Posts to appear on the #DidYouKnow section of the website

Innovation and Digitisation

Innovation and digitisation post Covid-19

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As we enter a new era in the Escola’s development and begin to work on our new project YEPMED, which aims to ameliorate the labour situation for young people across the Mediterranean, we have caught up with Anwar Zibaoui to share his thoughts on the importance of collaboration and sharing of know how in the era of the 4th industrial revolution, and the digitisation and innovation that come with it. Check out the full article below. 

The YEPMED Project aims to better match the labour market skills needs and dual TVET offer in the Mediterranean Port communities sector in order to contribute to jobs creation and productive economic growth. 

 

Anwar Zibaoui

Anwar Zibaoui, chairman of ACASME and founder of AZ Meda Advisors & Consulting

Twelve years after the world financial crisis sent the economies of the developed and developing world into disarray, we are once again facing an unknown situation. An unprecedented tsunami that has confined millions of people to their homes, shaken the stock markets, forced countless businesses to close, including local markets and restaurants and emptied our streets, paralyzing our economies. Historical precedents tell us that such a situation could significantly alter political and economic systems, reconfigure ideas and theories, and impose radical changes to our lifestyles.

In this case, the unexpected allies have been innovation and digital technology, which helped alleviate the impact of COVID-19 on individuals, businesses and governments. In the midst of the chaos, a new era set in the digital world is emerging, and with it creating new opportunities. Nevertheless the benefits of technology are not equally distributed, as more than 3.6 billion people on the planet still do not have access to the Internet. In the informal economy, teleworking does not exist. For millions of children, access to online education is a remote dream.

It is time to coordinate our reaction to the new challenges, because innovation and digitalisation are here to stay. Their implementation has accelerated exponentially and there is no turning back now. It has changed the way we work, learn, buy or socialise. We must be prepared for the so-called new normality.

Never before has the digital agenda been as necessary and vital as it is now. It is not only an immediate response to the measures taken to combat the virus, but it is also indispensable to research and innovation. The current economic models are breathless because of the speed of change. We are in the era of globalisation, climate change, pandemics, digital transformation, the collaborative economy, urban concentration and the depopulation of the rural world. All of these represent many changes that governments all across the globe are struggling to regulate. However, these also highlight new divergences and polarizations between economies and societies. This is why new responses are needed.

There is no doubt that technological change threatens jobs, but it can also create alternatives. Relations at work, between companies, employees, services, mobility… are evolving. The only key to progress is to improve innovation and education. As in everything else, the future of Europe, Africa and the Mediterranean lies in adapting, sharing experiences and moving forward together.

Following the current model, Mediterranean governments are focusing on job creation rather than on business creation. This is an outdated model that consists of launching massive public employment programmes instead of financing and investing in successful businesses that create jobs. It is clear that economic progress is directly related to training, research and innovation activities, and that there is a correlation between social progress and business activities.

The life cycle of companies should demonstrate to many countries that the secret of eternal youth is constant innovation. Governments need to balance expenditures and invest in tangible infrastructure such as roads, railways or ports. However, they must also invest in intangibles such as education, research and development. R&D is the key driver for building and consolidating a knowledge economy and implementing a culture of creativity in which young people are inspired, transform their ideas, raise their ambitions and pursue their dreams.

Entrepreneurship and the private sector can drive adaptation to technology and innovation, be the vehicle to engage young people and move forward. We must promote a new mental framework, a new attitude, harnessing the energy of young people, and fresh ideas, because these are the ones that bring opportunities. Innovation is a lever for value creation because it transforms the way we do business and has a multiplier effect on the growth of a nation and its companies.

Innovation is the way to growth and survival. It is the model for the promotion of a company or a country. Technology is already here, but by itself it is not the answer. It is a facilitator and accelerator of new ways of being and doing. To be able to create wealth and ensure a future, innovation is not an option, it is a necessity.

The Mediterranean region will have to create hundreds of millions of new jobs over the next three decades. This challenge presents an opportunity for the region to transform its economies and harness the creativity of its large youth population and the disruptive power of technology to create wealth.

Whether we like it or not, production lines will require less and less manpower thanks to more efficient machines, automation and robotics. In addition, the next wave will bring more artificial intelligence, 3D printing and new capabilities that will make additional manual labour redundant. We already know that 8 out of 10 jobs will be lost due to new technologies (not immigration or globalization), that 64% of the jobs that exist today will be automated, and that 66% of the jobs for the next 10 years have not yet been invented.

The transition to the fourth industrial revolution, combined with a crisis of governance, makes it imperative to thoroughly reconsider human capital and adapt education to the labour market in order to achieve prosperity and stability. New digital technologies generate a new competitiveness that, for the moment, does not apply to many Mediterranean countries. For the region, a successful transition would guarantee business competitiveness and be a determining factor for regional industrial consolidation. Doing nothing is a risk of negative impact on its future growth and productivity.

In our region, the most immediate economic challenge is not diversification or new tax regimes, but the creation of productive and sustainable jobs for the youth. At the same time, we must be equipped with the combination of talents and skills that will make industry 4.0 a generator of wealth and social peace. We must be concerned about the level of training of the workforce and its quantitative and qualitative nature. The factors that today allow us to better evaluate it are the development of the digital culture, the skills and the capacity to think creatively.

The region has an enormous human capital waiting to be developed. Education, the promotion of the private sector and an understanding of this technological revolution will be key ingredients for success. This is a complex task that will require a broad social consensus and determined action by governments.

The digital potential is unlimited. This represents an opportunity for the Mediterranean. A large market with rapid growth. A hub of innovation, creativity and entrepreneurship. Young people have the resources to find solutions to pressing problems.

Leaving the Mediterranean behind in the digital transformation is not an option. The pace of the fourth industrial revolution will wait for no one. As the United States and Asia move forward, Europe and the Mediterranean need to forge their own identity. Today the imbalance is obvious, and everything that prevents an improvement in innovative capacity is conditioning the future.

The main key to innovation is training. Companies that invest in their employees to provide them with the right knowledge are the ones that grow. Governments must do the same, improving qualifications and promoting innovation in all key sectors of the economy and in the education system. If they stop betting on the education of the new generations, they will condemn them to depend on others for life.

There is a great need for a new platform of collaboration that brings together governments with businesses and other actors interested in public-private cooperation in the Mediterranean, facilitating a progressive dialogue that understands and respects the values and culture of the region. Investment in young people is needed to unlock the demographic dividend in an area where the interests of governments, the private sector and international organizations are fully aligned. This requires joint action by all today, to ensure a prosperous region tomorrow.

This crisis will pass, but we must not forget that innovation and digitalisation are the path to survival and development, the fuel for constant progress and the model for the rise of a company, a nation or a region.

Article published in its original form can be found here.

Porto di Civitavecchia

The Port Community of Civitavecchia post Covid-19: What’s next?

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Marco Muci

Co-written by: Marco Muci, Escola Europea Intermodal Transport

Lidia Slawinska

Co-written by: Lidia Slawinska, Consultant for the Escola Europea

The year 2020 is slowly cementing its place in the history books as the year that the world stopped. The health, social and economic consequences of this year will be felt throughout both the developed and developing world well into the middle of the decade. Transport, the backbone of the consumer-driven industry that existed pre-Covid19 is undergoing a major shift. This can be said of both, freight and passenger transport. As we approach the autumn, and the start of our fall courses, we wanted to evaluate the situation in our partner ports. In this post Marco Muci, the Escola’s Country Manager for Italy, took a look at the current situation in the Port of Civitavecchia, and the outlook for its future.

