1. 1111 Franc Žepič, PAC 1b Ministry of Infrastructure, Slovenia The EU Strategy for the Danube Region Priority Area 1b: To improve mobility and Multimodality – road, rail and air links Transport & Logistics - “Bridging the Gaps between the Danube Region Countries” (Part II) Transport & Logistics in the SEE and in the Danube region 14 April 2016 | Sava Centar, Belgrade, Serbia

2. 222 The EU and Macro-regions: First macro-region: the EU Strategy for the Baltic Sea Region (EUSBR); 2009 Second macro-region: the EU Strategy for the Danube Region (EUSDR) - 8 Dec 2010: Adoption by the CION (Two docs: Communication on Strategy and Action plan) - 24 June 2011: endorsed by the European Council! - 30 June / 1 July 2011: the end of preparation / start of implementation Third macro-region: The Adriatic-Ionian Macro-Region (EUSAIR); 2014 Fourth macro-region: The Alpine Macro-Region (EUSALP); 2015 --- EUSDR - 11 Priority areas: PA1: To improve Mobility and Multimodality PA 1a: inland waterways - Austria and Romania PA 1b : rail, road and air links - Slovenia and Serbia

3. 3 The Danube Region...  14 States: Germany, Austria, Czech Republic, Slovakia, Hungary, Slovenia, Romania, Bulgaria, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Moldova, Ukraine  Population: 115 mio (EU28: 506 mio) Area: 1,092.591 km2 (EU28: 4,324,782)

4. Danube Region – development indicators The EU: from 6 to 28 members (since 2004: „Old & New Member States“) Enlargements: 1957/58: BE, DE, FR, IT, LUX, NL (Founder states) 1973: DK, IE, UK 1981: GR 1986: ES, PT 1995: AT, FI, SE 2004: CZ, EST, CY, LV, LT, HU, MT, PL, SI, SK 2007: BG, RO 2013: CRO Candidate countries Potential Candidate Country : Montenegro, Serbia, Bosnia & Herzegovina, ENP (Eastern Neighbourhood Policy): Moldova, Ukraine (Association Agreement signed 2014) CountryPopulationGDP 2014 bill ion USD GDP 2014 per capita PPP USD Germany81,757,6003.868.2939,717.70 Austria8,356,707436.3443,905.68 Czech Republic10,674,947205.5228,694.71 Romania21,959,278199.046,195.84 Hungary10,005,000138.3511,888.11 Croatia4,489,40957.1110,561.27 Bulgaria7,576,75156.714,915.85 Slovakia5,429,76399.7926,354.70 Slovenia2,054,19949.4919,110.56 Serbia7,306,67743.874,245.54 B&H4,613,41418.299,515.65 Montenegro672,1804,484,757.32 Moldova3,567,5007.944,753.55 Ukraine45,888,000131.818,267.07 Source: Internet - http://www.tradingeconomics.com/ 3

5. Danube Region – transport 5 The Danube region: High diversity between 9 EU and 5 non-EU countries Unbalanced transport and infrastructure between Danube countries A set of Contradictions:  High freight and passengers transport on the road, low freight and passengers transport on the railways,  Underused extensive network of railways, overused extensive yet poor road infrastructure  High number of ports, low level of container transshipments,  Low motorization of the population, high number of fatalities and seriously injured on the roads  Inadequate air transport connections, relatively high number of airports Rail network: high and conventional rail. Source: Internet

