SmartRivers Presentation

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Overview of

SmartRivers Report

--- Folding Inland Waterways into the Global Supply Chain ---

Arno Hart

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FiveTopics

Intro to SmartRivers

Euro Waterways

Container On Barge (COB)

Innovations

Key Findings

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What is SmartRivers?

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Integrated Logistics Chain Management

Slide courtesy of ViaDonau

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The European Network

Slide courtesy of European Federation of Inland Ports

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Water Network and Industrial Areas


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The Netherlands

45%

4%

7%

44%

France

78%

14%

6%2%

Germany

69%

15%

3%13%

Belgium

70%

13%

3%14%

Austria

51%

30%

14%

5%

Duitsland

15%

13%3%

69%

Road

Rail

Barge

Pipelines

EU – Statistics 2004

Modal Split of Total Cargo Transport5 EU examples

Slide courtesy of Port of Rotterdam

Eurowide - 6.5% water

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Institutional Framework

Euro Wide• Inland Navigation Europe• Research & Development• Subsidies (Marco Polo)

• Equal competition/competitiveness

National• Development agencies• Maintenance of locks

• Dredging

Corridors/Axis• International treaties along main waterway

• Manheim Accord – The Rhine• Belgrade Convention – Danube

Regions/Cities• Operate ports/nodes

• Vienna• Brussels• Manheim

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The Rhine\Scheldt\Seine Network


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The European “Banana”

Spain

France

Italy

Germany

Denmark

United Kingdom

Ireland The Netherlands

Brussels

London

Liverpool Leeds

Cardiff

BelgiumAntwerp

Switzerland

Dublin

BarcelonaRome

Paris

Frankfurt

Amsterdam

Milan

Bern

CologneBonn

Strasbourg

Luxembourg

RotterdamDen Hague

Stuttgart

010112

Regions with greatest

market access

10% surface 50% output

Peripheral areas

60% surface 20% output

The economic power

base of Europe

08-99

Slide courtesy of Port of Antwerp

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2 of the Top 5 World Ports

0 100 200 300 400

Antwerp

Hong Kong

Shanghai

Singapore

Rotterdam

(International maritime traffic in millions of tonnes 2005)

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Main European Ports: Evolution of Market Shares (Total Container Trade)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Ham

burg

Bre

men

Rott

erda

m

Antw

erp

1986 2004


RNOSlide courtesy of Port of Mannheim

Inland Waterway Densities (1997)

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Overview of COB on Rhine

• Wide range of commodities

• Along the Rhine Corridor

Rhine RiverSystem

Highest COB densities are on….

35% mode share

3 Million TEU’s

• Most secure mode

• Civilian shipments for military

• Barge op’s b-hauled empties

• S. Germ FF’s b-hauled exports

• Full commercial service

US military – 1st customer

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R’dam’s Inland Container Markets

0

50000

100000

150000

200000

250000

300000

2004 2005

Germany

Belgium

France

Switzerland

Number: x Container

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Inland Mode Shares at the Port of Rotterdam

million tons

barge rail pipe road total

liquid bulk 49.8 39% 1.6 1% 63.6 51% 11.6 9% 126.6 43%

dry bulk 77.4 86% 4.1 5% 0.0 7.9 9% 89.4 30%

containers 14.2 33% 6.8 16% 0.0 22.1 51% 43.1 15%

conv. cargo 2.2 6% 1.3 3% 0.0 34.2 91% 37.7 13%

143.6 13.8 63.6 75.8 296.8 100%

48% 5% 21% 26% 100%


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Mode Shift Tactics

• # of Ships calling at port

• % of tonnage on waterways

Leases for Port Tenants

Tactical approach for Rotterdam…. Modal Shift

Revenue Potential

• # of jobs created

Economic Development

RNOSlide courtesy of Ingram Barge Company

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6-barge Push Unit in Long Formation


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Motorship / Push Barge Combination


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A Lifestyle

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Innovations in IWTContainer Transport


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Innovations in IWTScale increase


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Largest container barge JOWI (510 TEU)


RNOSlide courtesy of Port of Rotterdam

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Port of Mannheim

• Rhine-Neckar:

European Metropolitan

Region

• Hinterland Port

• 11,310,000 m²

Slide courtesy of Port of Mannheim

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Throughput Containers (TEU)Port of Mannheim

0

20000

40000

60000

80000

100000

120000

140000

2001 2002 2003 2004 2005


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Manheim Overview

• 26 Hours between Manheim and Rotterdam

• 800kms, no locks

• First containers moved in 1968

• US military’s civilian cargo

• Commercial container cargo followed

• 24 million people in larger Neckar/Rhine region

• Industry – BASF plant largest in world, 37k empl

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Container Terminal Mühlau Docks


