MedCruise Ports: Effective responses in a dynamic market Thanos Pallis Secretary General, MedCruise MedCruise: Keeping the Med together Adriatic West Med Black Sea East Med 72 Members & 31 Associate members (100 plus ports, 20 countries, 4 regions) MedCruise: Proudly representing the Med By visiting the Med – you visit (at least) one MedCruise member 86% 81% passenger movements Cruise calls MedCruise Main objectives – Collaborate on solutions: • Policies • Operational issues • Port Finances • Environment • Training – Promote the cruise destinations and the ports in the Mediterranean and adjoining seas. – Develop quality passenger shipping experiences: • Preserve diversity and authenticity. • Manage congestion. • Shared return: local communities, ships, passengers. MedCruise member traffic 2012 Passenger movements and cruise calls 25.0 millions passenger movements Source: MedCrusie Statistics Report 2013 (4th edition) 13.685 cruise calls Expansionary Deployment trends Mediterranean bed days (‘000s) 30000 +197% 25000 10 years % change 20000 15000 8.153 10000 6.277 7.547 6.497 24.238 16.271 14.748 21.990 17.53618.538 9.704 9.73510.504 5000 +49% 5 years% change 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year by year more cruise beds days are available in the region Source: MedCrusie Statistics Report 2013 (4th edition) Cruise deployment trends Deployed capacity shares 2012-2008-2003 Today 5 years ago 16,5% 3,4% 5,4% 4,1% 7% 9,8% 37,3% 2012 19,9% Caribbean Australia/New Zealand/S. Pac 23,0% 2,9% 7,6% 2,2% 7% 8,3% Mediterranean Alaska 10 years ago 37,2% 20,0% 2,4% 7,4% 1,6% 7% 2008 10,9% 17,6% Europe w/o Med South America Today 20% of cruise bed days are in the Mediterranean 16,5% Source: 37,3% MedCrusie Statistics Report 2013 (4th edition) 45,7% 2003 11,5% Asia Other Programs Europe 2020 • A smart, sustainable and inclusive economy, in a changing world. • Five objectives: – employment, – innovation, – education, – social inclusion – climate/energy Cruise, Employment & Social inclusion • Cruise industry has enjoyed economic prosperity • During the recent challenging past succeeded to: – attract new passengers, – promote new destinations – contribute to the economic recovery of many coastal regions. Cruise, Employment & Social inclusion Cruise activities • a very good environmental record; • sophisticated, state-of-theart ships that are safe and secure; • equipped with competent crews. Passenger Spending €3.1 billion in passenger and crew spending or about €70* per passenger on embarkation ports € 61 in each transit port. € 16 per crew member on average spent at each port. *Excluding airfare. I. Accommodate traffic I. Accommodate traffic 2,300 tons of water in its swimming pools 12,000 plants on board including hundreds of palm trees Ports that allow berth alongside a quay Small ship (N=51) Medium ship (N=51) 8% Percentage of ports that allows the option to berth alongside a quay for a transit call blue = allowed, red = not allowed 12% 88% 92% Large ship (N=45) Mega ship (N=42) 24% 76% Source: MedCrusie Benchmarking Report 2013 33% 67% The trend Concessions of Cruise Terminals are increasingly becoming a common practice Types of Management in MedCruise Ports Source: MedCrusie Benchmarking Report 2013 MedCruise ports: The trend public management 25% 75% Source: MedCrusie Benchmarking Report 2013 ports with public management taking action in involving private management Investments made by MedCruise Ports in cruise infrastructures in the last 10 years PUBLIC 870.200.000 € PRIVATE 119.750.000 € TOTAL INVESTMENT 989.950.000 € I. Accommodate traffic Average pax. movements per call Trend since 2000 and variations on prev. year 2000 1591 1500 1000 833 863 914 1005 1044 3.5% 25% 13.2% 12.5% 7.0% 6.0% 30% 1405 20% 9.9% 500 1257 1118 1331 1646 40% 1826 1785 35% 5.9% 3.9% 15% 8.5% 5.6% 2.3% 3.5% 0 2000 2001 2002 2003 2004 2005 Average per call 2006 2007 2008 2009 2010 Var on prev. Year Since more than 10 years the average is always increasing Source: MedCrusie Statistics Report 2013 (4th edition) 2011 2012 10% 5% 0% II. Cope with Traffic Seasonality Near 80% of pax and calls is generated from May to October 4 Total pax. movements (in millions) 2.8 3.0 3.2 3.5 3 2.5 3.4 3.4 3.4 1.9 2 0.5 June-Aug. 39.3% 1.6 1.5 1 Sept.Nov. 34.3% 0.4 0.3 0.4 Dec.-Feb. 5.3% March-May 21.1% 0.6 0 Jan. 2500 Feb. March Apr. Cruise calls 1,793 2000 1500 May 1,171 June July Aug. 1,581 1,544 1,622 Sept. Oct. 0 169 143 Jan. Feb. 453 Apr. May June July Aug. Sept.Nov. 35.3% June-Aug. 35.0% 941 304 March Dec. 1,873 1,969 1000 500 Nov. Sept. Oct. Source: MedCrusie Statistics Report 2013 (4th edition) Nov. Dec. Dec.