Professional Documents
Culture Documents
5
Policy Study
MEDITERRANEAN
TRANSPORT AND
LOGISTICS IN A
POST-COVID-19 ERA:
PROSPECTS AND
OPPORTUNITIES
Centre for Transportation
Studies for the Western
Mediterranean (CETMO)
Coordinator
European Institute of the
Mediterranean (IEMed)
Coordinator
The MedThink 5+5 is a network of think tanks that encourages dialogue and
research to promote regional integration in the Western Mediterranean, as a
part of a wider Euro-Mediterranean region.
The network emerged in 2016 on the initiative of the IEMed in coordination with
think tanks and public diplomacy institutions, building on a mandate from the
Summit of Heads of State and Government of the 5+5 Dialogue in 2012. This
unique platform, composed of more than 30 institutions from Portugal, Spain,
France, Italy, Malta, Morocco, Mauritania, Algeria, Libya, and Tunisia,
contributes to dialogue, exchange, and joint research on crucial sub-regional
areas of cooperation.
POLICY STUDY
Published by the European Institute of the Mediterranean
Editing
Antoine Apprioual, Matías Ibáñez, Alberto Palacios, Enric Pons
Design layout Maurin.studio
Proofreading Neil Charlton
Layout Núria Esparza
Print ISSN
Digital ISSN
September 2021
The European Institute of the Mediterranean (IEMed), founded in 1989, is a
think and do tank specialised in Euro-Mediterranean relations. It provides policy-
oriented and evidence-based research underpinned by a genuine Euromed
multidimensional and inclusive approach.
The aim of the IEMed, in accordance with the principles of the Euro-
Mediterranean Partnership (EMP), the European Neighbourhood Policy (ENP)
and the Union for the Mediterranean (UfM), is to stimulate reflection and action
that contribute to mutual understanding, exchange and cooperation between
the different Mediterranean countries, societies and cultures, and to promote
the progressive construction of a space of peace and stability, shared prosperity
and dialogue between cultures and civilisations in the Mediterranean.
CETMO generates actionable and innovative Analysis and Knowledge for policy
makers, transport infrastructure managers and logistics operators, transferring it
through Dissemination and Formation.
IEMed.
Policy Study
Content
FOREWORD 12
Senén Florensa
CONCLUSIONS 290
CETMO
FOREWORD
Sénen Florensa
President of the Executive Committee,
European Institute of the Mediterranean
(IEMed)
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 13
In the Western Mediterranean Basin, as tent transport trends and open pro-
in other regions of the world, the cesses, whether it will change priorities,
COVID-19 pandemic has prompted refocus targets or serve as a stimulus to
governments to take severe measures definitely embrace the green and digital
to curtail socio-economic activities over revolutions, is crucial for the transport
the last months. Consequently, move- and logistics sector to continue playing
ment restrictions and the reduction of its major role as driver of the socio-econ-
trade flows have severely impacted the omic development and regional integra-
transport and logistics sector. This major tion of the Western Mediterranean in a
disruption caused by the COVID-19 to context of recovery. Knowing with cer-
the transport system calls for a pause to tainty what new medium and long-term
analyse the priorities for the future and scenarios will emerge from the pan-
to build on lessons learnt to guide the demic is a difficult task. This prospective
recovery of the sector with the aim of exercise is nevertheless essential to help
improving its resilience and fostering its the sector better prepare and adapt
modernisation to boost growth, innova- itself to the post-COVID-19 realities, no-
tion, and competitiveness. tably with useful inputs likely to guide
the cooperation and public policies that
Before the pandemic started, the trans- will shape the future of the sector in the
port and logistics sector was embedded subregion.
in a process of transformation to adapt
more efficiently and resiliently to the ef- The European Institute of the Mediter-
fects of climate change, while trying to ranean (IEMed) and the Centre for
harness the new technological possibil- Transportation Studies for the Western
ities brought in by the fourth industrial Mediterranean (CETMO) have taken on
revolution. A renewed vision of global- this challenging task by launching an im-
isation, amid trade wars and tariff esca- portant and timely initiative aiming at
lations, had also been gaining a foothold generating knowledge and food for
over the last years. The pandemic has thought regarding the new possibilities
just accelerated these trends while com- and potential post-COVID-19 scenarios
pelling the actors of the sector to adapt that may arise in the close future for the
to new behaviours and practices in transport and logistics sector in the
terms of travel, business, urban trans- Western Mediterranean. Untitled
ports, leisure, etc. In fact, the fragility of “Mediterranean transport and logis-
global supply chains and the disruption tics in a post-COVID 19 era: prospects
of commercial routes, the increased and and opportunities”, the initiative’s de-
unavoidable reliance on digital means, clared ambition is to contribute to in-
the renewed and strengthened focus on forming the reflections and decisions of
sustainability, all highlighted by the the actors and policymakers of the sec-
COVID-19 crisis for over a year now, are tor in the region.
critical contemporary factors that call for
a deep reflection on the prospects, op- This publication is the outcome of the
portunities, and challenges that await work undertaken in the framework of
the transport and logistics sector in the this initiative that gathered experts from
context of a post-COVID-19 Western different professional backgrounds and
Mediterranean. Euro-Mediterranean countries to discuss
the impacts of the COVID-19 and the fu-
Analysing how the COVID-19 pandemic ture of transport and logistics through
has influenced to a lesser or greater ex- multisectoral and multidisciplinary
14 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Considering transport and logistics as In this context, this Policy Study seeks to
one of the most important sectors struc- serve as a tool to inform and guide the
turing cooperation, socio-economic de- reflections and discussions of the minis-
velopment, and regional integration in terial gathering of the 5+5 Dialogue
the Western Mediterranean, the Med- members, as well as future initiatives
Think 5+5 network has been committed and policies. Finally, by disseminating
to fostering debate and knowledge- the research done by selected scholars
sharing on the issue, building upon the and experts within the framework of the
support and expertise of the CETMO as joint initiative led by the MedThink 5+5
Technical Secretariat of the Group of network and CETMO, the publication
Transport Ministers for the Western aims at constructing a regional collective
Mediterranean (GTMO 5+5), bringing intelligence, which, by defining priorities
experts, academics, and practitioners and devising regional and transnational
closer to the policymaking. policies and strategies, can really pro-
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 15
mote the adaptation of the transport transport and logistic systems while
and logistics sector to the post-COVID- drawing some policy recommendations
19 Western Mediterranean. to better prepare and adapt the sector
to the post-COVID-19 realities. From
This publication comprises all the thirty chapter three to chapter seven, fifteen
articles that were commissioned within articles seek to assess the socio-econ-
the framework of the joint initiative led omic impacts of the COVID-19 pan-
by the MedThink 5+5 network and demic to different transport modes,
CETMO. With the aim of giving a clear namely road, rail, maritime, air, and
picture of the Mediterranean realities urban transport, while identifying some
calling for more regional cooperation on lessons learned and drawing conclusions
transport, each of these articles try to that may serve to face future disruptions
look at the political, transnational, envi- with greater coordination. Moreover,
ronmental, social, and economic im- the bulk of these articles will shed some
pacts on the transport and logistic light on the ongoing adaptation pro-
sector triggered by the COVID-19 pan- cesses of each of these transport modes
demic from different multidisciplinary to the digital revolution, the decarbon-
angles. isation challenge and the processes of
vertical and horizontal integration. The
In particular, the first chapter includes last chapter, which comprises four ar-
seven articles that delve around four ticles, focuses on how the COVID-19
cross-cutting topics in relation to the pandemic hardly hit logistics chains
transport and logistics sector in a post- worldwide and affected the distribution
COVID-19 context, namely geopolitics, of goods in key sectors of activity, while
regional integration and international analysing the opportunities and chal-
trade, sustainability, and digital revol- lenges to improve the current multi-
ution. The second chapter encompasses modal logistic systems by grasping the
four articles that seek to analyse the scope of digitalisation and sustainability
functioning and priorities of the current processes in a post-COVID-19 era.