6. 6 Infrastructure: “Once upon a Time” Pan-European corridors (Crete 1994, Helsinki 1997) No. IV: Dresden/Nuremberg – Prague – Vienna/Bratislava – Budapest – Bucarest – Constanta – Sofia – Thesalloniki/Plovdiv - Istanbul No. V: Venice – Ljubljana – Budapest – L’viv Branch A: Bratislava - Uzhhorod Branch B: Rijeka – Zagreb - Budapest Branch C: Ploče – Sarajevo -Budapest No. VI: Gdansk – Katowice – Žilina; branch Katowice - Brno No. VII: The Danube River No. VIII: Durres – Tirana – Skopje – Sofia – Plovdiv – Burgas – Varna – Constanta No IX: Helsinki - St. Petersburg – Kiev – Chişinău – Bucharest - Dimitrovgrad – Alexandroupolis No. X: Salzburg – Ljubljana – Belgrade – Skopje - Thessaloniki Branch A: Graz – Maribor - Zagreb Branch B: Budapest – Novi Sad - Beograd Branch C: Niš – Sofia - Istanbul Branch D: Veles – Bitola - Igumenitsa The corridors are road-rail (multi-modal), with the exception of Corridor VII, which is represented by the Danube river.

7. 7 Transport Infrastructure: „Yesterday“ Core Corridors – TEN-T (Reg. 1315/2013 on TEN-T and Reg. 1316/2013 on CEF) 7 1. Scandinavian-Mediterranean Corridor (FI, SE, DK, DE, AT, IT, MT) – Mr. Pat Cox (IE) 2. North Sea-Baltic Corridor (NL, BE, DE, PL, LT, LV, EE, FI) – Mr. Pavel Telička (CZ) 3. North Sea-Mediterranean Corridor (IE, UK, FR, NL, BE, LU) – Mr. Peter Balazs (HU) 4. Baltic-Adriatic Corridor (PL, SK, CZ, AT, SI, IT) – Mr. Kurt Bodewig (DE) 5. Orient/East-Med Corridor (DE, CZ, SK, AT, HU, RO, BG, GR, CY) – Mr. Mathieu Grosch (BE) 6. Rhine-Alpine Corridor (NL, BE, DE, FR, IT) – Mr. Paweł Wojciechowski (PL) 7. Atlantic Corridor (PT, ES, FR, DE) – Mr. Carlo Secchi (IT) 8. Rhine-Danube Corridor (FR, DE, AT, CZ, SK, HU, HR, RO, BG) – Ms Karla Peijs (NL) 9. Mediterranean Corridor (ES, FR, IT, SI, HR, HU) – Mr. Laurens Jan Brinkhorst (NL) 2014 – 2020 (2030): 9 CORE TEN-T CORRIDORS and EU COORDINATORS: Five corridors are part of the Danube region transport network i.e. No. 1, No.4, No.5, No.8 and No.9.

8. 8 Transport Infrastructure: „Today“ TEN-T and Connectivity Agenda Political commitments: 28 August 2014: Conference of Western Balkan States (The Berlin Process) 21 April 2015, Brussels: Commissioner for transport meets with WB6 Prime Ministers 22 June 2015, Riga: Ministerial meeting with WB Ministers at TEN-T Days 2015 27 August 2015, Vienna: Western Balkans Summit Next: July 2016, Paris: WB6 Extended Core Corridors:  - Mediterranean Corridor  - Orient/ East-Med Corridor  - Rhine/Danube Corridor

9. TRANSPORT & LOGISTICS in the Danube macro-region Towards 2030 9

10. 10 EU Regulatory base  Logistics package 2007 (by the Commission):  Communication “The EU’s freight transport agenda (COM(2007)606): Boosting the efficiency, integration and sustainability of freight transport in Europe, accompanied by: Freight transport logistics action plan, Towards a rail network giving priority to Freight, Ports Policy Maritime and Short Sea-shipping (report)  Urban package 2013 (by the Commission):  Communication: »Together towards competitive and resource-efficient urban mobility«, including:  A call to action on urban logistics (Commission Staff Working Document)  Studies (January 2015): Fact-finding studies in support of the development of an EU strategy for freight transport logistics Lot 1: Analysis of the EU logistics sector

