EU:s white paper from a Northern European point of view

1
EUs white paper from a Northern European point
of view

• Henrik Swahn
• Swedish Maritime Administration
• NTF Seminar Ebeltoft May 2002

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The White Paper on CTP four parts

• Shifting the balance between transport modes -
  influencing the development of freight transport
• Eliminate bottlenecks
• Placing users at the heart of transport policy
  (includes short run maginal cost pricing)
• Managing the globalisation of transport - EU and
  MS relations to e.g IMO, ICAO

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Transport and GDP growthEU 15 1985-1997
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Goods transport per modeEU 15 1970-1998
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Goods transport per modeCEC 1970-1998
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Major problems addressed by the White Paper (CTP)

• The relative development of the modes is seen by
  the White Paper as problematic due to
• Congestion - the issue
• Environmental problems
• Safety
• But Nordic and Baltic countries differ
• Sparsely populated
• Relatively low traffic volumes
• Relatively minor environmental and safety problems

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Balance between modes

• Rail losing market share at an annual average
  rate of 0,8 during 30 years in EU
• Share of rail freight in stable in Finland over
  the same period 26
• Small loss of market share of rail in Sweden but
  stable absolute levels
• Internal efficiency of rail transport a key
  issue!

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The Marco Polo initiative...

• Continuation of PACT-programme
• Financial support and incentives to divert road
  freight traffic to short sea and rail
• Mainly directed towards projects which will
  divert substantial freight volumes
• But -- there may be risks for market distortions
  and non-viable projects

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Getting the prices right

• A central theme of the White Paper
• Efficiency, sustainability
• Effects on the environment, congestion, safety..
• No distortions
• A case The Swedish Environmentally
  differentiated fairway due

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THE SWEDISH FAIRWAY DUE

• A two part due based on
• the ships gross tonnage (GT)
• loaded or unloaded cargo volume
• The GT part is differentiated according to the
  emission of NOx and the sulpur content of the
  fuel

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ENVIRONMENTAL DIFFERENTIATION
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Rapid growth in 1998 of number of ships
registered for low sulphur bunker oil
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Evaluation at the end of 1999 and 2001.

• NOx 13 ships certified in 1999, (30 ships 2001)
• Reduction in the Baltic and North Sea 27000
  tons of NOx (estimate 2001)
• 30 reduction of NOx emissions comparing1995
  with 1998
• SOx 1114 certificates 1999 (1043 cert 2002)
• Reduction in the Baltic and North Sea 50 000
  tons of SOx (estimate 2001)
• 10 reduction comparing 95/98

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The environmental differentiation of fairway
charges has lead to

• Reduced damage cost in Sweden
• Less emissions due to the differentiation scheme
  and therefore reduced damage cost also in other
  countries
• One-country approach is likely to incur too
  little maritime emission abatement measures
• A wider application area would help getting the
  prices right in short sea shipping

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Eliminate bottlenecks and barriers - distance to
markets -natural barriers important also from a
Nordic perspective!

• Northern periphery e.g. Finland, Sweden, the
  Baltic States, Norway
• Dependent on sea links
• Transport time 48-72 hours compared to 24 hours
  for areas where 3/4 of the EU population lives
• Higher logistic and transport cost
• Natural barriers e.g. sea and ice conditions

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Swedish major goods transport corridors
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Ice cover in the Baltic SeaAverage winter
1961-1990
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New EU-members concern diversion of traffic from
EU?

• Transit transport business important in the
  Baltic countries
• Russia, Ukraine, Belarus major transit customers
• Will EU-regulation and transport pricing divert
  traffic thereby causing loss of transit income?

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Russian foreign trade volumes on the Baltic Route
1995-98
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A globally competitive EU transport system

• What quality goals should be set?
• What kind of competitive advantage through
  transport relative to e.g. America or Asia?
• Which would be the key competitive factors?

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Conclusions

• What should really be accomplished regarding
  modal shift?
• Do not exaggerate expectations on effects of
  action taken within transport - other driving
  forces often more important
• Stick to efficiency and sustainability and
  evaluate policies accordingly
• Recognise the specific Nordic issues in policy
  programmes
• Get the prices right!