EUROPLATFORMS GILBERTO GALLONI PRESIDENT “Intermodal Transport between Europe and Asia: opportunities and challenges” Kiev – 28th Sept 2004 Good morning everybody, first of all I would to thank the organisers for the opportunity they gave me to make a short presentation today. Let me introduce myself shortly. My name is Gilberto Galloni, I am President of Europlatforms, the Association of European freight villages. I am also the Managing Director of Interporto Bologna since 1973. I have been working in the transport and logistics field for 30 years.

Europlatforms presentation Globalization phenomenon KIEV 28th SEPT 2004 Europlatforms presentation Globalization phenomenon The role of intermodal transport This will be the content of my presentation

60 Transport and Logistics Centres 8 Countries EUROPLATFORMS PRESENTATION 60 Transport and Logistics Centres 8 Countries Italy-Spain-Germany-Denmark-Portugal-Luxembourg-Greece-France 1.200 Transport Operators Europlatforms joins together National transport associations and singular freight villages. It counts 62 freight villages in 8 European Countries. About 1200 transport operators work inside these freight villages.

This is the map. You can see where our freight villages are located.

GLOBALIZATION PHENOMENON In a global economy, no nation is self-sufficient. They are all involved at different levels in trade processes to sell what they produce, to acquire what they lack and also to produce more efficiently in some economic sectors than their trade partners. Before discussing the real topic of my presentation, that is intermodal transport, a quick stop for analisying the current scenario is required. In the last years a host of political, economic and technological changes have accelerated the trend toward globalization. It results from the liberalization of national economies, reduction of trade barriers, freer movement of foreign direct investments across world, expanding role of mulinational firms in international production, rapid technological advancement.

Asia is EU third-largest regional trading partner Asia is a crucial partner for the EU whether economically, politically or culturally. Asia is EU third-largest regional trading partner Asian exports to EU 21% If globalization comes from the market opening and enlargement, speaking of globalization means speaking of one the biggest market in the world: Asia Asian Countries have a strategic importance for European Countries. They represent such an immense area at a few kilometres far from us with a huge development potential in all fields. The figures you see on the slide are only an example of what Asia represents concretly. Globalization requires cooperation between Asia and Europe so to promote prosperity, democracy, political stability and least but not last security. Population Trillion 3,12 GDP Trillion $ 15,65 Merchandise imports Billion $ 1.458 Merchandise exports Billion $ 1.620 ASIA

GLOBALIZATION OF PRODUCTION GLOBALIZATION OF TRADE TRANSPORTATION IS THE KEY Globalisation of production is concomitant to the globalization of trade. Trade implies a transmission of a possession in return for a counterpart, generally capital, which involves a transaction and associated flows. Transportation is the industry that connects other industries, that makes transactions and flows movements possible. That is why it is the key to the globalization.

GROWTH OF FREIGHT TRANSPORT DEMAND AND FLOWS ALL OVER THE WORLD EFFECTS GROWTH OF FREIGHT TRANSPORT DEMAND AND FLOWS ALL OVER THE WORLD Intermodal transportation improves the efficiency of global distribution when origins and destinations are distanced With the growth of international trade and globalization of production, international transportation system have been under pressure to support the growing demand of freight flows. Because of the involved geographical scale, most international freight movements have to circulate over several modes, especially when origins and destinations are distanced. We can affirm that the use of Intermodal transportation improves the efficiency of global distribution. An efficient global distribution system implies a decrease of transport costs of the total product cost. The more efficient the transport modes and infrastructures are the cheaper transport costs will be. International trade requires also distribution infrastructures and transportation services that can support goods exchanges between several partners

FREIGHT VILLAGES A freight village is a specific area where all the activities relating to transport, logistics and goods distribution – both for national and international transit – are carried out by various operators. In order to encourage intermodal transport for goods handling, a Logistics Centre/Freight Village should preferably be served by a variety of transport methods (roads, rail, sea, inland waterways, air). If we point out some key ideas listed before: Intermodal transport Distribution infrastructures Transportation services We move toward the freight village concept that joins together all these three aspects. What you can see on the slide is the Europlatforms definition.

MODEL You have to imagine a sort of little town with warehouses, roads, intermodal terminals first, and then customs, post offices, banks, restaurants, hotels and so on.

PAN-EUROPEAN RAIL TRANSPORT NETWORK TEN & TINA NETWORK CORRIDOR ARRANGEMENT Now the question is how can Asia and Europe get nearer? On the basis of what I have been saying, Intermodal transport can surely play an important role in making Asia and Europe closer, but many actions need to be achieved in the long term. The implementation of corridors across Asia is the starting point. You can see on the slide the Pan european rail transport network covering Europe and only a part of Asia. Considering the long distances between Europe and Asia, you can not imagine to move goods from point A to point B by a sole trip, so the definition of nodal points along corridors, that is freight villages or interconnection points, for shunting operations could be useful. PAN-EUROPEAN RAIL TRANSPORT NETWORK

4th Framework Programme FACTS NOT WORDS Funded by the European Commission under the transport RTD Programme of the 4th Framework Programme RESULTS 1.The use of intermodal transport is higher inside the FVs than outside. 2. The transport companies, located inside the FVs, have a higher turnover coming from the intermodality than the companies operating outside the freight villages 3. A higher productivity values of transport companies both for the total flows and the R/R flows. Maybe someone of you knows the FV2000 project co-funded by the European Commission – DGVII - within the Fourth Framework R&D Programme. We have affirmed that the use of Intermodal transportation improves the efficiency of global distribution We have proved in a concrete form and with the support of data, that the increase of intermodality is possible just inside the Freight villages as result of the concentration of all the private freight transport operators, warehouses and goods.

Infrastructures Investiments Security BOTTLENECKS Which are the obstacles that can slow this process? The lack of specialised infrastructures allowing goods to be moved from their origins to their destinations. Efficiencies or deficiencies in transport infrastructures will either promote or slow international trade The realization of freight villages and the implementation of infrastructures need high investments that can be supported only by Public Authorities together with a group of private partners, that means PPP private public partnership. This the most used model in Europe. The lack of data and information about the transport processes is another bottlenecks to the transportation system implementation.

Cooperation between EU ans ASIA Countries SOLUTIONS Cooperation between EU ans ASIA Countries Cooperation on regional and sub-regional level among all ASIA Countries Homogenization of legal, political, economic setting Improvement of security How can this situation be managed? Cooperation between Europe and Asia and between all Asian Countries themselves is maybe the most important tool followed by the other items you can see on the slide.

EUROPE TO ASIA AND VICEVERSA ASEM Asia-Europe Meeting – 1996 Fostering Political Dialogue Reinforcing Economic Cooperation Promoting Cooperation in other Areas And just of cooperation we speak, mentioning the ASEM – Asia Europe meeting experience, whose objectives are the ones you can see on the slide, and the engagement of UNECE and ECMT.

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