1. UK Short Sea Connections ABP Southampton 20 June 2013 Chris Welsh Director Global & European Policy

2. Sulphur Directive Survey Impacts on Users Aim – assess what the potential operational/costs impacts would have on market use of short-sea shipping Survey sent to FTA members between 12 October and 19 November 2012 supply chain contacts and to shipping line customers 69 responded 58 completed the questionnaire –Represents 216,000+ TEU and 7m+ tonnes per annum

3. User groups

4. Geographic range

5. Impact of rates increases on mode shift

7. Impact of rate increases on modal shift

9. 5% cost increase results in switch to increased road for: –17.3% of movements 10% cost increase sees switch of: – 30.7% of movements 20% cost increase sees switch of: -46% of movements 30% cost of increase sees switch of: –57% of movements Differential impact on bulk/container/roro sectors untested

10. Impact of service frequency on mode shift

11. Impacts of a reduction in port range on mode shift

12. Promoting water opportunities Chris Welsh Director, Global & European Policy

13. Water & mode shift policy agenda Sulphur regulation-avoid reverse mode shift Grants-respond to the grants review-place water on par with rail grants regime (Water Freight Grant-Mode Shift Revenue Support) Planning & noise abatement-Urban logistics- Water and rail-side access to be preserved to allow alternative mode deliveries where possible-take urban freight agenda to local authorities Short-sea shipping/motorways of the sea-Focal Point meetings Short sea promotion centre meeting on behalf of DfT The Blue belt initiative Load matching initiative with retailers-Marco Polo-DG move targets for mode shift from road to water/rail EU ports package-ports not fulfilling their true potential (dredging, mooring, pilotage and towing)