The current crisis triggered by the spread of Covid-19 has caused tremendous consequences for the port of Civitavecchia and, subsequently the city itself;  much more than other ports in Italy. The root cause is quite simple: unlike many other ports that base their economy on the movement of goods, Civitavecchia bases its work mainly on the transport of passengers (both in cruises and ferries). All this was clearly demonstrated by this crisis, in which the total disappearance of tourism resulted in profound crises for shipping agencies, freight forwarders, port companies, guides, NCC companies and bus companies. More than half of the workforce of the port community is currently in layoffs, pending the end of the state of emergency.

To combat the aftermath that will result from this economic downturn, various proposals have been made by the stakeholders involved (by the association of shipping agencies in particular), to try to give a future to the port and its workers. Some of the more noteworthy ones are:

  • Mitigating the liquidity crisis of companies to cover the entire lockdown period at minimum. This is considered to be the fundamental issue to be solved in order to stabilize (and reverse the downward trend in) employment levels and revenue shortfalls of companies;
  • Reducing the burdens on companies by mitigating the tax wedge and introducing tax relief for companies that are committed to maintaining employment levels;

Simplifying the bureaucratic procedures that slow down the fluidity, and sometimes cause blockages, of goods and ultimately aim for a future based on automatized logistics processes and controls;

  • Increase the number of quays servicing container traffic in the immediate aftermath of the crisis whilst the passenger sector remains stagnant, and prepare other quays to take over once tourism is re-established in the coming years.
  • The Association of Shipping Agencies has proposed that, to minimize the consequences of the crisis, the costs related to the unloading / embarkation of goods should be reduced. A decrease in the rates of boarding / disembarkation fees would benefit the process of relaunching the port. Similarly, they have proposed an experimental reduction of the monthly anchorage tax amounts, which would result in a lower cost of the ‘port system’, making the port of Civitavecchia potentially more attractive;
  • A modernization of the existing docks, which would benefit the trades and the companies and improve the movement of goods;
  • The completion of the Simplified Logistics Zone, which would lead the way for a renewed interest in the port, increase the credibility of the port and its logistics system, and have significant effects for the territory through the exemption of VAT and duties for non-EU goods. Promoting Simplified Logistics Zone will attract industrial investment and revitalize international trade.
Port of Civitavecchia

The Port of Civitavecchia

Civitavecchia is now at a crossroads following the tremendous effects that coronavirus has had on the country as whole. Whilst waiting for the much coveted “European Recovery Fund”, which will give a breath of fresh air – so to speak – and a boost to one of the most affected economies in the world, the country can turn to one of the most effective solutions to recover and innovate – education. In 2019 the Escola Europea has opened its Italian headquarters at the premises of the Port Authority of Civitavecchia, investing in the potential of the port and the territory itself. In line with its ideals and goals, the Escola has already launched various projects and is preparing others that are about to begin – all designed to help develop the region. Its flagship – the MOST Italy course for professionals – is now in its sixth consecutive year. The course is an advanced training initiative for professionals that focuses on the Motorways of the Sea, and the promotion of intermodal transport as a base for sustainable transport chains of the future. This year’s edition will take place on board of a Grimaldi Lines Ro-Pax from 10 to 13 October 2020 on a crossing between Civitavecchia and Barcelona. During the training participants will have the opportunity to experience sustainable intermodal maritime logistics and the motorways of the sea first-hand, with ample networking opportunities provided to foster professional relationships that will last once the course is over.

Another project that the Escola has launched last year, which was welcomed by the training institutes and the Municipality itself, is “Formati al Porto”. This initiative, sponsored by key national associations, aims to bring students closer to the Port of Civitavecchia and its port community.  It is exclusively offered to university students, ITS students and those attending the last year of their high schools with study paths related to transport, logistics, circular and international economies. In this context, “Formati al Porto” will help today’s students – future professionals – acquire knowledge of the professions of the logistics sector, with a particular focus on maritime activities and intermodal transport. Ultimately the project will lead to a better technical preparation of the students, which will have an impact on the employability index of the participants.

The Port Network Authorities predict that the ports will be the ones to kickstart the recovery of the Italian economy. In the meantime the Port Authority of Centre-North Tyrrhenian Sea (of which the Port of Civitavecchia is part of) can move from the comprehensive network to the core network, a shift which would guarantee access to new resources and future possibilities to the port that serves as the gateway to the eternal city of Rome.

Final thoughts…

Milton Friedman, an American economist and a Nobel Memorial Prize in Economic Sciences laureate, once said that “only a crisis – real or perceived – produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around”. The Italian peninsula was hit very hard by the health emergency, and it is now that we will begin to see whether any real change (societal or industrial) will take place. The Port Authority of the Centre-North Tyrrhenian Sea has a tough and uncertain path ahead – with a potential shift towards freight-focused operations and the investment in infrastructures that would kickstart the economic recovery of the region. The ideas area certainly rampant – with sustainable transport options and innovative solutions to terminal operations available to all. Education is the key to identify and implement many of these changes – and it is in our hands to produce real change and make sure that the tragedy of Covid-19 has some positive outcomes.

Sources

Towards gender equality at sea

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Historically, the shipping industry has been dominated by men, and the sea has been deemed a “man’s world”. This pattern can still be witnessed today, with a larger percentage of male workers hired for onboard positions when compared to the low percentage of female employees. In fact, only around 2 percent of the world’s seafarers are women, with the vast majority (94%) employed in the cruise industry. Long months at sea, complemented by hard physical labour have driven this trend and made it difficult for women to join the crews of international tankers, containerships, etc and to balance out gender equality.

Today, there are organisations that work towards the normalization of women in shipping – with the IMO having launched several initiatives. One such initiative was setting the theme for the 2019 World Maritime Day as “Empowering Women in the Maritime Community”– and so providing a unique opportunity to raise awareness of gender equality and to give visibility to the contributions of maritime women all over the world. Similarly, since 2015, the European Neighbourhood Instrument has put special focus on gender equality and the economic empowerment of women on both shores of the Mediterranean, and has been working with projects that give light to the incredible work of women in Europe and Africa.  The Union for the Mediterranean itself has dedicated a vast amount of their social and civic work towards the empowerment of women, developing the employability of women in Africa, and WOMED, which aims to prepare the next generation of leaders.

Nevertheless, the shipping industry is not only composed of seafarers– it also comprises a whole network of professionals that design, build and manage on shore operations. Let us take a look at the situation in more detail.

Women at sea

The issue of gender equality in shipping is a very complex one, and has been on the radar of many international organizations for years (with a particular boost following the women’s rights movements that gained momentum in the late 2010s). In 2019, the IMO has tried to push the promotion of women at sea and begun to investigate the roots of any gender-related incidents. The studies have identified instances of sexual assaults and abuse directed at women on board of deep-sea shipping routes – in line with the general trend identified across many other industries following the rise of the #MeToo movement. Nevertheless, this has not been the principal barrier to getting more women to join crews onboard. “At the end of the day, it is all about equality – the work on board of a vessel is physically demanding. Even with the advances in automation, a lot of hard work still has to be done by the crew, and stamina and physical strength are a must! Women at sea should, of course, feel safe and comfortable, and at the same time pull in the same amount of work as the men crew members”, commented Vanessa Bexiga, a maritime engineer and seafarer herself. Routes with more frequent port calls are easier for everyone, as they help diffuse physical and psychological tensions between the crew members, and are more appealing for women seafarers.

