Economics of International Shipping
In Europe, this change has been brought about by the Marco Polo programme that is now in its second phase, the first having concluded in 2006. The second programme is the Motor Ways of the Sea and the Trans European Transport Network (European Sea Ports Organization 2005).
Elements of the Marco Polo and Motorways of the Sea Programmes
The Marco Polo programme is an EU funding initiative for projects that shift freight transport from the road to sea, rail and inland waterways. This in effect means that there will be fewer trucks on the roads and therefore a significant reduction of traffic congestion on EU roads and also less pollution. The first Marco Polo Programme ran from 2003-2006 and currently the second Marco Polo II that runs from 2007-2013 is being implemented (European Commission Energy and Transport 2009). The Motor Ways of the Sea programme was adopted by the EU parliament (new article 12 a) and effectively established the official framework for funding the Motor Ways of the Sea initiative.
Three main goals were defined within the adopted article as concentrating freight flows on sea-based logistical routes, second increasing cohesion and third reducing road congestion through modal shift (ESPO, 2005). Both programmes were proposed after EU realized that dependence on road and rail transport has resulted on increased congestion in ports, roads and pollution as some of the modes of transport depends on fossil fuels. Therefore, it is correct to say that the Motorways of the Sea initiative is one of the programmes being funded by the Marco Polo initiative. The aims of both initiatives is first and foremost increase cohesion through the establishment of a common freight transport system, secondly is to reduce congestion and also to reduce pollution as stated above (ESPO 2005).
Impact on EU shipping
Short Sea ShippingMaritime transport has been a source of economic development and wealth throughout history in Europe and has therefore aided trade over the centuries through out Europe. As such, a shift in transport modes towards short sea shipping is not entirely a new thing as many cities in Europe developed due to the shipping industry. Maritime transport has also ensured the protection of supply of food and commodities and is the main vehicle for European imports and exports to the world. 90 of EU external freight is sea bound as Short Sea Shipping represents 40 of intra EU exchanges and this is going to increase with time. Therefore increased cohesion between the EU states is guaranteed as Short Sea Shipping across Europe is almost being realized (European Commission Mobility and Transport 2009). This has also ensured a good quality of life on some of the marginal maritime regions as each year they are to receive over 400 million passengers as they go about their business using the Short Sea route that links various Europeans port cities. It has also had a significant impact on the Shipping industry. To begin with, the new rules have streamlined the sector therefore ensuring efficiency in the near future. Short Sea shipping has also ensured the reduction of pollution from fossil fuels consumption as it has reduced the number of long haul vehicles needed to transport freight cargo. Therefore Short Sea shipping has had a positive environmental impact so far. Less trailers on the roads directly translates into less congestions along the same roads (EC-MT 2009).
Advantages of Short Sea Shipping
Maritime transport has several viable advantages compared to other means transport. To begin with, as mentioned earlier, maritime transportshort sea shipping is environmentally friendly. Other means of transport combined are responsible for about 25 of all carbon emissions today. Therefore short sea shipping reduces this figure significantly. Secondly is its economic element, as it uses a no cost infrastructure that is the sea. Port infrastructure also requires a less budget allocation as compared to road and rail transport.
Europes physical and economic geography supports maritime and waterway transport. The EU alone has 25 000 kilometres of usable waterways and therefore this provides an effective and cheap way of transporting freight cargo. Another advantage of this is that it opens up marginal regions that are impossible to reach using other means of transport for example Ireland, Norway and other regions of the Baltic Sea.
Maritime economy is the other benefit of maritime transport. Short Sea shipping generates work for European ship yards and this generates income to the same. It is estimated that 50 of ships built in the EU were for the Short Sea Shipping. Therefore the chance of replacing older ships with new and more efficient ships will only increase the contribution Short Sea Shipping has to the Shipping Industry. This directly translates to more employment opportunities to the citizens of EU (European Conference of Ministers of Transport 2001).
Disadvantages
Like everything else Short Sea Shippingmaritime modes of transport has its obstacles. Some of them include its existing poor image. This is so because short Sea Shipping is still regarded as complex to organize. Criticism has been raised regarding the existence of red tape thats has been associated with the shipping industry. For example the overlapping contracts of carriage and liability regimes. Also Short Sea shipping is regarded as multi modular form of transport and not unimodal like most of the other means thus incurring other costs. Short Sea Shipping has been characterized as technically not flexible and slow. This is so because most of the fleets being used for this mode are old and outdated and the gradual replacement by better ships will probably take a few more years. Another factor that contributes to its inflexibility is the slow nature of maritime transport. Therefore this mode can only suite certain commodities and not others. All this issues contribute towards its poor image.
Secondly is the cost and the standard of port services. Professionals in Europe have concluded that 50 of costs of short Sea Shipping go towards port charges and other taxes. But there exist a difference depending on the port that you are using. Nonetheless these charges should be harmonized if the mode of transport is to be popular.
Finally it the issue of land access to ports. This has been cited as a major obstacle to the development of maritime transport as it is important for a port to have adequate links to other modes of transport and lack of this can hinder Short Sea shipping development and the development of the port. Investing in a good infrastructure is therefore paramount so that proper out let systems can exist in the ports. This therefore ensures the proper flow of goods to and from the port (ECMT 2001).
In conclusion Short Sea shipping is an acceptable mode of transport though it has its own short comings that range from a poor image as the shipping industry seems to be stuck in time to excessive charges at the ports yet the infrastructures at the ports are wanting. Despite all these the EU is still on course with the Marco Polo programme and this is because the Short sea shipping has proved to be a viable project of the future as the EU seeks to better itself. In 2010 Marco Polo II programme has already identified new areas that need attention.
These new issues have risen because the EU keeps expanding as it admits new states into the Union. This also means that new transport networks are reached not to forget new inland waterways. Motorways of the sea programme therefore offers a door-to-door service, that shifts freight from long road distances through a combination of short sea shipping and other modes of transport. Actions of this kind are innovative at a European level in terms of logistics, equipment, products and services.
Other States are also adopting such a model of transport for their shipping industry. The United States of America is one such country but their waterways are not as connected with other modes of transport as is the case in Europe. Nonetheless the US has also made significant progress towards achieving the same. This is therefore further evidence of the viability of the Short Sea Shipping as a means of freight shift within the continent or within a state.