Logistics sector brochure by internazionalizzazione

A glimpse at manufacturing in Apulia

LOGISTICS

FOR INFORMATION REGARDING THE ACTIVITIES OF THE APULIAN REGIONAL GOVERNMENT TO SUPPORT THE INTERNATIONALIZATION OF BUSINESSES Puglia Sviluppo S.p.A. SPRINT Apulia REGIONAL DESK FOR INTERNATIONAL BUSINESS PROMOTION

A glimps e at manufacturing in Apulia

Via delle Dalie, angolo Via delle Petunie Zona Industriale Modugno - Bari - Italy Tel. Office +39 080 5498811 sprint@regione.puglia.it FOR INFORMATION ON ACTIVITIES BY THE APULIAN LOGISTICS BUSINESS CLUSTER Apulian Logistics Business Cluster Via Dario Lupo, 65 - Taranto (TA) Tel. +39 09 9734 5302 Fax +39 09 937 7902 distrettologisticopugliese@assindustria.ta.it

Logistics 7 11 15 19 27 31 33 37 43 47 53 57 61 65 69 71 73 74 75 79

A “millennial” logistics platform A new business model In Apulia, logistics become systematic Apulia Corsair The strengths of Business Cluster Apulia Logistics Business Cluster Bari Dry Port Public-private cooperation Apulia’s airports Apulia’s seaports Bari, Brindisi and Taranto Apulia by rail The Appian Way to today’s superhighways “Urban intermodal” in Apulia “Info-mobility” in Apulia Investing in Apulia Apulia’s strengths Universities and research centers Export and entrepreneurial system Incentives for development

A glimpse at manufacturing in Apulia Logistics The Region of Apulia, through its Regional Ministry of Economic Development, provides this brief publication presenting the logistics sector from the Apulian point of view, for national and international actors in the business-economic sphere. Logistics are a fundamental element in the economy of any region, and an indivisible element of development. If a territory has insufficient transport it lacks all grounds for growth. It will have difficulty attracting investment and commercializing what it does produce. But where the transport network is effective the territory increases its competitiveness: logistics serves development, alongside research and innovation. This coupling is especially true in Apulia, with its 865 km of coastline and position in the heart of the Mediterranean. These elements have always favored contacts of peoples, for cultural exchange, trade and commerce. Today Apulia benefits from an optimal infrastructure network, extending from the regional to national and international levels. Ground transport is served by a dense road network, good rail systems and two important superhighways. An efficient system of three major ports and six secondary ports guarantees goods and passenger traffic by sea. Two international and two domestic airports, each which a specific role, as well as an dry port and a series of modern inter-modal nodes, all contribute to the framework of regional infrastructure. 2

As another measure, Apulia has 8197 companies active in transport and warehousing, with a total of over 43,000 employees. For all these reasons, Apulia represents an attractive strategic partner for direct investment, including in the very sector of logistics. In recent years, regional policies for development have erased any last limitations that remained. For example in air transport services, the number of passenger destinations has increased, along with routes served by low-cost carriers, and the frequencies of flights. However, considering the recent global economic crisis, the Region of Apulia will certainly continue its vigorous policies of activity and support on the logistics front. The objective is to make Apulia a still more attractive and welcoming territory, a land open to the world and the thousands of opportunities in the global market.

MILLENNIAL LOGISTICS

The growth of the Middle and Far East markets and the reorganization of traffic to North America provide new challenges that the region is fully ready to address. Apulia is a key actor in the south-European logistics system, and is strengthening its competitive position in the overall global market of transport services and logistics platforms.

PLATFORM

With its strategic position, Apulia has been an important hub in Mediterranean commercial transport for over 2000 years. This region, once the base for Roman conquests in the Balkans, now holds a leading role in traffic throughout the Mediterranean and looks to still further progress.

The modern Appian Highway still parallels the Appian Way, constructed 2000 years ago by the ancient Romans.

NEW

BUSINESS In Apulia, the word logistics takes on a new meaning, synonymous with economic growth and development in all sectors. Ports, dry ports, highways, railways and airports, in parallel with research and innovation, are instruments for regional progress, not just in logistics but in the entire territorial economy.

