Presentation of ASCAME about logistic sector Strategic Paper


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Presentation about the Logistic Sector- Strategic Paper
Transport and Logistics is a strategic sector for the development of the Euro-Mediterranean region due to the key role it plays in a country’s general economy, contributing significantly to regional development and integration (Integral part of modern production).

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Presentation of ASCAME about logistic sector Strategic Paper

  1. 1. LOGISTICS: Sector Strategic Paper Marseille, le 26 mai 2014
  2. 2. Marseille, le 26 mai 2014 Introduction
  3. 3. Transport and Logistics is a strategic sector for the development of the Euro-Mediterranean region due to the key role it plays in a country’s general economy, contributing significantly to regional development and integration (Integral part of modern production). The competitiveness of industry, whether in the service or manufacturing sectors, is increasingly dependent on transport infrastructure and logistics. Due to the pressure on company costs brought about by the financial and economic crisis, companies will more and more be working with logistics operators to realize the potential savings of 10 to 30% that optimizing logistics can offer This can be achieved by optimizing supply chains and the energy balance of all logistics activities as well as restructuring processes with the aid of the numerous digital technologies now available Context and objectives
  4. 4. Strategy paper aims: The purpose of the paper is to focus and determine the strategic lines of action within the Transport and Logistics sector.  Compiling the main existing literature about the Euro- Mediterranean Transport and Logistics sector and provide the crucial and more relevant information.  Consulting with experts on state of the art, current trends and tendencies.  Seeking and classifying the most relevant stakeholders involved in the Euro- Mediterranean Transport and Logistics sector.  Compiling the major EU projects and programs about the Euro-Mediterranean Transport and Logistics sector.  Researching influential EU policies and strategies related to the Euro- Mediterranean Transport and Logistics sector. Context and objectives
  5. 5. “All activities related to physical distribution, i.e. all modes of transport and their intermodality, as well as various operations carried out in warehouses and logistics hubs: storage, stock management, order preparation and shipment” Centre for Transportation Studies for the Western Mediterranean (CETMO) Sector definition:
  6. 6. Marseille, le 26 mai 2014 State of the art of the Logistics sector in the UE
  7. 7. European market profile progression towards a European Community Single Market. Efficient logistic networks Mediterranean Corridor, North Sea-Mediterrean Corridor, Orient-East Med, Baltic-Adriatic Corridor, and Scandinavian-Mediterranean Corridor Strategy and orientation
  8. 8. • Elimination of commercial barriers securing global and fair competition and trade • Establishment of efficient infrastructures and transport networks  Higher integration and interoperability among modes  Minimization of congestion  Investment in intermodal corridors • Usage of Global information Systems  Optimise flow of goods  Rationalising processes and costs  Leveraging cascade effect in efficiency throughout supply chain • “Green procedures” (regarding transport and logistical operations) to reduce the environmental footprint of transport  technological progress (e.g. cleaner vehicles)  operational measures (e.g. eco-driving)  infrastructure improvements (e.g. rail freight dedicated framework, intermodal hubs and efficient traffic management systems). Main challenges:
  9. 9. Priority niches: 1. Green technologies  Efficient management and sustainable transport  Uptake of clean technologies 2. ICT  Digitisation of the sector (paperless)  Radio Frequency Identification (RFID)
  10. 10. Commercial and regulatory barriers for the MED business companies in the EU logistics market  Complexity of EU internal market requirements necessitate higher management and admin efforts  Duplicated cross-border controls  Lack of harmonised documents  Lack of integrated channels  Need for efficient multimodal networks  Limited financial means for advanced solutions  Specialised equipment, technologies, systems etc.  Regulatory Barriers  Differences among national technical standards  Professional recognition  Lack of transparency of legal/fiscal/regulatory enviroments
  11. 11. Marseille, le 26 mai 2014 State of the art of the Transport & Logistics sector in the Mediterranean
  12. 12. Strategy and orientation Significant development of transport infrastructure (in particular airports, ports, motorways) Moving towards an integrated Mediterranean free-trade area/single market  Commendable efforts being undertaken, but not all MPCs evolving at the same pace  Underdevelopment of efficient logistic networks and good practices  Ongoing reform/liberalization  Investments in linear infrastructure (Rail, Road)  Development of logistics hubs
