Esther Durán – ITRANSPORTE https://www.revistaitransporte.com TRANSPORT ENGINEERING & CONSULTANCY Thu, 19 Oct 2017 08:26:22 +0000 en-GB hourly 1 https://wordpress.org/?v=5.9.4 Logical logistics https://www.revistaitransporte.com/logical-logistics/ https://www.revistaitransporte.com/logical-logistics/#respond Sun, 15 Oct 2017 18:32:26 +0000 http://www.revistaitransporte.com/?p=2750

When you feed your pet, buy a bouquet of fresh flowers, dress a salad or fill up your vehicle, you are at the end of a long chain that could have begun far away. Some products –certainly those such as flowers– will have arrived from their place of origin by air; others, such as salt, animal feed or fuel, may have arrived by sea, road or rail.

But in all cases, in order to satisfy the needs of the end consumer, these products need to travel through the supply chain in the best conditions of safety and quality, and in the shortest time possible. The World Trade Organization emphasizes that logistics is particularly crucial “for the electronics and pharmaceutical sectors, fashion garments and motor vehicles, where time is an important factor.”

The logistics chain covers various economic sectors and all stages of production and distribution, from the supply of raw material to the arrival of the finished product to the end consumer. In this complex network land, sea and air transport infrastructure is especially important, and they must also be interconnected as efficiently as possible. This is the function of transport centres, the hubs of the supply chain: they receive large volumes of goods and are modal interchange points, where the cargo goes from one mode of transport to another, from one phase of the supply chain to another; for example, bulk cargo is packaged, if it is solid, or distributed in trucks or tankers if it is liquid.

Located at road and rail nodes, airports and ports, logistics facilities can provide different services, depending on the type of centre in question: from simple modal interchange to services for the storage, distribution and consolidation of goods (bringing together cargo from different suppliers that has the same destination reduces costs), sanitary control and customs, labelling, packaging, parking, administrative management, electronic traceability, procedures and permits, etc.

In order for the transport chain to flow, and keep logistics costs –which according to the World Trade Organization can account for 20% of the total cost of production in the countries of the OECD– from going through the roof, logistics areas and terminals must have sufficient capacity to meet the demand and be strategically situated in the territory, as well as correctly dimensioned and managed. Since these are large and complex facilities, they require major investment to build them or to expand existing ones.

But this is only the first step: the key is to determine whether they will be profitable in the long term, which requires the rigorous analysis of all foreseeable costs, expenses and revenue. To do this, several factors must be taken into account, such as estimated traffic, land prices and financial formulas, among other things, which will reveal whether the project will be profitable or not. Hence the relevance of this type of study, covering operational, technical, economic and financial aspects, as a basic decision-making tool for project developers, both public and private.

Ineco’s experience

Since the 1990s, Ineco has performed a multitude of feasibility studies, both inside and outside Spain, for all types of transport infrastructure projects related to goods, both new construction and expansions and renovations, including multimodal corridors, business parks, industrial areas and logistics terminals.

The latter include the projects carried out in recent years for the Spanish Ministry of Public Works and several Regional Governments, such as the Basque Country, Andalusia, Asturias and Castilla-La Mancha, planning the construction of several logistics areas in their territories.

Also in Spain, in 2010 Ineco carried out a feasibility study for the new business park of the Foronda Airport (Vitoria) in the Basque Country, which specializes in air freight, and before that, several projects related to the intermodal logistics platform in Zaragoza (PLAZA) that connects air, land and rail transport. Between 2011 and 2012, on behalf of the Ministry of Public Works, the company analysed the rail connections of the Spanish ports, the existing traffic and the improvements that were required.

Overseas, Ineco is currently performing the feasibility study of the future logistics platform ‘Zona ILCO’ in the region of Santo Domingo de los Tsáchilas in Ecuador. Furthermore, in 2012, on behalf of the Ecuadorian Government, it concluded the 2013-2037 Strategic Mobility Plan, analysing all of the country’s transport infrastructure from the intermodal point of view, and proposing, among other possibilities, the construction of new ports and the extension of a landlord management model similar to the one implemented in Spain were included (see IT48).