Where logistics are usually considered simply as a service sector, the Apulian model is to view this is a field for autonomous business production, creating added value for the entire entrepreneurial fabric. The three key terms here are: intermodality and resource optimization; positive external economies for entrepreneurialism; territorial marketing for attraction of investment and internationalization of local enterprise.

MODEL 11

“Karol Wojtyla” Airport of Bari is the most important airport in Apulia.

APULIA

Regional government policies reflect this approach, concentrating on “intermodality”, meaning integration and efficiency of transport vectors for best use and sustainability of resources. A key element of this policy is Puglia Corsara, or “Apulia Corsair”: a program of 10 infrastructure interventions to fully systemize the resources and infrastructure already present in the region.

LOGISTICS BECOME SYSTEMATIC The innovative aspect of Apulia’s regional strategy for the logistics sector is the integration of all services, creating a united system capable of better competing on the international market. The full system is divided into interdependent levels: regional and local. At regional scale are the big intermodal centers, for managing incoming and outgoing traffic. At the local level are centers and services throughout the territory, serving the logistics of a network of economic production hubs.

8,197

Companies in the transport and warehousing sectors

43,635

Employment, transport and warehousing sector *

* Source: Bari Chamber of Commerce, 2013 14

The Bari Dry Port is one of the major intermodal nodes in the Apulia logistics system.

APULIA CORSAIR The 10 interventions Bari-Naples high-speed/high-volume rail link

Adriatic line: completion of double-tracking and adoption of shared inter-company operational system

Bari rail hub

Regional logistics system: reorientation towards intermodal response to demand for goods transport, with regional integration and support for long-distance transport

Port of Taranto: trans-shipment hub

Taranto Distripark and Logistics Platform, plus links to Grottaglie Airport

The regional airport system

Brindisi: cruise-ship terminal and intermodal connection

Info-mobility: infrastructure, technology and Intelligent Transport System (ITS) services

Structural integration of local public transport

The Port of Taranto is a key logistical platform in the Apulia Corsair Program.

INFRASTRUCTURE

FOGGIA

INTERNATIONAL AIRPORT DRY PORT ● PORT ●

DOMESTIC ● AIRPORT

●

BARI

BAT

(Barletta-Andria-Trani) ● ●

INTERNATIONAL AIRPORT PORT

BRINDISI

3 MAJOR PORTS (BARI, BRINDISI, TARANTO) 6 SECONDARY PORTS (COMMERCIAL, PASSENGER) 1 DRY PORT 2 INTERNATIONAL AIRPORTS (BARI AND BRINDISI) 1 DOMESTIC AIRPORT (FOGGIA) 1 INTERNATIONAL CARGO AIRPORT (GROTTAGLIE, TA) 1528 KM OF RAILWAYS 12,000 KM OF HIGHWAYS 22

LECCE TARANTO

PORT ●

GROTTAGLIE INTERNATIONAL ● CARGO AIRPORT 23

The Port of Brindisi provides multiple services for the commercial, industrial and tourism sectors.

THE

STRENGHTS

“Unification strengthens the entire economy.” The Apulia regional government puts this vision in action through know-how and financing in support of a series of industrial sectors. The Apulia Logistics Business Cluster was born with the objective of creating added value through action in the entire regional logistics system. It gathers companies, research centers, universities and associations for development specific to the sector.

The Logistics Business Cluster represents all actors involved in production in communication with government, as well as coordinating and promoting strategy common to all. The Cluster Development Program outlines five macro-projects, guided by three key strategies: competitiveness; innovation; internationalization. Apulia’s strategic position guarantees the Logistics Business Cluster a top role in any transport and passenger traffic related to the Mediterranean Sea.

BUSINESS CLUSTER 27

One of the objectives of the Apulia Logistics Business Cluster is the development of services and structures for goods transport.

