FOR ROAD TRANSPORT & LOGISTICS IN GREECE

• GEORGE MARONIDIS, LL.M (SOTON) MANAGING PARTNER, MARONIDIS & ASSOCIATES LAW FIRM

This article aims to provide a short comprehensive reference as regards the legal framework for Road Transport & Logistics in Greece, namely Road Transport Legislation: Rules concerning the profession of road transport – The company types and transport undertakings allowed to exercise road transport – Legal types of transport undertakings – Licensing the transport operator – Licensing requirements of Trucks For Public Use (TFPU) pursuant to Greek Law 3887/2010 - Logistics Legislation under Greek Law 4302/2014.

Greek Legislation- Rules concerning the profession of road transport

With regard to the transportation sector, it has to be mentioned that Greece has adopted the EU provisions concerning the occupation of road haulage operator with the intention to extinct the pre-existing restrictions on freedom of establishment and on freedom of provision of services and has also brought the drivers' working conditions, charges and specifications of vehicles in a common European level.

The purpose of liberalization of the transportation sector is achieved with the enactment of laws 3887/2010, 4038/2012 and 4070/2012. The said laws aim to the right direction of liberalizing the transportation market, while integration of EC Regulation 1071/2009 took place with the enactment of Law 3887/2007, which was published into the Greek Government Gazette on 30.09.2010.

Nevertheless, the most important changes and innovations brought by Law 3887/2010 are considered the following:

1) Liberalization of the number of licenses for licensed road haulage (LRH), 2) freight limits abolishment, 3) organization of transporters by establishment of companies in the form of societe anonyme (SA) or limited liability companies (LLC), 4) adaption of the Greek freight transport sector to international trends.

LRH liberalization practically means that any person can obtain a LRH under certain conditions, within an an environment of increased competitiveness for advanced services at lower prices, abolishment of freight limits, organization of transporters in company schemes, evaluation of the existing licenses and integration of transport.

Besides, the recent legal framework abolishes the separation of international and national transport, establishes a national electronic registry for transporters with new vehicle inventory, compulsory insurance of goods by transporters and resolves environmental issues with the use of modern truck engines following the recommendation of the National Committee on Road Transport (Law 3887/2010). The liberalization of road freight transport actually intends to increase the number of road haulage licenses but the results of this initiative are still to be seen.

Transportation types under Law 3887/2010

The national law recognizes two types of road transport: a) the International and b) the National road transport by license holders of Trucks for Public Use (TFPU).

As to the company types and transport undertakings allowed to exercise the profession of road transport, Law 3887/2010 (Article 3) illustrates and emphasizes the formation of legal entities, besides partnerships or natural entities, exactly as follows “The establishment of transport companies of transport companies is authorized in a form of Societe Anonyme (SA) or Limited Liability Company (LLC) in order to perform international, national, regional and special transport services for one or more of these categories. Where there is no specific regulation, are applied the provisions of Law 2190/192012 (Law for Societe Anonyme (SA)) and of the Law 3190/1955 (Law for Limited Liability Company (LLC)), accordingly.”

The above companies mentioned in article 3 of Law 3887/2010 should be established in accordance with Presidential Decree 346/2001 and EC Regulation 1071/2009.

Licensing the transport operator – Issuance of TFPU Licenses

Licensing requirements for issuance of TFPU licenses are defined in article 4 of Law 3887/2010, under the amendments of Law 4070/2012, which is setting down the following rules that exist cumulatively for a person or a company:

The person or persons designated as managers of the transport companies which are operating under the legal form of SA or LLC must provide good repute within the meaning of Article 3 of the Presidential Decree 346/2001, they must be an EU Member State national and also pass examinations to obtain a certificate of professional competence. Moreover, each company or undertaking must have economic transparency within the meaning of Article 3 of Presidential Decree 346/2001.

As we can see, the above requirements are set out within the spirit of the EC Regulation 1071/2009 which designates an access to the occupation of road freight transporter through a high level of professionalism, with certificates and other qualifications facilitating by this manner the realization of the right freedom of establishment in national and international transportation while it lays down minimum conditions on access to the occupation of road transport operator and mutual recognition of documents required for this purpose.

