EUROPEAN INLAND WATERWAYS International Propeller Club of the United States Louisville, Oct 17, 2014

Waterways of international importance European Inland Waterways2

European Inland Waterways3

European IWW Classification European Inland Waterways4

European Fleet European Inland Waterways5

European Fleet European Inland Waterways6

Fleet Details Spits: L 38,50 m / Beam 5,05 m /draft 2,20 m / 350 T Kempenaar: L 63 m / Beam 6,60 m /draft 2,50 m / 550 T Dortmunder: L 67 m / Beam 8,20 m /draft 2,50 m / 900 T Ro-Ro schip: L 110 m / Beam 11,40 m /draft 2,50 m Tankship: L 110 m / Beam 11,40 m /draft 3,50 m / t Car Carrier: L 110 m / Beam 11,40 m /draft 2,20 m / 600 t European Inland Waterways7

European Fleet Details Neo Kemp: L 63 m / Beam 7 m /draft 2,50 m / 32 TEU* Containerschip: L 110 m / Beam 11,40 m / draft 3 m /200 TEU Containerschip Jowi-Class: L 135 m /Beam 17 m / draft 3 m / 470 TEU Convoy 4 barges: L 193 m / Beam 22,80 m / draft 2,50/3,70 m / T European Inland Waterways8

Trump cards of inland navigation Vast network of inland waterways Accessibility Environmentally friendly Inexpensive Versatile Speed and on-time Safety High tech Innovation and increase of scale The skipper: a professional European Inland Waterways9

Facts and Figures Navigable Waterways: km Fleet total:1200 Ships Total Fleet Capacity: 11 million MT Total T/Km Entire Fleet: Transport Market share:7 % Countries interconnected6 Companies: FTE Employed European Inland Waterways10

Challenges Main challenges are The modal share of IWT is decreasing as opportunities are not exploited in new markets and the integration of IWT in door- to-door logistics. The environmental performance, opportunities for reducing air pollutant and GHG emissions from transport operations are currently not being exploited. Short and medium term problem areas, like recovery from the impacts of the financial and economic crisis and the present European Inland Waterways11

Policy Actions to improve Modal Share Eliminate inland waterway bottlenecks and support development plans and construction of missing links in European waterway network (e.g. Seine – Schelde, Rhine- Rhone, Sava River, Straubing- Vilshofen, other critical sections on the Danube, Elbe) Develop high quality network of inland ports including waterside logistics sites: funding for ports and transshipment sites European Inland Waterways12

Policy Actions to improve Modal Share Provide support for development and implementation transport logistics information services (RIS and its integration into eFreight; moving towards paperless transport and integration with eMaritime Single Window concept) Provide neutral logistics advice to potential IWT customers to raise knowledge level and awareness on opportunities of IWT Support cooperation between IWT operators and cooperation of IWT operators with operators using other modes European Inland Waterways13

Summary of problems related to performance on modal share European Inland Waterways14 Markets & Awareness Lack of consolidation and cooperation within the sector, lack of one-stop-shop approach for door-to-door logistics, limited overview of available services and opportunities to use IWT, lack of visibility of IWT for shippers, limited co-operation with other modes, limited reinvestment and innovation capacity. Fleet Lack of funding for innovations, long lifetime of vessels, small research and innovation in vessel technology and transshipment techniques, shortage of smaller vessels, decreasing environmental performance versus other modes making IWT unattractive for shippers.

Summary of problems related to performance on modal share European Inland Waterways15 Employment & Education Lack of qualified human resources, resulting in higher labor costs, IWT knowledge in transport logistics education, lack of logistics education in IWT courses, lack of 'door-to- door' thinking and awareness among IWT operators and skills to provide 'one-stop-shop' solutions Infrastructure Limited transshipment facilities, missing links in the network, poor fairway conditions and lack of appropriate maintenance, large impacts due to calamities, problems at local level regarding transshipment facilities and industries along waterways (inland ports). Draft – air draft.

Summary of problems related to performance on modal share European Inland Waterways16 River Information Services (RIS) No integration with logistics, very limited RIS deployment resulting in sub- optimal efficiency of transport (higher costs)

Conclusions One of the prerequisites to raise the modal share of IWT is to integrate IWT better into the European logistics market. Considering that IWT cannot offer competitive services for many origin-destination pairs in Europe, new IWT Infrastructure or the expansion of existing IWT infrastructure needs to be taken into consideration. This includes the need for multimodal cargo handling areas and industrial zones with direct access to waterways European Inland Waterways17

BACKUP SLIDES European Inland Waterways18

Strenghts – Internal – Supply side Sufficient fleet capacity, in particular large vessels Much spare capacity on waterways to foster a growth of traffic High amount of flexible entrepreneurs in the market European Inland Waterways19

Weaknesses – Internal – Supply side Long life-time of inland vessels and engines, resulting in high air pollutant emissions Ageing human resources, lack of influx, shortage of qualified staff Low co-operation and lack of ability to integrate IWT in door- to-door chains Missing infrastructure links, limited fairway conditions and lack of transshipment areas and multimodal connectivity European Inland Waterways20

Opportunities – External – Supply side Funding programs for funding of infrastructure Stimulating policies to strengthen supply side of IWT Internalizing external costs: pricing of competing modes: road transport and rail European Inland Waterways21

Threats – External – Supply side Growing pressure on spatial planning (e.g. housing projects conflicting transshipment functions for IWT) Conflicts with ecology (nature reserve) Internalization of infrastructure costs for IWT Possible impact of climate change on water levels on long term European Inland Waterways22

Strenghts – Internal – Demand side Low freight rates Reliable transport operation Low carbon footprint Available transport capacity (vessels) Available infrastructure capacity; growth potential High market share in traditional sectors (captive markets for IWT such as coal, ore, oil) Comparatively high safety levels; in particular external safety (risks for population or the environment) European Inland Waterways23

Weaknesses – Internal – Demand side Not all origins and destinations are located in the proximity and necessitating the use of transshipment and other modes High volumes needed (consolidation), dependence on a limited number of large customers and consolidation Low operational speeds Lack of visibility and poor image at potential clients Varying water levels on certain corridors causing a low predictability of service levels and changing freight rates High or low a water levels and accidents can block critical parts of the waterway network Low level of awareness in IWT of broader supply chain developments (door-to-door) and limited knowledge of marketing and supply chain management Industry fragmentation and reaction to external shocks (e.g. recent economic crisis) European Inland Waterways24

Opportunities – External – Demand side Infrastructure expansion (e.g. Seine- Schelde, Rhine-Rhone) Commercial co-operation and increase of scale in (multimodal) logistics Growth of world trade resulting in steep growth of maritime container market Congestion on motorways and lack of capacity in rail transport Growing demand for low carbon transport solutions Attracting new markets such as waste transport, bio fuels, LNG, pallets, continental containers Increased awareness of safety and security problems Growing number and position ofinland container terminals European Inland Waterways25

Threats – External – Demand side Limited political support and funding resulting in poor condition of many waterways and inland ports Loss of markets due to energy policy (e.g. coal and fossil fuel transports) Impact of high-oil prices on various industries that are customers of IWT Further liberalization, efficiency and interoperability of rail transport markets Possible introduction of Long and Heavy Vehicles for road haulage (e.g. 3 TEU truck) Increased restriction of banks for investment as a consequence of the crisis European Inland Waterways26