement to eliminate distortions, including harmful subsidies, generate revenues and ensure financing for future transport investments”

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Harmonisation

More harmonisation between member

states These are points which should not be avoided: 1. Axle distance, load, dimensions,

weight • Axle distance trio aggregate needs to be 1310

MM and 9 axle weight (intermodal) • Rear axle – we have 11.5to and 12.5to in EU –

in case of reefer we need 12.5to

2. Aerodynamic devices should not be calculated into combination length

4. Fuel taxes, road taxation and toll-

systems

5. Social rules

6. Load safety and security rules and controls

7. Administration and Document requirements

8. Information

9. Transfer quickly to national

legislation and check that it is applied in the same manner

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Harmonisation

The registration harmonization is still too different and protectionism is the result in some member states

Road controls inside EU chaotic - too many institutions “cooking their own soup”

– what is okay for one side is not okay for the other and hauliers have to pay again

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What Can

We Do Now?

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What can we do NOW?

SHORT SEA & INLAND WATERWAYS

Short Sea & Inland Waterways Shipping are the most efficient modes of transport: 80% less CO2 emissions than trucks and 30% less than railways per tkm

Deepening of the Rivers Elbe and Danube (connection to black sea) to encourage more inland waterways transportation between Eastern and Western Europe

Investment in infrastructure (ship lockings) to facilitate access for 110/135 meter vessels

Encouraging intermodal transport by barge (MIScobiva – Management Information System for Container Barges)

Give better access to terminals in seaports 28

What can we do NOW?

ROAD

Use existing infrastructure more efficiently Minor modifications of existing infrastructure Impact Assessment – priority to small efficient investments Reliability and service are critical “In general" make traffic fluid and give priority to freight Use modes where they are best suited Harmonization 29

What can we do NOW?

RAIL

Better priority for freight in each period of the day to ensure reliability: this is fundamental

Urgency in standardizing safety criteria and operational constraints across Europe to facilitate the networks integration

New small infrastructure investments with a large impact on traffic efficiency

INTERMODAL

Define “relevant” key European freight corridors for all modes

Allocate approx. €1bn (better: €2bn) of annual TEN budget (Connecting Europe Facility) for small, effective infra-structure measures which help remove bottlenecks at international links on European freight corridor network

Harmonize rules for road leg of intermodal transport (e.g. 44 tonnes) in EU: revision of Regulation 92/106/EG 30

What can ICTs do now ?

The WP specifically mentions ICTs as necessary and preferable tools for its goals. Accordingly EU-projects, such as SmartGreen, aim at promoting smarter use of ICTs in the development of green freight corridors in order to :

• improve efficiency of resources • simplify the management of the supply chain

Preferential promotion of “Intelligent Transport Systems” is based on the cognition

that “with traditional measures [such as expansion of infrastructure] it will not be possible to satisfy the growth of European economy and its mobility requirements in an environmental way”.

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ICTs mentioned in the White Paper Traffic management &information systems for improved use of infrastructure and

vehicles Air traffic management system of the future (SESAR) European rail traffic management system (ERTMS) / rail information systems Maritime surveillance systems(SafeSeaNet, Vessel Traffic Services) River information services (RIS)

On-board navigation & traffic monitoring Real-time information systems to track and trace freight and to manage freight

flows (e-Freight) Single-window, one-stop administrative shop Single transport document in electronic form (e-waybill) Appropriate framework for T&T technologies (such as RFID)

Interoperable and multimodal passengers information, booking and payment systems (smart ticketing)

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ICTs mentioned in the White Paper Greener transport :

Carbon calculators to allow better choices and easier marketing of cleaner transport solutions

ITS applications in support of eco-driving Recharging and refuelling ITS for electro-mobility in urban areas Improve trucks efficiency (besides cleaner fuel and engines) through use of

ITS (eg routing planners, T&T, …)

Smoother multimodal transports Simplify and improve reliability of transfers By 2020, establish the framework for a European multimodal transport

information, management and payment system By 2050, a fully functional EU-wide TEN-T core network with high-quality ,

high-capacity network and information services

Improve trucks efficiency z

Innovation and deployment need to be supported by regulatory framework conditions: protection of privacy and personal data will have to develop .

Standardization and interoperability requirements - avoid technological fragmentation, enable European businesses to fully benefit from the entire European transport market, create worldwide market opportunities.

ICT tools should be widely deployed to simplify administrative procedures

New mobility concepts cannot be imposed. Information on all modes of transport, both for travel and freight, on possibilities for their combined use and on their environmental impact, will need to be widely available.

Smart intermodal ticketing, with common EU standards that respect EU competition rules is vital. This relates to passenger transport, freight, better electronic route planning across modes, an adapted legal environment (intermodal freight documentation, insurance, liability), real-time delivery information also for smaller consignments.

ICT has also the potential for satisfying certain accessibility needs without additional mobility.

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ICTs principles

Questions & answers

Open discussion

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