Chapter 1
GLOBAL AND
REGIONAL TRENDS
COVID-19 appeared at a time when global society was beginning to
consciously face the fight against climate change as one of the great
challenges to guarantee the survival of the planet. Furthermore, there was
also the beginning of the fourth industrial revolution concept, linked to the
digital revolution and new ways of integrating technology into societies. It will
be interesting to see how COVID-19 will influence these transport trends and
open processes, whether it will change priorities or, serve as a stimulus for
greater awareness and implementation.
One of the first effects of COVID-19 on the transport and logistics sector was
the visibility of the fragility of global supply chains. This opened a public
debate on the need to change the prevailing supply chain models in order to
make them more robust and reliable, and reduce their dependencies.
Furthermore, it is interesting to reflect on what changes, on a geopolitical and
governance level, can be derived from all of these approaches, and whether
these changes are transitory or, here to stay.
Mediterranean Logistics
Post-COVID-19:
Opportunities Come
with challenges
Anwar Zibaoui
General Coordinator, Association of the
Mediterranean Chambers of Commerce and
Industry (ASCAME)
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 19
We are facing a challenge that will izon are being configured. The digital
change the world. As countries take es- future will create new opportunities for
sential measures to protect their popu- people, companies and governments.
lations, no sector remains immune to But if mismanaged, it will also bring
change. Closed borders, telework, new threats, polarisations between so-
travel bans and confinement. The co- cieties or divergent economies. The
ronavirus outbreak is redefining how current economic models need to give
we stay connected. And with a fifth of new answers, since the existing
the planet already isolated, it is im- measures are not enough. More econ-
perative to keep the flow of goods so omic integration, emergency plans and
that critical supplies can get where realistic solutions are needed to solve
they are needed. The global logistics endemic problems.
industry faces its biggest challenge.
The magnitude of the challenge makes
The COVID-19 outbreak has increased the existing measures insufficient.
the importance of supply chains in re- Without an effective logistics sector,
sponding to needs in real time and in the economy cannot develop. An effi-
the transportation of goods, whether cient logistics reduces costs in export,
in managing the increase in online re- import and distribution in the domestic
tail demand or maintaining the supply market. It is the lever for growth and
of medical supplies and fresh products. competitiveness. Internationalisation
The COVID-19 pandemic has shown requires emphasising the overall per-
that logistics needs to evolve to build formance of distribution and supply
stronger supply chains. We all depend networks, but also the regionalisation
on them to achieve food security, of sectors that benefit from geographic
health and stability, as their mission is proximity and economic complement-
to keep people safe and businesses arity.
operational, while customers adapt to
the new challenges. Furthermore, the sector is committed
and has reacted by prioritising critical
Trade keeps the world connected. medical supplies, keeping the flow of
Maritime transport, where 80% of the fresh products and improving the use
goods and 50% of the oil consumed of technologies. The effort to maintain
circulate (UNCTAD, 2018), is of vital im- trade has been global. Governments
portance in global geopolitics. In addi- and airport authorities across the world
tion, transport and logistics promote are implementing strict guidelines,
cooperation and development. In de- such as increased disinfection, while
veloping countries, competitive logis- protecting the safety and health of the
tics would help solve migration, workforce. We must thank workers and
radicalisation or job creation problems. companies in the sector for their cre-
Without a doubt, economy is an essen- ativity, innovation and dedication to
tial lever to fight poverty, inequality, keep the supply chain operational,
and solve desperate socioeconomic agile and robust in this time of crisis.
conditions.
Beyond the immediate challenge, initi-
The pandemic has made the fourth in- atives must be urgently promoted to
dustrial revolution a reality for millions make trade flows more robust. The
of people. The contours of a new hor- construction of digital platforms will be
20 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
crucial to adapt to this new type of cri- boost to the economy at a time of frag-
sis in the long term. The digitised ile recovery from the global recession.
supply chain, in addition to the global Logistics is necessary to flourish the
network of ports, terminals and econ- economy and even the population to
omic zones, will guarantee the trans- survive. For example, transportation
portation of cargo from one place to and logistics directly affect the price
another through just one click. New and local availability of food. In devel-
technologies are driving online logis- oping countries, the impact of trans-
tics and enabling smarter commerce, port and logistics are between 20-60%
with more efficiency throughout the on the prices of food delivered (World
supply chain and greater visibility and Bank, 2012). They constitute for some
transparency; in turn allowing the countries 40% of the cost of imported
movement of goods to be optimised wheat. So, at a time of high prices for
and redirected to where they are most food and raw materials, enhancing and
needed. improving the logistics sector is
necessary. Competitiveness is also the
This pandemic comes at a key mo- result of reduced transport time and
ment. The global logistics sector is costs.
booming, with a greater demand for
service from customers, the emerg- Global trade is shifting, and the cen-
ence of new competitors, the review of turies-old model that saw maritime
logistics processes and their incorpor- powers located in the Western world
ation into the digital revolution. Great control cargo flows through is giving
challenges await us, such as the use of way to a more multidirectional and
big data to efficiently manage logistics multimodal future.
flows or the implementation of online
platforms that optimise the volumes of In this new dynamic, China begins to
cargo transported. exert a greater influence on world
trade. The launch of the New Silk
Logistics is one of the main columns of Road, an initiative with an investment
support for the continuous devel- of multi-trillion dollars, aims to reshape
opment of economies and its indica- intercontinental trade through a new
tor of global competence. The network of land and sea connections
increasing internationalisation of op- between Asia, Europe and Africa,
erations requires a special emphasis on based on the old trade routes. The
the global performance of distribution Mediterranean holds the key. China’s
and supply networks. expansion to gain supremacy in the re-
gion’s ports does not stop growing.
Trade logistics, or the ability of coun-
tries and companies to export prod- 2000 years ago, the first concept of
ucts to international markets, is a key free port was created between Chal-
ingredient for economic competitive- deans, Phoenicians and Carthaginians
ness, growth, and poverty reduction. to facilitate trade. But the Mare Nos-
Poor logistics performance creates a trum runs the risk of losing its leader-
sunk loss for producers and consumers ship despite its advantages. The
alike, and results in a net loss of re- Mediterranean is located right where
sources. Improved trade logistics, on Asia, Europe and Africa are very close
the other hand, would give a positive to each other, which makes this sea not
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 21
In addition, both in the Mediterranean The Mediterranean has more than 450
and worldwide, the weight of the sec- ports and terminals, represents 30% of
tor is important. Logistics must be ef- world maritime trade by volume, and is
fective because, without this, the the leading tourist destination in the
economy cannot develop. Efficient lo- world (UfM, 2016). It is the point of con-
gistics will contribute to reducing the fluence of three continents (Africa, Asia
total cost of products for export, im- and Europe), where 500 million people
port and distribution in the domestic live. From this new situation, a large
market. It is simply blood for the econ- platform with unique characteristics may
omy and a real lever for growth and emerge to facilitate world trade.
competitiveness.
This strategic location is unique to fa-
The maritime power model that has cilitate global trade and logistics. But
been carrying cargoes across the high the regional economic potential
seas for centuries is giving way to a needs to be unlocked. For this, we
more multidirectional and multimodal must bet on integration and build a
future. The world shipping map will unified strategy that encourages in-
change. It is necessary and urgent to vestments, construction, modernisation
bet on the 2030 Agenda and on a sus- and management of infrastructures, that
tainable model. 23% of CO2 emissions also allows growth and competition with
are attributed to transport (World another region.