• 30% of COB arrive/leave by rail (Spain, Switzerland)

• On-dock

• 500m trains, 20 cars, single stack

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Container Terminal Neckar River


• Ship-to-ship transfer

• Neckar allows 2-high stacks

• Rhine allows 3-high stacks

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Manheim Overview

• 26 Hours between Manheim and Rotterdam

• 800kms, no locks

• First containers moved in 1968

• US military’s civilian cargo

• Commercial container cargo followed

• 24 million people in larger Neckar/Rhine region

• Industry – BASF plant largest in world, 37k employees

• Typical vessel carries 150-200 boxes

• Can carry any kind of cargo

• Larger ones are dedicated container barges

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Climate Change

• 2 meters (6.5 ft)

• Lowering water level

Inland WaterTransport

Sustainability

Global warming isundermining…. Declining rainfall/snow

Optimum draft

• 60% of normal load factor

Reduce barge efficiencies

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The Iron Rhine


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The Danube Network


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Danube in an Enlarged EU

Danube Corridor will face (for the next 10 years) annual increase of:

• GDP ~ 4 to 5 %

• Trade ~ 6 to 7 %

• Transport ~ 8 to 9 % (regionally up to 15 %)

• Capacity problem of road and rail

• Enlargement brought new Member States with inland waterways

• Different status of States along the Danube

Slide courtesy of Federal Ministry of Transport, Austria

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Danube is not the Rhine

• 2004 – 450k TEUs

• 2006 – 1 mil TEUs

• 2010 – 3 mil TEUs

• Weaker industrial base

• No international gateway

Danube Corridor

Emerging corridor….Lack of Economic Densities

Port of Constantia

• Constantia - Vienna

COB is underdevelopment

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Austrian Navigation Policy


RNOSlide courtesy of Federal Ministry of Transport, Austria

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• Responsible for developing traffic on Danube

• Based in Vienna

• Para-state agency

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Services of Waterway Development Agencies


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Development Strategy for the Danube

2007

Competitiveness Modal shift

Public

Relations

Informations-

services

Know how

Transfer

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Competitiveness Modal shiftCompetitiveness Modal shift

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RIS Definition

Telematics Systems and

Information Services

in order to increase the

safety and efficiency of

inland waterway transport


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Cost of RIS

• E255mill estimated

• Cost for Danube – E8.5 Mill

RIS Project

DevelopmentCost

50% Paid by EUDoRIS

EU Wide

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RIS Concept


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RIS Implementation in EU

• RIS in Austria

• RIS in Hungary

• RIS in Serbia

• RIS in Romania


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Key Service 1/4: Inland ECDIS (IENC)

IENC including depth data


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Tactical Traffic Image (TTI, shore)

Key Service 2/4: Tracking and Tracing


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Key Service 3/4: Notices to Skippers


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Key Service 4/4: Electronic Reporting


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Donau River Information Services


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Know How Transfer

www.ewit.infoSlide courtesy of ViaDonau

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Know-how Transfer

Manual of Danube Navigation

Manual on Danube Ports


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Info services


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Blue Pages

Directory of

transport-related

operators on the

Danube

(October 2006)


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MARCO POLO Programme (2003-2006):To support intermodal services and alternatives to road-only

transport until commercial viability

• Objective: shift international increase in road freight

off the road (12 bill. tkm/year in EU-15)

• 2003-2006, budget of 102 M€

• Risk funding, business-driven

• All segments of international freight (except air)

• Services only; no research, studies or (core)

infrastructure

Slide courtesy of Marco Polo

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Marco Polo Award Criteria


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Marco Polo Call for Proposals


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Marco Polo Projects by Mode


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Marco Polo Projects by Action


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Marco Polo: Summary of Progress


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Integrated Logistics Chain Management


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EUROPEAN SHIPPERS COUNCIL

“Focus on reliable, high quality supply chains for industry and trade”

Slide courtesy of European Shippers Council

RNOSlide courtesy of European Shippers Council

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Conclusions

SuccessfulContaineron Barge

Industrial densities

International gateway

Short hauls (hours not weeks)

Gov’t support/innovations

Vessel development

• Cost, applicability, speed

Supply side has relied on:

• Convergence of transportation costs

• Internalizing externalities

Results in Mode Share Decline

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Inter-Related System


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Thank You

Business

SmartRivers Presentation