Position Paper

Energie, Verkehr und

Telekommunikation
Cabotage

BDI Position on the liberalisation of cabotage in Europe and on further

liberalisation of cross-border haulage
Dokumenten Nr.
D 0177

Datum
5. Dezember 2007

(1) The BDI is calling for the speedy abolition of the present restric- Seite
1 von 5
tions on cabotage and thus consistent liberalisation on the Euro-
pean freight haulage market.

(2) In the context of the expected increase in transport demand, political

efforts should be directed towards not allowing transport to slow
down economic development.

(3) The restrictions on cabotage are not consistent with the optimisation
of transport procedures oriented to demand and efficiency. They
therefore hamper competition, reduce the provision of transport
services at the expense of industrial transport users, hindering the
efficient and resource-friendly use of haulage capacities.

(4) The BDI proposes that present restrictions on cabotage be lifted by a

step-by-step plan comprising various stages over several years
and culminating in full liberalisation. A corresponding step-by-step
regulation should be coordinated throughout Europe, thus enabling
full liberalisation of cabotage within four years.

(5) Until cabotage is liberalised Europe-wide it should be possible for

individual neighbouring European states to dismantle restrictions on
cabotage via bilateral agreements.

(6) The step-by-step dismantling of cabotage restrictions should be

flanked by rapid harmonisation of competitive conditions on the
European freight haulage market.

Bundesverband der
Deutschen Industrie e.V.
Mitgliedsverband
BUSINESSEUROPE

Telekontakte
T: 030 2028-1498
F: 030 2028-2498
Internet
www.bdi.eu
E-Mail
T.Fabian@bdi.eu
Background Seite
2 von 5

The BDI welcomes the current efforts by the EU Commission to achieve

a new Europe-wide regulation of cabotage. Liberalisation of the European
haulage market on 1 July 1998 also largely liberalised so-called cabotage.
Cabotage are those transport services provided in any given country by
hauliers based in another country.

Between 1990 and 1998 cabotage operations in Europe were allowed on

the basis of a quota system negotiated annually between the individual
Member States. However, these licences remained largely unused.1 On
1 July 1998, therefore, the European freight haulage market was opened
for cabotage on a “temporary” basis.

However, in recent years practical application of these regulations has re-

sulted in diverging interpretations in the various EU Member States. One
particular point of debate is to what extent cabotage should be considered
of a temporary nature. This has led to diverging national regulations
which result in legal uncertainties and are not in keeping with the concept
of liberalisation on the European haulage market.

The BDI therefore welcomes the current efforts by the EU Commission to

draw up new regulation of cabotage uniform throughout Europe.2 In
anticipation of a European solution and with a view to the ending of the
ban on cabotage for the new EU Member States expected on 1 May 2008,
the German Ministry of Transport, Building and Urban Affairs has pre-
sented a draft regulation to regulate cabotage on a national basis.3 Mod-
elled on the proposals discussed at European level, the draft envisages
limiting cabotage to three transport operations following an international
journey within seven days. In the following section the BDI would like to
state its position on these proposals.

For a liberalised European freight haulage market

The creation of a single joint European market and the liberalisation of

the freight haulage market have made locations more attractive and fa-
cilitated business.

In recent years transport demand, particularly road transport services, has

grown steadily. In 2006 alone, all transport carriers in Germany grew by
almost 7 percent. There was a steady increase in road and rail transport in
2007 and it can be assumed this will also be the case in 2008 and the fol-
lowing years. These developments require not only investment in trans-
port infrastructure tailored to suit market needs but also a more efficient
use of infrastructure and transport capacities.

Against this background political efforts at national and European level

should be geared towards not allowing transport procedures to thwart
1
EU-COM 98/0047
2
Commission Interpretative Communication on the temporary nature of road cabotage in
the movement of freight (2005/C21/02)
3
Draft regulation on the amendment of the regulation relating to cross-border road haulage,
8 October 2007
economic development. Cabotage is therefore an instrument to help avoid Seite
3 von 5
empty runs: as a percentage of total kilometres travelled in Germany, they
account for 10% of long-distance operations and 19% of local and re-
gional operations. Cabotage can therefore help optimise transport proce-
dures in freight haulage in a cost-effective and environmentally-friendly
way. The BDI is therefore in favour of a liberal application of the regula-
tions on cabotage and calls for abolition of the present restrictions on
cabotage.

