1. MedCruise Ports: Effective responses in a dynamic market Thanos Pallis Secretary General, MedCruise

2. MedCruise: Keeping the Med together West Med Adriatic East Med Black Sea 72 Members & 31 Associate members (100 plus ports, 20 countries, 4 regions)

3. MedCruise: Proudly representing the Med 86% 86% passenger movements81% Cruise calls By visiting the Med – you visit (at least) one MedCruise member

4. MedCruise Main objectives – Collaborate on solutions: Policies Operational issues Port Finances Environment Training – Promote the cruise destinations and the ports in the Mediterranean and adjoining seas. – Develop quality passenger shipping experiences: Preserve diversity and authenticity. Manage congestion. Shared return: local communities, ships, passengers.

5. 25.0 millions 25.0 millions passenger movements 13.685 13.685 cruise calls Source: MedCrusie Statistics Report 2013 (4th edition) MedCruise member traffic 2012 Passenger movements and cruise calls

6. Expansionary Deployment trends Mediterranean bed days (‘000s) +197% 10 years % change +49% 5 years% change Year by year more cruise beds days are available in the region 8.153 24.238 16.271 Source: MedCrusie Statistics Report 2013 (4th edition)

7. Cruise deployment trends Deployed capacity shares 2012-2008-2003 2012 20082003 10 years ago 5 years agoToday Today 20% of cruise bed days are in the Mediterranean Source: MedCrusie Statistics Report 2013 (4th edition)

8. Europe 2020 A smart, sustainable and inclusive economy, in a changing world. Five objectives: – employment, – innovation, – education, – social inclusion – climate/energy

9. Cruise, Employment & Social inclusion Cruise industry has enjoyed economic prosperity During the recent challenging past succeeded to: – attract new passengers, – promote new destinations – contribute to the economic recovery of many coastal regions.

10. Cruise, Employment & Social inclusion Cruise activities a very good environmental record; sophisticated, state-of-the- art ships that are safe and secure; equipped with competent crews. Passenger Spending €3.1 billion in passenger and crew spending or about €70* per passenger on embarkation ports € 61 in each transit port. € 16 per crew member on average spent at each port. *Excluding airfare.

11. I. Accommodate traffic

12. 2,300 tons of water in its swimming pools 12,000 plants on board including hundreds of palm trees 2,300 tons of water in its swimming pools 12,000 plants on board including hundreds of palm trees

13. 13 Small ship (N=51) Medium ship (N=51) Large ship (N=45)Mega ship (N=42) Percentage of ports that allows the option to berth alongside a quay for a transit call blue = allowed, red = not allowed Source: MedCrusie Benchmarking Report 2013 Ports that allow berth alongside a quay

14. The trend Types of Management in MedCruise Ports Concessions of Cruise Terminals are increasingly becoming a common practice Source: MedCrusie Benchmarking Report 2013

15. MedCruise ports: The trend Source: MedCrusie Benchmarking Report 2013

16. Investments made by MedCruise Ports in cruise infrastructures in the last 10 years PUBLIC 870.200.000 € PRIVATE 119.750.000 € TOTAL INVESTMENT 989.950.000 €

17. I. Accommodate traffic Average pax. movements per call Trend since 2000 and variations on prev. year Since more than 10 years the average is always increasing Source: MedCrusie Statistics Report 2013 (4th edition)

18. II. Cope with Traffic Seasonality Total pax. movements (in millions) Cruise calls Near 80% of pax and calls is generated from May to October Source: MedCrusie Statistics Report 2013 (4th edition)

19. III. Bring More Ports in the game Ports concentration 2000-2012 Cruise calls since 2000 18,1% of traffic in the 3 first ports, 70,7% in the first 20 Less concentration of cruise calls than pax movements Source: MedCrusie Statistics Report 2013 (4th edition)