APULIA

LOGISTICSBUSINESS CLUSTER 158 Companies * 3 Universities University of Bari University of Salento Bari Polytechnic

Research centers CC-ICT Sud (Southern ICT Competencies Center) Southern Transport Innovation Center National Research Council

34 Government agencies, business / professional / academic associations and unions *

Cluster Development Program CESILOG Business Logistics Service Center CLOSE Technical Platform for Provision of Logistics Sector Services CI&LO Logistics Internationalization Consortium CLIP Integrated Urban Logistics for Apuliaâ&#x20AC;&#x2122;s Major Cities IPSS Port Computerization (ICT)

* Source: Apulia Logistics Business Cluster 30

BARI Dry port IN NUMBERS

500,000 m total yards and floor-space 27 Companies 1300 Arrivals and departures daily (all vectors) 1 million tons of cargo per year 4 Direct-line rail connections to other 2

BARI The heart of every modern logistics system is its inter-modal infrastructure, and the Region of Apulia’s global policies mesh perfectly with the approach of full unity in all transport modes − the basic concept behind intermodality. The Region has long seen cooperation as the essential approach to development. A range of private and publicly-owned intermodal structures are already active in the region, while others are nearing completion. The most important of these is the Apulia Regional Dry Port, strategically situated at less than five kilometers from Bari, from Karl Wojtyla International Airport and the nearest superhighway. This is the biggest of Apulia’s dry ports and one of the largest in southern Italy. Bari Dry Port’s strategic position makes it the only Mediterranean structure capable of managing traffic both towards the Balkans area and along the by Bari-Varna (Bulgaria) Trans-European Corridor 8, as well as into Greece and Turkey. The Bari Dry Port is currently carrying out of enlargements and increases in structures and services. 32

major Italian intermodal hubs

Dry port UPGRADING CURRENTLY UNDER WAY Additional

220.000 m surface area 2

New areas and structures for cargo loading/unloading Upgrading primary highway network Integration with Bari Ferruccio rail terminal

The Apulia Regional Dry Port at Bari is a strategic logistical platform for the entire Mediterranean.

The Taranto Distripark is a case of complete publicprivate fusion, with a new structure currently in completion, boosting both quality and quantity of service and input capacities for the Port of Taranto, with a series of accessory services linked to the territorial goods production/distribution chains.

PUBLIC PRIVATe COOPERATION The Apulia logistics sector achieves high levels of goods capacity and added services through private-public cooperation. The Borgo Incoronata Intermodal Center at Foggia is an excellent example. Operations here have boomed, in part from the presence of the fastest growing of all Apulia transport companies (2010-2011, Federmobilità data). Current construction of the new distribution point at Brindisi Dry Port is another case, where private companies are involved in development of new rail modal facilities and advanced packing and product-packaging facilities.

Taranto Distripark in numbers

750,000 m total yards and floor-space 110 operations modules 1,600 M of areas with service equipment 2

l l l l

Direct connections to: Port of Taranto Taranto Container Terminal Taranto Logistics Platform “Marcello Arlotta” Airport of Grottaglie

Cargo ships dock, Port of Bari.

The Apulian logistics business cluster consists of 4 airports.

Bari AIRPORT The ‘Karol Wojtyla’ International Airport of Bari is the most important in Apulia for volume of traffic, with 3.6 million individual arrivals and departures in 2013. The airport has been upgraded remarkably, with newly developed infrastructure, greater accessibility, and construction of a railway spur line for intermodality. These developments have made the Bari Airport one of the most important in the Italian system, as indicated by its inclusion in the National Airports Strategy. The airport is served by the most important national and international companies, including low-cost lines, thus ensuring that Bari and its surrounding territories are served by regular connections with all the most important European markets.

APULIA

’s

FOGGIA AIRPORT The Foggia Airport serves a basin of traffic with strong potential, particularly in the tourist sector. In recent years the terminal has been enlarged and improved through a series of interventions. The airport currently serves primarily for helicopter flights to the nearby Tremiti Islands. Planning for a project to lengthen the main runway is currently well under way, with the objective of providing still greater capacities, particularly for service in the tourism market.

Brindisi AIRPORT The Salento Airport, near Brindisi, is Apulia’s second-ranked airport for passenger traffic (roughly 2.0 million passengers in 2013). It provides access to a territory that includes the provinces of Brindisi, Lecce and Taranto. In the strategy of transport systems integration, the Salento Airport is in the unique position of having seaport facilities immediately adjacent, so that in fact the airport and port compose a single complex. Data from recent years show how the airport is continuing to register strong growth in both international line and charter traffic (respectively +2.0% and +12.0% in 2013,).