Photo of Seafarer Daniela Andrade from the Ecuadorian Coast Guard #MaritimeWomenPhotoShare

Another issue identified by Bexiga is the lack of transparency and publicity visible in the shipping industry, which is the true barrier. Maritime news and developments almost always stay within the maritime sector, and do not transcend the social strata of the broader society. As a result, there is no true reference which can serve as an entry point for women to become interested enough to try to enter the maritime world – something that would need to change to put the profession on the radar of young women contemplating their future employment options.

Cruises are another story – in the last few years Celebrity Cruises in particular has taken on the leadership role in the promotion of women and sea, and began to push for the employment of women at sea. The most famous example is the advancement of Kate McCue to the role of Captain on the bridge of Celebrity Summit in 2015 (you can follow her on Instagram: https://www.instagram.com/captainkatemccue/?hl=en). She is now the captain of Celebrity Edge, and has gone down in history as the first American woman (and fifth overall) to have been given the command of a mega cruise ship. Last year Celebrity Cruises became the first company to boast of an all-female officer crew – further helping combat the perception that sea work is a man’s job. Visibility is key in normalizing the role of female seafarers, and to this end, the IMO has started the #MaritimeWomenPhotoShare hashtag – to make women seen both within the maritime community, and in the social media and news reports. You can check out the existing photo bank here: flickr.com/photos/imo-un/sets/72157713420624662/

Achieving complete gender equality is a long process, and it will take small and decisive steps to get there. It is not a sprint, but a marathon, and we are moving in the right direction.

Women on shore

Women on shore is a completely different story – as they are not faced with the same barriers as women on board. The months-long isolation is not a factor, and theoretically barriers shouldn’t exist for women who want to advance in the sector. As with many sectors, however, this is not the case. Women still get overlooked for promotions, and frequently aren’t trusted with positions of higher responsibility. Moreover, having children is a career-ender for a woman at sea, and it also affects the perception of the availability of a woman on shore.

It is not all bleak. Marta Miquel, the Chief Operations Officer at the Escola Europea, has noticed that many companies are realizing that women hold management skills that help enterprises relate better to current social trends, digitalization patterns and human resource management through the use of analytical thinking and pragmatism, with added touches of empathy and social sensibility. Automation in terminals has made it possible for employers to look for soft skills in their new hires – with the ability to speak English being at the top of the desired list – and the high number of female university graduates has made it possible for women to slowly even out the gender imbalance in the sector.  This is supported by the fact that the Escola Europea, a training center specialized in transport and logistics and founded in 2004, has noticed a significant growth in the presence of women in the industry. 50% of registrations for the training courses of the Escola come from female participants, who find themselves in the 18-22-year-old age group.

This balance is not evident in the Escola’s courses organized for executives, where the percentage of women is significantly lower. This could be seen in a positive and negative light, says Miquel: “The good news is that women at a young age are becoming empowered and seduced by this interesting industry. However, the bad news is that they do not get the chance to escalate as quickly as men, or get discouraged when accessing the sector.”

Maritime Associations for Women’s rights:

 

Officer Nkopuyo Abraham – photo by IMO #MaritimeWomenPhotoShare

If you are interested in this topic, take a look at the many different women’s right associations and capacity building programmes that are dedicated towards gender equality. The Women in Maritime Associations has launched a number of them, as listed on the WIMA’s website:

  • The WMU (World Maritime University) Women’s Association (WMUWA) aims to establish a network of past, current and prospective female students by expanding international networks with other organizations worldwide while planning for future growth: http://wmuwa.wmu.se/
  • Pacific Women in Maritime Association (PacWIMA) set up in Fiji in February 2004 and relaunched in Tonga in April 2016. (http://www.pacwima.org)
  • Network of Professional Women in the Maritime and Port Sectors for West and Central Africa launched in Benin in February 2007.
  • Association for Women in the Maritime Sector in Eastern and Southern Africa region (WOMESA) established in Kenya in December 2007. (http://womesa.org)
  • Women in Maritime Association, Asia (WIMA Asia) established in January 2010 and relaunched in the Philippines in 2015. (https://www.facebook.com/wimaasia/)
  • Women in Maritime Association, Caribbean (WiMAC) set up in Jamaica in April 2015. (http://wimacaribbean.com)
  • Arab Women in Maritime Association  (AWIMA) established in Egypt in October 2017 (http://www.arabwima.org/en/home)
  • Red de Mujeres de Autoridades Marítimas de Latinoamérica (Red-MAMLa), established in Chile in December 2017.
  • WISTA, formed in 1974, and connects female executives and decision-makers around the world- https://wistainternational.com/

This article has only touched the tip of the iceberg that is the topic of women in shipping. In the past 5 years a lot of progress has been made to improve the disparity that exists between the two genders. Although more work has to be done, we are going in the correct direction. “It needs to start in schools! I used to go to schools to talk about my experience as a seafarer and present it as an opportunity for young girls. The sea is my life, and I want to share it with young girls and boys alike. Historically it hasn’t been accepted as a profession for women, and this is why we need to educate the youth and normalize it for young girls. It is no longer only a fool’s dream – women are sailing the seas, and show no signs of slowing down,” concludes Bexiga.

Special thanks to Vanessa Bexiga and Marta Miquel for their contributions to this editorial.

Written by

  • Lidia Slawinska

 

Useful links:

#DidYouKnow: Spotlight on Algeria

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Mohamed Lazhar Benaissa

Mohamed Lazhar Benaissa Academic at the Ecole Nationale Supérieure de Technologie – ENST – Alger

In 2017 the Escola Europea, along with the Escola’s founding partners, has launched the MOS Magreb project. Its objective was to increase the cooperation between the countries in the North and South of the Mediterranean Sea. The project evolved into TransLogMed, which now counts with 42 partners from Spain, Italy, Morocco, Tunisia, Algeria, with the goal of incorporating other partners from Egypt in the future. The long-term objective of this project is to foster the development of the Motorways of the Sea between the Mediterranean countries, which will in turn help promoting inclusive growth and youth employability, as well as sustainable development in the region.

This month we have caught up with Mr. Mohamed Lazhar Benaissa, an academic at the École Nationale Supérieure de Technologie (ENST) in Alger, the deputy director for external relations and continuing education and a lecturer at the Escola Europea to give us an overview of the logistics scene in Algeria.

 

Logistics in Algeria

Algeria’s geographical location as the largest country in Africa, situated at the crossroads of important trade corridors (Europe-Africa, Mediterranean Sea), gives it the opportunity to play a major role in the field of logistics. To the north, Algeria has a 1,200 km long seafront overlooking the Mediterranean Sea and is home to 11 trading ports through which more than 95% of its foreign trade passes. However, this situation should not mask the numerous constraints related to the characteristics of these ports and their current organisation. According to the United Nations Conference on Trade and Development, the Maritime Transport Connectivity Index [1]for Algeria in 2019 is only 12.81/100, far behind countries such as Egypt (66.72) and Morocco (58.19).  This is because the ports are often of ancient foundation[2] and are located within large cities that have prospered without sparing the land reserves necessary for their harmonious development. Whether first or second generation, these ports are subject to simple load breaks and do not meet the criteria that characterise modern logistics ports[3]. Currently the feedering used consists of coupling transoceanic containerised traffic headed towards large European ports with short-distance traffic headed towards Algeria, which increases the transit time of inputs. This will subsequently see their time lengthening once again during the transhipment operations. This results in insufficient yields and malfunctions that generate incessant bottlenecks and yields additional logistics costs.

