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

2. Waterways of international importance 2014-10-17European Inland Waterways2

3. 2014-10-17European Inland Waterways3

4. European IWW Classification 2014-10-17European Inland Waterways4

5. European Fleet 2014-10-17European Inland Waterways5

6. European Fleet 2014-10-17European Inland Waterways6

7. 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 / 3 000 t Car Carrier: L 110 m / Beam 11,40 m /draft 2,20 m / 600 t 2014-10-17European Inland Waterways7

8. 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 / 11 000 T 2014-10-17European Inland Waterways8

9. 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 2014-10-17European Inland Waterways9

10. Facts and Figures Navigable Waterways: 30 000 km Fleet total:1200 Ships Total Fleet Capacity: 11 million MT Total T/Km Entire Fleet:125 000 000 Transport Market share:7 % Countries interconnected6 Companies: 7 000 FTE Employed 23 000 2014-10-17European Inland Waterways10

11. 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 2014-10-17European Inland Waterways11

12. 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 2014-10-17European Inland Waterways12

13. 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 2014-10-17European Inland Waterways13

14. Summary of problems related to performance on modal share 2014-10-17European 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.

15. Summary of problems related to performance on modal share 2014-10-17European 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.

16. Summary of problems related to performance on modal share 2014-10-17European Inland Waterways16 River Information Services (RIS) No integration with logistics, very limited RIS deployment resulting in sub- optimal efficiency of transport (higher costs)

17. 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. 2014-10-17European Inland Waterways17

18. BACKUP SLIDES 2014-10-17European Inland Waterways18

19. 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 2014-10-17European Inland Waterways19

20. 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 2014-10-17European Inland Waterways20

21. 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 2014-10-17European Inland Waterways21

22. 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 2014-10-17European Inland Waterways22

23. 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) 2014-10-17European Inland Waterways23

24. 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). 2014-10-17European Inland Waterways24

25. 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 2014-10-17European Inland Waterways25

26. 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 2014-10-17European Inland Waterways26