1. Development Opportunities of Greek Ports &Contribution to the Greek EconomyPresentation to the European Maritime Week ConferenceMay 23rd, 2013
2. - 1 -Development opportunities and challenges vary depending on the type of demand:Transit TrafficTraffic from / to other countries transported to / from the port using landtransportation.The relevant economies affect the size of the market and thecompetitiveness of each port (including access) its own market share.TransshipmentTrafficTraffic that reaches the port on large / smaller vessels and get reloadedto smaller / large vessels to be forwarded to the final destination.The geographic proximity of the port to the main shipping routes is akey parameter affecting transshipment potential.Domestic TrafficDomestic traffic originating from the country or with a final destination inthe country.The market is affected by the country’s economy while portcompetitiveness affects the relevant market shares.
3. - 2 -Also, each type of demand has very different economic impact in terms of jobcreation and GDP growth.TransshipmentDemandImport / ExportDemandTransit Demand• Mainly in-port impact• In-port impact• Local warehousingand inland transport• In-port impact• Logistics Centers• International transport• Multi-modality
4. - 3 -Transit traffic, which would have the largest value added, is very small in Greekports and represents possibly the largest untapped opportunity for growth.DomesticDemand1.0 mnTransitDemand0.05 mnTransshipmentTraffic2.0 mnTotal Traffic 20123.1 mn TEUs**Small discrepancies due to rounding – sourcecompany published dataOutlook Comments?Domestic economic conditions /level of containerization of exports.Geographic position and investmentprogram, especially at Piraeus.Possibly the largest growthopportunity
5. - 4 -Greece has an advantageous geographical position for its ports to serve the Asia –South East Europe trade.Market estimatedat about 1 – 2.5mn TEUs
6. - 5 -Overall trends are supportive of this effort, as the Europe – Asia trade is increasingand Mediterranean ports are strengthening their position as gateways to Europe.27%41%48%73%59%52%0%20%40%60%80%100%1990 2000 2011European and Mediterraneancontainer trafficMediterranean North Europemarketshareintheregion05101520251995 1997 1999 2001 2003 2005 2007 2009 2011Maritime Container trade on East -WestRoutesTranspacific Europe-Far East TransatlanticmillionTEUsSource: United Nations Conference on Trade and Development (UNCTAD),Review of Maritime Transport 2012Source: Containerization International, National Bank of Greece Sector Report 4/2013
7. - 6 -To exploit these opportunities, land transport infrastructure is critical and, giventhe current situation of both Greece and of other countries on the route to CentralEurope, significant investments may be needed.CountryRoad InfrastructureScore (rank)Rail InfrastructureScore (rank)Greece 4.0 (71) 2.5 (69)Bulgaria 2.5 (129) 3.0 (56)FYROM 3.0 (108) 1.9 (93)Serbia 2.7 (122) 1.7 (102)Romania 1.9 (142) 2.2 (83)Slovenia 5.0 (38) 3.1 (54)Hungary 4.0 (69) 3.5 (42)Croatia 5.3 (29) 3.2 (49)Italy 4.3 (57) 3.6 (40)France 6.5 (1) 6.3 (4)Spain 5.9 (13) 5.7 (8)Quality of Transportation Infrastructure in Selected CountriesSource: World Economic Forum, Global Competitiveness Report 2012-2013. Rank is out of 144 countries.
8. - 7 -In essence, Greece could play the same role for SE Europe as Northern Europeanports do for North Europe. Based on the provision of integrated services, theseports have become major contributors to GDP and employment.PortValueAdded(€ bn)Value Added as% of Region’sGDPValue Added as% of NationalGDPEmploymentPort ClusterRegionLe Havre / Rouen 7.0 21.3% 0.4% 55,000 Seine-MaritimeAntwerp 9.8 15.5% 2.9% 65,000 AntwerpenRotterdam 12.8 10.3% 2.2% 75,000 Zuid-HollandAmsterdam 1.9 1.9% 0.3% 15,000 Noord-HollandZeebrugge 0.9 2.7% 0.3% N/A West-VlaanderenSource: Merck, O., et al (2011), “The Competitiveness of Global Port-Cities: the Case of the Seine Axis (Le Havre,Rouen, Paris, Caen) – France”, OECD Regional Development Working Papers, 2011/07, OECD Publishing.
9. - 8 -ConclusionsGreece has the potential to become a major logistics hub for SouthEast Europe.Driven by the ports, this development would create a dynamic portcluster as per the ones of the Northern European ports. The transportsector will be a major value contributor.Such a development would not only support economic growth butwould also increase the overall importance of Greece in the regionpossibly starting a virtuous growth cycle.
10. - 9 -Deloitte Greece is a member of Deloitte Touche Tohmatsu Limited (DTTL), a private UK company limited by guarantee, whose member firms arelegally separate and independent entities. With a presence in more than 150 countries and about 200,000 professionals, all committed to becomingthe standard of excellence, Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multipleindustries and brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complexbusiness challenges. Please see www.deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.In Greece, “Deloitte Hadjipavlou Sofianos & Cambanis S.A.” provides audit services, “Deloitte Business Solutions Hadjipavlou Sofianos &Cambanis S.A.” financial advisory, tax and consulting services and “Deloitte Accounting Compliance & Reporting Services SA” accountingoutsourcing services. With a staff of about 500 and offices in Athens and Thessaloniki, Deloitte Greece focuses on all major industries includingfinancial services; shipping; energy; consumer business; life sciences & health care and public sector services. Deloitte clients include most of theleading private and public, commercial, financial and industrial companies. For more information, please visit our website at www.deloitte.gr3a Fragoklissias & Granikou str., 151 25 Maroussi, Athens – Greece, Tel: +30 210 6781 1002013 All rights reserved.