In 2012, the company carried out an economic and financial study in Colombia to determine the profitability of adapting the Santiago Vila Airport, in the city of Flandes (Tolima), for international air freight (see IT49). In Medellín, in 2010, Ineco concluded a technical, legal and financial study to determine the feasibility of the reopening of the old railway line of Valle de Aburrá and adapting it for the transportation of passengers, goods and solid urban waste.

In Latin America it also carried out a feasibility study of the  Corinto–Monkey Point Multimodal Railway Corridor, Nicaragua (2013), which included the preliminary designs and alignment of two rail port terminals and a multi-modal terminal near the capital, Managua. Other recent international work includes the 2012 project for the Public Authority for Industry (PAI), of Kuwait (see IT48): the company carried out the conceptual design and provided comprehensive advice for the tendering process for the project and work on a new 5,000 m2 industrial area to the southeast of the capital.

E-commerce, the next big logistical challenge

E-commerce is growing at an annual rate of 24% in Spain, and operators such as Correos believe that this is only the beginning: even though internet sales already represent 8.7% of retail trade, 80% of the sector still does not sell on-line. The logistics and transport employer’s organization (UNO) also recognises that this increase has exceeded all expectations. In 2016 the logistics sector saw a 13% increase in contracts, but the challenges it faces are enormous: multiple deliveries within ever tighter deadlines, which have gone from two to three days to two hours in the case of some distributors such as Amazon (the photo shows their centre in San Fernando de Henares, in Madrid) or El Corte Inglés. Logistics companies agree that new distribution strategies are needed, especially in the final phase of delivery, known as the “last mile” such as the use of smaller and more agile distribution vehicles, bicycles or electric vehicles, and new technological developments that optimise distribution routes for multiple orders.

logistics centres in Spain

The freight transport sector is of great importance to the economies of countries, because of its capacity to generate employment and wealth. In Spain, according to official data, logistics and transport contribute approximately 5.5% of the Gross Domestic Product (GDP) and employ more than 850,000 people. The Ministry of Public Works, in ‘Spain’s Logistics Strategy’, classifies logistics centres as follows:

    • Road transport centres: these have a logistics department and a department for providing services for people and vehicles, administrative centres for transport companies and freight contracting centres. In Spain there are 80, including the Transport Centre of Gijón, the Transport City of Navarra and the Transport City of Santander. In most cases, these are managed by a single administrative board and private partners.
      The type of freight transported by road is heterogeneous, covering both raw materials, as well as finished, bulk or packaged products.
      According to statistics from the Ministry of Public Works, in 2016 the largest volume of goods transported by road in Spain corresponded to raw or processed minerals and construction materials (417 million tonnes), followed by food and fodder (245), machinery, vehicles, and other manufactured items (251), agricultural products and live animals (158, a figure similar to the ‘other goods’ item), and petroleum products, 57. In total, nearly 1.3 billion tonnes.

 

    • Rail freight terminals: Madrid-Abroñigal, León Mercancías and Zaragoza-Plaza. State-owned to date, in most cases, the Spanish rail infrastructure administrator, Adif, assumes both the management and the provision of services to business users.
      In Spain, rail is used mainly to transport steel products and materials (coils, steel, rails, pipes, etc.), wood, paper, solid bulk (coal, cement, cereals) and liquid bulk (fuels, chemical products), containerized cargo and automobiles. However, its share in the freight transport sector is very small (around 2% of the tonnage) and less than the European average. In total, in 2016, more than 28.5 million tonnes of goods were transported by rail, virtually all within Spain. Intermodal traffic accounted for nearly nine million tonnes.