The Algerian fleet

As regards the Algerian maritime fleet, as of the end of 2017, it was made up of 16 (often) obsolete units distributed among :

  1. 8 bulk carriers, 4 multi-purpose vessels and 2 RO-RO vessels belonging to the public company CNAN[4],
  2. 1 RO-RO and 1 bulk carrier belonging to the private company Nolis, a subsidiary of the Cevital[5]group.

What about containerisation?

As for containerisation, which has been gaining significant market share value over the past several years, it has proven of great benefit to foreign shipping lines as, in the virtual absence of the national flag, it allows them to freely set transport prices. According to World Bank figures[6], container traffic increased from 2007 to 2018 from 200.050 to 1.465.800 TEUs respectively, which is equivalent to an average annual growth rate of 20.6%. Given this growth opportunity, it is not surprising that we are witnessing the establishment of international terminal operators in Algerian ports such as the Singaporean Portek in Bejaia and the Emirati DP World in Algiers and Djendjen.

Where is Algeria on the digitisation scene?

During port passage, the lack of a rapid information systems makes it difficult to forecast the capacity of goods to be loaded, which, in the case of temperature-controlled products for example, would keep them on the quayside without any guarantees of preservation and respect for the cold chain. At the time of writing, only the Algerian customs can use a computer system called SIGAD in order to speed up the customs declaration circuit. In its most recent version, this system has a risk management system that classifies goods according to 3 circuits: green, orange and red. In the green circuit, goods are not subject to examination. In the orange circuit, the control consists of a documentary examination and in the red circuit, a physical inspection of the goods is required.

What of intermodal transport?

In terms of land transport infrastructure, Algeria has substantial networks whose quality has improved in recent years. Nevertheless, the motorway network is still insufficient and the lack of connections to several ports bears a cost. The rail network, for its part, is still in the process of development in terms of quality and coverage.

Road transport logistics, which dominates 90 per cent of goods flows, is only slightly outsourced by companies, since more than 50 per cent of the market is still handled by own-account transport. There is currently a growing awareness of the advantages of using transport for hire or reward and outsourcing the transport function, and the opportunities for growth for this sector are ample.

The provision of road transport services has long been a public monopoly. The opening up of the sector in 1988 led to an atomisation of the sector through the creation of very small companies with vehicles of all ages and of varying condition. It is therefore more a question of small-scale, or even informal activities that risk increasing the financial and organisational risks and reducing the scope to optimise the services offered. Air transport plays only a marginal role and rail freight activity, which is already weak, has been in inexorable decline for decades and is limited to heavy goods transport. Multimodal transport is almost non-existent.

Distribution is dominated by wholesalers present in most economic sectors and in particular in agri-food products (beverages, sugar, etc.). Few of them follow known logistics models, such as Numidis of the Cevital group. Indeed, with the exception of large conurbations (Algiers, Oran, Sétif…), where large modern warehouses are beginning to appear, storage facilities are of modest size (from 2 to 4,000 m²), of old-fashioned design, lack functionality and do not have special equipment such as loading docks. The players are either industrialists (acting on their own account), wholesalers or retail traders.

Logistics Warehouse in Algeria

Modern logistics warehouse in Bouira (Cevital)

Thus, logistics services are essentially limited to the subcontracting of transport operations.

Can you tell us a little bit more about the training situation in Algeria?

The current supply of training is insufficient in many areas, no doubt due to the lack of formal demand from the sector and a lack of impetus from the public authorities.

The Algerian authorities have been trying to improve the logistics situation since 2007, when the first master plan for the establishment of new logistics platforms was prepared. However, the implementation of the latter has not yet materialized. The other actions undertaken were :

  • The World Bank has been approached to prepare a logistics strategy and upgrade the legislative and regulatory framework, as several ministries and agencies are currently involved in logistics and are sometimes in conflict of jurisdiction;
  • The preparation of a project for the construction of a modern port in Hamadania about 100 km west of Algiers with a Chinese partnership;
  • Digitisation through the implementation of an electronic port one-stop shop. This will help unite the whole logistics chain of the ports and the segments that interact in its activities. It will also enable the digitisation of procedures and a better coordination and planning of port operations.

One can already wonder whether these actions will end up putting logistics in Algeria on the rails of modernity.

 

References:

[1] https://unctadstat.unctad.org/wds/TableViewer/tableView.aspx

[2] With the exception of the oil ports of Arzew, Skikda and the general cargo port of Djendjen, built after Independence, the rest of the infrastructure was built between 1840 and 1959, initially built to allow exports during the time of colonization.

[3] Algerian ports are characterised by shallow draughts and narrow gravel pits, which are incompatible with modern port operating requirements.

[4] The average age of the CNAN fleet is between 30 and 35 years, which corresponds to that of the technical reform.

[5] The two Nolis vessels are mainly used to cover the transport needs of the Cevital group.

[6] Site https://donnees.banquemondiale.org/indicateur/IS.SHP.GOOD.TU?locations=DZ consulted in May 2020

The Ship Agent

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When we think about the arrival of a vessel to the port, the first thing we think about is the loading or discharging of the cargo. Even though this is not entirely incorrect, many ships have more specific requirements and needs upon arrival. This is where the role of the ship agent comes in, and this is what we chose to focus on in this post for our #DidYouKnow series.

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Railway Lines

The essential railway infrastructure and equipment – Spotlight on Spain

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The European railway system transports around 1.6 billion tonnes of freight each year. The railway is central to the EU’s strategy for a more sustainable transport sector, helping ensure economic and social cohesion and connecting Europeans within and between Member States.

The density of the national rail networks reflects the different geographical characteristics of the countries, with the Nordic and Baltic countries having the lowest rail network density on the continent.

Rail has the potential to play an important role in accelerating the reduction of transport emissions. “Rail only represented 2% of total transport energy consumption in the EU, while representing for 11.2% of freight and 6.6% of passengers in all modes of transport in 2016” (data from the Report from the Commission to the European Parliament and the European Council, 2019). However, rail freight also has a number of other advantages: improved safety of goods compared to other means, lower accident rates, more storage capacity as a large volume of cargo can be transported over very long distances, and the potential for intermodality, if necessary.

Maintaining and renewing the existing network to improve safety and operational performance as well as ensuring a reliable service is a major challenge for infrastructure managers, especially in the face of increased traffic and demanding performance targets set by national authorities and operators.

This results in a number of disadvantages that caused this means to not be one of the most used for the transport of goods. It is conditional on the existence of infrastructures that are non-existent in some European countries. In addition, this means that, unlike other means, there are very few occasions when it can reach the warehouse or the final destination of the goods without the help of complementary means (such as the road).

Mandatory Intermodality

Rail transport falls under the intermodality umbrella, as it requires road transport to chauffer the goods from the point of origin to the railways, and to their final destinations. Rail gauge: The width of the gauge can differ from one country to another, which can cause difficulties in the transhipment of goods, and thus result in a significant increase in the expense of money and time.

