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Results of the 1st phase of the project “LOSAMEDCHEM - How could the logistics and the safety of transports of chemicals be improved in the Mediterranean area�

15th Panhellenic Logistics Conference Thessaloniki, 11th November 2011

Mr Emmanuil Vlachogiannis, 1st Vice - President of the Thessaloniki Chamber of Commerce and Industry


The main aims of the project  To promote the cooperation among the chemical districts in the Mediterranean area, and between them and the main harbour areas  To improve the integration between harbours and their hinterland, sustaining as much as possible the intermodal transportation, and facilitating the shift of freight traffic from road to rail and waterways  To increase the overall efficiency of the chemical logistics in the Mediterranean basin  To reduce the environmental pollution and increase safety in the transportation of chemical goods and especially dangerous materials  To support the harmonisation of the different traffic regulations and norms that are currently in vigour in the Mediterranean countries

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Project identity  The LOSAMEDCHEM project is implemented in the framework of the program MED and it is co-financed by the European Regional Development Fund.  Implementation period: June 2010 - May 2013.  The project overall budget is about 1.6 Mio Euros.

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Project Partnership  Novara Province (Italy, Lead Partner)  SC Development Chemistry Ltd (Operational arm of the Italian Industries’ Association) Thessaloniki Chamber of Commerce and Industry  FEPORTS – Port Institute for Studies and Cooperation of the Valencian Region (Spain)  Catalonian Chamber of Commerce (Spain)  Port Authority of Genova (Italy)  Port Authority of Trieste (Italy)  Port Authority of Maribor (Slovenia)  Local Councils’ Association of Malta

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LOSAMEDCHEM consists of:  Management and Dissemination Components, concerning all project phases  Component Analysis, which constitutes the first stage of the project realisation and deals with the analysis of the current situation, and of the existing Best Practices  Component Transport Systems, which is devoted to the preparation of investments and will concentrate on the implementation of feasibility studies for infrastractural projects of transnational significance.  Component Strategies, which involves the strategy development for guaranteeing future continuation of the main project outputs.

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Results of the Component Analysis

 The

Component Analysis was realised during the period 01.06.2010 31.05.2011. It consisted of two complementary activities:

 A) SWOT Analysis of the chemical logistics in the intervention area  - Secondary research  - Individual interviews with  significant companies/organisations  B) Identification and Exchange of  Best Practices  - Based on the interviews above

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SWOT Analysis of chemical logistics in Thessaloniki  The local chemical industry is relatively small compared to other E.U. countries, mainly SMEs, downstream users of chemicals.  Local logistics require more support and investment from the side of state and private sector.  The current situation of chemical logistics in Thessaloniki has the same characteristics with the national one: sea and road prevail. Rail transportation is declining, it presents severe inefficiencies.  Pipelines are mainly used for crude oil and gases.  The expansion of the road network is necessary.

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SWOT Analysis of chemical logistics in Thessaloniki  The railway network expansion constitutes a unique opportunity for the region’s connection with Eastern Europe and the Balkans.  An important bottleneck was identified, from the Thessaloniki port to hinterland.  Significant need for new harbour warehouses.  No intermodal hubs exist in the Thessaloniki area, their development could boost exports.

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Best practices of chemical logistics in Thessaloniki  Two cases were identified, thanks to the aforementioned interviews.  LOUFAKIS S.A.: - transfer of chemicals in bulk and subsequent in-house filling, delivery of specific liquid products in dense form and subsequent inhouse dilution. - Both procedures reduced transport costs, added flexibility, reduced the volume of packaging materials.  NITROFARM S.A.: - Remote management system, for order, delivery etc. - Processes were significantly improved, leading to better results.

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SWOT Analysis of chemical logistics in project area.  The railways were judged very negatively regarding infrastructures, service quality, bureaucratic constraints and lack of interoperability.  The road transport is characterized by too heavy and no longer sustainable traffic.  Concrete measures for intermodality lack. North Mediterranean ports not efficient and not well connected to hinterland.  Terminals for multimodal transport are crucial.

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SWOT Analysis of chemical logistics in project area.  Especially services of storage space for chemical goods, and tank cleaning stations. The current situation is far from satisfactory.  Non - homogeneous energy policies and environmental sustainability plans across Europe.  Safety and security aspects are of the utmost importance in chemical industry and chemical logistics.  The increased environmental sensitivity among people unavoidably lead to a reshaping of the transport modalities.

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 Increasing complexity within supply chain networks. Logistics can reduce costs through the optimisation of the supply chain processes.

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SWOT Analysis of chemical logistics in project area. In terms of politics for transportation and infrastructures, the following fields were depicted as crucial: Better coordination of the European plans for developing logistic infrastructures. More efficient use of EU Structural Funds, in interaction with other funding sources. Long term, rational and sustainable transport policy.

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Best Practices of chemical logistics in project area. ď ś The best practices identified by project partners are all related to logistic improvements and could be arranged in two different groups: A) strategic type of projects, whose main characteristic is that many they offer improvements to many different companies. B) projects which constitute substantial improvement in the logistic / manufacturing processes of single companies. ď ś The aforementioned practices for Thessaloniki constitute examples of category B and were retained as best practices for the whole LOSAMEDCHEM intervention area as well. ď ś Notwithstanding, the strategic interventions present a bigger interest and among them two were chosen as the most characteristic.

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Best Practices of chemical logistics in project area. 1. Maritime traffic control and cargo information management systems (Genoa, Barcelona). - VTS (Genoa) and PORTIC (Barcelona) are integrated information systems for cargo maritime traffic. - Not specific for chemical products, but crucial for dangerous goods. - Both applications provide invaluable benefits and are still being developed.

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Best Practices of chemical logistics in project area. 2. Clustering of chemical industries (Tarragona, Spain). - Best response to the necessity of sharing capital investments for manufacturing and transporting chemical products. - Leading chemical area in the Mediterranean basin. - Existence of spill-over and linkages among the single companies. - Higher level of productivity. - More innovation. - Easier access to external services and assets.

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THANK YOU FOR YOUR ATTENTION

www.losamedchem.eu www.ebeth.gr


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