Finally, it is really important to be noted that under Article 11 of Law 3387/2010 any limitation of freedom against the transport enterprises or their clients concerning their agreement for transport charges/freights is abolished.

Conclusions - Proposals for Road Transport Legal Framework

The institutional framework for road transport before 2010 was characterized by significant barriers to market access and operation, having a significant negative impact on industry efficiency, competitiveness of the Greek economy and the environment. Distortions associated with the previous institutional regime imposed its revision. At the legislative level, the reform of the institutional framework of the industry began under Law 3887/2010 which triggered a series of further legislative initiatives. The new institutional environment for business road haulage is business-friendly and in line with international best practice and regulations of EU.

It is also noted that there is scope for further actions in order to reach the maximum benefits of structural reform in road freight transport. In particular, the international experience has shown the importance of strengthening market surveillance to ensure healthy competition to full liberalization of the sector. Finally, what is particularly important is that the Greek State has to reduce bureaucracy and further simplify procedures, in order to make the transport sector more competitive while the sector faces strong competition from transport companies which are seated and operate in neighboring – Balkan countries, where the procedures for setting up and operating their respective companies are simpler and faster.

Logistics Legislation

Law 4302/2014 under title “Regulation of Logistics issues and other provisions” constitutes the first attempt of the Greek Legislator towards the harmonization and alignment of the Greek Laws with the trends in international markets of goods and the

Logistics Sector. The said Law is not yet practically “active”, but is expected soon to come in force after the issuance of a relevant Presidential Decree and shall constitute the most serious piece of law concerning logistics. Therefore, it is important to highlight the scope and objectives of the said law.

In line with the official explanatory report, the vision and objectives of Law 4302/2014 regarding Greek Logistics is twofold and concerns: Strengthening and modernization of the Freight and Logistics System in Greece with intent to develop the Logistics Sector and to help support the development of other sectors of national economy.

The objectives of the Law include:

• “The limits and boundaries of Logistics business and the relevant operation - company framework;

• “The protection of the environment and the promotion of green logistics;

• “The improvement of institutional framework concerning the establishment and operation of businesses within the Logistics sector;

• “The attraction of freight cargoes – transport loads and the creation of added value services;

• “The definition and development of National Range Business Parks;

• “The development of administrative structures for the continuous monitoring of Logistics sector and the creation and development of a national strategy.

The said Law consists of an attempt to remove the rigidities and therefore the insecurity of those investing in Greece, insecurity resulted from ambiguities and gaps in the legal framework such as the licensing process. Essentially this policy aims to reduce the supply cost of the businesses, while reducing the cost of consumer goods. Furthermore, the aforementioned Law intends to make Greece attractive as a Logistics hub, in order to attract the passing loads and cargoes from its ports, but also the cargoes transported by road and rail infrastructure in the markets of the Balkans and Central Europe.

Highlights of Law 4302/2014

The first part and articles of the Law define “Logistics” and “Logistics Operations”. Until recently there was no legislation at all concerning the definition of terms “Logistics” and “Logistics Operations” and thus there was confusion and ambiguity. The said Law provides for the first time the definition of Logistics service providers (3PL) and also defines undertakings of active logistics, warehousing, storage & distribution centers, the installation of a storage & distribution center and the methods of its operation and expansion.

The licensing will now be performed by the Regions Directorate for Development after the classification to environmental category of the Logistics installation. As regards a startup business for a Warehouse and Distribution Center classified in A class, a solemn declaration is only required stating that the Center fulfills the legal conditions and criteria. Moreover, as regards a Warehouse and Distribution Center classified in B class, the obligation for an operation license does not exist anymore. Further specialization is made for Centers that fall into subcategory A2, where the installation license is given by submission of the necessary documents and the operation license is given with the submission of a solemn declaration and a Letter of Guarantee.