The EU’s railways continue to grow. Rail markets are gradually opening up and safety levels remain high. This sector is increasingly demanding in terms of performance, innovation and responsiveness to customer needs. Rail transport’s fight to increase its modal share remains centered around interoperability and cross-border coordination issues. Corridors are a key part of the Commission’s policy to boost rail freight. The Rail Freight Regulation and the train drivers Directive are still being evaluated in order to boost and facilitate rail transport.

Spain

Locomotive of RENFE - the Spanish railway operator

In Spain, the railway represents around 4% of the total freight transport market. This market share has decreased in recent years in favour of road transport. Although part of this trend is common to other countries, the rail market share in Spain is much smaller. For example, rail represents 19% of the total goods market in Germany and 15% in France –  nearly four times the Spanish equivalent.

If the sector can convince transporters to opt for rail motorways to reduce costs, and get exporters and importers to bring their goods to the ports through the use of the rail, it is likely to grow in the coming years.

To improve international rail freight traffic, France and Spain have re-launched two rail motorways between the two countries, through a call for expressions of interest. This marks the first step in finding out whether or not the infrastructure is viable in the region.

Intrigued? The Escola organises courses focusing in particular on maritime rail and maritime-road intermodal solutions, called SURCO. Contact us if you’d like to know more and to find out when the next courses will take place.

Written by:

  • Raquel Nunes – Co-founder of Youngship Portugal

Temperature controlled logistics: Spotlight on pharmaceuticals

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Professionals operating in the field of temperature controlled logistics need to take into account the condition of the products across all stages of the supply chain – beginning with storage and product preservation, through the transport of the cargo that is sensitive to changes in temperatures or varying atmospheric conditions, up until delivery to the customer. This broad spectrum of products includes pharmaceuticals, which need to be handled under particularly strict conditions as any changes may affect chemical stability or alter their properties, and cause serious health-related consequences to the end-consumers as a result. To ensure that these changes do not occur, pharmaceutical companies have to be able to prove that their products are transported through a stringently temperature controlled supply chain. It is vital that all parties involved, from the producer, conveyor to end customer are assured and can prove the integrity of the cargo.

The responsibilities in the temperature controlled supply chain vary among each of the parties. While the carrier needs to be responsible for preserving the transport conditions indicated for each type of medicine, the producer needs to ensure that the carrier is aware of the acceptable margins of error for temperature changes, what are the risks that may be acceptable, and what actions should be avoided to preserve the integrity of the product, etc.

Companies operating in the pharmaceutical cold chain should be kept up to date with the latest market regulations and standard rules. Due to the complexity of transporting these types of cargo, this task can be challenging. In the EU, the Directive 2001/83/EC is the foremost legal document guiding the production, distribution and use of medicinal products. In addition, other organisations regulate and establish new procedures, including theWorld Health Organization, Parenteral Drug Association, International Air Transport Association, Pharmacopeia, among others.

Though it is important to recognise that different medicines and different transport methods have their own characteristics of preparation and transport, there are general considerations that must be taken into account regardless of the pharmaceuticals being transported. This includes questions such as whether the storage facilities at the destination similar to those of the origin. Refrigerated vehicles or passive cooling systems will have to be considered to ensure the drugs not be compromised en-route. Minimising the amount of time the pharmaceuticals spend at ambient temperatures is critical, especially in warmer climates. The load needs to be securely stowed inside the transport units to ensure uniform air circulation and temperature distribution. Frequently, the use of temperature and humidity measuring devices is recommended.

Air freight temperature controlled logistics

Air cargo transport is the most popular method of transport for cargo with high levels of temperature control. Air transport is advantageous when it comes to speed issues, overcoming geographical obstacles or lack of infrastructure for other means of transport. The main weakness of this type of transport? It is extremely expensive, both in financial costs and in terms of the  environmental footprint.

Sea freight temperature controlled logistics

Around 20% of pharmaceutical payloads are moved via ocean freight. Sea freight temperature controlled logistics is substantially cheaper when compared to air freight shipping. It also offers a more controlled environment in comparison to air transport. There are fewer control points and disruptions, as sea freight cargo will not be touched until it reaches its final destination. With new technologies in the maritime sector, the transport units allow tracking and monitoring in real time (a big plus for the clients!). There are few load movements, which limits the potential breaks in the cold chain and potential exposure of the products to ambient temperatures. The main weakness? It is considerably slower than air transport.

In general, there is an enormous mindset that this type of products due to their characteristics and specificities must be transported by air.

The main question thus is: Air or sea freight transport? Sea freight, done well, is an excellent mode in the right circumstances, though the same is true of airfreight. It is understandable that emergencies will always require medicines to be transported rapidly from point of origin to destination, but with tighter regulations on the temperature control and cold logistics chain in the pharmaceutical industry ensured by the maritime authorities, the gap between air and sea freight is closing in.

Intrigued? Check out our upcoming course on Temperature Controlled Supply Chains.

Written by:

  • Raquel Nunes – Co-Founder of YoungShip Portugal

Innovative cruises for the modern day passengers

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This year the Escola Europea will for the first time hold a course dedicated to Cruises and Port operations – a course aimed at helping industry professionals understand the characteristics, specialities and implications linked to such an important section of the transport sector. Previously the Escola has held cruise-related course in collaboration with Medcruise in the years 2007, 2010 and 2012, which were open to Medcruise port staff and members. This new course extends the cruise and passenger knowledge further to the wider public.

Cruise shipping originated in the United States, and was initially a leisure activity predominantly linked to the upper classes of the social spectrum. Today, however, with lower costs, coupons and different packages offered by cruise companies, all members of society around the globe can use the cruise industry to spend their holidays, whilst visiting a number of different port cities in the cruise’s route. Cruise shipping is now popular not only in the United States and around the Caribbean Sea, but also in Europe (North Sea and the Western Mediterranean in particular), Asia and the Oceanic isles. It is “defined as a mixture of maritime transport, travel and tourism services, facilitating the leisure activity of passengers paying for an itinerary and, potentially, other services on board, and includes at least one night on board on a seagoing vessel having a capacity of at least 100 passengers” (Pallis, A.). The companies operating in this industry need to take into consideration a number of characteristics specifically linked to tourism – as cruises are important vessels that facilitate it. “On-board amenities, itineraries, ports of call, and shore excursions” are but a few of the things a cruise liner needs to consider when planning a regular route. Additionally, to respond to a growing number of passengers and vessels, the industry has had to continuously evolve to “embrace innovation to develop new destinations, new ship designs, new and diverse on-board amenities, facilities and services, plus wide-ranging shore side activities” (Pallis, A.). It has also become common for cruise lines to differentiate themselves from their competition by creating themed cruises and by offering flexible packages to appeal to all demographic target groups at their disposal.

How are cruise liners and cruise ships related to the transport sector, one might wonder? Although predominantly seasonal, cruises are responsible for the transport of vast numbers of tourists, therewith contributing to the economic prosperity of the inland areas of the ports of call. The graph below (taken from Cruise Market Watch) shows that in the past 30 years the number of cruise passengers globally has experienced continual growth – leading to the need for new innovative cruise designs, and the evolution of Smart Ports and Smart Cities that can both process the larger amount of human capital as well as ensure seamless and pleasant experience for those arriving and departing.

