Road Transport and Short Sea Shipping Analysis of transport costs, time and other factors of competitiveness

Key issues Physical elements Geography, congestion, clima Trucks and ships Regulations Driving times, Road traffic restrictions Documentation Goods restricted Economical factors Operational costs Reliability, regularity Sustainability External costs Emissions

Elements of Logistics Costs Road transport Intermodal transport Short Sea Shipping

Definition of external costs External costs are all costs that are imposed on others and not borne by the person whose activity generates the costs. External costs of transportation : Accidents Noise Pollution Climate change Infrastructure Congestion Marginal external cost : external cost of 1 additional unit being transported.

Marginal External Costs (€/1000tkm)

External transport costs effect Road transport Intermodal transport Short Sea Shipping

Road Transport Restrictions Infrastructure taxation Driving restrictions Driving Time Legislation Increase of Road Transport Cost Increase of Road Transport Transit Time Internalization of Marginal External Costs

Basis for choice of transport Elements of analysis Fixed costs Variable costs Attribution of indirect costs Margins Transit Time Driving restrictions Driving times Deciding the change Changing the modal makeup of the transport organisation Improvements in time Improvements in costs Improvements in other quality parameters Improvements in environmental aspects

Rules governing working hours European Parliament and Council Regulation EC 561/2006 of 15 March 2006 on the harmonisation of certain social legislation relating to road transport (amends Regs 3821/85 and 2138/98 and repeals Reg 3820/85). European Parliament and Council Directive 2002/15/EC of 11 March 2002 on the organisation of the working time of persons performing mobile road transport activities.

Times definitions Working time. Between the start and the end of the work. Includes driving, loading, unloading, paperwork, cleaning, technical maintenance. Basically, driving and other tasks. Break. The trucker cannot drive or perform other tasks, only rest. Breaks in work are different to resting time. Resting time. Continual period of free time. These can be daily or weekly. This is not working time. Periods of availability. The trucker is not obliged to be at the work site but must be available to drive or for other tasks. This does not include breaks or resting times. Driving period. All the time the trucker has driven between the end of a rest or break and the start of another.

Times - Conditions Not more than 6 consecutive hours of work. Maximum 9 hours of driving a day. There must be a minimum break of 45 min after driving 4 and a half hours. For every 24 hours of work at least 11 hours of continual rest (Normal daily rest period). Breaks can be made while the truck is being driven (2 truckers). Rests cannot. Time on board (embarked) counts as resting or break time. A bed or bunk must be made available and the duration of the crossing must be known in advance.

A case study Manolo and Mario, two articulated lorry drivers who regularly work routes from Spain to Italy, meet in a motorway service area. While they are taking a rest, Manolo says: “My wife and daughters complain that I'm hardly ever at home. This job requires so much dedication”. Mario tells him that he was once told to go to Italy by boat. Manolo and Mario analyse this alternative as a transport solution: What if we loaded in Barcelona to deliver in Rome …? Could we deliver the same day? Some companies alternate drivers. Is the boat better … ?

Hypothesis A truck with a payload of Transporting non-refrigerated, non- hazardous cargo between Spain and Italy. Average speed: 80 km/h. 2 hours to load or unload in warehouses, 2 hours of port operations. Warehouse timetables: 8 a.m. to 8 p.m.

Collections Origin: In port at 20:15 hours. Collections as far from 680 km. Destination: We consider a range of 320 km. In total we cover 2274 km.

The routes

Compare alternatives 1.Transport by road with 1 driver and 2 drivers door-to-door. 2.Transport using alternative SSS with the driver and tractor embarking. Door-to- door.

Indicators Time and costs: Comparison door to door. Regularity: Probability of the shipment arriving at the agreed hour every time. Flexibility: Possibility to change the service initially agreed, in terms of time, at origin or destination, or cancel at a minimal cost. Safety and Integrity: Nothing damaged, missing or stolen. No accidents. Availability: Proportion of time a system is ready for use. Traceability: Completeness of the information on every step about the location, status of goods and vehicle. Documentary and administrative simplicity: The system is not costly to administer.

Door to door costs Total euro 3347,07 Euro/km1,47 Total euro 2667,57 Euro/km1,17 By road 1 driver Short sea shipping

SSS – Road (pony express) – Road (1 driver) Time HoursCost euro Port to port Door to door