INTERREG IIIB North Sea Northern Periphery Moving cargo from road to sea - from the industries point of view

INTERREG IIIB North Sea Northern Periphery The modern way to compete: Supply Chain Management Logistics with a broader scope: –Lead-time in the total supply chain from suppliers to the end customer Process focus (where each activity/handling is important) Increased focus at the customers needs & requirements –Competition with shorter lead-time through the total value chain –Time/cost focus through the whole value chain Handling cost Transportation cost Inventory cost Delivery conditions etc. –Outsourcing of logistical activities (3rd party logistics)

INTERREG IIIB North Sea Northern Periphery Jon L. Gjemble No chain is stronger than……….. Products are handled up to 15 times before delivery to customer  Load cargo at supplier/producer (Cargo-owner)  Unload cargo at customer /user

INTERREG IIIB North Sea Northern Periphery Example: Logistics from Mid-Norway Basic requirements from the goods owners hours lead-time from Trondheim/Ålesund to the continent hours lead-time from the continent to Trondheim/Ålesund Departure from harbor at the continent afternoon/evening Arrival Trondheim/Ålesund late night or early morning The handling system must adapt the cargo flow in both directions Door to door rates in Europe. Feeder-service rates for oversea container lines. One total “Logistics handler” in the corridor Minimum frequents 3 days a week (wants daily routes) At least 20% reduction in the total transport cost compared with today

INTERREG IIIB North Sea Northern Periphery Important factors for the cargo owners to increase sea transport (ranked) 1.The total sum of transportation costs must be lower (20-30%) than using road 2.Total lead-time (from factory to customer) must be shorter 3.On-time delivery (punctuality) 4.Frequency 5.Quality and efficiency when loading/unloading 6.Infrastructure quality (company-port) 7.Time from harbor to hub/stock 8.Transportation cost from harbor to hub/stock 9.Rail connection

INTERREG IIIB North Sea Northern Periphery Important factors for the cargo owners when they choose main harbor (ranked) 1.Transportation cost between harbor and company 2.Frequency (boats) 3.Distance and infrastructure between the company and the harbor 4.On-time delivery harbor-company (punctuality) 5.Quality/efficiency (terminal handling) 6.Quality and efficiency when loading/unloading 7.Cost level of the harbor services

INTERREG IIIB North Sea Northern Periphery Main challenges to move goods from road to sea - from the goods owners point of view Fast ferries/boats Intermodal terminals (train, truck and boat) Taxes must be reduced Infrastructure to/from the harbor is important One or a few hubs at the continent Consolidate the goods (by mode, type of carrier (pallets, containers etc))

INTERREG IIIB North Sea Northern Periphery Where are NMC after 15 months ? We have been working with a description of the present situation in the NMC area (from each region:) –Which Services/routes exist today? –Transported goods by type, mode, origin and destination –What’s the most important requirements from the industry ? (to move their goods from truck to sea) –Special focus at transportation of seafood, petroleum

INTERREG IIIB North Sea Northern Periphery