However, there are still deficits in the harmonisation of the competitive

conditions between EU Member States. Thus the great divergences to be
found in the taxation of commercially-used diesel fuels resulted in com-
petitive distortions. They should therefore be removed as quickly as pos-
sible. However, difficulties or delays in harmonisation should not draw
attention away from the principles of market opening and should not be
used to interpret liberalisation measures already implemented more nar-
rowly.

Cabotage in Germany and Europe

Almost a decade after market liberalisation, the share of cabotage in the

whole transport market is less than 2 percent in Germany.
Its share is not above 3 percent in any EU Member State. Even if only the
relevant market segment “long-distance transport” is considered, it can
still be assumed that cabotage is a limited phenomenon. Thus there would
be few opportunities to make transport procedures efficient and resource-
friendly, resulting in higher costs and less flexibility for haulage services
and thus for industrial transport users.

Development of road haulage in Germany

in million. tkm

350.000
< 2%
300.000 2,5%
20%
250.000

200.000

150.000
76%
100.000

50.000

0
1999 2000 2001 2002 2003 2004 2005

Intra-state haulage International haulage Cross-trade haulage Cabotage

Quelle: Eurostat 2007.

After the Netherlands and Luxembourg, Germany dominated road trans-

port on the European cabotage market and in 2005, together with hauliers
from these countries, accounted for approx. seven billion tkm, i.e. approx.
50 percent of European cabotage operations.4 Liberalisation of the

4 Eurostat statistics summary 27/2007

restrictions on cabotage would provide further business opportunities for Seite
4 von 5
hauliers in Germany.

Cabotage
by hauliers from the EU Member States in 2005

NL
20%

Remainder of the EU
DE 51%
15%

LU
14%

Source: Eurostat 2007.

The proposals currently being discussed in both Europe and Germany en-
visaging a restrictive interpretation of the cabotage regulations would
slow down liberalisation of the haulage market in the industrial transport
users’ view. They are an obstacle to the demand and efficiency-oriented
optimisation of the haulage sector. Instead they create incentives to or-
ganise journey procedures in compliance with these administrative regu-
lations too, thus resulting in a negative impact on competition. Moreover,
this restricts haulage services at the expense of industrial transport users.
Monitoring and controlling compliance with the cabotage restrictions in-
volves administrative effort which could be avoided by liberalising
cabotage.

Recommendations

Cabotage in Europe should be unlimited and unrestricted. The BDI there-

fore calls for speedy liberalisation of the present restrictions on cabotage
and thus consistent liberalisation of the European haulage market.

As immediate and complete liberalisation of cabotage would not appear

realistic in the short term, neither at national level nor in Europe, the BDI
proposes easing the current cabotage restrictions in a step-by-step plan
over several years followed by full liberalisation. This regulation by
stages should be coordinated throughout Europe, thus enabling full liber-
alisation of cabotage within four years.
 Seite
Step-by-step plan to liberalise cabotage in Europe 5 von 5

1 May 2009 Liberalisation of cabotage in all EU Member States

Harmonisation of national regulations

1 May 2009 10 operations within 7 days

1 May 2010 15 operations within 7 days
1 May 2011 20 operations within 7 days
1 May 2012 End of cabotage restrictions

Until cabotage is liberalised throughout Europe it should be made possi-

ble to abolish current restrictions on cabotage via bilateral agreements
between individual Member States. Such an agreement could help to
eliminate empty runs, especially for companies from border regions, and
gear cross-border haulage procedures to the requirements of the joint in-
ternal market.

The step-by-step dismantling of cabotage restrictions should be flanked

by rapid harmonisation of competitive conditions in the European haulage
market.