 

    • Port logistics centres: As a peninsula, Spain is the European country with the longest coastline (more 7,800 kilometres) and has 46 ports, governed by 28 port authorities coordinated by the public body Puertos del Estado. 58% of exports and 74% of imports pass through these ports, arriving and departing for distribution by road (93%) or rail. Port activity accounts for 1.1% of Spanish GDP, generating more than 35,000 direct jobs, and a further 110,000 indirect jobs.
      It is managed under a landlord model: the public sector is the owner of the infrastructure, which it cedes to the private sector, which acquires and maintains the superstructure and deals with port operations and the employment of labour.
      In 2016, according to the Ministry of Public Works, Spanish ports exceeded their all-time record, handling 507.7 million tonnes of freight, more than half of which was solid bulk (cement, coal, grain, minerals, etc.) or liquids, the most important being oil, and the rest, general goods, most of which is carried in containers, which, also in line with world trends, reached a record of almost 15 million TEUs. Containerization of cargo saves space and facilitates modal interchange, since the different transport modes and systems are adapted to the standard sizes of the containers.
      The port logistic facilities include the rail port terminals, which connect to the railway network. These include the terminal in Spain’s largest port in terms of volume of goods, Algeciras, and others in Alicante, Valencia or Barcelona. The type of management is generally established by an agreement between the different port authorities and the railway manager.
      On the other hand, the Logistics Activity Zones (LAZ) are linked to sea ports and are dedicated to the storage distribution of goods and other value-added services. These usually have complex management models involving various public and private agents. Of particular interest are the LAZs in Algeciras, Valencia and Barcelona.

 

    • Dry ports: intermodal freight terminals are located inland and are connected to one or more ports by the railway network. They offer the possibility of conducting customs controls on goods upon arrival at the facility, rather than at the seaport, which speeds up operation. They mainly move containerized cargo.
      The main Spanish dry ports are Azuqueca de Henares, in Guadalajara; the Dry Port of Coslada, in Madrid, which connects by railway to the ports of Valencia, Algeciras, Barcelona and Bilbao, and the Sea Terminal of Zaragoza. Several agents are involved in their management, both public, such as the port authorities, and private.

 

  • Air freight centres: these are industrial and service zones located around major airports. Depending on their size, they can have multiple terminals, where different companies from the aeronautical and other sectors can operate. They often have business centres and other services. These are currently managed by Aena, the state airport operator.
    The goods that are transported by air are very specific, and are characterised by their low volume and high added value: these include live animals, cut flowers, perishable products such as seafood, valuable goods, express parcel services, fashion items (the Inditex Group in Zaragoza is a prime example), etc.
    The most important air freight centre, according to Aena statistics, is the airport of Barajas, Madrid, which with almost 416,000 tonnes in 2016 (9% more than the previous year) accounts for more than 50% of national air freight traffic, followed by Barcelona-El Prat, with almost 133,000 tonnes, 13.5% more than 2015. The Zaragoza airport, which like the one in Vitoria, specialises in freight, is in third place with almost 111,000 tonnes; it had the biggest growth in 2016 with an increase of 29%. The three centres operate 24 hours a day, seven days a week.

keys to the feasibility of a logistics terminal

A feasibility study of an intermodal logistics terminal includes the following:

    1. Analysis and diagnosis of the current situation: the socio-economic characteristics of the study area are examined, as well as the existing transport infrastructure, its main centres and production sectors, the current demand for goods, and possible effects on the environment. Finally, a diagnosis is prepared.

 

    1. Territorial and transport system planning: the national or regional documents that relate to the infrastructure planning, as well as the urban soil classification are studied.

 

    1. Estimation of the future demand for goods: an estimation of the growth in traffic, as well as the possible modification of the distribution model, is prepared. It is usually taken into account that expected demand will not be reached in the first year of operation, which is considered an initial maturation or ramp-up period.