Bank, 2016), so the common priority is
to move towards greater efficiency and It is urgent to develop the intercon-
eco-sustainability throughout the nection of the South, create a com-
Mediterranean region. munication network efficient land, air
and maritime transport, and promote
The shipping industry needs to set its multimodal corridors. Here the Medi-
own challenging but achievable volun- terranean corridor should be para-
tary CO2 reduction targets for the mount. The region has a great
maritime sector or risk targets being potential to build up intermodal sol-
imposed. Shippers are under increas- utions engaging maritime and railway
ing pressure to respond to the climate resources with other modes of trans-
change challenge. “They must under- port to increase its global freight vol-
stand, monitor and report their supply umes and viability. What remains to
chain carbon footprint in order to meet be done is to promote and maintain
their reporting and regulatory obliga- emerging intermodal demands
tions,” said GSF (Global Shippers through the provision of a legal
Forum, 2015). “However, they are de- framework and financial or regulatory
pendent on the shipping industry to incentives, so as to foster intermodal
provide accurate data on emissions transport, which can only come true
and the GSF believes urgent action is with a regional alliance and its part-
now needed to agree targets. It is cru- nership with Europe. A roadmap is
cial to select a measure that will in- needed to allow a more efficient and
centivise technical and operational sustainable growth of intermodal op-
measures to reduce CO2 and not erations.
22 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
After the COVID-19 pandemic, global- taken into account at the highest level
isation is wounded. For this reason, we of the State, with adequate govern-
recommend going towards the region- ance and resources. The success of the
alisation of the economy, betting on sector cannot be proven without the
the sectors that benefit from geo- incorporation of women into qualified
graphic proximity and economic com- jobs, especially in fields that are tradi-
plementarity. Regional economic tionally male dominated.
integration and the creation of a com-
mon Euro-Mediterranean Economic Betting on Mediterranean integration
partnership must be objectives to be would change trends and benefit
achieved to face the new and post- everyone. It would attract international
pandemic challenges. companies, increase exports, and
boost the creation of local jobs and
The economic and social importance of businesses. Closing the existing gaps
logistics and the awareness of its short- between two Mediterranean shores
comings in the Mediterranean, require will not be easy but achieving it would
a strategic vision shared by public and mean a more effective transport net-
private actors. A national and regional work, more trade and development.
policy articulated with professional The region has the capacity and ambi-
players that integrates the other stra- tion to become a key player on the in-
tegic objectives (ecological transition, ternational logistics scene.
industry, regional planning, ...) is also
needed, as well as a sustainable organ- The investment needs in Mediterra-
isational approach and logistical plan- nean region in the sector are estimated
ning of the territory, articulated with a to be around 2% of GDP, a sum that
new industrial policy reoriented on the public sector cannot cope with and
European, Mediterranean and African the contribution of the private sector
exchanges. will be necessary.
The pandemic has made the 4.0 indus- To reach a successful conclusion, it is
trial revolution a reality for millions of necessary to overcome the obstacles
people. The contours of a new horizon and work to deepen the partnership in
are being configured and the digital fu- order to better control the challenges
ture will create new opportunities for of development and favour reforms in
people, companies and governments. this regard, strengthen the capacity of
It is crucial to support logistically the international institutions to take risks in
relocation of a certain number of indus- financing infrastructure and facilitating
trial activities, by encouraging the local the access of financial organisations
Mediterranean economy and industrial and operators betting on a greater role
clustering and by strengthening of the private sector could help in this
shorter, more reactive and more resil- way.
ient supply chains. A new industrial and
logistics cooperation, more balanced 25 years after the launch of the Barce-
between Europe and the Mediterra- lona Process, and provided the necess-
nean, is also essential. ary mechanisms to accelerate the
planned terms for the entry into force
For the Mediterranean and Europe to of the Euro-Mediterranean Associ-
regain sovereignty, logistics must be ation, the transport and logistics sector
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 23
References
GLOBAL SHIPPERS FORUM (2015, December). CO2 emissions from the mari-
time sector: GSF policy statement for COP21 Paris. Global Shippers Forum.
Retrieved from: https://www.globalshippersforum.com/media/1217/gsf_mari-
time_policy_statement_cop21_paris_2015.pdf
GLOBAL SHIPPERS FORUM (2019, May 24). Dialogue between policy makers
and shippers key to decarbonisation. Global Shippers Forum. Retrieved from:
https://globalshippersforum.com/media/dialogue-between-policy-makers-and-
shippers-key-to-decarbonisation/
WORLD BANK (2012, May 6). Global Trade Logistics Performance Slows Down
Amid Recession and Major Events. The World Bank Group. Retrieved from:
https://www.worldbank.org/en/news/press-release/2012/05/16/global-trade-
logistics-performance-slows-down-amid-recession-and-major-events
WORLD BANK (2016, May 6). Leaders Call for Global Action to Reduce Trans-
port’s Climate Footprint. The World Bank Group. Retrieved from:
https://www.worldbank.org/en/news/press-release/2016/05/05/leaders-call-
for-global-action-to-reduce-transports-climate-
footprint#:~:text=Transport%20represents%2023%25%20of%20global,growin
g%20source%20of%20GHG%20emissions.
Policy Study n. 5
The Sustainability of
Transport and Logistics
in the Mediterranean
Eduard Rodés
Director, Escola Europea – Intermodal Transport
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 27
The efforts to advance the concept of The COVID-19 appeared in the middle
sustainability are based on the appro- of a period of strong transition. Time
val by the United Nations (UN) Assem- will tell if there is a change of cycle,
bly of the 2030 Agenda in September leaving behind the silicon and informa-
2015, structured by the 17 Sustainable tion period, and moved towards ro-
Development Goals (SDG). Sustainable botics, artificial intelligence, and
development cannot be understood simulation models in virtual environ-
without simultaneously taking into ac- ments. Now, the systems we are devel-
count the interrelationship between oping are prepared to aggregate much
the different goals. Spending more more data than we have ever had. The
time trying to scrutinise the aspects re- programmes can analyse it and simu-
lated to Goal 13 on climate change, or late scenarios on which to base deci-
Goal 9, which deals with industry, inno- sions, much more accurately than
vation and infrastructure in this article those we would have been able to
would not be wise, as they depend to make without their help. This transition
a broad extent on the other 15 goals is taking place in the three networks
and their mutual interactions to reach previously identified (transport, energy
the targets. It is most likely that the and telecommunications) and as a re-
problem to solve is not pollution or sult of their evolution.
sustainability but the consequences we
are facing from our actions in the past The Energy Transition
two centuries. The underlying problem
is our way of life and the habits we The Mediterranean, like the rest of the
have acquired. This is where the world, faces the need to seek out re-
COVID-19 pandemic has forced our newable energy sources. The con-
28 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 29
Today’s large fuel families are also in In recent months, hydrogen has been
transition. Liquefied natural gas is gaining ground as an alternative to
30 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
traditional fuels in maritime transport cations and how it will affect us. It is
for several reasons. It is abundant and about realising that society has been
available everywhere. In a fuel cell, the re-structured around a different way of
generated waste is O2 and water. As a making and maintaining relationships,
fuel, it has zero emissions, is not toxic, driven at this time by the pandemic,
is not a greenhouse gas, can be pro- which, we all assume, will remain as a
duced from renewable resources, and new form of interaction. The pandemic
is a source for other fuels such as e- has accelerated the digital transition,
fuels and blue fuels. We will have to thus reconfiguring human and environ-
get used to new nomenclatures such as mental relationships. At the expense of
“Green Hydrogen” produced from re- proximity, some interactions have been
newable energies or “Blue Hydrogen” enhanced and our environmental im-
generated from gas, which generates pact reduced. During this period, a
CO2 in the production process that is reasonably high level of educational
captured and stored in underground activity has been successfully main-
deposits. Hydrogen has the disadvan- tained. International projects have
tage of being difficult to store and been supported, many people have
transport, and involves complementary teleworked, and the reality is that it
elements such as ammonium, ethanol seems that quite a few will continue to
and octane. Ammonia stands out as it do so, even if only partially, for the
is a substance that does not contain foreseeable future (if not forever). In-
carbon in its molecule and therefore terestingly, none of this would have
does not generate CO2 emissions dur- been possible without a significant de-
ing its decomposition reaction, besides velopment in digitalisation.