For subcategory A1 the installation license is given exactly as described above in subcategory A2 and operation license is given with the submission of an application accompanied with the required supporting documents. It is also significant that Law 4302/2014 makes no separation between industrial and commercial warehouses in terms of operational licensing process, while terms for building warehouse areas – centers are equated with the terms which apply for industrial buildings. The said Law also provides for the connection of warehouses to road traffic networks and ensures that the engagement in one or more logistics activities will be allowed freely. Nevertheless, Law 4302/2014 defines that the context regarding urban transportation and distribution of goods shall be regulated after the entry in force of a relevant Presidential Decree. The expected P.D. shall define the temporary storage and truck parking within Municipal areas, the method of discharge and delivery of group of cargoes and goods to the businesses and shops located at urban areas and shall regulate the access within and through the city areas. Law 4302/2014 consists of the first piece of Greek legislation that makes a reference in the Green Logistics, through the development of a carbon footprint recording system (database) for business Logistics. This database will be kept in the Ministry of Infrastructure, Transport and Networks, details of which will be communicated to those concerned. Finally, Law 4302/2014 establishes Logistics Business Parks of National Range, with option of coverage rate up to 70%, with a building coefficient/factor of 1,6 and maximum height of 25 meters. The Business Parks will constitute a new form of the already existing term of Business Parks, in which companies operating in the logistics sector will have the chance to be installed. Additionally, access to combined transport should be ensured in order the interconnectivity between the transport networks to be established, creating a continuous flow of products and raw material, improving transport times and reducing costs.

Conclusions concerning the benefits of Law

4302/2014 as to Logistics

The benefits of Law 4302/2014 can be defined briefly as follows:

• “Free access to the Logistics market and extinction of the unfair competition;

• “Determining the notion and context of Logistics;

• “Increase of outsourcing services;

• “Coverage of legal gap for operation licensing of autonomous warehouse facilities and reduction of business risk through the simplification and standardization of the licensing process;

• “Alignment of logistics facilities with market requirements;

• “Establishment of business logistics parks nationwide, which will obtain the required access to combined transport under a fast track process in order to attract major investors;

• “Obligatory connection of the warehouses to the road network;

• “Development of Urban and Green Logistics and establishment of an institutionalized framework for innovative practices concerning sustainability;

• “Creation of an administrative framework for the promotion of logistics issues (Council of Logistics Development & Competitiveness and Body for Promotion of Greek Logistics);

• “Engagement of one or more logistics activities allowed and simplification of 3PL activities;

• “Equation of warehouse building terms with building terms for industrial buildings, serving the needs of the market to build higher buildings;

• “Simplification of the licensing framework for warehouse centers, that favors new investments and reduces the administrative burden.

The German-Hellenic Chamber of Commerce and Industry has been the gateway to the Greek, German and global markets for 99 years and its objective is the tightening and growth of economic and commercial relations between Greece and Germany. The Chamber currently consists of 913 members. With offices in Athens and Thessaloniki, it undertakes a variety of activities and offers a wide range of quality services to support companies to develop and flourish. The collaboration with the Worldwide Network of German Chambers of Commerce Abroad, with 150 offices in 92 countries and more than 46.000 Companies-Members worldwide, under the DEinternational trademark, allows for implementation of international projects and offers sound opportunities for extroversion and networking.

Elikon Logistics

Europe is our Land and Elikon Logistics is a growing and modern European Logistics Operator, specialized in International Logistics, providing services focused on one stop shop supply chain philosophy. We are offering solutions for: • FTL / LTL loads • Dry and temperature-controlled goods. Follow us to the journey on the way to the biggest European markets and connect to Greece through end-to-end solutions of our company with the rest of Europe and vice versa. As a one stop shop in supply chain, we give customized solutions for crossdocking spot warehousing and distribution in Greece and in many European countries.

