Coastlink Meets to Discuss The Impact of 18,000 TEU Vessels on Intra European Networks

With more than 70 delegates from across the EU keen to debate and discuss if Europe is ready for the giant 18,000 vessels, the Coastlink network was well represented in Zeebrugge on 20 and 21st February 2013
The Coastlink Meeting hosted by Port of Zeebrugge 20-21 February 2013 Over the two days, participants concluded that while the introduction of the mega container ships is graphically stunning, the reaction of the practitioners does not seem to reflect much concern said Dennis Shea. The largest issue appeared to be the physical infrastructure on the land side. However, this has been an issue throughout Europe for decades and although there has been local improvement it is unlikely that European harbor infrastructure issues will be resolved in the next decades. Europe, like the rest of the traditional world, has a lack of funding for major projects and priority will always go the high visibility public works that garner votes for politicians he said. Availability of a data resource to supply chain participants may be the most effective and manageable improvement for now (see page 3). Several examples of local initiatives were discussed, mainly by smaller ports and these could have a wider application (this point was duly noted by DG Move to see if funds to find solutions were available). Participants expressed concern that in this very complex environment it seems clear that no European entity is in charge. If there is not an identified responsible entity to support, regulate and control the supply chain standards any improvement will continue to be port centric and not European. We must align profit, planet and people said Professor Dr Christa Sys emphasizing that there are clear economies of scale from larger vessels but reliability is the key driver for shippers for end-to-end movements. Door-door costs per TEU will rise due to additional feeder, transhipment and landside distribution costs of handling the larger vessels and this is in direct contrast with 12,000 TEU vessels where optimal economic benefits seem to have been achieved. Competitiveness and growth through innovation is the way forward said Christos Pipitsoulis, explaining the Horizon 2020 Commission proposal for an 80 billion research and innovation funding programme. Delegates believed that it is optimistic to shift 30% of road freight over 300km to rail/water by 2030. Outlining what was needed to handle mega vessels, Professor Dr Notteboom believes a consolidation of global hubs is inevitable (which in Europe would be Rotterdam, Antwerp and Hamburg due to the density of feeder and short sea services for transhipment). Showing the TEN-T metro map, Pieter De Meyer was pleased to hear that the conference welcomed the removal of administrative barriers with actions in several fields including the Blue Belt initiative and the need for transparency in public funding. Seven ports are able to cater for the mega vessels (Zeebrugge, Rotterdam, Wilhelmshafen, Gdask and Southampton/ London/ Felixstowe) and the ports highlighted their strengths and abilities in this respect. Key drivers for short sea success include equipment, frequency, Chairman Gavin W. Roser, Chairman Coastlink and also Secretary General of the European Freight and Logistics Leaders Forum Speakers Joachim Coens CEO-President Port of Zeebrugge, Professor Dr Christa Sys Director Policy Research Centre on Commodity and Passenger Flows University of Antwerp, Professor Dr Theo Notteboom ITMMA President and University of Antwerp Maritime Management, Christos Pipitsoulis, DG Move Research and Innovative Transport Systems, Graham Fraser, Director Focus Maritime (North West) Ltd, Pieter De Meyer DG Move Ports & Inland Navigation, Victor Schoenmakers Director Port of Rotterdam, Frank Robotham Group Head Marketing Associated British Ports, Jean Jacques Moyson CCO Port of Gdask, Florian Brandt General Manager Sales Eurogate, Colin Mulvana Deputy UK Secretary of States Representative for Maritime Salvage and Intervention (SOSREP), Kenneth Russell Director John G. Russell Group Ltd, Rainer Mertel Head Marketing Kombiverkehr mbH, Karin De Schepper Secretary

www.Coastlink.co.uk, Gavin Roser, GavinRoser@Coastlink.co.uk, Tel: +44 (0) 7974 724 173