being the second most-produced
chemical compound worldwide after Two clear consequences of this pan-
sulphuric acid. demic have been the drastic reduction
in mobility and the exponential in-
Research is currently underway for the crease in e-commerce and door-to-
subsequent decomposition of am- door sales. All of it was possible, based
monia for its use with catalysts. These on a working system supported by
include graphene, which due to its telematics and the digitalisation of
characteristics could be an ideal candi- documentation and associated in-
date. From a Mediterranean point of formation. Everything that was being
view, it is clear that energy sources developed in the world of transport
based mainly on solar energy and gas has accelerated rapidly, and where be-
provide a significant competitive ad- fore everyone was putting obstacles in
vantage, as the changes that are ex- the way, now everyone is looking for
pected to occur are relatively rapid. solutions. If something could be done
telematically, it was done, whether it
The Digital Transition was administrative boards or family
meetings. Some changes will be more
To understand what is happening in disruptive, such as the 5G technology
telecommunications systems, it is that will allow exchanges of information
worth analysing the role that they have in real time. This is understandable as
played during the pandemic. It is no there will be no latencies in communica-
longer a question of seeing how tech- tions. This is linked to the important de-
nology evolves in the field of communi- velopment of robotic processes.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 31
The sector faces two significant chal- Energy prices will change very signifi-
lenges: on the one hand, an evolution cantly. Solar energy will gain promi-
towards a concept of mobility as a ser- nence, giving a competitive advantage
vice, which implies the integral man- to countries with deserts, where solar
agement of information systems and energy performance is very high. This
means of transport oriented to the ser- is an excellent advantage for the
vice of mobility; and, on the other, and Southern Mediterranean countries.
always under the same principles, syn- These price fluctuations will doubt-
chro modality and the physical Inter- lessly cause instability for a certain
net. These challenges are two new period.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 33
Sustainability becomes the driver to- emerged with the emergency appro-
wards economic recovery. The chal- vals of the new vaccines in some coun-
lenge of building a new sustainable tries, which should help overcome it.
society will mark the agendas and ef- Transport will change, above all, be-
forts of the post-COVID-19 generation, cause it already had to change with or
which is much more open and aware of without the COVID-19. It will do so
the challenges that we will have to with environmentally friendly mobility
face. and be more adapted to serving
people and goods thanks to non-pol-
It is too soon to know how the COVID- luting fuels and artificial intelligence
19 will affect public transport. It still digitalisation processes. Change is on
seems that the pandemic will last for the Blue Horizon ahead, so let us sail
some time, although more hope has towards it sustainably together.
34 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
References
UNION FOR THE MEDITERRANEAN. (2019). Concept Note: 2nd UfM Energy
and Climate Business Forum, Supporting local authorities in their efforts to-
wards the energy transition. Union for the Mediterranean Secretariat. Re-
trieved from
https://ufmsecretariat.org/wp-content/uploads/2019/07/final-concept-
note_2nd-UfM-Energy-and-Climate-Business-Forum_v25June.pdf
Policy Study n. 5
The Impact of the New Global
Regionalism on Production,
Transport and Logistics
Systems
Marco Ricceri
Secretary General, Eurispes - Istituto di
Studi Politici Economici e Sociali
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 37
For example, in point 12 of the docu- “In line with the G20 Roadmap for
ment, relating to trade, the commit- Infrastructure as an Asset Class, we
ment to maintain the full opening of welcome the G20/OECD Report
the markets is clearly stated: “Suppor- on the Collaboration with Institu-
ting the multilateral trading system is tional Investors and Asset Man-
now as important as ever. We strive to agers on Infrastructure Investment,
realize the goal of a free, fair, inclusive, which reflects investors’ view on is-
non-discriminatory, transparent, pre- sues and challenges affecting pri-
dictable, and stable trade and invest- vate investment in infrastructure
ment environment, and to keep our and presents policy options to ad-
markets open” (p. 3). Also in point 13, dress them. We look forward to ex-
on transport and travel, a similar com- ploring options to continue this
mitment is stated, aimed at ensuring work in a flexible manner and with-
the maintenance of the system’s open- out duplications with other initiat-
ness: “We commit to ensuring that glo- ives, with the participation of
bal transportation routes and supply interested MDBs and international
chains remain open, safe, and secure, organizations. We will advance the
and that any restrictive measures re- work related to the G20 Principles
lated to COVID-19, including for air for Quality Infrastructure Invest-
and sea crews, are targeted, propor- ment (p. 4).
tionate, transparent, temporary, and in
accordance with obligations under in- These specific sectoral commitments
ternational agreements” (p. 4). In point are part of a broader framework of
15, on investments in infrastructure, it strengthening collaboration between
is explicitly recognized that: states that the G20-2020 summit con-
firmed as the only way forward to
Infrastructure is a driver of growth tackle the effects of the global pan-
and prosperity and is critical to pro- demic crisis, “to overcome the current
moting economic recovery and re- challenges and realize opportunities of
38 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
the 21ts century” (Final Leader’s Dec- number 4 of the document states:
laration of the G20 Summit, 2020). The While the global economy experi-
value of this orientation, which intro- enced a sharp contraction in 2020
duces elements of positivity in a frame- due to the impact of the COVID-19
work of international competition pandemic, global economic activity
hitherto characterized by strong geo- has partially picked up as our econ-
political and geoeconomic tensions, omies gradually reopened and the
had been recognised and sanctioned positive impact of our significant
by similar commitments undertaken, policy actions started to materi-
for instance, at the XII summit of the alize. However, the recovery is un-
BRICS coordination (Brazil, Russia, even, highly uncertain and subject
India China, South Africa, however all to elevated downside risks, includ-
member states also of the G20) held in ing those arising from renewed
Moscow on November 17, 2020, a few virus outbreaks in some econ-
days before the G20 summit. After rec- omies, with some countries reintro-
ognising the G20 coordination role “as ducing restrictive health measures
the premier forum for international (p. 1).
economic cooperation and coor-
dinated action to overcome the current A Safe Recovery but Full
global challenges” (XII BRICS Summit
Moscow Declaration, 2020, par. 50), of Uncertainties
the BRICS states, which are also very
active in the Mediterranean area, have This combination of elements of uncer-
confirmed the commitment to intensify tainty and elements of safe recovery at
their initiatives in the main areas of re- this stage characterises the forecasts of
covery: strengthening of trade, invest- the major economic centers with refer-
ment policies in infrastructures, digital ence both to the evolution of the econ-
economy and energy. In particular, with omic systems as a whole, and to the
regard to the infrastructure sector, the specific sector of transport and logis-
decision was taken to organize a data tics. Here are some significant
and information center, participated by examples.
the five member states, with a “Com-
mon Data Room” (Point 57) to have a International Monetary Fund
continuously updated and shared pic- (IMF)
ture of the main requests and projects
of infrastructural interventions in order According to the latest report of the In-
to activate a prompt collaboration with ternational Monetary Fund on econ-
private operators (Public-Private-Part- omic growth (IMF, 2020), published on
nership - PPP) and in particular with the 13 October 2020, the world economy
banking world. will record a contraction of -4.4% in
global GDP at the end of 2020, slightly
Finally, it should be emphasized that the less severe than the -5.2% expected at
Final Leader’s Declaration of the G20 last June. For 2021, on the other hand,
Summit (2020) also recalls the impor- a rebound in international activity is ex-
tance of some signs of recovery in the pected with + 5.2%, provided that the
world economy, although the forecast virus gives respite. Otherwise, the data
framework for the near future remains will be much worse. Between now and
marked by great uncertainty. Thus, point 2025, it is estimated that the total loss
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 39
of production in the world will amount 2020, opens the document with these
to 28 trillion dollars: an unprecedented forecasts: “Despite the strong, coor-
slowdown for the improvement of the dinated and innovative response, both
average standard of living of the world at national and at EU level, there are
population. In providing these data, many uncertainties that still remain, in
the IMF highlights two important el- particular, on the duration of the crisis
ements: first, projections assume that and how exactly it will affect our lives
containment measures due to the pan- and our economies” (European Com-
demic will continue in 2021 and that mission, 2020b). According to the
transmission of the virus will end every- European Economic Forecasts of
where by the end of 2022; the second, summer 2020, the economy of the
however, that the economy remains euro area will contract by -8.7% in 2020
subject to the risk of “setbacks”. to then record a recovery of +6.1% in
2021, while the EU economy will
With regard to the situation of individ- contract by -8.3% in 2020 and then
ual states, the IMF emphasises (2020) grow by +5.8% in 2021” (European
that each country faces different econ- Commission, 2020a).