GOLDAIR CARGO

Goldair Cargo, founded in 1987, succeeded through steady and considered steps, to become a synonym of high quality services in the field of international freight forwarding and logistics. Nowadays, the company maintains more than 135.000 sq.m of covered warehouses, offering full range logistics services and handles over 42.500.000 pickings annually, distributing them throughout Greece and neighbor countries. Goldair Cargo, pioneer in the field of international forwarding, carries a pan European freight distribution network for 48 cities with daily and weekly departures, for dry as well as controlled temperature cargo. The company has also developed exclusive co-operations with market leading forwarding networks, covering through air and sea, any transport need, from and to all around the world.Follow us to the journey on the way to the biggest European markets and connect to Greece through end-to-end solutions of our company with the rest of Europe and vice versa. As a one stop shop in supply chain, we give customized solutions for crossdocking spot warehousing and distribution in Greece and in many European countries.

HARLAS INTERNATIONAL TRANSPORT S.A.

HARLAS INTERNATIONAL TRANSPORT S.A. was founded in 1969 and our name has been synonymous of accountability, consistency and effectiveness in the freight forwarding world continuing to be a pioneer offering high quality services with an anthropocentric approach. The continuous evolvement of our global network of 440 agents worldwide offers personalized transportation solutions to our customers. The 5 decades of ‘’knowhow’ and the successional certifications (ISO 9001:2015, 27001:2013, 37001-2016) , have fairly brought our company to the forefront of the international freight forwarding market. Our company also has been awarded by the Business Excellence model EFQM 3 stars.

Navicon SA was founded in 2002. Our company offers a complete range of shipping -transport and logistics services with multiple branches and activities within the supply chain. Our headquarters is located in Piraeus, Greece and we are globally present through our offices in Germany (Hamburg) , 3 locations in India (Mumbai/Jaipur/Ahmedabad) and Switzerland (Zurich). We are your one-stop shop for your international shipping and logistics needs. At competitive rates, our competent, friendly and well-trained stuff will provide you with reliable, transparent and personalized solutions, covering all aspects of your supply chain.

O.MIND CREATIVES

O.MIND CREATIVES, a company with an Open Minded approach to media productions, has in its portfolio the editions of four trade magazines ‘Supply Chain & Logistics’ , ‘Meatplace’, ‘Dairy News’, ‘The Grill Magazine’, read by more than 20,000 professionals each month.

O.MIND CREATIVES, also organizes and operates some of the most known B2B exhibitions held in Greece: The ‘International Supply Chain & Logistics” Expo held every two years since 2007, the B2B ‘Cargo Truck & Van Expo”, and the Conference Brand ‘LOGI.C’ held once a year. Furthermore, the company also organizes the 3branded exhibition concerning the food industry, ‘Meat Days’ – ‘ Dairy Expo’ & ‘Frozen Food’, also held every two years since 2012. Al events are taking place at the Metropolitan Exhibition Center of Athens, near the Airport, a venue considered to be one of the best of its kind in South-East Europe.

Orbit Group

ORBIT Group of Companies (OB) is Greece’s freight forwarding and logistics leader with subsidiaries in South East Europe. With 100 years of experience, OB offers comprehensive solutions in Supply Chain Management & Freight Forwarding, including multimodal services on Road, Sea, Air & Rail transportation. OB delivers tailor-made logistics solutions using the latest techniques and tools for multinational clientele. Their 200,000 sq. meters state-of-the-art owned warehouses provide flexible solutions for 3PL services, temperature-humidity control, bonded warehouses, art facilities, and custom-made storage solutions. OB’s advanced logistics solutions are supported by innovative applications and tools, value-added services, reverse logistics, customer invoicing, SLAs, KPIs, and reporting. OB adopts advanced and up-to-date safety & security systems, providing full commitment to their customers’ needs. OB is expanding their logistics hubs and fleet and upgrade their IT systems in order to carry them into Logistics 4.0 era while optimizing their Green Policy in conjunction with the sustainability of the organization.

