Developing Logistics Centres in Inland Ports Dr Saša Jovanović, dipl.ing. Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Contents Effective planning and development of logistic centres Institutional incentive schemes Development of free trade zones Financing infrastructure related to logistics centres Developing 3PL service providers and logistics professionals Regulatory and administrative issues Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Effective planning and development of logistics centres Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Target: apply a system-oriented approach for planning and developing of ports, their logistics centres and city functions Step 1: Ports must, in advance, prevent the use of land behind them for unplanned development without regard to port-related functions Legislative measures must be taken to control port land beyond the boundaries of port itself (creating a sufficiently large port area) Land use management policies must aim at: Retaining operational land in operational use Retaining coastal industrial land at an appropriate level of industrial use Ensuring full economic use of occupied areas Including options for recovering land from obsolete uses for re- development Phasing land lease contracts as closely as possible to the life of the activity Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Target: apply a system-oriented approach for planning and developing of ports, their logistics centres and city functions Step 2: Take measures for integration of city development objectives with logistic development policies in order to ensure compatibility between city and port/logistics functions More attention to be paid to the development of city-related functions Where possible and safe, build trade or convention centres within ports (example of Port of Barcelona) Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

World Trade Center in the Port of Barcelona Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Target: apply a system-oriented approach for planning and developing of ports, their logistics centres and city functions Step 3: Partnership of regional ports in planning and development of logistics centers Institutionalisation of cooperation and coordination of central and local governments, port authorities, shippers/receivers and logistic companies Institutionalisation of public participation in which port authorities or other agencies in char of developing logistic centres should have to document their proposals and alternatives Lobbying for improvement of hinterland connections and waterways Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Institutional incentive schemes Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Target: provide domestic and multinational industrial and logistic companies incentive schemes for establishing their production or logistic centres in ports Step 1: Port and other (higher) level authorities should provide a spectre of incentives, such as preferential taxation, loan guarantees, credit insurance, low-interest financing, etc. Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Development of free trade zones Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Target: establish Free Trade Zones as part of wider port policies aimed at inducing port traffic and VAS and increasing employment and tax revenues Step 1: Ports and relevant government bodies should eliminate or reduce the unintended costs or obstacles associated with tax and trade laws Step 2: Evaluate creation of “distriparks” Example of distriparks in The Netherlands: More than 1500 “distriparks” Following compliance with certain security and customs standards, each company can function as “mini-FTZ” carrying out basic customs formalities by itself Goods flow much faster and more efficiently Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Financing infrastructure related to logistics centres

Target: make the best possible use of limited funds and maximize the effectiveness of the respective roles of all concerned parties Step 1: Place high priority on financing infrastructure including port facilities and related logistic centres to meet the growing demand or to attract more demand Step 2: Take measures for better utilization of existing facilities and innovative approaches in infrastructure financing BOT, RDOT, PPP… Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Developing 3PL service providers and logistics professionals Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Target: improve the quality of logistics service providers and develop a solid workforce of logistics professionals Step 1: Attract global 3PL providers for new logistic centres in ports Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Target: improve the quality of logistics service providers and develop a solid workforce of logistics professionals Step 2: Design an effective education and training programmes in order to produce technologically trained and skilled logistic specialists with SCM, IT and language knowledge Listen to your industry Analyze their needs Ask them to participate in education Do not isolate faculties and universities to their confines Educators should get out of their “cocoons” Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Regulatory and institutional issues Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Target: develop a legal framework and key institutions for the building of logistics centres in ports Step 1: Identify legal and institutional issues before establishing logistic centres in port areas, form adequate strategies that are “implementable”, not stackable (on the shelves) Port policy Port strategy Port action plans Port legislation Implementation measures Deadlines Accountability (what if legally set procedures and deadlines are not met) Consistency between strategies of various transport modes Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Target: develop a legal framework and key institutions for the building of logistics centres in ports Step 2: Strengthening institutions in such way to execute the tasks more efficiently and effectively Use existing institutions when possible Give them powers to decide Reduce “Wait, I have to ask the Minister” procedures Engage real, adequate experts (if you, God forbid, have a heart problem you will not go to the orthopedist, but to the cardiologist) Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011

Thank you for your attention! Workshop on Ports as Engines of Economic Development and Strategic Management of Port Areas, Belgrade September 2011