Smart (Cruise) Ports

With tourism being one vital factor in economic development of regions, it is important for the ports that welcome cruises to serve not only the passengers, but also to ensure that the vessels get the most ecological, efficient and safe transit that they can get. Cruise ships are getting larger and larger to accommodate the larger number of passengers, and cruise ports need to make sure that they have a sufficient number of deep-water berths, or in the absence thereof to be able to offer attractive logistics solutions to accommodate the passenger requirements and their experiences (such as tendering in some smaller ports). This continuous on to the sizes of the terminals servicing the cruises, the transit connections to and from the cities connected to the ports, luggage transfers, food provisions, among other things.  “Traffic, parking and human resources are issues that are scalable, but multiple ships can easily break down the infrastructure of a facility. In ports of call, the transport and dispersal of tours is another challenge” (Jordan 2019).

Source: Cruising.org (https://cruising.org/-/media/Images/CLIA%202018%20Passenger%20Numbers )

Smart ports need to take full advantage of innovative and “smart” solutions to help passengers maintain the “holiday” feeling whilst in transit, all the while ensuring that the innovative solutions implemented are cost-effective and durable. Check-in counters are becoming obsolete at terminals whilst security is taking the reins in passenger processing. Passengers can send their baggage off using ship-to-shore companies, therewith saving them both time and ensuring ease of embarkation.

Ecologically, port operations need to strive to be emission free whilst still effective to serve the colossal ships coming to call – both to provide any servicing or supply services that may be necessary or simply to re-fuel and re-stock the amenities available on-board.

Source: CLIA (https://cruising.org/news-and-research/-/media/CLIA/Research/CLIA-2019-State-of-the-Industry.pdf)

As cruises are seasonal, ports also need to be creative about the use of the terminal space during the off-season – some ports have begun using the space as event rental spaces, to help offset any potential losses when no cruise ships come to call.

The sector has been growing on all fronts in recent decades. Very recently, however, this growth has been centred in luxury and exploration cruise tourism, which calls for a different and more specialized offers that incorporate ports and atypical routes to attract the attention of passengers seeking to maintain their passions without having to commit to general and global packages. The list of the types of smaller vessels that accommodate such tourism in the shipyard is extensive. Moreover, in addition to such refocusing of the cruise industry, we will also see the incorporation and increased activity of small ports that will be capable of welcoming such new and innovative cruise vessels.

Many of these themes and topics will be covered in the Ports and Cruises course (https://escolaeuropea.eu/calendar/ports-and-passengers-2020/). The course, initially scheduled for the end of March 2020, has been postponed to take place in November 2020 (dates are provisional). If you are interested and would like to hear more about this course, contact us for more information.

 

Written by: 

  • Lidia Slawinska, Escola Europea – Intermodal Transport
  • Vanessa Bexiga, Escola Europea – Intermodal Transport

 

Sources:

Jordan, A. 2019. New Designs help Ports Support Growing Cruise Industry – an Interview. Maritime Executive. [Accessed 18 February 2020] https://www.maritime-executive.com/features/new-designs-help-ports-support-growing-cruise-industry

Pallis, T. Cruise Shipping and Urban Development: State of the Art of the Industry and Cruise Ports.  International Transport Forum [ Accessed February 17 2020]

Naci Polat / Procedia – Technical Innovations in Cruise Tourism and Results of Sustainability. Social and Behavioral Sciences 195 ( 2015 )p. 438 – 445

 

Developing sustainable Intermodal Transport Networks: a challenge for logistics

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As 2020 comes to an end, in this final issue of the Odiseo of 2019 I want to focus on networks and the elements that make them up. There are a few main protagonists: the people they serve and, in many cases, those who benefit from them.

The western Mediterranean is an area composed, in the South, of Mauritania, Morocco, Algeria, Tunisia and Libya. In the North the Sea houses the countries of Portugal, Spain, France, Italy and Malta. It is home to a total of about 290 million people. It has a young South, where 43% of the population is under 25 years old, compared to the 25% in the northern countries. In the North the situation is reversed, where 33% of the people are 55 years old or older. In the south, this number does not reach 15%. The North hosts about 190 million inhabitants facing close to a hundred million in the South.

The three networks that structure the development of our society

Why are we talking about networks? We live immersed in all kinds of networks, and often we are not very aware of them. Our society and economy are built around three major networks: energy, telecommunications and transport. In Europe, these first appeared in the Maastricht Treaty in 1992, and their function was primarily set to link all regions, contribute to the growth of the internal market and job creation, while simultaneously achieving environmental and sustainable development objectives.

These networks serve us efficiently on a daily basis. For transport to function smoothly, we need energy networks, comprising petrol stations, electricity charging points, natural gas supply points and, as well as the currently emerging, new, less polluting energy sources.

Telecommunications allow us to make digital payments by cards, financial transactions, give us access to the World Wide Web, e-commerce, e-mail, IoT and capture data for the use of intelligent transport management systems, among many others.

In transport services, we have two clear examples: the container, which is already widespread through the global network, and is generally accepted and not questioned by the industry members, and on the opposite side of the coin – the railways, which in today’s climate need to make progress to obtain better standardisation systems. This is particularly true in Spain.

Each network has to follow its own operating rules. For example, when we go to a gas station, we know what kind of fuel is there on offer. In the field of electronic communications, the Internet has taken control of the entire market. We have already mentioned the containers in which 20, 40 or 45 feet have become the norm. On the roads, more and more signalling systems and traffic rules are becoming unified. Finally, in road construction itself, international standards are used to classify the different categories.

Building a network

Networks facilitate progress. There are set architectural designs that have been developed to ensure such progress, and which almost always has positive consequences. A network is built with supporting infrastructures. In communication networks, we have service stations and, in some cases, gas pipelines for the transport of fuels or gas. In the field of transport, we have ports, logistics platforms, roads and road and rail infrastructures.

We can then turn to these infrastructures and provide services that support the network. It may involve the simultaneous incorporation of several networks that are necessary to be able to provide the services that the networks have as their main objectives. Finally, operational regulations and a form of governance needs to exist that will establish rules, standards, access and guidelines, among other things that would facilitates their use and growth.

Once an adequate operational structure is established, the network must develop to consolidate. This requires collaboration and information sharing. Best practices, training, and working with specialised groups are important for the take-off and growth of a network. Once a certain size is attained, the network will be able to contribute with more value before becoming a normality. For example, today, it would be very difficult and costly to replace the Internet or the widespread use of maritime containers.

With a consolidated network, new services, new functionalities, transaction optimizations, new challenges and new components emerge.

Transport Networks

Europe proposed a trans-European network in the same way as Ferrmed[1] proposed a rail network in the Mediterranean. Since then, networks of logistic towing of semi-trailers closely linked to short sea shipping have been proposed. These then help improve freight transport systems and reduce overall costs. When thinking of transport units, these would be our core networks for manufactured products, while for ro-ro transport, RO-RO vessels and ferries are heavily relied on.

The first element that emerges is the topology of the network. We start from the basic elements that make up networks: nodes and vectors, which in turn form different sets according to the product flows and the criteria with which they are constituted. Taking the airport model as a reference, a modern mode of transport that has evolved very quickly and efficiently, we can see that there are networks with point-to-point relationships that have evolved into networks with hub and spoke nodes that have allowed us to respond to the sizes of the aircrafts. And this, in turn, has evolved into hybrid systems. Thus it can be summed up that the network is configured according to the means of transport, structure and volume of traffic.

