MoS Pilot Projects for the Black Sea and Caspian Sea Ministry of Economy and Sustainable Development...

MoS Pilot Projects for the Black Sea and Caspian Sea

Ministry of Economy and Sustainable Development of Georgia

Transport Policy Department20.05.2011

Georgia, Tbilisi

A Motorway of the Sea (MoS) is a door-to-door intermodal freight transport chain using a maritime segment with sea-land (rail, road and possibly inland waterway) connections and interfaces.

The aim of this project is to increase modal shift or cohesion by means of traffic concentration on sea-based routes in improving existing maritime links or establishing new viable, regular and frequent maritime links.

Project history

The Project was launched in January 2009 with the objective to facilitate trade and transport along the corridor Europe – Black Sea Region – Caucasus – Central Asia (TRACECA).

More specifically, the Project is to promote the "Motorways of the Sea" concept.

General Information

MOS Pilot Projects of the Black Sea and the Caspian Sea

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Four main outputs will have to be achieved within the project duration:

1. Extensive review and analysis of transport systems in beneficiary countries (“pre-MoS”conditions in beneficiary countries and in other Black Sea/ Regional countries)

2. Awareness rising to promote economic potential of intermodal logistics chain (casedemonstrations, exchange of best practices, training) and related recommendations.

3. Short and Medium term Road Map: Pilot projects to be identified and selected withbeneficiary countries :• according to MoS standards and conditions• based on transport policies and market requirements

4. Pre-feasibility or feasibility studies for selected projects:• impact assessment (socio-economic, environmental, market benefits, obstacles,solutions, national and regional dimension)• coordination with international financing institutions• promotion/ communication

Outputs of TRACECA MoS I Project/Extract from ToR


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The main results expected in the framework of the project are the following:

1. Implementation of activities focusing on the maritime dimension of the Motorways of the Seas pilot projects selected under the previous contract Motorways of the Sea I;

2. Implementation of activities focusing on the hinterland dimension of the Motorways of the Seas pilot projects selected under the previous contract Motorways of the Sea;

3. Identification, selection and, if possible, implementation of the pilot projects that are not yet mature under the previous contract Motorways of the Seas I and of new pilot projects (not yet identified during the previous contract)

4. Attracting funding for the implementation of Motorways of the Sea Projects;

The ToR of new TRACECA MoS II project


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In the scope of the Motorways of the Sea for the Black Sea and the Caspian Sea the following Feasibility studies of Pilot projects were developed:

POTI – BAKU Container Block TrainVARNA – ILYICHEVSK – POTIILYICHEVSK-SAMSUN-POTI

MoS Pilot Projects


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Pilot-project key objective:

Interconnecting Black Sea and Caspian Sea with Block train service.

In general, block trains are preferred to containerized conventional freight trains because of:

attractive tariffs

prompt delivery of goods from the original station to the destination station

safety

easy border crossing and customs procedures

environment–friendly transportation

high level communication system.

Pilot ProjectPOTI – BAKU Container

Block Train


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The relevant trades might be:

Any container potentially moving in transit along the Rail corridor via both ports of Poti and

Baku

Loaded and empty containers carried between:

Eastern TRACECA: Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan, Tajikistan,

Kyrgyzstan and beyond in the East

Western TRACECA: Georgia, Turkey; Ukraine, Moldova, Bulgaria, Romania, plus other

European Countries (non TRACECA and CIS).

The Poti-Baku block train project- linking the Black and Caspian Sea for container trade flows.


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Countries Partner Countries East bound West bound

Georgia Kazakhstan 19,415 112,604

Traceca South East 1,978 5,233

Azerbaijan Traceca/ CIS 811,415 16,956

Traceca West 33,288 1,328

Turkey 1,052,863 39,592

Europe (non Traceca & Cis) 335,513 24,903

Traceca/Cis Kazakhstan 1,007,496 1,649,092


Traceca West Kazakhstan 18,795 32,151


Kazakhstan 334,338 1,416,343


(non Traceca & Cis) Kazakhstan 1,110,422 2,550,681


Total 6,602,297 6,699,943

The Poti-Baku block train Pilot Project (Tons)


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Georgia Development of Poti as Deep Sea Container Port in the Black Sea

Improvement of railway services / modal shift from road to rail.

Azerbaijan Improvement of railway services.

Development of Baku International Sea Port (BISP) (also consistent with planned construction of / role assigned to new BISP at Alyat as Caspian Regional Hub).

Modal shift from road to rail.

Consistency with national transport policies


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Loaded Truck Tons equiv.(*)

Border Georgia-Azerbaijan

Red Bridge 46,240 878,560

Lago dekhi 5,297 100,643

Total 51,537 979,203

Direct Bilateral trade

Export 1,274 24,206

Import 1,939 36,841

Transit From/To Azerbaijan 43,534 827,146

Transit through and (to central Asia) 4,790 91,010

Total Transit 48,324 918,156

Road Truck Flow Georgia / Azerbaijan - 2008


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Rail Container Flow Georgia / Azerbaijan - 2008

Container (TEU) Tons equiv. (*)

Transit From/To Poti

to Azerbaijan 4,092 40,920

to Central Asia 562.0 5,620

Transit From/To Batumi

to Azerbaijan 1,118.0 11,180

to Central Asia 56 560

Transit From/To Azerbaijan 5,210 52,100

Transit From/To Central Asia 618 6,180

Total Transit 5,828 58,280


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Lack of fitting platforms for container transportation 100 fitting platform (with capacity of three TEU) for three block train is needed for the

successful implementation of Container train project. The Cost of the one fitting: 80 000 USD

Lack of LPG Tank container 100 of each or by combination for Georgian R/W, due to planned construction of LPG (LNG)

terminals in Aktau port, Constansa and Batumi ports. Today Georgia have capacity of 3000 MT storage in Batumi port (Terminal 1)

The Cost of one 20 t LPG tank container is about 35 000-40 000 USD

Investment Needs


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Improvement and acceleration of awareness to develop trade with an interests of public and

private participants of the project.

To increase the shipping quality and to reduce the delays of interconnected pilot projects of

MOS and between the members of the central railway corridor of TRACECA.

The Cost to purchase and develop the staff education and to provide program introduction is

250 000 euro.

The Exact budget will be determined according to the number of the equipment. ( The number

of staff which will handle and keep equipment)


Investment Needs

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Shifting Trucks from Road between Europe, Turkey and Caucasus;

Propose alternative short routes and replace auto transport on the roads between Europe/ west party of TRACECA, Turkey, Caucasus middle east;

Connect Black and Mediterranean Sea (Mersin & Iskenderun – Samsun rail & road connection);

(Odesa) - Ilychevsk – Samsun – Poti maritime Link

ILYICHEVSK-SAMSUN-POTIGeneral Objectives


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Direct mutual shipping - Turkey, Ukraine, Georgia; Direct regional shipping - TRACECA ( west part); Transit shipping - in scopes of sea motorway routes

Transport Service market / Technical aspects:

Bulk cargo;Rail Ferries;Ro-Ro, Ro-pax;Containers;Viking Train.

Target market and facilities


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Volume in Tons

East - North West Axe Partner Countries Westbound Eastbound

Ukraine/Belarus/Moldova with:

1,649,092 1,007,496Traceca South East 113,366 597,057

123,627 1,493,875

Total East - North West 1,886,085 3,098,428

East - South West Axe Partner Countries Westbound Eastbound

Turkey with:

1,416,343 334,338Traceca South East 229,058 609,708

344,119 1,889,426

Total East -South West 1,989,520 2,833,472

North - South Axe Partner Countries Southbound Northbound

Turkey with: Ukraine / Moldova / Belarus 6,247,906 1,404,889

Aggregated trade potential of Ilyichevsk – Samsun - Poti Pilot Project (Tons)


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Key stakeholders and target groups:

Institutions Ministries of transport and relevant State organizations, Port and Maritime Administrations, Customs and Border Authorities

Operators Ports and terminals Shipping companies / agents Forwarding companies Transport associations Business communities (users)

Stakeholders


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Investments needed for:

Development of Infrastructure to be more competitive; Satisfy Operators and Customers and ensure that the characteristics are appropriate of the MoS project;

Types of needed Investments:

Rehabilitation of relevant Ports infrastructures and intermodal terminals;

Development or renewal of transport units and equipments;

Land Buildings: dry ports, container warehouse, related with logistic centers;

Information systems and decision - technical and program insurance;

Assistance in organization of appropriate studies.

Investment Needs


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Support by national stakeholders

Samsun Port administration;UkrFerry;Bulgar Sea Fleet.

Approximately cost:

3 000 000 Euro


Investment Needs

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Improving rail / Ro-Ro / container intermodal transport on existing maritime services by:

Up-grading existing transport means and facilities;

Changing other existing technical conditions of transport, reducing vessel’s handling operations and increasing volumes;

VARNA – ILYICHEVSK – POTI General objectives


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The Varna-Ilyichevsk-(Kerch)-Poti-Batumi pilot-project relates to goods carried:

in rail wagons, in trucks/trailers, in containers: lines and merchants (incl. last-voyage), in break-bulk: packed or unpacked, including heavy lifts and rolling cargoes,

new or secondhand cars and trucks.

It therefore encompasses a large range of trades and the wide geographical scope. The customer base includes all the private and public export / import trading and industrial companies,

as well as transport operators (rail, shipping)

Existing Transport Service


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Countries Partner Countries Westbound/ Southbound Eastbound/ Northbound

Bulgaria TRACECA/Cis North West (Ukraine, Belarus, Moldova) 1,257,343 111,810

Caucasus28,849 54,570

Kazakhstan12 5,841

TRACECA South East 12,864 8,327

TRACECA/CIS North WestGeorgia / Armenia 106,671 682,460

Azerbaijan16,956 811,415

Kazakhstan1,649,092 1,007,496

TRACECA South East113,366 597,057

Europe (non-TRACECA/ CIS) Georgia / Armenia 282,808 425,497

Azerbaijan 24,903 335,513

Kazakhstan 2,550,681 1,110,422

TRACECA South East 486,653 635,567Total 6,530,198 5,785,975

Trade potential Varna – Ilyichevsk – Kerch - Poti Pilot Project (Tons)


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Ministries in charge of transport, customs;

Professional associations. Especially: Associations of Freight Forwarders in West TRACECA and Caucasus countries;

Port authorities / Terminal operators;

National state railway companies;

Partners:

Ukr Ferry (Railferry private Ukrainian Shipping Company with status of National Carrier). BMF (Railferry private Bulgarian Shipping Company).

Stakeholders and Partners


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The Varna-Ilyichevsk-(Kerch)-Poti-Batumi pilot project implies:

five (5) (container handling) toploaders (1 per vessel) are purchased and placed all at once on board of the vessels In this respect it is suggested to consider “Mobicon Flexible Container

Handling System”.

about 150-200 rail wagons of 918 type owned by Georgian railways and/or Ukrzalisnytsia are modernized and put in operation at the rate of 10 units per month,

Indicative cost of the project - 2.000.000 euro

Investment Needs


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The possibility of creating a circular shipping container line on the Black Sea is in process, using the Lo-Lo vessel which may offer cheaper port disbursement costs than railferry and cheaper transportation costs as a result;

It is suggested to establish a Lo-Lo/pax circular container line on the following route:

Constanta-Ilyichevsk/Odessa-Poti/Batumi-Istanbul/Derinje;

Possible framework of new TRACECA MoS II project


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The World Bank 2010 “Doing Business Report” upgraded the Country rank 45 to rank 11.

The Georgian Maritime Administration cooperates with a number of international organizations (IMO, BS MoU, NATO PBOS, BSPA, Istanbul Commission, IACS etc.)

Port Public Private partnerships were concluded in 2007 – 2008;

Legal instruments regulate trade transport.

Legal Environment in Georgia


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The Presentation demonstrates the key features of the TRACECA MoS project makes clear for evaluators the basic information about the need of such new alternative routes and the chances to make real this project;

The project will support the efficient interoperability and further development of logistic processes between EU Countries, Caucasus and middle Asia countries;

The project will improve the trade relationships and multimodal transport system.

The Service in TRACECA corridor will be more competitive in which will have direct effects to trade and transport development in Black Sea and Caspian sea Region.

Conclusion


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Thank You for Attention

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