Developments in NorthWest Europe

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(No Transcript)
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Developments in (North-West) Europe

• Diego Teurelincx
• Secretary General Feport

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Ships and Terminals

• Commercial size limitations
• Direct calls or transhipment
• Terminal operators
• Networks
• Conclusion?

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Ship size

• Technically possibilities are virtually unlimited
• Commercially many limitations play a role
• Port access
• Port time
• Trade balance and cargo quantities
• Feedering costs
• Insurance
• Etc.

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Ship size - bis

• Economies of scale seem to increasingly level off
  once past 10,000 TEU and possibly even reverse at
  some size intervals
• Network costs related to intensified feedering
  and excessively maritime driven hinterland
  logistics will further increase the extra cost
  burden of a ship-dominated transport chain
• This will be further intensified by limited
  deep-draught ports, where additionally future
  dredging is not only expensive but also
  environmentally controversial

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Ship size - ter

• Since freight rates are not always stable and
  even trade balances tend to regularly be
  disturbed, the move into too large ships
  constitutes more of a risk than an opportunity.
  Moreover cost optimization does not necessarily
  result in revenue maximization.
• For the time being it is therefor likely to see
  vessels up to 10,000 teu enter market in
  east-west routes, while 3-5,000 teu ships do the
  regional-continental haulage in addition to
  smaller feedering.

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Direct calls - transhipment

• Also here the balance is not primarily linked
  with the ships economies of scale. More
  important seems to be the logistics cost and the
  revenue generating power.
• It is therefor not unlikely that large markets,
  which are not too far away from the shipping
  routes will remain being served by larger
  vessels.
• Also the port time and equipment will remain to
  play a role in the port of call choice of
  shipping lines.

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Direct calls transhipment - bis

• Pan European Super hub(s) unlikely in comparison
  with well located regional transhipment hubs,
  coinciding in some cases with strong hinterland
  traffic.
• Direct calls, multiporting and overlapping
  strings will further continue next to hub and
  spoke.

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Terminal operators
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Terminal operators-bis
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Terminal operators-ter
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Terminal operators quater

• Draught continues to be important, but at present
  we have usually availability of 13-15,5 meters
• Dredging is expensive and only serves small
  portions of port users. Moreover vessels are not
  always on their maximum draught when calling at a
  port.
• Wider ships continue to be more likely, but
  investment in cranes should keep pace.
• Capacity extentions seem in many areas sufficient
  for expected demand, but in view of long planning
  horizons new developments should already be
  investigated.

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Networks

• The development of hinterland networks and
  logistic solutions seems to be further the way
  forward.
• Major ports have significant proportions of their
  trade transported by rail or barge.
• Both terminal operators and European Commission
  recognize the same market opportunities (see
  pictures).

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Networks - bis
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Networks - ter
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Networks - quater
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Conclusions

• Competition is highly international and even
  global. But rates in Europe 100, versus 200 Asia
  and 300 in US.
• Next to strategic positioning of terminals,
  equipment and draught, logistics networks seem to
  be the current and future battleground.
• At EU level maritime shipping and ports receive
  much attention or impact maritime safety, ISPS
  Code, freight integrators, authorized economic
  operators, Motorways of the Sea, Marco Polo,
  Birds, Habitat and Water Framework Directive,
  Port Services, Waste Reception Facilities, etc.

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Conclusions bis

• In general however, at EU level the future policy
  emphasis is moving into interesting directions
  with less focus on artificial market access
  regimes and more attention to state aid matters
  and logistic network solutions including full
  consideration of the new Member States.
• It remains our task to provide the legislator
  timely with the right data.
• - Together we are strong -

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Contact Information

• Feport
• Diego Teurelincx Secretary General
• Treurenberg 6
• B-1000 Brussels
• Phone [phone]
• Fax [phone]
• e-mail diego.teurelincx_at_feport.be