omic reactions which have a lot to do
with the experiences made in pre- Srm-Intesa Sanpaolo
COVID situations. Hence the assess-
ment that Europe, and especially the Regarding the maritime transport sec-
Eurozone, as happened in the previous tor, the estimates presented in the
economic crisis, this time too seems to seventh Annual Report “Italian Mari-
be losing ground in the recovery phase time Economy 2020” by an authori-
with respect to the United States and tative Italian specialised study center
China. In fact, according to the IMF, the “Srm-Intesa Sanpaolo”, show an over-
gross domestic product of the euro all decline of - 4.4% for 2020, followed
area this year will fall by -8.3%, while in by an increase of +5% for 2021 (Srm-
the United States the loss will stop at - Intesa Sanpaolo, 2020). The Report
4.3%, almost half. Among the ad- analysed the impacts of COVID-19 on
vanced world economies, the only the logistical-maritime system and the
exception with the plus sign is China, various aspects with which the phe-
which will even register + 1.9% at the nomenon is manifesting itself: from the
end of the year. By the end of 2021, reduction of the passages in the Suez
the US will have lost one point of GDP, Canal to the new configuration of
the Eurozone almost three, while Beij- world traffic, up to the most recent
ing will have a rebound equal to +8.2 trends in maritime flows of the inter-
percent. According to IMF chief econ- national trading.
omist, Gita Gopinath, “This crisis is
however far from over...The ascent out In detail of the container segment -
of this calamity is likely to be long, un- ”the closest proxy to international
even, and highly uncertain” (2020). trade as it mostly expresses manufac-
turing traffic”- (Srm-Intesa Sanpaolo,
EU Commission 2020), the expected reduction in 2020
is equal to -7.3%, with a total of 742
The Annual Strategy for Sustainable million twenty-foot equivalent unit
Growth 2021, presented by the Euro- (TEU) handled in world ports, a figure
pean Commission on 17 September that brings back the volumes of 2017.
40 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
In other words, the virus has taken sages equal to + 15% compared to
away the sector’s last four years of 2019 (the most active carrier is the Chi-
growth, although a rebound of +10% nese company COSCO) as well as the
in 2021 and +6.6% in the 2022 is for- practice of “slow steaming”: again with
seen. Then extending the forecasts to a view to saving costs, the ships
2024, container handling in ports traveled the routes at a slower speed.
should grow at an average annual rate
of +3.5% to reach 951 million TEU at Also significant is the high number of
the end of the four-year period. At the “blank sailing” - routes canceled due
global area level, the recovery is evalu- to lack of cargo - which involved all the
ated in the following terms: Europe at main routes (Srm-Intesa Sanpaolo,
+ 2.3%, Africa at + 3.3%, Far East at + 2020). The phenomenon reached a
3.9%, Middle East at + 4.5% and North value of 2.7 million TEU at the end of
America at + 2.3%. May 2020, equal to 11.6% of the total
hold capacity. Srm-Intensa Sanpaolo
The Italian Maritime Economy Report (2020) estimates 7 million TEUs lost
(2020) highlights, in particular, that the globally by 2020. The COVID-19 had a
Mediterranean still represents a privi- significant impact also on the great
leged transit route for container traffic, Chinese “Belt and Road Initiative” pro-
concentrating 27% of the approxi- ject: out of 2,951 projects worth 3.87
mately 500 global scheduled services trillion dollars, 20 % is “seriously af-
by ship. Specifically, the Suez Canal in fected” (to consider that the import-
the first five months of 2020 no longer export between the countries touched
recorded the sustained (double-digit) by the BRI represents 65% of the trade
growth of 2019: against a +7% in- volume with the European Union). At
crease in ships transit (oil sector ships the same time, there was a significant
+ 11%, dry sector + 42%), container- increase in rail transport on the China-
ships recorded a decrease amounting Europe route and vice versa. In July,
to -15%. The causes of this decline are the number of freight trains reached a
mainly two, both attributable to the record of 1,232 trains, with a + 68% on
pandemic crisis: the decrease in the July 2019. The Srm-Intensa Sanpaolo
loads handled by ships and the reduc- document (2020) reports that accord-
tion in the oil price which has led many ing to the Chinese railway authorities,
container ships to pass through the Af- “transport by train has had a decisive
rican Cape of Good Hope to save toll role in stabilizing the chain of inter-
costs: 52 megaships, equal to 5.1% of national logistics interrupted by the
the total, preferred this last route in the pandemic”.
period March-June 2020. This choice
led the Suez Canal Authority to intro- Globalisation - Regiona-
duce a toll discount of 17% for the con-
tainerships heading south, and of 50 to lisation: Profound
70% for the US East Cost-South Asia Changes in Supply Chains
and South East Asia route. Other sig-
nificant phenomena have emerged in On the occasion of the official presen-
relation to an increasing use of the Arc- tation of the Report on Italian Maritime
tic route (Northern Sea Route - NSR) Economy 2020, the director general of
which in the period between January- the Italian center Srm, Massimo de An-
April 2020 recorded an increase in pas- dreis, highlighted an element that is of
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 41
particular importance for the Mediter- ciples) - which has spread development
ranean area, namely the regionalization in the most diverse areas of the world,
of globalization. In the report (2020), fostering awareness of the values and
De Andreis states: opportunities present and to be seized
in the various regional systems, con-
We highlight how the pandemic is sequently induced to promote their au-
changing the geography of world tonomous processes of economic
economic relations seen through development.
the lens of maritime traffic. The
China-US trade clash seen from the On the other hand, this is the point
Pacific route, the slowdown of the that emerges clearly, as the individual
Belt and Road Initiative and Chi- states have for some time now referred
nese exports, the impact on the to global processes in their devel-
Suez Canal and the emergence of opment policies, in the same way the
alternative routes are elements new regional realities also refer to
that also directly affect the Medi- these processes within which they try
terranean scenarios... We are in a to best represent their needs, find their
phase of regionalization of global- own conveniences, fit in. In other
ization and the strategic impor- words, as globalisation produces re-
tance of investing in ports and gionalisation, so, vice versa, regional-
logistics that are efficient and inte- isation further strengthens and
grated with European networks qualifies the processes of global inte-
clearly emerges. gration. The so-called “regional
world”, or, with an even more precise
The regionalisation of globalisation is a expression, the “new order of regional
process that has now become the sub- worlds” (Barbieri, 2019), is not, in es-
ject of careful and widespread evalu- sence, a less globalised world; it is, in-
ation at international level for its stead, a world in which globalisation is
complex geopolitical and geo-econ- further consolidated and it is as if
omic implications, in the latter case forced to assume new principles,
also with reference to a different or- values, guiding elements, to recognise
ganisation of the global value chains the role of new protagonists. It is in this
currently underway. new framework that all actors, public
and private, are required to be able to
On a general theoretical level, scholars build new ways of interacting with each
ask, for example, what relationship other, and to identify and pursue new
exists between the two processes: that approaches to individual and collective
of economic globalisation and the cre- growth.
ation of regional economic spaces.
