OPTIMED PROJECT RATIONALISING MEDITERRANEAN SEA WAYS: FROM NORTH-WESTERN TO SOUTH-EASTERN PORTS Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon 1

OPTIMED’S GOALS  to optimise the trade network between the northern shores of the High Tyrrhenian arc and the eastern-southern shores of the Mediterranean sea  to promote new opportunities, facilities, tools and skills that lead to the improvement of commercial connections and relationships between public and private operators in maritime transport and logistics sector of Lebanon, Italy, Spain and France  to identify new opportunities of the maritime trade network and the potentialities of a supporting tool like a virtual logistics platform among economic operators from EU and Mediterranean Partner countries  to give an answer to the need of more efficiency and sustainability of trade relations between the two shores of Mediterranean basin, and in particular among involved territories 2 GOALS

WHAT OPTIMED DOES OPTIMED tests new and alternative hub-based network layouts in order to verify the efficiency of the new system from several points of view:  Costs borne by the various operators (firms, forwarders, shipping companies, …)  Travel and total delivery times and their reliability  Environmental impacts in terms of air pollutant emissions  Energy saving 3 THE OPTIMED PROJECT

FREIGHT DISTRIBUTION WITHIN THE MED-EUROPEAN AREA BY LAND BY SEA LYON ALGIERS LISBON GENOA TANGIERS 4 BACKGROUND

HOW THE MEDITERRANEAN FREIGHT TRANSPORT WORKS TODAY: SPOT SERVICES CAGLIARI Origin port TARTOUS Destination port GENOA Cargo consolidation ITINERARY 1 (IDEAL) ITINERARY 2 5 BACKGROUND

HOW THE MEDITERRANEAN FREIGHT TRANSPORT WORKS TODAY: REGULAR SERVICES SAGUNTO Destination port MERSIN Origin port GENOA – 1 day LIVORNO – 7 days TARRAGONA – 1 day IZMIR – 10 days INTERMEDIATE PORT CALLS – DWELL TIME ITINERARY 1 (IDEAL) ITINERARY BACKGROUND

LIMITS OF THE EXISTING SYSTEM OF TRANSPORT BY SEA  Not scheduled boarding times (in the majority of existing maritime services)  Uncertainty and very low reliability of delivery times  High costs  High delivery times  Congestion of the Ro-Ro yards, because of the high number of waiting trucks  Use of large port areas as parking areas for trucks ADVANTAGES OF THE ROAD MODE  Reliability of the door to door service  Temporal continuity of the links LIMITS AND ADVANTAGES OF THE EXISTING TRANSPORT OPTIONS 7 BACKGROUND

REQUIREMENTS OF THE NEW SYSTEM  Greater reliability of delivery times  More competitive times with respect to the existing transport options  More competitive costs  All ports of origin/destination must be covered (considerable reduction of land routes)  Social and environmental sustainability  All ports maintain and increase their market shares through modal shift (from road to sea) HOW TO DO IT? By transforming the logic of distribution of goods by sea SPOT CONNECTIONS NEW NETWORK SYSTEM CHARACTERISED BY SCHEDULED, REGULAR AND RELIABLE FREQUENCIES AND MORE COMPETITIVE DELIVERY TIMES OPTIMED PROPOSES A 2-HUB-BASED NETWORK SYSTEM TO REDUCE LIMITS OF THE EXISTING SYSTEM 8 BACKGROUND

WP 1: Management and Coordination WP 2: Communication WP 3: Capitalisation of the results WP 4: Design of new hub-based network system WP 5: Preliminary design of new hub-based port facilities WP 6: Design and test of information system for virtual logistics platform WP 7: Business to Business meetings TECHNICAL WP COORDINATION COMMUNICATION CAPITALISATION BtoB STRUCTURE STRUCTURE OF THE OPTIMED PROJECT 9

10 TECHNICAL CONTENTS WP 4: Design of new hub-based network system A.4.1 Creation and analysis of data-bases This activity has been characterised by a preliminary step of data collection and a subsequent step of data preparation and creation of the origin/destination matrices necessary to calibrate the new hub-based network. In particular, the data collection has been performed to collect all the information necessary to define the current scenario in terms of demand and supply characteristics. A.4.2 Development of a new alternative network structure A new optimised hub-based network between the two Mediterranean shores has been developed on the basis of the collected data.