11. 11 Logistics Performance Index Danube macro-region countries: LPI ranking and scores 2014 (of 155 countries) CountryRank (2012) CountryRank (2012) Germany(4) 1Bulgaria(36) 47 Austria(11) 22Croatia(42) 55 Czech Republic(44) 32Ukraine (66) 61 Hungary(40) 33Serbia(75) 63 Slovenia (34) 38 Montenegro(120) 67 Romania(54) 40Bosnia & Herzegovina (55) 81 Slovakia(51) 43Moldova(132) 94 Source: World Bank (Connecting to compete 2012 & 2014: Trade logistics in the global Economy http://lpi.worldbank.org/international/global/2014 LPI measures logistics efficiency. Six component indicators: 1)The efficiency of the clearance process (e.g. speed, simplicity) 2) Quality of infrastructure (roads, rail, ports, RRT, ITS) 3)The ease of arranging competitively priced shipments 4)The competence and quality of logistics services (transport operators, customs brokers) 5)The ability to track and trace consignments 6)The frequency with which shipments reach the consignee within the scheduled or expected delivery time

12. Logistics Potential Western Europe vs Danube Region Western Europe Danube Region Remarks Infrastructure: ports, hinterland connections developednot developed, missing links DR Adriatic and Black sea ports Market: Catchment area (population, GDP), 8-9h from distribution centre (city) 135-190 mio population up to 80 mio population F‘furt:190 Belgrade:80 Base Costs: basic operational costs, labour costs, rental and land costs, manufacturing costs Higher costs 40.000-20.000 eur/year Lower costs 5.000 – 20.000 eur/year Austria, Germany, Greece Labour Capacity: working population, skilled workers, unemployment=availability n/a Advantage workforce available Business Environment: Ease of doing business, Regulatory base, Efficient customs clearance procedures n/a Varies from country to country Logistics: specialized workforce and logistics centres Skilled / matureSkilled / developing 12

13. 13 Logistics: „Looking ahead“ To be considered:  Sustainable „Green“ logistics: such as use of alternative fuels  Technological progress: New rolling stock initiatives: autonomous vehicles (such as Truck platooning), autonomous ship  Digitalization: e-Logistics  New business model: e.g. Circular economy“ Source: Internet – Colliers report „Emerging logistics hubs in 2020“

14. 14 Challenges (that remain):  To narrow the gap between performance of individual countries in transport:  a common strategy for development of transport infrastructure is needed, so that the infrastructure works that are stalled, delayed or postponed should restart  better use of intermodal transport in the region (“full modal integration”), quality and reliability of railways to improve, roads: missing links constructed and bottlenecks removed, high performing sea and river ports, including new intermodal terminals developed.  Removal of border-crossing barriers, in particular administrative  Logistics sector:  logistics reform should be started by governments,  long term commitments from policymakers and private stakeholders are essential to obtain a reliable supply chain,  Two key features: Just-in time (JIT) and Door-to-door (DTD), both favour use of the road and air (the least energy efficient modes),  Special attention to city logistics, in order to integrate urban freight operations into door-to- door services,  advanced business model (e.g. study the resource efficient circular economy concept – incl. Reverse logistics for reuse, recycle or disposal of material or goods)  best practice exchange, in order to learn from each other.

15. Co-operation & Co-ordination & Co-action = Progress 15 The core network corridors, once completed, will provide quality transport services for citizens and businesses, with smoothly integration within the Danube Region as well as with the EU. The priority projects will remove bottlenecks, promote interoperability, and build missing cross-border connectivity. Only coordinated and well implemented national and regional projects can provide Transport and Logistics in service of the market and the people of the Danube region.

16. 16 PAC SerbiaPAC Slovenia Miodrag Poledica, State SecretaryMr. Franc Žepič, Secretary Ministry of TransportMinistry of Infrastructure and Spatial Planning BelgradeLjubljana poledica@mgsi.gov.rsfranc.zepic@gov.si Thank you very much! Please visit: www.danube-region.eu www.danube-region.eu http://groupspaces.com/MobilityRail-Road-Air/