Coastlink Meets to Discuss The Impact of 18,000 TEU Vessels on Intra European Networks
thinking (think like a trucker), innovation/people, control of doordoor (as majority of costs are landside), inclusion of rail/truck modalities and flexible partnerships between ports, truck and rail. The sulphur issue for 2015 was discussed and Chairman Gavin Roser reminded participants that member states signed up to the commitment and that it was IMOs job merely to implement the requirements. On road/rail issues, Kenneth Russell believes that an integrated supply chain strategy and approach to rail policy throughout Europe is the only way forward. National demands and cultures must be brought together to one standard if industry is to have access to a network that is effective, cost sensitive and sustainable. Karin De Schepper saw a future with long haul shipping done via inland waterways and rail and clean vehicles on hand to serve the last mile. Road remains dominant said Lode Verkinderen and the need for road will remain with all parties in the supply chain. Posing a series of questions, Rainer Mertel asked the audience what they thought the key expected impacts of large container vessels were. There is no historical data to confirm whether transhipment will increase but bigger call sizes will most likely mean more transhipment. Economic growth, not larger ships, will lead to more containers per trade lane and to a subsequent increase in the number of trade lanes. Participants did not expect major growth on domestic or cross-border trade lanes but a peak/trough impact on ports. Ports and shipping lines, driven by customer requirements, will expect hinterland transport to be highly reliable. Vessels, no matter how big, do not impact on trade or volumes. And shipping volumes will not increase because of a reduction in transport prices - if at all, the reduced price of ULCS will be passed on to the customer, which remains a matter of market conditions. Intermodal road and rail operators are ready for the large vessels said Mr Mertel, explaining that bottlenecks in loading/discharge areas meant that infrastructure will need to be reviewed in specific areas receiving concentrated flows. This could be an opportunity for feeders and also a stimulus for expansion of the Gateway service. The ports saw the supply of efficient hinterland services, port-internal processes and customs as essential in the first place and said that after the port has satisfied nautical criteria and sufficient quay/seaside infrastructure, it is the influence of the cargo owner to use the port which convinces the shipping line. Import containers arriving without decision on final destination is frequently a problem. In most cases the information is available, however, the lack of an integrated IT/Data base available to all participants in the supply chain limits the visibility (see overleaf). There are instances when importers with multiple plants or outlets i.e.: Metro/Makro, Cora etc have not decided the final destination until the containers have arrived in Europe. An amendment of the EU customs code in a way that goods loaded on a monitored vessel sailing between two EU ports is deemed to have the community status or otherwise transit procedure or ECS procedure should apply said Michal Van Giel. Bigger ships making fewer calls will make feeder services a pressing operational issue for liner operations said Victoria Vogel, and feeders are in a good position to service this operational requirement. With a fascinating presentation on transhipment hubs for mega vessels, Enno Koll said that a mega vessel superhighway has emerged and global transhipment has doubled over the last 20 years. Port of Singapore is managing General Inland Navigation Europe, Lode Verkinderen Secretary General Flemish Transport and Logistics Federation, Michal Van Giel Honorary Director Customs and Excise, Miel Vermorgen Commercial Director Port of Zeebrugge, Dennis Shea Director DS Supply Chain Consulting/Interim Management, Victoria Vogel Shipping & Commodities Counterparty Risk Analyst Infospectrum, Enno Koll Managing Director PSA Zeebrugge, Sander Riemersma General Manager Port Investments & Projects APM Terminals Europe complex transhipment connections and is becoming key in Europe. Terminal ownership, dedicated feeders and a port role to develop a common feeder network where feeders are treated as first class citizens is essential he said. The call size of next generation vessels puts a huge demand on land space said Sander Riemersma of APMT emphasizing that a one-stop shopping concept will be important. This remark was framed in a clarifying presentation on the position of worldwide operating terminal container handling companies in relation to the trend to mega containerships. Participants thanked speakers, the Port of Zeebrugge, delegates and Gavin Roser for the conference which had an impressive level of audience participation.

www.Coastlink.co.uk, Gavin Roser, GavinRoser@Coastlink.co.uk, Tel: +44 (0) 7974 724 173

Coastlink Meets to Discuss The Impact of 18,000 TEU Vessels on Intra European Networks
Availability of a data resource to supply chain participants may be the most effective and manageable improvement for now

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www.Coastlink.co.uk, Gavin Roser, GavinRoser@Coastlink.co.uk, Tel: +44 (0) 7974 724 173