And the most shared conclusion is that This process of geopolitical and geo-
the two processes are strongly com- economic regionalisation emerged for
bined with each other. In fact, it is the some time, well before the pandemic
globalisation process - with its pushes crisis; but certainly the COVID-19 crisis
to open and interchange, with the re- is destined to accentuate it even more.
duction of costs and tariffs, the organ- In evaluating the possible responses of
ization of supply chains beyond the multinational companies to the shock
borders and the integration of markets and risks of the pandemic crisis, a re-
(according to the Bretton Woods prin- cent Report by the Economist Intelli-
42 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
gence Unit - EIU (2020) highlights that regionalised supply chains will be
one of the main consequences will be an enduring outcome of this crisis.
the regionalisation of global supply (EIU, 2020).
chains. “COVID-19 will fundamentally
reshape trade, accelerating the trend Added to this, there is the need of op-
towards shortening supply chains. Just- timising transportation and storage for
in-time manufacturing using global risk mitigation.
suppliers will give way to a greater
focus on use of regional supply chains, The issue of a globalised or re-
strategic use of inventories and a new gional supply chain is not the only
approach to viewing risk in the C- tension that COVID-19 will expose.
suite” (EIU, 2020). Another core decision for multi-
nationals is the timing of produc-
The productive and commercial advan- tion and assembly of products
tages that multinational companies along the supply chain and, re-
have been able to enjoy in recent latedly, the storage of either inter-
years, particularly in relations with mediate or final goods throughout
China, after this country joined the this process. For the sake of effi-
WTO in 2001, are destined to decrease ciency, multinationals tend to opti-
considerably due to trade wars, for mise the logistics process of their
example between the US and China, supply chains to minimise storage
and the rise in wage levels within the costs. However, in a world of in-
Chinese system; a situation that has al- creasing uncertainty and ongoing
ready led several multinationals to re- risk, a sole focus on the efficiency
locate their supply chains to other of transportation and production
parts of Asia. But these decisions are will leave firms vulnerable to
only a first sign of the effects that shocks. In the current crisis, com-
COVID-19 will produce. panies are seeing greater value in
storing inventory in strategic loca-
This is a prelude to what will tions from where it can be easily
happen in other regions as global accessed and delivered to cus-
companies look to build resilience tomers. This approach applies to
into their supply chains. By building final goods but also to strategically
quasi-independent regional supply important components, such as
chains in the Americas and Europe, those that can be only sourced
a global company will provide a from one market (EIU,2020).
hedge against future shocks to
their network. For those com- The EU MFF Budget
panies that have this luxury al-
ready, they have been able to shift 2021-2027: A Possible
production of key components Response from the
from one region to another as lock-
downs and factory closures result-
Mediterranean Area
ing from coronavirus have
unfolded. Supply chains are dif- Faced with these prospects, which are
ficult to set up and even more dif- in part the testimony of great move-
ficult to move. As more firms make ments already underway, what re-
this decision, therefore, the shift to sponse can come from the
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 43
but also between the neighbouring To this end, the following would be
countries themselves. Also, good useful: a) the organisation of a perma-
transport connections in the EU as nent secretariat on transport in the
well as in the neighbouring coun- Mediterranean as an instrument to
tries are important for trade with support the operation of the Euro-
Asia, sub-Saharan Africa or Mediterranean Forum, also on the
America. In short improving trans- basis of the experiences made by the
port connection would be for the The Centre for Transportation Studies
mutual benefit of both the Euro- for the Western Mediterranean
pean Union and its neighbouring (CETMO) structure which has been op-
partner countries. erating for some time at the service of
the Group of Transport Ministers of the
The guidelines specified in these two Western Mediterranean (GTMO 5+), b)
documents confirm that the European in addition, a link between the various
Union, with the approval of the new European funds operating in cooper-
multiannual financial framework 2021- ation and neighborhood policies in-
2027 and the updating of the related cluding: the Connecting Europe
plans and regulations, presents the con- Facility (CEF) TEN-T fund for inter-
crete opportunity to give a new direc- modality and logistic platforms to be
tion and a different boost to extended to all Mediterranean coun-
Euro-Mediterranean cooperation, both tries, the funds for Motorways of the
to be based on practices of real sharing Motorways of the Sea (MoS) projects,
of the strategic objectives to be pur- the funds already operational at the
sued, on effective coordination between disposal of the European Investment
European policies and plans in the trans- Bank (EIB).
port and logistics sector, national plans,
the Regional Transport Action Plan A possible strategic choice of the Euro-
(RTAP) and the related sectoral projects, pean Union for the interoperability be-
the plans drawn up by the Euro-Medi- tween the two great network systems,
terranean partnership. European and Mediterranean, sup-
ported by the consensus of all the in-
In this context, it would be desirable terested states, would give a very
and appropriate to launch a profound important signal of the will to promote
review of the approach followed so far a common effort throughout the Medi-
by the programmes relating to the net- terranean region to counter the effects
works of the major Trans-European of the pandemic crisis, launch effective,
Transport Networks (TEN-T) corridors, widespread and shared initiatives on
mainly oriented to the needs of the the matter of sustainable devel-
European internal market, to project opment, offer new opportunities to
and integrate them with the related major international players. There is no
programmes of the Trans Mediterra- doubt that such a turnaround would
nean Network-Transport (TMN-T), al- greatly help the community of states in
ready outlined for some time by the the Mediterranean region to react
Euro-Mediterranean Forum on trans- positively and effectively to the chal-
port, both for the western and the lenges of the new regionalisation pro-
eastern Mediterranean side. cesses of the global system.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 45
References
Arianna Vivoli
PhD Student, University of Florence
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 47
In this short note, we investigate the the southern and northern shores of
role of international production net- the Mediterranean Sea. It is therefore
works during the COVID-19 pan- crucial to identify the comparative ad-
demic. A debate has recently vantages of the countries in the
emerged with respect to the future of southern shore, compare them with
global value chains (GVCs), discussing those of other developing and
whether excessive globalisation of emerging countries, check the com-
production has worked as a channel plementarities with the specialisation
transmitting the shock or as a safety of the northern shore and evaluate,
net, and whether this crisis would for firms in different countries, the
lead to a process of de-globalization pros and cons of possibly switching
or of slow-balization (Antras, 2020), suppliers or buyers. These pros and
with firms reshoring production or at cons could be very heterogeneous for
least nearshoring. We maintain that different sectors, depending on the
reshoring is not the right solution, complexity and specificity of the in-
while nearshoring could be an oppor- termediate inputs bought or sold (a
tunity for the Mediterranean area. component of an airplane is possibly
more difficult to substitute than a
What will happen is hard to predict, component of a shirt).
as we are not over the crisis and in-
deed we are in the middle of a sec- Surely the “shortening” of GVCs
ond wave (at the moment less which is widely discussed in the re-
dramatic for countries in the southern cent literature can bring several bene-
shore of the Mediterranean), but what fits, as the lowering of operational
is sure is that the pandemic outbreak, costs, the enhancing of connectivity
which led the IMF (April 2020) to fore- and the resilience of the region in
cast an unprecedent -3.0% global face of shocks and crises. It could also
growth and then to worsen its predic- help to reduce emissions and there-
tions to -4.9% in 2020 in the World fore answer one of the criticisms
Economic Outlook Update (October raised to GVCs of being environ-
2020), is likely to bring changes to the mental unfriendly. On the other hand,
international production process. however, nearshoring may increase
exposure to local and idiosyncratic
The UNCTAD report (2020) highlights risks and decrease the benefits
four possible (not mutually exclusive) coming from suppliers’ and buyers’
trajectories that the international pro- diversification of GVCs. The issue cer-
duction process might undergo in the tainly does not have a unique answer.