 

    1. Analysis of the technical feasibility of the terminal:
      4a. Functional analysis: an intermodal logistics terminal is usually made up of two distinct functional areas:
      • Intermodal area: this area includes the intermodal rail terminal and associated services. This is the zone where the goods change their method of transport.
      • Logistics area: dedicated to handling goods and other specific distribution activities, as well as the storage and consolidation of freight.
      4b. Technical and railway operating conditions: rail connection type of the terminal, gauge, electrification, etc.
      4c. Design of the intermodal and logistics area.

 

    1. Analysis of the economic feasibility of the terminal: different economic scenarios are considered and modelled, and the investments, costs and operating revenues are calculated. The main parameters of profitability of the project (TIR, VAN, etc) are obtained as a result of this economic modelling.

 

  1. Terminal development and management models: they depend on the development strategy, the land regime, the complexity and profitability of the initiative, and the applicable legal framework.

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Connection with Europe https://www.revistaitransporte.com/connection-with-europe/ https://www.revistaitransporte.com/connection-with-europe/#respond Tue, 07 Feb 2017 13:20:14 +0000 http://www.revistaitransporte.com/?p=2306

Improvement of transport routes has been, since ancient times, a constant quest for the survival, wealth and development of peoples. With the creation of the European single market, having an interoperable transport network became one of the basic foundations to make economic relations between member states possible. The aim was to have modern infrastructure for the transportation of passengers and goods, held together by common legislation and technology that would exceed the simple juxtaposition of national roads. Thus began the trans-European transport routes, called TEN-T corridors, which comprise transport by road and railway, including waterways and seaports, as well as the airport network. Also in this category are smart transport management systems, like Galileo, the European system of satellite radionavigation, or the European Rail Traffic Management System (ERTMS).

In the 1980s, the EU began to establish which priority routes where greatest management and financial efforts would be directed, with the aim of facilitating communications, mainly between the main seaports and the large industrial areas and logistics centres of EU countries. On the basis of the studies conducted came the nine major Core Network Corridors (CNC) which structure Europe. Due to Spain’s outlying geography within the European continent, two of the nine corridors run through it: the Atlantic Corridor and the Mediterranean Corridor.
Subsequently, European Union Regulation N.º 1315/2013 established the specific alignments and nodes that make up each corridor, as well as the technical requirements necessary to have a solidly structured, homogenous, multimodal network that provides the backbone of European mobility in place by 2030.

The studies on the Core Network Corridors, conducted by consortia of consulting companies in the Member States, include analysis of demand, traffic forecasts, identification of improvements to transport networks and services, environmental impact analysis, innovation methods, etc. The analyses of these studies enable the projects and means necessary to meet the technical requirements set out in European law to be established. This must be implemented by Member States under the supervision of the European Commission.

Studies and work plans for each corridor

In 2014, a total of 265 projects were identified for the Atlantic Corridor, of which approximately 40% were railway projects, 24% were ports and 23% intermodal. In the case of the Mediterranean Corridor, in the 2014 study, 300 projects were identified, of which 44% were railway projects and 20% involved ports.

Since 2015, the EU has promoted the preparation and implementation of new work plans with specific actions to give impetus to the Atlantic and Mediterranean corridors, two projects considered to be top priority, in which Ineco has participated very actively since the origins. Proof of this is to be found in the previous studies on the EU corridors, as well as studies of the Vitoria-Dax, San Sebastián-Bayonne and Figueres-Perpignan railway connections, and the current studies of the Atlantic Corridor and the Mediterranean Corridor up until the end of 2017.

When the lists of projects and methods of each corridor are drawn up and the targets set out by the European Commission are met, they must be put up for political consensus among the various Member States, central governments and the regions, as well as cooperation and understanding between the various state and private agents involved. This is why the Corridor Fora and Working Groups, regular meetings that take place at the European Commission’s headquarters in Brussels, to which all stakeholders are invited, are very important. In the Corridor Fora, the consultants present the main progress from the corridor studies and open debate is held on the most important issues, offering attendees the possibility to respond or make comments. In the case of the Working Groups, specific technical issues are discussed, for example border matters, aspects relating to urban nodes, ports, logistics terminals, etc. in sessions with fewer participants, directed solely to the agents involved in each case. Both in the Corridor Fora and the Working Groups, the role of the consulting teams is fundamental, as they are coordinators and integrators to ensure that the studies are conducted holistically, prioritising the objectives of the corridor over individual interests.