  13. 13. Integration of regional intermodal infrastructure and its link with the Trans-European network. Rail:  The railway freight transport monopolized by public enterprise.  Continuous reforms impeding the flow.  Need the construction of rail access to more nodes and logistics facilities like logistics platforms (which need to be multimodal) and to the harbours LZA (Logistics Zone Area. Main challenges:
  14. 14. Maritime:  Minimizing the time of stocks spent in ports and customs clearance.  Fleet privatisation.  Predominance of Bulk-freight shipping, containers are not used widely enough.  Improvement of operators.  Alternatives to current distribution models. Main challenges: Demain Une plus grande part du trafic s’arrêtera en Méditerranée Conséquences Développement du trafic feeder entre hubs du Sud et ports d’hinterland du Nord de la Méditerranée Solutions landbridge vers l’Europe du Nord Moins de congestion dans le range Nord Croissance des échanges maritimes intraméditerranéens Croissance économique au Sud Rééquilibrage du réseau de transport européen L’alternative méditerranéenne
  15. 15. Road:  Usage of atomized road transport with a predominance of the informal sector with a significant role still played by own account transport (Southern Mediterranean countries ).  International transport dominated by European transport agents.  Dearth of logistics multimodal platform network. Main challenges:
  16. 16. Infrastructure:  Lack of multimodal logistics platforms.  Lack of warehousing infrastructure. Weak supply of services with little diversification of the logistics/transport offer… Main challenges:
  17. 17. Priority niches/fields of action:  Niches:  Express parcel delivery  Third-Party logistics (3PL)  Fields of action:  Trade Facilitation  Infrastructures financing  Multimodality  Road Safety  Training for ensuring professionalism and good practices
  18. 18.  Geographic location.  Proximity to EU market.  Lower costs in relation to its northern counterparts.  Ongoing Integration with European value chains.  Developing market. In what way is the Mediterranean region attractive for EU companies?
  19. 19.  Institutional/regulatory burdens.  Enforcing contracts/Protecting investors.  Elevated logistics cost (20% of average GDP).  Atomised road transport.  Underdeveloped storage facilities, lack of integrated logistics platforms, absence of real national logistics suppliers.  Railway freight monopolised by public enterprise.  Ongoing restructuration of maritime and port transport. Identification of the main commercial / regulatory barriers for EU companies
  20. 20. Focus on foreign direct investments in the sector Number of FDI projects (2003 - 2013) Source: ANIMA-MIPO observatory. Number of FDI projects (2003-2013) 0 20 40 60 80 100 120 Europe Gulf MED-11 Other countries USA-Canada Transport, logistics
  21. 21. Focus on foreign direct investments in the sector Amounts of FDI by region and country of origin (€m) Source: ANIMA-MIPO observatory. 0 500 1 000 1 500 2 000 2 500 Europe Gulf MED-11 Other countries USA-Canada Transport, logistics
  22. 22. Main programmes in support of the sector in the Mediterranean  Connecting Europe Facility – TEN-T  9 intermodal corridors  30 priority projects  Trans-Mediterranean Transport Network – TMN-T  Feasibility studies currently underway on identified projects  Criteria of complete interoperability and interconnection with TEN-T  EuroMed Transport Project  Regional Transport Action Plan for the Mediterranean Region (RTAP)  Identification of priority TMN-T initiatives  High level dialogue  LOGISMED  Euro-Mediterranean network of Logistics platforms (EMLP)  Telecommunications infrastructure  Training activities (LOGISMED-TA)  European Neighbourhood Instrument  Regional and bilateral programmes and projects relating to the Mediterranean basin
  23. 23. Conclusions & recommendations  Promote the internationalization of promising SMEs, facilitating investment partnerships between regional agents  Capitalize on progress in Mediterranean cooperation, the increasingly important role played by the Mediterranean basin and its different regional programmes  Consult and dialogue with the key institutions, research centres, industry bodies and businesses  Support policy which fosters the growth of the Transport and Logistics industry in a sustainable and inclusive manner  Encourage innovation in the Transport and Logistics industries, through facilitation of dialogue and promotion of joint initiatives  Identify local practices of high added value and disseminate on a regional level  Integrate and coordinate with relevant initiatives which could create added value for the capitalisation of EUROMED Invest initiatives
  24. 24. Thank you for your attention Fearghus Roche Project Coordinator ASCAME General Secretariat