20. Mediterranean 7 & 14 day Routes (Ships travel @18 knots * 14 hours) Marseille Barcelona, Spain Tunis Santorini Istanbul, Turkey Dubrovnik, Croatia Venice, Italy Livorno Valletta, Malta Kusadasi Athens Savona Bari Italy Civitavecchia; Napoli Mykynos Catania Palma Mallorca Alexandria, Egypt Limissol, Cyprus Haifa & Ashdod

21. Bringing more ports in the game Beyond the world-famous marquee ports – Absolutely necessary for every itinerary – attract passengers and sell the cruise itinerary. Bring in discovery ports – The concept: one that is not world-famous, but provides a different sense to the cruise passenger

22. V. Take advantage of potential new Markets Drive-to Train-to Homeports – France- Marseille, Toulon – Italy- Savona, Genoa, Civita, Napoli, Catania, Venice, Bari – Spain- Barcelona, Valencia, Malaga, Mallorca – Scandanavia- Copenhagen, Oslo, Stockholm – UK- Southampton – Germany - Kiel, Hamburg, Copenhagen,

23. … need to address the impact Environmental impact generated by cars and road transport Development planning of tourist destinations Preserve natural resources and offer environmental quality. Overall: balance maritime and tourism dimensions of cruise activities.

24. Med ports Work to sustain the effective and efficient way that have served the market – Capacity – Berth allocation –MedCruise guidelines – Pricing – Ground transportation and access – Passenger and luggage (terminal) Addressing users requirement and in parallel several considerations – Regulations – ISPS Code – People – background and training – Equipment – modern, efficient and used correctly – Processes, plans, procedures

25. MedCruise Policy Matters of importance to MedCruise: Emissions. Global – Climate Change. CO2. Local – Health issues SOx, NOx,. Shore-side Electricity Sulphur Directive Waste management Packaging Define a plan for the recovery or re-use of 30% Bio-waste Act a plan for the re-use of 90% Paper Define a plan for the recovery or re-use of 40%

26. MEASURE of the ENVIRONMENTAL IMPACTS: CO2 emissions eq (i.e. Greenhouse Gas emissions) Equivalent to: Using a car for 1 year for 1,000 passengers CO2 absorbed by 1,000 trees Emissions from a small industrial plant Equivalent to: Using a car for 1 year for 1,000 passengers CO2 absorbed by 1,000 trees Emissions from a small industrial plant MedCruise Increasing waste management efficiency

27. MedCruise Source: Costa Departments: Fleet Operations and Environmental Management European Directive on waste (Reduction, Re-use, Recycling) and Marpol Annex V.

28. MedCruise Source: Costa Departments: Fleet Operations and Environmental Management

29. MedCruise Euro-Mediterranean network of ports for the cooperation in the management of waste – To maximise the opportunity of waste recovery – To improve energy efficiency – To quantify the reduction of CO2 emissions deriving from sustainable management. – To define a new type of voluntary certification regarding the treatment of waste  European Directive on waste (Reduction, Re-use, Recycling) and Marpol Annex V.

30. The issue: Emmissions GHG emissions from shipping – 4% of the EU GHG emissions. – expected to increase significantly in the future. – the only transport mode not included in the EU GHG emissions reduction commitment (yet?) CO 2 emissions from maritime transport related to intra- EU routes – +48% between 1990 and 2008. – +51% by 2050 - despite the adoption of minimum ship efficiency standards for new ships by the International Maritime Organisation (IMO) in 2012.

31. The issue: emissions Welcome the intention to create a European system of monitoring, reporting and verification (MRV) of carbon dioxide (CO 2 ) emissions from large ships as from 2018. – a prerequisite for setting both emission reduction targets and for any market-based measure or efficiency standard But don’t create modal disadvantages – i.e. like those created due to customs and formalities when use short- sea shipping – Blue Belt strategy needs to be a reality by 2015 if Europe 2020 strategy is going to succeed.

32. Thank you Thanos Pallis Secretary General MedCruise