AIRPORTS Grottaglie AIRPORT ‘Marcello Arlotta’ Airport at Grottaglie is situated only a few kilometers from Taranto. This is one of Italy’s most important cargo airports, closely linked to the aerospace sector. The main runway length is 3,200 meters, making it one of the longest in the country. This means it can service the massive B747 LCF planes used in transshipment of Boeing 787 Dreamliner products, manufactured in Apulian factories. The airport is currently the focus of a series of interventions for enlargement and additional infrastructure, with strong support from the regional government in agreement with Aeroporti di Puglia SpA and the major companies in the region. The aim is to provide Italy with infrastructure of European stature, for the support of research and production activities in the aerospace sector.

*Source: Aeroporti di Puglia SpA 42

Brindisi Airport provides both international and national services for the entire Salento area and beyond.

“Marcello Arlotta” Airport at Grottaglie (Taranto) is the region’s largest airport for cargo traffic.

The Apulia port system consists of the three major or “national-level” ports of Bari, Brindisi and Taranto and six secondary (regionalprovincial) ports: Manfredonia (Foggia), Barletta (Bari), Molfetta (Baria), Monopoli (Bari), Otranto (Lecce) and Gallipoli (Lecce).

The maritime economy is one of the Region of Apulia’s “sectors of excellence”, with annual shipping of roughly 53 million tons and movement of 2.5 million passengers.

APULIA

’s

sEAPORTS

The regional government and the three regional port authorities are currently working in close cooperation for the development of an integrated port system. The revisions to the system include: Standardization in services, shared international marketing, integration of ICT services, development of intermodality and environmental sustainability, promotion of reform in the Italian and European port system. The ultimate objective of regional-company action is to transform Apulia into “a port 900 kilometres long”.

The ports of Bari and Brindisi serve the highest passenger volumes in Apulia.

The Port of Bari is the most important multifunctional port in Apulia.

THE PORT OF BARI The Port of Bari is the main access node to the Bari-Varna (Bulgaria) Trans-European Corridor 8, which connects the entire south of Italy with the Black Sea regions to the east. The port is strategically situated, with excellent connections to the main urban, industrial and agricultural areas of the entire south, and is heavily used for both goods and passengers.

BARI

BRINDISI

THE PORT OF TARANTO The Port of Taranto is the third-ranked in Italy for goods shipment. The fact of the surrounding lands, free of urban concentrations, has permitted major expansions to support a full range of functions. The port is still developing and growing, with a strategy of achieving a greater role in traffic for the entire Mediterranean.

AND

TARANTO

THE port oF Brindisi The Port of Brindisi, is another multi-use node, serving commercial, industrial and tourist traffic. The port plays a central role in connections to Eastern Europe, especially to the Baltic nations, Greece and Turkey. The facilities are developed in three separate basins, as a whole considered one of the safest ports in the lower Adriatic. 54

Tugboat docks, Port of Brindisi

APULIA Apulia has a long and rich railway history, as testified by the five different companies still active in the region. The territorial network totals 1,200 km of lines, primarily in north-south corridors. Over half of this is managed by the main national company, Trenitalia. The oldest of the remaining four companies is Gargano Railways, founded in 1931: one of the first companies in Italy to shift from steam to electrical-powered locomotives. South-East Railways, also founded in the early 1900s, is the second-largest private rail company in Italy, at 474 total km of track. The remaining two companies, “North Bari” and “Appulo Lucane” were founded somewhat later. 58

The main cross-regional lines are: the Adriatic Ancona-Lecce (with high-speed Foggia-Bari section), Bari-Taranto and Taranto-Brindisi. There are three rail freight-terminals in the region: Bari Ferruccio , Brindisi and Brindisi Polimeri. The Bari Ferruccio terminal is currently in an expansion phase, with terminal buildings, rail-intermodal links and other infrastructure all under development, contributing to the broader Bari Dry Port developments.

RAIL 59

Bari Central Station, inaugurated 1864

THE

This dense network, plus the presence of two important national superhighway nodes (Bologna-Taranto and Naples-Canosa di Puglia) ensures excellent road transport directly into continental Europe. A number of upgrading projects are currently under way to increase the road network, and particularly to improve the urban and rural-highway connections with superhighways.

