GILDANET A perspective of Motorways of the Sea

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GILDANET A perspective of Motorways of the Sea
GILDANET Final Conference Bologna, Oct 24 2005

Dr. Gerhard Burian Austrian Federal Ministry of
Economics and Labour
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Stylized Facts

• Huge as of yet untapped - potential in terms of
  coastline, rivers, canals, ports
• Dense network of inland waterways and canals
  current utilization rate 9
• Exploit by offering efficient and simplified
  services
• Focus on ports with good connections to inland
  networks
• Short distance shipping has been around for some
  time
• The Romans did it 2000 years ago
• The United States rediscovered in in the 50s.
• Short sea shipping has gained momentum
• Growth rate of 27 between 1990- 1998.
• road 35

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EU 25 Trade Volumes 2003 per mode(Source
EUROSTAT, Billions )
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Another, microeconomic View

• Sea Transport represent a potentially competitive
  alternative to land transport
• Higher energy efficiency
• Ideal for carriage of heavy, low-cost commodities
• Safer mode, ideal for the transport of hazardous
  materials
• Inland waterways perfectly complement sea
  transport
• Major north sea ports (Hamburg, Rotterdam, ...)
  use canals for inward and outward container
  traffic

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ENERGY EFFICIENCY OF MODES... weight of goods
moved one kilometre for one litre of fuel ...
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Offering innovative services

• Predominance of container ports in the north as a
  consequence of high quality/price ratio
• Leads to an increase in north-south traffic
  routes
• Short sea shipping requires efficient integrated
  services
• One-stop-shopping, bringing together
• Consignors, shipowners, logistics service
  providers, container terminals, ...
• Interoperable information logistics flows
• Telematics based
• Most dynamic container transport
• Niche markets waste transport

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Top 10 European Container PortsSource
Containerisation International Institute of
Shipping Economics and Logistics
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GILDANET s goals

• Multimodal chains made economically feasible -
  financially viable - through a reduction of the
  inherent complexity
• Re-use existing IT- resources by virtue of using
  interoperability standards (ebXML)
• Faster deployment, higher degree of flexibility
• Expansion strategies and replication of
  best-practices
• To enhance the transparency of the supply chain
  by focusing on the business process
• Increase the reliability of the transport chain
• Strategic and tactical supply chain planning
• Cost-effective set-up of transnational supply
  chains including SMEs by adhering to
  international standards (UN/CEFACT, ISO, )
• SME participation in more than one supply chain
• decrease supplier dependency

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GILDANET Results Focus of the Austrian partners
(AUSTRIAPRO Paradigma)

• Business process models and demonstrators
• Automotive chain SUBARU car imports to Central
  Europe
• Fresh Europe Supply chain of produce from
  Spain to Austria
• Empty Container Cycle Port of Ravenna, CONTSHIP
  Italia
• ebXML Registry Implementation
• Containing information on business partners
• Their processes and capabilities to do business
• Training Education
• Training concept based on Virtual Corporate
  University
• Training materials Supply Chain Planning UMM

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GILDANET Results - eCertification

• Inordinate amount of non-productive effort
• Preparation of certification, multiple record
  keeping
• Up to 5 of total project costs
• lack transparency regarding the eligibility of
  reported costs
• Overhead calculation, Personell costs calculation
• Defined Certification standards and interfaces to
  IAS compliant financial accounting packages
• Records are transmitted electronically to the FLC
• Benefits accruing to project partners
• Reduction of administrative efforts involved in
  managing EU projects
• Faster certification process, faster
  reimbursement flows

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Automotive Supply Chain GILDANET demonstrator

• Car imports from the far East via Suez
• Emphasis on freight forwarders interactions with
  other actors
• Proof-of-concept for the modeling methodology
• Potential for process improvements using RFID and
  early information identified

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Empty Supply Chain A GILDANET demonstrator

• Repositioning and maintenance cycle of containers
• Emphasis on the requirements of the container
  terminal and the Multimodal operator
• Implementation of services for MTO, Container
  Terminal and Shipping Line

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Freshlog Supply Chains as part of GildaNet

• New supply chain, cutting out the wholesaler
• Driven by a dominant Austrian retailer
• Ordering directly at the producers in Spain
• Pre-Cooling and cross-docking in Valencia
• Chain managed by EXEL
• Succesfully operated for 6 weeks 2004/2005

Retailer
Spanish Chain
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Freshlog Benefits

• Bundling of orders has the potential to reduce
  the delivery time at least by one day.
• Deliveries of fresh produce within 36 hours after
  order entry
• Reduction of the order-delivery cycle has a
  positive impact on the freshness of the produce
  on the shelves.
• extended the shelf time by 10 (20).
• reduction of disposable waste
• Current estimates of waste amounts to 15.
• Increase of turnover an improvement of the
  retailers cash flow in this product category.

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Motorways of the SeaHurdles to overcome ...

• Outdated customs and port authority rules and
  procedures
• Hidden port dues for river and coastal barges
  (requiring pilots ...)
• Different legal systems
• Danube Region different vessel specs, different
  pilot certificates, different liability
  regulations
• Infrastructure bottlenecks
• Modal split requires cross-docking and reloading
  facilities

Preventing the uninterrupted passage of
vessels Making waterways and multimodal transport
a time consuming and expensive proposition
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Challenges for Europe

• Eliminate infrastructural bottlenecks
• Install telematics, navigational and
  communication systems
• RIS (ViaDonau) EU directive 2005/44/EC on
  harmonized river information system in the
  Community
• Standardize and harmonize
• Professional certifcations, labor laws and
  working conditions, technical specifications
• Encourage the creation of logistics services
• Marco Polo and Structural Fund activities
• Build on GILDANETs experiences and results

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Build on GILDANETs results

• Expert workshop in Brussels (DG-TREN)
• Present GILDANET experiences
• Future EU funded projects to consider the
  integration and (re)-use of GILDANET results
• Platform, business processes, Business documents,
  training materials
• Interdisciplinary and multinational teams
  comprised by all stakeholders