Projects and European subsidies

The projects selected for each corridor and the European subsidies awarded to them are decisions of key importance both for the actors involved in international trade –infrastructure managers, shippers and logistics operators– and for the economic development of the Member States. Good evidence of the interest surrounding this is provided by the 2,800 transport companies and the 22 European ministers who attended the TEN-T Days 2016 conference, held in Rotterdam in June. The European Commission’s actions have objectives in the short (2020), medium (2030) and long term (2050), and 2050 is the final year of development, by which goods transported by land are projected to increase more than 50%.

Both the Atlantic Ocean and the Mediterranean Sea have enabled distances to other continents to be shortened thanks to their sea routes, made possible by large engineering works such as the Panama and Suez Canals. The European ports of both port fronts compete to have the infrastructure and logistics terminals necessary to assume the load of the Panamax and Post Panamax vessels which transport goods containers from Asia, Africa and America.
To manage this entire potential load, the ports require installations, technology and the land connections necessary for its rapid distribution to the population and industrial centres in the interior. At the same time, the EU created the concept of “highways of the sea”, short-distance maritime routes between ports that assist in decongesting roads. Finally, the corridor work plans seeks to gradually implement the use of clean energies and fuels that enable pollutant gas emissions to the atmosphere to be reduced.

The Mediterranean Corridor

The Mediterranean Corridor comprises more than 3,000 kilometres, which connect the eastern half of the Iberian Peninsula with the Mediterranean side of France, north of Italy, Slovenia, Croatia and Hungary, before finishing at the border with Ukraine. According to official data in 2014, the regions along the Mediterranean Corridor comprise 18% of the population of Europe and contribute 17% of gross domestic product.

Mediterranean Corridor

Mediterranean Corridor

Functionally, one of the most significant challenges of this corridor is efficiently connecting the main seaports of the Spanish Mediterranean coast (Barcelona, Tarragona, Valencia, Cartagena and Algeciras) with central Europe. As such, the aim of the most important activities is to connect Spain’s ports with an international standard gauge of 1,435 mm, alter the rail network so that trains of up to 740 m can run, and remove bottlenecks. Many of these actions, those which affect the section between Castellbisbal and Almería, are currently in progress and/or the project preparation stage, in which Ineco is also participating actively. Another key aim is to build an east-west multimodal transport axis.

Additionally, the construction of an east-west multimodal transport axis has been planned to benefit and enable economic relations in southern Europe, where some of the most important urban centres are located: Madrid, Valencia, Barcelona, Marseille, Lyon, Turin, Milan, Venice, Ljubljana, Zagreb and Budapest. To make this east-west axis come to fruition, the major projects centre around eliminating the current lack of continuity in border crossings between countries, especially between Spain and France (Figueres-Perpignan), France and Italy (Lyon-Turin) and Italy and Slovenia (Trieste-Divaca). The future high speed Lyon-Turin section involves building a 57-kilometre base tunnel, which will be one of the longest railway tunnels in the world. Base tunnels are one of the largest European investments to ensure the railway’s competitive advantage over travel by road and consequently a road-rail modal diversion in especially sensitive areas like the Pyrenees or the Alps, geographical obstacles that strongly condition this corridor.