APPIAN WAY

TO TODAY

The Appian Way, the â&#x20AC;&#x153;queen of all Roman roadsâ&#x20AC;?, was the strategic route connecting central Italy with the port of Brindisi, and from there onwards to Greece and the East. This road was the true origin of the Apulia regional network, now counting 313 km of superhighways, 1600 km of national highways, and finally 1400 of regional and 8200 km of provincial roads.

SUPERHIGHWAYS

Port of Taranto: view of the road connections.

The top objective is to develop transport services other than the private automobile. As part of implementing this strategy, the region has participated in the European Community IPA Intermodal Cross-Border Cooperation Programme 2007-2013 and the European Week for Sustainable Mobility.

URBAN IN INTERMODAL APULIA â&#x20AC;&#x2DC;Intermodalâ&#x20AC;&#x2122; is a key word for the entire Apulia logistics system, including for the regional governmentâ&#x20AC;&#x2122;s approach to urban services. Regional policy on logistics is heavily weighted to sustainable mobility, a concept applied in part through intermodal connections in passenger transport for large urban centers.

In the public transport sector, the technology is used to integrate operators and services, and at the same time provide direct information to individual users. The regional government is also supporting development of ICT applications in multimodal and integrated services (rail-rubber-air) and integration of rate schedules throughout the region.

INFO-MOBIlity Diffusion of ICT in logistics is an asset to development not only within the sector itself, but also in the areas of public transport, tourism and industry. One of the regionâ&#x20AC;&#x2122;s top projects on this theme is the Apulian Ports Integrated Telematics Information System (SITIP), which is itself a first step towards an integrated network of port logistics services. Through SITIP, companies use Internet connections to access a range of port services for goods transport.

APULIA 69

Apulia is one of the most dynamic regions of southern Italy. Its development model is designed to encourage greater synergy between businesses and research, improve infrastructure and increase the availability of a skilled workforce has proved successful in all productive sectors.

The regional government in fact, can guarantee a high level of competency in the management of international relationships and it also and offering support to foreign companies with a branch in Apulia.

I N V E S T I N G I N A PU L I A One of the main strengths of this â&#x20AC;&#x153;Apulian modelâ&#x20AC;? is that brokers can rely on guaranteed rules as well as incentive packages available to all types of businesses. What is more, in Apulia, these businesses are dynamic, proactive and leaders in some sectors and whilst open to trying new ideas, their traditional artisanal heritage is tangible and finally, they are also internationalized

The strategic geographical position, a commitment to sustainability, a progressive welfare system and an impressive social capital are the other unique elements that make Apulia a beautiful and interesting place in which to live â&#x20AC;&#x201C; and invest.

A REGIONAL GOVERNMENT THAT IS SENSITIVE TO THE NEEDS OF BUSINESSES THAT INVEST IN THE DEVELOPMENT OF THE LOCAL ECONOMY. A POSITIVE BUSINESS CLIMATE WITH AN HIGHLY DYNAMIC ENTREPRENEURIAL SYSTEM.

APULIA’S AN EXCELLENT NETWORK OF UNIVERSITIES AND RESEARCH CENTRES.

A STRATEGIC GEOGRAPHIC POSITION AND EXCELLENT INFRASTRUCTURE.

A HIGHLY SKILLED WORKFORCE AND AN ACTIVE JOB MARKET.

STRENGTHS WELL STRUCTURED INCENTIVE PACKAGES AIMED AT ATTRACTING FOREIGN INVESTMENT AND ENCOURAGING ENTREPRENEURIAL DEVELOPMENT OF REGIONAL PRODUCTION.

A GOOD QUALITY OF LIFE (THE APULIAN LIFESTYLE) 72

UNIVERSITIES AND RESEARCH CENTERS 4 4 Universities (3 public, 1 private) 1 Polytechnic 30 Public research laboratory networks 6 Technological districts, recognised

EXPORT

AND

ENTEPRENEURIAL SYSTEM 332 thousand active companies * 1 firm for every 12 citizens ** 1.156 million employed individuals *** 7.9 billion euro in annual exports ***

by the Ministry of Education and Research

Public-private R&D networks

Sources: * Bari Chamber of Commerce, 2013 ** Bari Chamber of Commerce and ISTAT, 2013 *** ISTAT, 2013 74

Taranto Container Terminal: freight docks areas.