PORTO TORRES HUB PORT OF BEIRUT HUB CIVITAVECCHIA VALENCIA BARCELONA MARSEILLE TOULON LEGHORN LA SPEZIA GENOASAVONA NAPLES SAGUNTO TARRAGONA ALEXANDRIA LIMASSOL PORT SAIDDAMIETTA SALERNO LATAKIA MERSIN TRIPOLI TARTOUS SETE OPTIMED: A NEW 2-HUB-BASED NETWORK LAYOUT 11 THE NEW NETWORK LAYOUT WP4

WHAT HAPPENS IN THE TWO HUB PORTS:  All ro–ro units from different origin ports are unloaded from feeder vessels and then loaded on a bigger mother vessel for all the destinations  All ro-ro units unloaded from a mother vessel are loaded on the various feeder vessels serving the different ports of destination A LOGIC OF SYSTEMIC DISTRIBUTION:  Origin ports should mantain as direct links only those serving significant shares of traffic, while minor ports should plan the transfer of goods by working as a system  Origin and destination ports are linked to the hub of reference by frequent and regular feeder services  All the origin and final destinations are covered thanks to the systemic logic of distribution  In order to have an efficient system the 2 hubs need to be conceived as free-trade areas 12 THE NEW NETWORK LAYOUT WP4

13 RESULTS NETWORK RESULTS PORTO TORRES HUB VALENCIA BARCELONA MARSEILLE LA SPEZIA GENOA NAPLES SETE WP4 VESSEL TYPE

 Increased vessels load factor  Increased storage capacity of the port areas  Higher efficiency of the system due to scheduled, frequent and reliable services  Reduced transport costs both for customer and shipping line  Lower levels of air pollution (significantly lower in populated areas)  Improved road safety as a consequence of the lower freight volumes transported by road 14 EXPECTED RESULTS WP4

15 PORT LAYOUT WP5 WP 5: Preliminary design of new hub-based port facilities Preliminary design of new hub-based port facilities of Porto Torres (Italy) and Beirut (Lebanon) have been developed in order to propose a riorganization of the port-area structure and improve their performance as RO-RO hubs in the framework of the freight shipping network.

16 PORTO TORRES NEW LAYOUT MEDIUM-TERM LAYOUT LONG-TERM LAYOUT WP5

17 PORTO TORRES NEW LAYOUT WP5

18 BEIRUT NEW LAYOUT WP5

19 BEIRUT NEW LAYOUT WP5

20 VIRTUAL LOGISTICS PLATFORM WP6 WP 6: Design and test of information system for virtual logistics platform In order to support the new optimized trade network and to enable users to plan shipping a virtual platform has been implemented. Thought the platform users can identify and evaluate the best transport option considering different itineraries, departure dates, travel times, service frequencies, transportation costs and so on.

21 DESIGN, DEVELOPMENT AND IMPLEMENTATION OF INFORMATION SYSTEM FOR VIRTUAL LOGISTICS PLATFORM The platform shall provide users with all available options in terms of:  Origin/Destination ports and connections  Departure dates  Itineraries  Times (boarding, travel, delivery)  Space availability  Service frequency  Freight transportation costs THE NEW VIRTUAL LOGISTICS PLATFORM SUPPORTS THE NEW OPTIMISED TRADE NETWORK AND ENABLES USERS TO PLAN SHIPPING AND IDENTIFY THE BEST TRANSPORT OPTION VIRTUAL LOGISTICS PLATFORM WP6

22 THE PLATFORM WILL BE ABLE TO:  PROVIDE ONLINE BOOKING SERVICES  SUGGEST MINIMUM COST ITINERARIES  OFFER TRACKING SERVICES  ESTIMATE DELAYS IN DELIVERY TIMES changing demand intensity and sea conditions  OFFER ENVIRONMENTAL MONITORING PLATFORM AS A TOOL TO SUPPORT THE ENVIRONMENT INEFFICIENT VESSELS PEAKS IN CONSUMPTION VIRTUAL LOGISTICS PLATFORM WP6

23 VIRTUAL LOGISTICS PLATFORM WP6

24 energy and environmental balances cost-benefits analysis multi-criteria analysis IDENTIFICATION OF KEY SUCCESS FACTORS The feasibility of the new alternative network structure has been determined in economic, social and environmental terms throught the elaboration of: KEY SUCCESS FACTORS

THANK YOU FOR YOUR ATTENTION 25 THE OPTIMED PROJECT Chamber of Commerce, Industry, & Agriculture - Beirut & Mount Lebanon Office: ext. 266 Mobile: ext