When looking at the port level in the Mediterranean region, there are clearly defined Hub ports, such as Algeciras and TangerMED. Ports that could be classified as hinterland or Gateways also exist. These include the likes of the Ports of Casablanca, Barcelona, Genoa or Civitavecchia.

Today, we have a network that is used to set priorities and let me say that I believe that it is above all a question of avoiding arbitrary decisions or decisions that can only be justified for reasons that have nothing to do with the efficiency of transport infrastructure and services.

A network seeks to develop a competitive and resource-efficient transport system, as indicated in the Commission’s 2011 White Paper on Transport. A network enables the internal market to function properly and strengthens economic, social and territorial cohesion. It facilitates the mobility of people and goods in a simple, safe and sustainable way. It facilitates accessibility and connectivity in all regions that contribute to economic development and competitiveness. And, instead of focusing only on the European region, it is interest to think about the Western Mediterranean per se and to have a good starting point with some of the important criteria for building the networks that are needed today.

TEN-T Network structure

The Trans-European Transport Network has a two-layers structure, comprising a core network and a comprehensive network covering all Member States.

It is a core network that exists without bottlenecks or discontinuities to facilitate interoperability between the different modes of transport.

It exists with urban nodes, logistics platforms, freight terminals, ports, rail terminals, airports, and with a maritime dimension with the motorways of the sea. The TEN-T is a network that uses innovative technological solutions, which have a vital role to play in transforming transport to make it accessible to all citizens and to create a safer, more sustainable, low-carbon and energy-efficient system.

The core network corridors cover the most important long-distance flows of the core network and aim, in particular, to improve cross-border links within the Union.

These corridors are multimodal and are open to the inclusion of all modes of transport. They shall cross at least two borders and, if possible, include at least three modes of transport, including the motorways of the sea, where appropriate.

In addition, special attention is paid to the measures necessary to ensure the safety of fuels through increased energy efficiency and promote the use of alternative energy sources and propulsion systems, in particular low-carbon or carbon-free; to reduce the exposure of urban areas to the negative effects of transit transport by rail and road; and to help the removal of administrative and technical barriers, in particular to the interoperability of the trans-European transport network and to competition.

WestMED corridors

When thinking about the Western Mediterranean, or the WestMED area, the corridors of particular interest to the Escola are:

  • The Baltic-Adriatic Corridor (Poland-Slovakia-Austria-Italy)
  • The Atlantic Corridor (Portugal-Spain-France)
  • The North Sea – Baltic Sea corridor (Finland – Estonia – Latvia – Lithuania – Poland – Germany – Netherlands – Belgium)
  • The North-Mediterranean Sea Corridor (Ireland-United Kingdom- -Bass-Netherlands-Belgium-Luxembourg-South France, because Brexit became Ireland-Belgium-Netherlands and France).
  • The Mediterranean corridor (Spain-France- North Italy-Slovenia-Croatia-Hungary)
  • Scandinavian-Mediterranean Corridor (Finland-Sweden-Denmark-Germany-Austria-Italy)

The corridor approach can be used as an instrument to coordinate different projects on a transnational basis and synchronise its development, thus maximising the benefits of the network. These projects should contribute to cohesion through better territorial cooperation. In order to ensure effective and efficient implementation of the corridors, each corridor is supported by a European coordinator.

Ports have come to play a fundamental role in structuring the network because they are the main modal exchange points. If we focus on the WestMed area which includes the Atlantic area, the Alboran Sea, the Balearic Sea and the Tyrrhenian Sea, we have 20  main ports in the network. In Portugal Porto, Aveiro, Lisboa and Sines; in Spain Seville, Algeciras, Cartagena, Valencia, Tarragona and Barcelona ; In France Perpignan and Marseille. In Italy, Genoa, La Spezia, Livorno, Civitavecchia – Rome, Naples, Gioia Tauro and Palermo; and in Malta Valetta.

Seaports Infrastructure on the Network

Seaports are the entry and exit points into the land infrastructure of the core network.

Equipment associated with maritime transport infrastructure may include equipment for traffic management and freight transport, for the reduction of negative effects, including negative environmental effects, and for the use of alternative fuels, as well as for dredging, maintenance and security of the port and port access.

Maritime transport infrastructure includes in particular: maritime space, sea lanes, sea ports, including infrastructure necessary for transport operations in the port area, port connections with other modes of the TEN-T network, docks, locks and quays, aids to navigation, port access and canals, jetties, motorways of the sea, related equipment and telematic applications, including electronic maritime services.

Motorways of the Sea

TEN-T policy also focuses on the development of the “Motorways of the Sea” (MoS), for which a European coordinator is responsible for leading the process of its harmonised implementation.

A European maritime space without barriers, which I hope will soon become a Mediterranean space without barriers, includes short sea shipping lanes, ports, associated marine infrastructure, equipment and facilities. It aims to simplify administrative procedures allowing the operation of short sea shipping services between at least two ports, including their hinterland connections.

MoS include seaports on the core network or between a port on the core network and a port in a third country. This means that today, the port of the third country cannot receive direct funding, but it can benefit from the funding received by the whole operation. It also includes port facilities, freight terminals, logistics platforms and freight platforms located outside the port area, but associated with port operations, information and communication technologies (ICT), security and safety, and administrative and customs procedures in at least one State.

Today, MoS operations also include activities aimed to improve environmental performances of the vessels, ports and hinterland operators, which includes shore-based electricity supply that helps ships reduce their emissions, airworthiness activities throughout the year (dredging), alternative re-fuelling facilities, the optimization of processes and procedures, the human element that would include training, and finally the ICT platforms and information systems, including traffic management systems and electronic reporting systems.

Shipping Lines

Shipping lines are the networks’ champions. Existing or new maritime services that form part of a door-to-door logistics chain, help group freight flows into viable, regular, frequent and high quality short sea shipping links.

The MoS network can replace a significant part of the expected increase in road transport.

The Lines are now an essential part of the network configuration. They are the real protagonists of the operations. Almost all of them private, and as such they bet their money.

The evolution of the sector will depend to a large extent on this. Infrastructures are indispensable, but they are far from sufficient. The services and quality offered will determine the future. Opportunities for improving exports depend to a large extent on traders and customs. We hope that together we can help them to develop properly.

 

 

 

Railway connections

The rail part is now one of the main elements of port development. In Barcelona the company VIIA offers rail motorway services. These are new and very powerful concepts. Trucks can now travel on the motorways of the sea to connect with the railways motorways that connect Northern and Central Europe with very short transit time and high-quality services. This represents a new way of understanding intermodality, which is currently undergoing spectacular development. Today, we have significant volumes in the transport of semi-trailers, cars, containers, and refrigerated containers, and in most parts of the continent the rail market in ports continues to grow. This, sadly is not the case in the Spanish rail freight transport market.

Digitization of transport operations

Finally, one of the elements that is of vital importance at this time is the digitization of transport operations. This technological aspect of the networks enables traffic management and information exchanges within and between modes of transport for multimodal transport operations and transport related value-added services, improves safety, environmental performance and simplifies administrative procedures.

The digital services should facilitate a seamless connection between the core network infrastructures and regional and local transport infrastructure. An important player is the Port Community System.  In Barcelona we have Portic and in Morocco we have PortNET. They will play a fundamental role in the digitization of operations in their respective areas.

