Present and future
of the container liner shipping
on the Danube
Belgrade Chamber of Commerce
March 25, 2010
Dr.-Ing. Saša Jovanović
River Port Agency Manager
European Sea Gateways
North Western European Ports Area
- 62% of GDP in Europe
Southern European Ports Area
- 26% of GDP in Europe
Central and Eastern European Area
- 12% of GDP in Europe, only 1% of direct sea freight
72% of the European distribution centres located in NW
 North range ports: Le Havre, Antwerp, Rotterdam, Amsterdam
and Hamburg serving the most of Central and SE European
countries
 Adriatic ports growing fast: Koper, Rijeka, Trieste
 Port of Constantza in the Black Sea emerging from 2001
Factors determining the port selection
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Geographic misbalance of supply and demand of goods
Level of purchasing power in the hinterland
Level of industrialisation of the hinterland
Level of containerisation
Transit times on sea routes
Efficient hinterland connections
Port efficiency
Supply chain efficiency: time, cost and risk
Number of lines calling the port or port range
Emerging markets
However, congestion of land connections started causing modal and
even geographical shift
Central and SE Europe Container Flows
Austria (450.000 TEU)
North Sea ports: 70%
Adriatic ports: 30%
Black Sea ports: irrelevant
Hungary (250.000 TEU)
North Sea ports: 75%
Adriatic ports: 25%
Black Sea ports: irrelevant
Slovakia (100.000 TEU)
North Sea ports: 90%
Adriatic ports: 10%
Serbia (30.000 TEU)
North Sea ports: 2%
Adriatic north ports (Koper, Rijeka): 80%
Adriatic south ports (Bar): 13%
Black Sea ports: 5%
Emerging of the Port of Constantza
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Growing transshipment port
Emerging markets in the Black Sea
Potentials for geographical shift
Congestion of the hinterland connections from the North
Sea ports range
Vast capacity of the inland waterways transport
Growing concern for environmental effects of transport
Launching of first liner services on the Danube:
Constantza – Giurgiu and Constantza - Belgrade
Geographical Advantages of the
Port of Constantza
Container Volumes in the Port of Constantza
Container volumes in the Port of Constantza 2001 - 2009
1600000
1400000
1200000
TEU
1000000
800000
600000
400000
200000
0
2001 2002 2003 2004 2005 2006 2007 2008 2009
Inland Port Distances from Constantza
Case Study: Belgrade – Constantza Line
HAMBURG
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BELGRADE
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KOPER
CONSTANTZA
RIJEKA
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BAR
THESSALONICA
It is a very well known fact that
Serbia is a landlocked country
In such position, orientation
towards the nearby seaports
as hubs is a must
Nevertheless, Danube “Sea”
offers vast possibilities for
strategic transport orientation
towards Constantza port hub
The Danube “12-lanes
highway” offers good
possibilities for reaching the
maximum benefits – maximum
number of TEU at minimal
costs
Motivation and first experiences
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Then came the idea…
Jugoagent undertook an analysis of cargo flows in Serbia
Results showed that both freight rates and inland haulage routes
from/to traditional export-import ports (in the Adriatic, Aegean, Med
and North Sea) were fairly stable
It seemed that no alternative could be foreseen
But…
As general agents for ZIM ISS Jugoagent strongly supported a
direct Constantza call of ZIM’s Far East liner services from where
originate the great share of Serbian import cargoes
Danube proved to be the best possible option for inland haulage
to/from Serbia
Best partner for inland haulage via the Danube found in Bulgarian
River Shipping
Port of Belgrade offered strong support and exclusive conditions
The beginning...
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Jugoagent activated a strong
marketing campaign
Industry was attracted by attractive
rates, acceptable transit time and
contingency plans in case of
nautical hindrances
Jugoagent’s clients accepted the
challenge
Official opening of the eastbound
service took place in the Port of
Belgrade on May 12, 2005.
Port of Belgrade became an
important gate for cargoes to/from
Mediterranean, USA, Middle and
Far East and Australia and for
import cargoes from Far East and
other world areas
Inland Haulage Tariffs Comparison (20’)
Inland haulage tariff comparison Adriatic - Black Sea
(Delivery/pick-up at Belgrade)
1000
1000
900
900
EUR/20' CONT
800
730
650
700
600
500
450
418
400
300
200
100
0
Koper (road) Koper (rail) Rijeka (road) Rijeka (rail)
Bar (road)
Constantza
(barge)
Constantza – Belgrade Statistics 2005 - 2009
Container volumes Belgrade - Constanta
1729
2000
1500
TEU
927
1000
784
642
254
500
0
2005
2006
2007
2008
2009
Development and expansion
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Looking for a convenient self-propelled vessel, adjusted to
nautical conditions on the Danube, capable of carrying reefer
containers
Expansion N-NW in cooperation with EDDSG in Marco Polo II
Expansion downstream and further eastwards, directly
connecting via water the region with Black Sea ports of
Novorossiysk and Odessa and the huge market of ex Soviet
Union where duty free trade agreements with Serbia are in
force
Great opportunity for Serbian exporters of fruit and vegetables
and cargoes requiring refrigeration during transport
Monitoring of the shipping situation and cargo flows in the
Adriatic, which in great extent influences the transport via the
Danube
Prospects of container shipping on the Danube
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Increasing purchasing power for wide consumption
goods
Increasing level of industrialisation
Boosting economy and increase of FDI
More than 70% of containerised cargoes arriving to
Europe originate from Asia
Port of Constantza being in East Europe will eventually
become the “eastern gate”
Transit time from Far East is 4 to 5 days shorter when
compared to North Range ports (Le Havre, ARA,
Hamburg)
Congestion in North Range ports, road taxes
environmental effects
Prospects of container shipping on the Danube
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Romanian investments in hinterland connections (IWT
and rail)
Better gravity position to serve the main economic
centres in CEE
However, higher volumes are needed in order to enjoy
the benefits of the economies of scale
“Two container layers cover the costs, the third one
makes the money”
Development of inland (river) ports “large multi-modal
business & logistics parks”
Port privatisations, at least in Serbia, will have to be
revised (need for public financing of infrastructure)
Initially, large fleets are needed for the smaller volumes
Thank you for your attention!
Maritime-River Agency
Bulevar Mihaila Pupina 165a
11070 Belgrade, Serbia
Tel :
+381 (11) 20 18 700
Fax :
+381 (11) 31 12 070
e-mail :
office@jugoagent.net
Web :
www.jugoagent.net