next years: reshoring, diversification,
replication and regionalisation. The The Mediterranean
last of these possibilities, regionalisa-
tion, implies the re-structuring of pro- Context
duction operations by multinational
enterprises (MNEs) near-shore. This In 2020, countries in the southern
process might open up key opportun- shore of the Mediterranean were hit
ities and partnerships among the hard by a dual shock, the COVID-19
Mediterranean countries, as there and the concomitant collapse in oil
might be advantages for all in increas- prices, that shaped the region’s out-
ing the links between countries on put forecast to contract to 5.2 in 2020
48 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
(Arezki et al., 2020). On the trade being the main). The apparel and auto-
side, UNCTAD estimated that only in motive sectors GVCs are discussed in a
April there was a 40 % reduction in recent paper by Bernhardt (2020), which
trade for the region; moreover, mobility evaluates, 20 years after, the con-
and transport restrictions heavily af- sequences for Egypt, Morocco and
fected logistics, transports and services Tunisia of entering into the trade-lib-
trade, especially tourism, which is par- eralising Association Agreements
ticularly important for several countries (AAs) with the EU. While all the three
of the Area. UNWTO (2020 b) shows countries seem to have upgraded
that international tourists arrivals plum- their production in the automotive
meted by 57 percent in the first months GVC, in the apparel GVC, Egypt and
of 2020, with peaks of over 90 percent Morocco experienced an economic
between April and July and a dramatic downgrading, while Tunisia stands in
fall in hotel occupancy. Air traffic shrank the middle, with increased export unit
by almost 100 percent in June and July values but with a decreased market
(see also UNWTO, 2020a). Moreover, share (especially after the ending of
the pandemic is having a disproportion- the multi-fibre agreement)1. Moving
ate effect on the more vulnerable sec- out from low-skilled textile and ap-
tors of population, namely informal parel GVCs might not be necessarily
workers and unemployed, with the bad, especially since this sector’s de-
number of poor expected to increase mand is declining worldwide and if
from 178 million to almost 200 million countries have exploitable com-
(Arezki, 2020), also because a large parative advantages in higher-tech-
share of informal workers is somehow nology GVCs.
related to services and especially tour-
ism (restaurants, street vendors, retail Using the BACI-CEPII Dataset, we
shops etc.). compute the Revealed Comparative
Advantages (RCA) in products at 2-
Let us assess the region integration in digit (following the Harmonized Sys-
production networks before the COVID- tem 92 international nomenclature)
19 outbreak. Despite the existing trade across (selected) countries on the
agreements, especially with the EU, the northern and southern shores of the
level of integration into GVCs of the Mediterranean Sea2.
southern Mediterranean countries was
modest, significantly below the integra- As we can see from the graphs in Fig-
tion within the EU countries (Riera and ure 1, some countries on the southern
Paetzold, 2020) and, excluding few shore display a comparative advan-
cases, concentrated upstream (Ayadi et tage in some products with a high
al., forthcoming; Del Prete et al, 2017). technological content; for instance,
Also, the sectors involved were limited Jordan has a comparative advantage
(aeronautic, automotive, textile, citrus in the pharmaceutical sector, Jordan
1
Moreover, even though the automotive sector made incredible progresses for all the three
countries, none of them has become a key player in the EU-bound GVC, that instead saw the
countries like Czech Republic, Poland, Hungary and Slovakia gaining more importance (Bernhardt,
2020).
2
RCA are computed with the Balassa Index, that looks at the share of country i’s exports of product
k with respect to the world export share of product k and that can range from 0 to +∞. A country i
is said to have a revealed comparative advantage if the Balassa Index is greater than one.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 49
3
Reaching higher-value segments of GVCs (where usually formal firms are more present) would be
key for the region given also the dualistic nature of the its labour market (divided between formal
and informal); it would help the already vulnerable (and more affected by the COVID-19) informal
workers with little job security and no social protection to recover from the projected 3.7/6.0
percentage points increase in poverty incidence due to the pandemic outbreak (Arezki et al., 2020).
50 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
4
See also https://www.tradecommissioner.gc.ca/morocco-maroc/market-reports-etudes-de-marches/
0005073.aspx?lang=eng.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 51
Figure 2. The economic shocks from partners’ GDP contraction, selected countries
Notes: Bubble size denotes own GDP contraction. Bubble colours denote sign of GDP change: red
denotes GDP growth, blue denotes GDP contraction. On the horizontal axis average partners’ GDP
contraction for origin and destination. On vertical axis the sum of the share of VA used and
produced respectively originated and absorbed in foreign countries. Data are from Eora Input
Output tables for the Value-Added computations and from IMF (2020) for GDP contraction of trade
partners. We included USA, UAE, China, Germany, Lebanon for comparison.
Beside comparative advantages and ture) and concerns both domestic and
trade partners, another important issue cross-border trade logistics.
in the discussion about the likelihood
of enhancing regional value chains con- Prospects for the Logistics
cerns the business environment that
each country can offer to potential for- and Transportation Sectors
eign investors and trade partners. This
implies that it is crucial for countries of Complex systems as GVCs and produc-
the southern shore of the Mediterra- tion networks are heavily dependent
nean, that today rank low in the Doing on efficient logistics and transporta-
Business indicator (especially if com- tion, since the coordination of activities
pared to their Asian competitors), to along the GVC as well as the ex-
implement policies to attract foreign changes of products depend so much
capital, ameliorating data transpar- on transports and logistics, so that ac-
ency, increasing state credibility, grant- cording to some studies (e.g. Econ-
ing a sound political atmosphere and a omic and Social Commission for
conducive environment for new firms Western Asia, 2017) improving logistics
to start producing. Against this back- performance would on average reduce
ground, a particularly important fea- trade costs 10 times more than an
ture is the question of logistics, which equivalent reduction in tariffs. The defi-
includes transport time, costs, quality nition of GVC itself implies that inter-
(of road, rail, maritime or air infrastruc- mediate products cross the borders at
52 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 53
References
AREZKI, RABAH, ET AL. (2020). “Trading Together: Reviving Middle East and
North Africa Regional Integration in the Post-Covid Era.” Middle East and
North Africa Economic Update, October 2020. Washington, DC: World Bank.
AYADI, R., GIOVANNETTI, G., MARVASI, E., AND ZAKI, C. (2020). “Global
Value Chains and the Productivity of Firms in MENA countries: Does Connec-
tivity Matter?” EMNES Working Paper Series, nº028. Retrieved from:
https://www.disei.unifi.it/upload/sub/pubblicazioni/repec/pdf/wp03_2020.pdf
DEL PRETE, D., GIOVANNETTI, G., AND MARVASI, E. (2017). “Global value
chains participation and productivity gains for North African firms.” Review of
World Economics 153.4: 675-701.
JAVORCIK, B. (2020). “8 Global supply chains will not be the same in the post-
COVID-19 world.” COVID-19 and Trade Policy: Why Turning Inward Won’t
Work (2020): 111.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 55
RIERA, O., PAETZOLD, P. (2020). “Global value chain diagnostic – The South-
ern and Eastern Mediterranean region (Egypt, Jordan, Morocco, Tunisia)”. EU
Neighbours. Retrieved from https://www.euneighbours.eu/en/south/stay-in-
formed/publications/global-value-chain-diagnostic-southern-and-eastern-
mediterranean
SMIT, S., ET AL. (2020). “The future of work in Europe: Automation, workforce
transitions, and the shifting geography of employment.” McKinsey Global In-
stitute, Discussion Paper. Retrieved from https://www.mckinsey.com/~/
media/mckinsey/industries/public%20and%20social%20sector/our%20in-
sights/future%20of%20organizations/the%20future%20of%20work%20in%20e
urope/mgi-the-future-of-work-in-europe-discussion-paper.pdf
In March 2020 the World Health Or- This article seeks to shed light on the
ganization (WHO) declared the impact of the COVID-19 pandemic on
COVID-19 a pandemic. Since then, its the global supply chains. It focuses
spread worldwide has entailed un- mainly on the Mediterranean region
precedented health, economic and so- as a major maritime route connecting
cial consequences for today’s Asia to Europe and therefore as one
economies. People speak of economic of the major trade channels in the
shock, thus implying a major economic world economy. The paper is divided
crisis in the mid- and long-term. into two parts. The first provides a
general insight into the impact of the
According to a recent survey by the COVID-19 pandemic on the world
McKinsey consulting firm, three main supply chains and the second looks at
scenarios could emerge: a rapid re- the Western Mediterranean region
covery, a world slowdown, and a reces- and the role of ports in the global
sion caused by the COVID-19 supply chains following the changes
pandemic. Indeed, the scope of the brought about by the COVID-19. We
economic damage caused by the introduce the concept of digital com-
COVID-19 pandemic will depend on petition and thus put forward some
the following conditions: how quickly recommendations to the Western
the spread of this virus is prevented, Mediterranean ports in order to im-
in other words, the effectiveness of prove their strategic position in the
vaccine deployment; the efficiency of global supply chains in the post-
governments’ economic recovery COVID-19 era.
measures but also the capacity to de-
velop joint actions at a European The COVID-19 Pandemic
level, for instance; and the degree of
financial and social support of govern- Revealing the Weakness
ments for the most affected sectors of the Globalised Supply
and the most vulnerable people.
