BREAKBULK EUROPE REGIONAL REVIEW
The story is not only around these specific projects. Assuming they move ahead, there will inevitably be a knock-on effect in terms of green energy investments. And across Europe, countries are investing heavily not only in energy but also in transport infrastructure. “Looking at the details of the European energy deal, the program will provide much-needed aid in developing a well-integrated energy infrastructure network necessary for some of the region’s green energy transition,” said Eike Muentz, AAL Shipping’s general manager Europe. Depending on the engineering, procurement and construction companies involved in the targeted project areas and the decisions they make as to where geographically their components and materials might be sourced from, this could provide solid cargo opportunities for the long-haul MPV sector, he said. “A final, formal decision by the Commission on the CEF grants is expected in the coming weeks.”
RENEWABLES COMMITMENT
Energy-related investment will play a major role during the next few years, particularly when related to green technologies, said Franco Ravazzolo, head of project logistics & breakbulk at Gebrüder Weiss in Austria. “The present situation is pushing this development even more.” However, he said, the recent announcements are not about to deliver instant business for project logistics. “We often attend our clients from the very early planning stage until the realization of the projects – a timeframe that can encompass several years.” There is a lot Franco of talk of investRavazzolo ment in Europe, Gebrüder Weiss Ravazzolo said.
In Austria, for example, the government has set targets for a huge increase in solar and wind power by 2030. “They are talking about increasing total output from 8 terawatt, or TW, to about 28-30 TW. That sounds great, but the Austrian market right now consumes about 90 TW per year, so it’s 10 percent at best.” The target is aiming for 30 percent based on today’s consumption, he added – and energy consumption is growing, so the percentage will lessen. Plans include hundreds of new wind turbines mostly in the western part of Austria, together with an investment in solar panels, including on the roofs of private homes and official buildings. “There is a lot of investment discussion, but these projects will take a lot of time to be realized,” he said. “Politicians can announce things now, but it can take up to a decade to be transformed into reality.” Among recent jobs, Gebrüder Weiss has moved project cargo for the Voith Vorotan water power project in Armenia, the Palmavossen water power project in Norway and the Energie Ausserschyz biomass power plant in Switzerland. “Depending on the routes, we combined road/river ship/sea transport – cargoes were as long as 36 meters and as heavy as 150 tonnes.” Ton Klijn, director of ESTA, the European association for the abnormal road transport and mobile crane rental sectors, agreed that moves will take some time to ramp up: “I think you would have to wait until at least 2023 or 2024 before you see the first things moving [relating to the EU plans].” A priority should be dramatically increased road infrastructure investment, he said, as underlined by recent accidents. “We have seen a few Ton Klijn major accidents in Italy, for ESTA
example; related to, on the one hand, deteriorating infrastructure – bridges, crossovers, culverts, etc., – and on the other hand people not abiding by normal permitting rules and just driving without a permit. One ran over a bridge and the bridge collapsed.” There was a similar case in Germany: “Someone without a permit used a flyover over a valley. The load was far too heavy. But also, a lot of infrastructure in Germany has been downgraded. Typically, a permit for transport that is a bit heavy can involve huge detours – perhaps doubling the distance of the original route.” The issues are not only whether your infrastructure is better or worse, but also how many people want to make use of it, Klijn said. “For example, it is Germany where the problems are biggest; it is Eastern Europe, including Slovenia and Romania, where the infrastructure is worst, but there is not so much traffic.” Some countries are responding to the deterioration of road infrastructure and high maintenance costs by avoiding the issue and slapping bans on heavy transport. “France already has regions that don’t allow transport if it is only transiting,” he said. “If the end destination is not that region, they won’t let the load in. But if they all do that, no one can go anywhere.”
WAITING GAME
Wallenius Wilhelmsen is keeping a particularly close eye on – and expects development – in infrastructure construction. “While the NextGenerationEU plan is less targeted in terms of sectors, there are clear references to transport infrastructure there as well,” said Robert Berg, WW market intelligence and finance manager. Sarah Sarah Schlüter Schlüter, HapagLloyd’s senior Hapag-Lloyd www.breakbulk.com
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