In recent years the Region of Apulia has activated total investments in production of over 2 billion euros on regional territory, of which less than half are from direct government budgets. In addition to EC regional funding, the national Ministry for Economic Development has instituted the Fund for Sustainable Growth, with objectives of promoting research, development and investment, reinforcing production structures, promoting enterprise at the international level and attracting foreign investment.

INCENTIVES FOR

DEVELOPMENT

Regional government policies and actions provide a strong push towards synergies between the production and the research spheres, leading to experimentation, innovation and knowledge transfer. The regional government has also allocated and continues to allocate substantial resources to support and promote Apuliaâ&#x20AC;&#x2122;s economic sectors. A large part of these resources derive from the European Funds for Regional Development, and are designated for companies of different dimensions, active in the different sectors of production operating in Apulia.

Contracts under European Regional Programs 292 million euro for manufacturing companies, to favor development of projects and manufacturing activities, strengthen the competitiveness and attractiveness of the region and promote employment.

Contratti di programma TURISMO 50 million euro for support and for favoring growth of sustained off-peak tourism.

Aiuti alle Medie Imprese e ai Consorzi di PMI per Programmi Integrati di Agevolazione (PIA) The current call provides 201 million euro for manufacturing and agro-food processing and commercialization, to create employment, social stability and economic dynamism.

Assistance for Medium and Consortia of Small-Medium Enterprises Active in Tourism (PIA) The current budget of 54 million euro is designed to raise standards of quality and classification for the Apulian tourism offer.

Aid for Initial Investment in Micro-enterprise and Small Enterprise (Title II) A total of 107 million euro to favor development of economic activities by small and very small companies, through improved access to credit.

Aid for Initial Investment in Small Enterprise Operating in the Tourism Sector (Title II â&#x20AC;&#x201C; Tourism) The call for proposals provides 25 million euro in assistance for small and medium businesses active in tourism-hotel services, tourist port management and beach services, and for small-medium enterprises that undertake new tourism and hotel initiatives including restoration-renovation of architecturally and historically significant properties.

Assistance to Innovative Small Enterprise In Early Development The program provides 15 million euro of support to stimulate the birth of new micro and small enterprises for spin-off application of research results in industrial sectors strategic to Apuliaâ&#x20AC;&#x2122;s regional development (new materials, advanced logistics, advanced ICT manufacturing, energy conservation and environmental enhancement, public health, agro-food systems).

Assistance to Innovative Small Enterprise In Operation The call for proposals provides 15 million euro to support consolidation and growth of innovative micro and small enterprises active in the strategic industrial sectors identified by the Apulia Region Government (new materials, advanced logistics, advanced ICT manufacturing, energy conservation and environmental enhancement, public health, agrofood systems). The program supports investment projects proposed by businesses already in operation, for further development of previous research and entrepreneurial activities.

Integrated Assistance Program (PIA) for Small Business The call for proposals offers over approximately 49.5 million euro in incentives to the most dynamic small Apulian businesses, for consolidation, innovative restructuring and expansion. 82

Assistance for Relocation of Facilities to Non-urban Production Areas The call for proposals offers a total of 10 million euro for consortia or company networks intending to move manufacturing units out of urban centers with population over 40,000, to extra-urban industrial areas and production parks.

Call for proposals: Internationalization The current call is the first regional incentive program for business internationalization. With a budget of 20 million euro, the objective is to increase the number of exporters operating in Apulia.

New Enterprise Initiatives (NIDI) This initiative of the Apulia Region Government is directed at women, youth, the unemployed, persons subject to layoff, contract staff and the self-employed, who wish to begin a new business. The program provides 54 million euro in forgivable loans and mortgage financing, with investment insurance of up to 80 or 100%. 83

glimps e at manufacturing in Apulia

EUROPEAN UNION

Project co-financed by the E.U., in accordance with the Operational Programme E.R.D.F. European Regional Development Fund Puglia 2007-2013 – Line 6.3., Action 6.3.2” “Initiatives in support of local business internationalisation

APULIA REGION ECONOMIC DEVELOPMENT EMPLOYMENT AND INNOVATION POLICY DEPARTMENT International Business Promotion Department Corso Sonnino, 177 • Bari / Italy Tel. +39 080 540 47 47 Fax +39 080 540 47 43 servizio.internazionalizzazione@regione.puglia.it www.regione.puglia.it www.sistema.puglia.it