1. by Rafel Mayol

2. The European Union (EU)
 Comparable size in Economy and Population

3. Europe Energy Consumption
 61.3% of Oil used in Transportation
 96% of Transportation relies on Oil
Transport
32%
Industry
27%
Households
26%
Services
13%
Agriculture
2%
EU27 Final Energy Consumption by Sector (%)

4. The Problem
 Dependency on oil: volatile and non reliable source
 Price will increase over time
 Challenges:
 Freight movement doubled by 2050
 Already heavy road congestion

5. The Situation: EU vs US
27.4
18.5
26.9 27.1
0.1
39.5
28.6
19.6
12
0.3
Rail Road Pipeline Water Air
US Modal Freight
Transport Share (%)
1980 2007
 Sea shipping between European ports can improve
 Rail mode has fallen by 6.3% since 1995
 Road is saturated

6. The Rail Problem
 Potential to save oil
 Rail system is a glue of 27 different rail networks
 Different standards, train sizes and rail width
 Unreliable time schedules

7. Rail Solution
 Standardization of platforms, trains and systems.
 European wide approach vs “glue” approach: European
“Corridors”
 Separate infrastructure ownership from service
provider
 True market liberation

8. Short Sea Shipping Problem
 Most efficient mode but no free movement of goods
intra EU ports
 Extensive normative on borders, transportation and
health enforcement
 Different procedures in each country
 Different organs to deliver documentation

9. Short Sea Shipping Solution
 Highway of the Sea:
 Free movement for “normal” goods for ships moving
between European ports
 Connect ports to Transportation
Hubs
 Simplify procedures and deliver to
an unique government agency

10. Utilization Problem
 Freight Vehicles in Europe
 24% run empty
 Non empty vehicles run at 56% capacity
 43% Global Efficiency
 Solution:
 Mandatory 60% average efficiency within first year
 Up to 70% load efficiency within 5 years

11. Alternative fuel engines
 European initiative potential:
 Bring technology cost down
 Offer network of refuel points across Europe for freight

12. Alternative fuel engines solution
 Liquid Natural Gas:
 Mature proven technology
 Equivalent cost to gas is $1.50 per gallon
 Price down due new drilling technologies

13. Alternative fuel engines solution
 European approach
 Tax refunds to LNG buyers (earned thorough taxes on
oil) to increase offer and demand
 Deploy a European wide network of refuel points on
highways to assure system viability
 Mandatory by law
 Government owned but installed in current stations

14. Conclusions
 Increase transportation efficiency per energy unit
 Moving freight from road to water and rail
 Increase road efficiency
 Reduce dependency on oil:
 Natural Gas engines
 Reply Short Sea Shipping to the United States