Connecting the world: Logistics & Infrastructure The role of - PowerPoint PPT Presentation

“Connecting the world: Logistics & Infrastructure The role of ports and the Maritime sector Massimo DEANDREIS Rome, 17 th October 2018 General Manager SRM

Agenda 2 Logistics and Infrastructure is pushing Maritime Economy especially in the Mediterranean The growing role of China in the Mediterranean Key structural reforms

The Growth in maritime trade 3 Containerized trade volumes: + 6% Five major bulks: + 4.9% Crude oil: + 1.7% Refined & petroleum products and gas: + 2.6% Source: SRM on UNCTAD, 2018

Trade of goods is mainly by containers 4 The 110 busiest container ports in the world handled a combined throughput of 600 Mteu in 2017 (+6.1%). Asia accounted for 64% . China accounted for 35% of world container port volumes. 60% of Chinese traffic is carried out by sea. Source: SRM on Unctad & Alphaliner

In this scenario a new centrality of the Mediterranean 5 is emerging thanks to … three key factors : The New Suez Canal : reduction in time, no limits in ship size, logistic facilities The growing role of China in the Mediterranean / Belt and Road Initiative Evolutions in the shipping industry : growing ship size and mergers between carriers determine economies of scale and the need of routes with many stop where to load and download

The new Suez Canal (traffic pivot) has grown by double digit 6 Transit goods account for 8-10% of the entire globe. In 2017, 910 million tonnes of goods and more than 17,550 ships passed through the Canal. Between 2001 and 2017 the Canal’s traffic trends recorded a 144% increase in transit goods. Remarkable was the growth of the Southbound cargo (+20%). In 2017 traffic increased approximately by 11% on the previous year. Source: SRM on Suez Canal Authority, 2018

New Centrality of the Mediterranean: 7 The growth of shares on the Europe-Far East Route Estimated containerized cargo flows on major East – West container trade routes, 1995 – 2018 (% TEU) In 2018, the Europe-Far East and the Transpacific were by far the two biggest 13% 20% trade routes, accounting to 25 and 28 mln TEUs of traffic respectively. 46% 53% Europe-Far East: from 27% in 1995 to 41% in 2018. 41% As a result of this growth, the 27% Mediterranean recovers its centrality 1995 2018 Europe-Far East Transpacific Transatlantic Source: SRM on Unctad, 2018

A steady increase in trade relation towards the MENA area: 8 China is the largest partner China is the largest Trade with the MENA Area: 350 trade partner of MENA 319.0 China, US, Italy and European China Competitors countries ($269.4 bn 300 2001-2020 269.4 import-export ). Italy’s trade with 250 MENA Area: $ 87 bn $ bn USA 185.8 200 (+70.4% on 2001). 167.8 According to SRM 150 Germany forecast, this trade will 108.8 103.1 Italy taly reach $99.6 bn in 2020. 100 87.2 99.6 71.4 France Italy follows Germany 74.1 40.6 69.3 UK 50 70.0 44.0 but shows a better 61.3 36.2 22,0 performance than France 19.1 0 and the UK. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20172018* 2019* 2020* Italy France China USA Germany UK Source: SRM on UNCTAD

For China the Mediterranean is a crossroads where to meet 9 9 European markets, North Africa and the Middle East with an option to reach the East Coast of the US ROTTERDAM ANTWERP HAMBURG ZEEBRUGGE BILBAO MARSEILLE AMBARLI VALENCIA PIRAEUS HAIFA MALTA ASHDOD SUEZ CANAL ABU DHABI Source: SRM

«DP World» assets in Northern European and 10 10 Mediterranean ports LONDON GATEWAY ROTTERDAM SOUTHAMPTON ANTWERP LE HAVRE FOS-SUR-MER CONSTANTA YARIMCA TARRAGONA ALGIERS DJEN-DJEN LIMASSOL Source: SRM on Alphaliner

The role of the BRI in the Mediterranean 11 INVESTMENT VALUE BY GEOGRAPHIC AREA Arab Middle West Asia East and North 29% Africa 6% Sub-Saharan Africa 3% $146 bn East Asia North America $27 bn 51% 1% Europe 10% $146 bn Investment until June 2018 No financial investment Source: SRM on China Global Investment Tracker database

The size of ships is growing 12 Source: SRM on IHS, Alphaliner

The new drivers of maritime economy: the big alliances 13 13 Source: SRM on Alphaliner

Year ear 2012 2012 Container ships – daily movement report (>13000) Year ear 2017 2017

Container ships (> 3 kTEU) – Density map – Year 2012

Container ships (> 3 kTEU) – Density map – Year 2017

Italy is a pivotal country in the middle of the Mediterranean 17 17 Italy as logistic and energetic bridge between Europe, Mediterranean and Asia 15 Port Network Authorities and at least 5 strategic ports Strategic gas pipelines from North Africa and Asia Trade leader with Med and BRI

Free Zones in the World 18 The growth of Free Zones in the world 4,500 in 135 Countries 3,500 in 130 Countries 3,000 N Free Zones in 116 Countries 845 in 93 Countries 79 176 in 47 Countries in 25 Countries 1975 1986 1997 2002 2006 2014 Source: SRM on Trade Performance Of Free Trade Zones, 2014 and others There are about 4,500 Free zones all over the world. These zones have created 68 million direct jobs and over $500 billion of direct trade-related value added.

Italian Free Zones: SEZ basic criteria 19 Source: SRM

20 What do we need to foster economic development in the Mediterranean? • looking at ports and logistics in a Euro-Mediterranean perspective not only in their national context; • using free-zones and special logistic zones as strategic assets to attract foreign investors through a specific fiscal policy; • Implementing a European and a national “golden power” for a bilateral agreement with China; • investing in modernizing port infrastructures at national and European level; • moving toward a new concept of ports … “ Portuality 5.0”

What do we need? To move toward a portuality 5.0