The consortium commissioned to conduct the Mediterranean Corridor study comprises PwC, Ineco, SETEC and Panteia. PwC is the consortium leader and is responsible for maintaining an up-to-date list on projects worked on by Italy, Slovenia and Croatia. SETEC and Panteia are responsible for French and Hungarian matters, respectively. Ineco shares responsibility for keeping an up-to-date list of Spanish projects with PwC Spain, providing its railway and air transport experience. Spain is a key player in the Mediterranean Corridor, as 45% of the railway corridor traverses our country, spanning the Algeciras-Madrid-Barcelona-French border, Barcelona-Valencia-Almería and Almería-Antequera-Seville sections. Ineco also leads the part relating to innovation in task 3b of the study, in which expansion of the list of Mediterranean Corridor projects is analysed, paying attention to more cross-cutting aspects.

Since in the first studies presented in 2014, 300 projects were identified, the aims of the Mediterranean Corridor consortium members centre on defining, prioritising and estimating the most essential activities, among which what is sought is to enable goods to be transported by railway rather than by road. It is calculated that, with total implementation of the corridor in 2030, 40 million tonnes of goods could be transferred from road to railway.

The Atlantic Corridor

The Atlantic Corridor links the Iberian Peninsula ports of Algeciras, Sines, Lisbon, Leixões and Bilbao with Paris and Normandy, and continues to Strasbourg and Mannheim. It would therefore be an efficient export route for goods bound for eight seaports of the Core Network (Algeciras, Sines, Lisbon, Leixões, Bilbao, Bordeaux, Le Havre and Rouen) where the large global trade ships arrive from America and Asia (via the Panama Canal) and Africa and Asia from the Mediterranean (via the Suez Canal and the  Strait of Gibraltar). Additionally, the cities and logistics centres on the Atlantic Corridor route or its environs would benefit from the service of this corridor, enabling and stimulating their importance in international trade.

Atlantic Corridor

Atlantic Corridor

Ineco currently participates in the study of the Atlantic Corridor for the European Commission in a consortium led by Portuguese consultancy TIS together with the companies EGIS, Panteia, M-FIVE and BG21. In addition to providing the information relative to Spain, Ineco has a lead role in defining the list of Atlantic Corridor projects, a job that requires identifying and analysing corridor projects in progress or being planned, gathering information from the agents involved in the projects (in the case of Spain, we might highlight the Ministry of Public Works, ADIF, Puertos del Estado (Spanish State Ports), AENA, the Autonomous Regions, private agents, etc.) on the projects’ scope, timeframe and investment needs, a key aspect to specify and establish subsequently the prioritisation of activities in the corridor.

The Atlantic Corridor has an excellent network of roads, which are almost all highways. There is partial interoperability of the system of road tolls, with various projects underway to fully implement them in the corridor. As for rail transport, some aspects such as single-track lines, the lack of electrification, or Spain and Portugal’s distinct track gauge and its alteration to match the international standard gauge (1,435 mm), are significant obstacles to the development of goods transportation. Also worth noting as other hurdles to climb in the corridor’s railway network are the partial absence of the ERTMS and the need to adapt infrastructure to allow trains of up to 740 m.

The European Commission has emphasised the need to solve access from ports to other modes of transport, particularly the railway. At the port of Algeciras –the largest of the entire corridor by volume– reports underline the essential importance of the electrification of the line and alteration of tracks and terminals to admit the aforementioned 740-metre freight trains.

Other proposals are the improved navigability of the River Seine between Paris and Benelux and access to the railways from all airports along the corridor. Only Paris-CDG (Roissy) Airport meets all the requirements of Regulation (EU) N.º 1315/2013 and has a long-distance railway link. Paris Orly and Madrid Barajas Airports link to the suburban railway and metro; those of Porto and Lisbon only with the metro; and Bilbao and Bordeaux do not have railway links.

The eight keys of the European corridors

  1.   Removing bottlenecks.
  2.   Building cross-border connections.
  3.   Promoting intermodal integration and interoperability.
  4.   Integrating rail freight lines.
  5.   Promoting clean energy.
  6.   Applying technologies for better infrastructure use.
  7.   Integrating urban areas into the Core Network Corridors.
  8.   Enhancing safety.

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