At TEU Shipping and Forwarding Group, we believe that perfection is not just a goal - it’s an attitude. With over two decades of experience, we’ve become a trusted partner delivering exceptional support to every customer, every time. With offices in geostrategic locations in Europe and Asia, we’re well-positioned to provide below products across the globe: • Ocean freight (FCL/LCL, IMO shipments and reefer containers, cross bookings, Special Cargo, Project Management) • Air transport (IATA Member, Emergency shipments, FFO, OBC, Charter services, DGR shipments, Perishables, Courier service, Temperature controlled service) • International Road transport (FTL, LTL, ADR Shipments) • International Rail Freight • Special Transport Projects (Heavy Load or Oversized Cargo, Cargo Reception & Warehousing, Lashing & Loading, Ro Ro, BB, Chartering) • Distribution & 3PL services • Customs Clearance • Cargo Insurance

At TEU, we pride ourselves on being more than just freight forwarders - we’re innovators, collaborators, and trusted advisors.

THE NATIONAL LOGISTICS COUNCIL (NLC)

The National Logistics Council (NLC) of Greece was established on 2014 by the Gov. of Greece as an advisory body by involving members from private and public sector, academia and unions, on a volunteer basis, with the main mandate to promote the Greek Logistics Sector.

The NLC aims to recommend evidence-based policies to the Ministry of Development and Investments, the Ministry of Infrastructure and Transports as well as the Greek Government Ministerial Committee for the Development of the Supply Chain. Identifying and developing strategic issues for the advance of Greek logistics and supply chain, the NLC proposes measures, actions and initiatives concerning reforms in the logistics sector, coordinating and interacting with public authorities, businesses and Universities.

The Greek strategic planning for the development and improvement of the Supply Chain and Logistics and its action plan is constantly under revision, together with incentives to innovate logistics businesses and co-working Greek Authorities in a “greener” framework. The NLC has identified, as top strategic goal, the promotion of Greece as an entry gateway for Europe and key hub for global supply chains In this regard, we are open and welcome ideas and proposals about new initiatives and investments in the Greek Logistics Sector.

The Greek Supply Chain was proven robust, resilient, and quite resourceful during both the recent pandemic as well as the War in Ukraine. The National Logistics Council is here, actively assisting all efforts for continuously up-to-date Greek logistics services.

THPA S.A.- PORT OF THESSALONIKI

ThPA S.A., listed on the Athens Exchange since 2001, handles containers, conventional cargo, operates the free zone of the Port in accordance with tax and customs legislation currently in force authorized with AEO license, offers reliable and cost-efficient logistics solutions, intermodal rail services with direct rail connectivity from the Port of Thessaloniki to Bulgaria (Sofia) and Serbia (Nis) and serves passenger traffic through cruise and ferry. ThPA S.A. mission is to provide an evolving, efficient and reliable intermodal network, which safeguards and upgrades the supply chain of its broader region, while actively contributing to the growth of its business partners, delivering value to all stakeholders and society, while promoting sustainability.

Thriasio Logistics Centre

Greece’s newest and largest Logistics Centre has been designed with “green” features to reduce the environmental footprint of the companies that will be housed. This innovative mega project, the construction of which starts in 2023, will be located in the municipality of Aspropyrgos (Attica region) and will be interconnected with all transport networks. Thriasio Logistics Centre will reposition the country at the center of Europe’s logistics map and will include at least 302.000 sqm of covered space on a total area of 588.000 sqm. This infrastructure can be configured according to your company’s needs and can serve at least 400 trucks and 50 train cars daily.

O.MIND CREATIVES true to its commitment to promote the logistics, supply chain and commercial vehicle, with a staff of experienced partners and accomplished executives, organizes the 9th “Supply Chain & Logistics” exhibition and 4th “Cargo Truck & Van Expo”, on September 30 - October 2, 2023, at Metropolitan Expo.

Recognized for its value and efficiency, the exhibition, with 300 exhibitors from across the entire chain supply chain, logistics, material handling, freight transport and commercial vehicles, in a exhibition area of more than 22,000 sq.m., framed by a series of parallel events and LOGI.C events, it is expected to set the “tone” of the market’s growth pulse, being once again a “meeting point”.

With thousands of visitors from the entire spectrum of the commercial and industrial world from Greece and abroad, theorganization of the 2023, looks forward to being the meeting point and setting the pace for a rapid growth in the country’s events in the next 5 years, with significant investments, company partnerships and cluster creation.