The digitization of transport operations is linked to a topical subject in Europe (but one that is increasingly catching on in Morocco, Tunis and Algeria on the other side of the Mediterranean): one of the National Single Windows.  I believe that they represent an unique opportunity as customs can take advantage of all the information they receive. If a framework of trust between the public administration of all this countries is possible, then the increase in the speed of operations will be inevitable. I hope they can give us joy in the near future.

The money factor

And I’ll finish with the money. Everything that has been proposed must be funded. Europe has embarked on a path where it relies heavily on sophisticated financing models. These include PPP, participation with bonds, bank financing, subsidies, etc.

One of the sources that provides clarity on this subject in Europe is the information from the European Parliament, which is working on the “Multiannual Financial Framework – LEGISLATIVE TRAIN 11.2019” programme, set to cover the period between 2021 to 2027.

This programme will replace the CEF and aims to develop transport, energy and digital infrastructure within the framework of the trans-European networks. With very significant investment figures, since it is 42.3 billion euros, compared to 23.2 billion for the 2014-2020 period of the EFC. It sets out certain priorities that will have to be analysed: decarbonization, digitization, transition to clean energy and improve digital connectivity.

Conclusions

Finally, we circle back to the beginning, to the transport networks: Trans-European, Trans-Maghreb, Trans-African or international. They will all fight to compete and, in some cases, to cooperate and develop.

Today, we know that the China Belt and the Silk Road initiative could complete a logistics chain from Japan to Russia to Central and Northern Europe. This reconfigures the world again, with transit times of 19 days between Japan and Europe. We are live in exciting times.

I would like to leave you a message, summarizing what was said before:

Networks are a fundamental element for the development of advanced societies; A network is solid if it is easy to use.

Logistics is a networking factor which can help us improve the countries in which we live in.

Let’s do it!

Eduard Rodés

Director

Escola Europea – Intermodal Transport

 

[1] http://www.ferrmed.com/sites/default/files/2019-04/FERRMED%20GLOBAL%20STUDY%20BOOK.pdf

2020

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If you work in shipping and after seeing this number the first thing that comes to your mind is EMISSIONS, then you are on the right track!

In the previous Blue Innovation post we talked about the OPS as the means to control emissions in ports. However, seafarers have a saying that says “A ship in port is safe; but that is not what ships are built for,” which reminds us that a ship spends most of its life time in navigation. Even though emissions in port directly influence the communities nearby, the emissions from ships affect the environment in general.

It is not a new development for the IMO to work towards environmental responsibility. Since 1997 it has officially had the MARPOL Convention. In terms of emissions, by 2005 chapter VI of the convention has entered into force which aimed to control SOx, NOx, and other particle emissions that affect the earth’s ozone layer. Each year there is more responsibility and pressure coming from the IMO, encompassing the complex discussion of measures in favour of the environment within the complex understanding of the great changes and challenges involved in the issue. The complexity is there as it is a decision that calls for the necessary initiatives and technologies to be able to improve (decrease) emissions, considering the responsibility implied by the potential incidents that would affect the means of transport that mobilises 80% of the world’s goods.

The IMO has been known to set emission guidelines for decades, however quite a bit of controversy has surrounded the 2020 expectations. For instance, currently the global limit of sulphur contents of ships’ fuel oil is 3.5% and with the entry into force of the new limitations on the 1st of January 2020, emissions will need to be reduced to 0.5% SOx. The ECA zones will not be affected with this limitation, as these emissions have already been limited in 2015 from 1.0% to 0.1%.

What do all these changes mean and how to they relate to our Blue Innovation section? In this issue many of the alternative solutions to the challenges set by the IMO 2020 regulation will be listed, which will then be provided with source links for anyone wishing to delve deeper into the subjects.

In a way, as a consequence of the global concerns and pressures to tackle climate change, technological developments are the ones that are going to be able to face all these changes with the smallest possible impact on the global economy. This signifies the need to not only change the fuel type used by commercial vessels, but the logistics of bunker supply, adaptation of machinery and installations and procedures that take a lot of time as well, especially when thinking about more than 95,000 merchant ships worldwide.

ALTERNATIVE FUELS

In order to meet the new IMO regulations, ships have several options, including fuel quality (low sulphur fuel oil) and alternative fuels (methanol, biofuels, LNG, H2, etc.), which require major adaptations to the engine systems.

M/V AIDA Nova on LNG bunker operation at the Port of Barcelona. Source: http://www.spanishports.es/texto-diario/mostrar/1401337/puerto-barcelona-recibe-primer-crucero-propulsado-gas-natural-licuado

 

HYBRID AND ELECTRIC PROPULSION SYSTEMS

On the other hand, some proposals include the use of hybrid systems combining of diesel-electric, gas-electric or even ones relying solely on electricity. The first are systems that combine the operation of a fuel for the generation of energy that is stored in batteries and used according to operational needs, thus distributing and optimizing emissions. It is also true that since 2015 fully electric ships have been a reality in the market, but due to their short autonomy, they have not spread out.

WIND SYSTEMS

Wind propulsion has also been a part of the proposals. It contemplates (depending on the type of vessels) the possibility of implementing systems that help propulsion through the use of wind force. Some examples of such systems are DynaRig, Flettner-Rotors and even research projects such as Wind & Solar Power for Sustainable Shipping or the Kite propulsion system. These systems are not intended to replace the engines but can compensate an operational process of slow steaming without resulting in significant changes in the journey.

Maersk Pelican with Rotor Sails, project done by Norsepower confirmed savings of 8.2 % fuel and associated CO2.
http://wind-ship.org/norsepower//

AFTER-TREATMENT EMISSION CONTROL

Alongside the previously mentioned alternatives, there are after-treatment emission control systems such as Integrating SOx and NOx Abatement, Selective Catalytic Reduction or scrubbers which, despite their investment, have come to be seen as viable options for shipping companies in which open (sea water) or closed (fresh water) systems function as filters to reduce PM by 80% and SOx by up to 98%.

Exhaust gas cleaning systems (EGCS) https://www.dnvgl.com/expert-story/maritime-impact/Scrubbers-at-a-glance.html

The availability of so many alternatives does not mean that following the IMO rules will be easy. Many of the proposed solutions require a lot of investment, result in large operating costs, require major changes in systems and equipment or massive supply capacities for fleets. Each shipping company will have to adapt according to their routes, facilities and structures, and choose a system that complies with emissions regulations.

All of this is accompanied by other alternative technologies that, while not necessarily reduce emissions, help in the performance of the ship and therewith improve its overall environmental footprint. The improvements could be new aerodynamics, low resistance paints, trim optimization, optimization of aerodynamics of propellers and rudders, optimized pumping in cooling systems, and even the use of big data to improve the sensors in equipment and prevent excessive consumption by optimizing the maintenance or the use of data to predict optimal routes according to environmental conditions.

There is no doubt that the Blue Economy will be affected by the 2020 regulations. The world’s waking up to the threats and dangers posed by climate change, and all of the world’s industries are adapting. The maritime world will perhaps be the one most affected by the new rules as, being responsible for 80% of all trade in an increasingly globalised society, it is one of the more significant polluters. As in any case though, challenges bring new and innovative solutions, and we are very excited to see what the industry will bring in the coming years to continue to innovate and protect our Blue Economy.

Written by:

  • Vanessa Bexiga – Operations Manager (Escola Europea – Intermodal Transport)

Useful links: