SHIFTING CARGO TO INLAND WATERWAYS (Final Project Information – March 99)

The project "Shifting Cargo to Inland Waterways" (abbreviated "SC") being executed under the 1^st Call of the 4^th Framework Programme of the EU DG-VII has been recently accomplished. The international consortium of German, Belgian and Austrian institutes under the co-ordination of the VBD Duisburg as the task leader investigated the capacity of the European Waterway Network, cargo flows, potentials, obstacles to and prerequisites for a higher utilisation and successful integration of the inland navigation mode into the transport chains.

Among the numerous results as for instance the assessment of the sectional capacity of all particular waterway stretches within the considered network of more than 7700 length kilometres, forecast of cargo volumes which could be conditionally "shifted" from roads and rails to the IWT mode, identification of present and future capacity bottlenecks, certainly the most valuable are those findings which deal with barriers to the higher utilisation of the waterways for cargo transportation.

Review of findings

On the basis of costs, speed, distances, comparative strengths and weaknesses of each particular mode (IWT, road, rail), user demands and general trends on transport markets and logistics the potential for cargo shifting from roads and rails towards the inland waterborne mode was assessed. Results can be summarised as follows:

• There is a large potential for shifting cargo to the inland navigation mode. The annual volume (reference year 1992) could be increased by more than 40% using the same infrastructure as it exists at the moment. This statement is based on the volume being available for the mode within the framework of cost, infrastructure and cargo characteristics.
• As a consequence of an eventual shifting the modal split of the IWT mode within the investigated corridors would reach the share of 30-35% (compared to about 26% in 1992).
• Comparing the realised and potential volume with the assessed waterway annual transport capacities, it was found out that in 1992 even 99% of the total waterway length within the investigated network had a large free capacity. After hypothetical realisation of the entire shifting potential but without any service and infrastructure improvement only about 20% of the total waterway length will come near to the capacity limits.

From a users' point of view inland navigation enjoys a pretty better image than railway in general as well as in most particular aspects except the speed. Additionally the users themselves attribute to the IWT to be the most favourable of all three modes with regard to a very reasonable price level.

On the other side, too long transport time was clearly stated as the greatest obstacle to a higher utilisation of the IWT mode. But in that respect it is very promising that there is a considerable number of shippers who are principally ready to accept an extended transport time if it would be compensated by a certain reduction of transport costs.

The analysis made upon the investigation of representative sample of transport users and transport service suppliers identified two kinds of obstacles. The first one generally relates to the entire European inland navigation system. It refers to insufficient network density, tight transport time requirements, high transhipment charges in combination with unavoidable pre- and end-haul, small consignment sizes and eventually non-suitability of certain commodities to be transported by inland ship.

Corridor specific obstacles are those which appear as typical for one or a few regions but not for the whole European network, at least not as obstacles of the same weight. These obstacles were classified into the following categories:

1. infrastructure shortages
2. low availability of information about the waterway conditions
3. restrictions owing to the existing fleet
4. inadequate service offers
5. information deficits about service offers
6. insufficient market attendance of the IW transport suppliers
7. negative effects of market regulation system
8. railway price policy

The prerequisites to overcome or at least to diminish the identified obstacles are conditionally classified into a technical, organisational and political group. The suggested technical measures were focused on the waterways, ports, fleet, freight units and functional relations between the IWT and other transport modes. The IWT system efficiency was also found out in optimal infrastructure management and operation, organisation of shipping services, equipment and labour as well as in advanced transport telematic applications. The recommended policy actions are addressed among others to the abolition of the alternate turn system (Tour-de-Role), stimulation of investments, harmonisation of technical and legal standards, fair competition rules etc.

Finally, on the basis of the SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis the proposed measures were assessed in relation to the service quality criteria. That resulted in a list of priorities, recommendations addressed to the supply side and policy makers as well as to the identification of the future research needs in the respective field.

Official Documents

The Executive SC Project Summary and the Final SC Project Report are publicly available documents. The SC project summary can be obtained free of charge either as a bound hard copy or in "soft" form in Word 97 (3,5 inch diskette). The comprehensive Final SC Report (bound copy, about 120 pages including charts, tables and diagrams) will be mailed upon written order and charged with DM 80 (Germany) respectively DM 95 (Europe) for covering printing, copying, binding and mailing costs. All documents are in English.

For your inquires please turn to the VBD (now DST), Klöcknerstr. 77, D-47051 Duisburg, Germany or fax N°: +49 (0)203 99369-60 (ref.: "SC").