-Feb. 5.6% March-May 24.1% III. Bring More Ports in the game Ports concentration 2000-2012 Cruise calls since 2000 100% 90% 80% 75.4% 70% 82.2% 78.8% 77.4% 74.8% 74.0% 74.6% 74.0% 74.4% 73.7% 72.6% 74.5% 70.7% 55.0% 57.3% 52.7% 50.4% 48.2% 48.3% 48.6% 49.1% 50.8% 50.4% 48.5% 50.0% 46.9% 50% 60% 40% 30% 28.0% 20% 22.5% 19.2% 18.3% 16.7% 17.4% 17.7% 18.7% 18.5% 18.6% 18.0% 20.3%18.1% 10% 0% 2000 2001 2002 2003 first 3 2004 2005 2006 2007 first 10 2008 2009 2010 2011 2012 first 20 • 18,1% of traffic in the 3 first ports, 70,7% in the first 20 • Less concentration of cruise calls than pax movements Source: MedCrusie Statistics Report 2013 (4th edition) Mediterranean 7 & 14 day Routes (Ships travel @18 knots * 14 hours) Venice, Italy Marseille Barcelona, Spain Savona Livorno Civitavecchia; Dubrovnik, Croatia Bari Italy Napoli Palma Mallorca Tunis Catania Valletta, Malta Istanbul, Turkey Athens Kusadasi Haifa & Ashdod Santorini Mykynos Limissol, Cyprus Alexandria, Egypt Bringing more ports in the game • Beyond the world-famous marquee ports – Absolutely necessary for every itinerary – attract passengers and sell the cruise itinerary. • Bring in discovery ports – The concept: one that is not world-famous, but provides a different sense to the cruise passenger V. Take advantage of potential new Markets • Drive-to Train-to Homeports – – – – – – France- Marseille, Toulon Italy-Savona, Genoa, Civita, Napoli, Catania, Venice, Bari Spain-Barcelona, Valencia, Malaga, Mallorca Scandanavia- Copenhagen, Oslo, Stockholm UK- Southampton Germany - Kiel, Hamburg, Copenhagen, … need to address the impact • Environmental impact generated by cars and road transport • Development planning of tourist destinations • Preserve natural resources and offer environmental quality. • Overall: balance maritime and tourism dimensions of cruise activities. Med ports Work to sustain the effective and efficient way that have served the market • – Capacity – Berth allocation –MedCruise guidelines – Pricing – Ground transportation and access – Passenger and luggage (terminal) • Addressing users requirement and in parallel several considerations – – – – Regulations – ISPS Code People – background and training Equipment – modern, efficient and used correctly Processes, plans, procedures MedCruise Policy Matters of importance to MedCruise: • • • • • • Emissions. Global – Climate Change. CO2. Local – Health issues SOx, NOx,. Shore-side Electricity Sulphur Directive Waste management Packaging Define a plan for the recovery or re-use of 30% Bio-waste Act a plan for the re-use of Paper Define a plan for the recovery or re-use of 40% 90% MedCruise Increasing waste management efficiency MATERIALS IMPACTS GLASS 10-12 t CO2 eq/cruise -> 530,000 kg CO2 eq/year ALUMINIUM 10 t CO2 eq/cruise -> 490,000 kg CO2 eq/year PLASTIC 7 t CO2 eq/cruise -> 370,000 kg CO2 eq/year PAPER/CARDBOARD 3,5 t CO2 eq/cruise -> 180,000 kg CO2 eq/year TOTAL 30 t CO2 eq/cruise -> 1,600,000 kg CO2eq/year MEASURE of the ENVIRONMENTAL IMPACTS: CO2 emissions eq (i.e. Greenhouse Gas emissions) Equivalent to: • Using a car for 1 year for 1,000 passengers • CO2 absorbed by 1,000 trees • Emissions from a small industrial plant MedCruise European Directive on waste (Reduction, Re-use, Recycling) and Marpol Annex V. Source: Costa Departments: Fleet Operations and Environmental Management MedCruise Source: Costa Departments: Fleet Operations and Environmental Management MedCruise • Euro-Mediterranean network of ports for the cooperation in the management of waste – To maximise the opportunity of waste recovery – To improve energy efficiency – To quantify the reduction of CO2 emissions deriving from sustainable management. – To define a new type of voluntary certification regarding the treatment of waste European Directive on waste (Reduction, Re-use, Recycling) and Marpol Annex V. The issue: Emmissions • GHG emissions from shipping – 4% of the EU GHG emissions. – expected to increase significantly in the future. – the only transport mode not included in the EU GHG emissions reduction commitment (yet?) • CO2 emissions from maritime transport related to intraEU routes – +48% between 1990 and 2008. – +51% by 2050 - despite the adoption of minimum ship efficiency standards for new ships by the International Maritime Organisation (IMO) in 2012. The issue: emissions • Welcome the intention to create a European system of monitoring, reporting and verification (MRV) of carbon dioxide (CO2) emissions from large ships as from 2018. – a prerequisite for setting both emission reduction targets and for any market-based measure or efficiency standard • But don’t create modal disadvantages – i.e. like those created due to customs and formalities when use shortsea shipping – Blue Belt strategy needs to be a reality by 2015 if Europe 2020 strategy is going to succeed. Thank you Thanos Pallis Secretary General MedCruise