Chains
At a global scale, the COVID-19 pan-
demic has created disruptions both to Understanding the Global
the supply and demand that are re- Supply Chains
flected in all logistical chains. Following
the closure of factories in China in the The COVID-19 has revealed the weak-
different industrial sectors (car, aero- ness of the world logistics system. In-
nautical, textile…) during the first deed, the accelerated globalisation of
quarter of 2020, a disruption has been the economy in the last 20 decades
seen throughout the supply chain all and the growing internationalisation of
over the world. The bullwhip effect1 exchanges have contributed to the es-
has been noted in the supply chain, tablishment of vast and complex
mainly in the food and drug sectors. supply chains. These depend on dis-
1
In logistics, the bullwhip effect refers to the difficulties found in assessing the demand of each
actor of the supply chain when the volumes of orders fluctuate because of the up/down disruptions.
The difficulties found by each link in the supply chain to determine its real demand for products are
at the origin of the bullwhip effect in logistics. This lack of visibility compels enterprises to allocate
their resources and build up stocks without taking into account the context/changes that have taken
place as a result of a pandemic, an economic geopolitical crisis, and so on.
58 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
tant supply sources that are often dif- tor & Gamble, General Motors and
ficult to control in contexts of health Walmart are well prepared for the po-
crises such as the COVID-19. Let’s tential disruptions of their inter-
take as an example the pharmaceuti- national supply chain. They all have a
cal industry: according to the Aca- protocol concerning the decisions to
démie nationale de pharmacie in make when an unexpected crisis oc-
France, 80% of the active principles curs.
used in the world would be currently
manufactured in China, India and Introducing Supply Chain Risk
some Southeast Asian countries (Aca- Management
démie nationale de pharmacie, 2020).
The geographical dispersion of these The notion of risk management is de-
supply sources is bound to disrupt the fined as the probability of an
activities of the actors at the bottom event/incident occurring. In a supply
of the pharmaceutical industry, chain, this might concern diverse ha-
closest to the consumer markets. zards (ruptures in suppliers, peak de-
mand, lack of shipping capacities, and
In the last few decades, the facilita- so on). These repercussions, recogni-
tion of exchanges and the scale econ- sed by the literature, are often formal-
omies provided by containerisation ised by the bullwhip effect concept.
(over 20,000 twenty-foot equivalent The COVID-19 pandemic has revealed
units [TEU] on a single container ship the vulnerability of the supply chains
in 2020 compared to 8,500 TEU in the faced with the need to anticipate and
early 2000s) help reinforce the base model risks before they occur.
of the internationalisation of trade. In
addition, there is an ongoing research From this point of view, the new digital
on optimisation of stocks from the technologies, such as the Internet of
supplier to the final client as well as things (IoT), cloud computing, artificial
an emphasis on the comparative ad- intelligence, machine learning, 5G,
vantages of each territory in the world and so on, can help better integrate
(accessibility to raw materials, cost of supply chain risk management in the
low-skilled labour, industrial cluster supply chain design. These tech-
such as Shenzhen, which accounts for nologies could in the future notably
half of the world production of mobile improve the visibility of flows within
phones, and so on). As incredible as the supply chain. The increased con-
it may seem, the only objective of nectivity and visibility of the inter-
these strategic choices for the vast national supply chain would enable
supply chains that are always more in- the supply chain actors to assess and
ternationalised is to offer the final anticipate the risks. Such proactivity is
client products at increasingly com- necessary to deploy the appropriate
petitive prices. strategies to respond to a “pandemic”-
type crisis.
The post-COVID-19 crisis era is likely
to question the dependence of mod- The figure below features a conceptual
ern economies on distant overseas framework enabling the integration of
suppliers, giving the impression of a the risk management notion and how
loss of economic and industrial auton- to prepare thanks to the contribution
omy. Companies such as Intel, Proc- of digital technologies:
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 59
2
http://cubex.global/web/index.php#
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 61
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 63
References
BERGER, H., KANG, K., & RHEE, C. (2020, March 20). Blunting the Impact and
Hard Choices: Early Lessons from China. IMFBlog. Retrieved from
https://blogs.imf.org/2020/03/20/blunting-the-impact-and-hard-choices-early-
lessons-from-china/
ORLIK, T., RUSH, J., COUSIN, M., & HONG, J. (2020, March 6). Coronavirus
Could Cost the Global Economy $2.7 Trillion. Here’s How. Bloomberg Econ-
omics. Retrieved from https://www.bloomberg.com/graphics/2020-coronavi-
rus-pandemic-global-economic-risk/
RUIZ ESTRADA, M. A. (2020, February 28). Economic Waves: The Effect of the
Wuhan COVID-19 on the World Economy (2019-2020). SSRN. Retrieved from
https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID3545758_code450188.pdf?
abstractid=3545758&mirid=1
WORLD BANK. (2020, March 3). World Bank Group Announces Up to $12 Bil-
lion Immediate Support for COVID-19 Country Response. Retrieved from
https://www.worldbank.org/en/news/press-release/2020/03/03/world-bank-
group-announces-up-to-12-billion-immediate-support-for-covid-19-country-re-
sponse
YI, H., LIN, C., WANG, P., & XU, Z. (2020, March 23). Saving China from the co-
ronavirus and economic meltdown: Experiences and lessons. Vox EU CEPR.
Retrieved from https://voxeu.org/article/saving-china-coronavirus-and-econo-
mic-meltdown-experiences-and-lessons
Policy Study n. 5
COVID-19 and the Scramble
for Trans-Mediterranean
Commercial Transportation
Corridors: Challenges and
Opportunities
Michaël Tanchum
Professor of International Relations,
University of Navarra, Spain. Senior Fellow,
Austrian Institute for European and
Security Policy (AIES).
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 67
outside the EU system. The Egyptian commercial architectures for the years to
example is a case wherein the already come.
deeply entrenched positions of China,
Russia, and several Arab Gulf states Morocco’s West Africa-
show the necessity of EU system in-
volvement to ensure a European role in to-Western Europe
trans-Mediterranean connectivity. Corridor in the Post-
China’s apparent economic recovery
COVID-19 Era
from the COVID-19 pandemic would Morocco’s success in advancing its West
seem to place Beijing in pole position to Africa-to-Western Europe commercial
deepen its influence over the devel- corridor stems from the considerable in-
opment of trans-Mediterranean connec- vestments made by Rabat and its for-
tivity. According to Chinese statistics, eign partners in the concurrent
China’s monthly exports in November development of both Morocco’s trans-
2020 rose 21.1% year-on-year (Deccan portation infrastructure and its industrial
Herald, 2020). Exceeding international base, anchoring Morocco’s emerging
analysts’ forecasts, China’s $268 billion trans-Mediterranean commercial con-
of November 2020 exports represented nectivity in manufacturing value chains.
the sixth consecutive month of export Morocco’s construction of its al-Boraq
growth. In contrast, seasonally adjusted high-speed rail line – Africa’s first high-
GDP decreased by 12.1% in the Euro- speed rail transportation – has estab-
zone during the second quarter of 2020, lished Morocco’s unrivaled position as
with the economies of the major EU an Africa-to-Europe commercial corri-
Mediterranean actors, France and Italy, dor. The $2.3 billion, 362 km-long first
having contracted by 19.0% and Italy by segment of landmark high-speed line
17.3% respectively compared to the was built as a Franco-Moroccan joint
same quarter of the previous year (Euro- venture. The Boraq line is linked to Mo-
stat, 2020). rocco’s new state-of-the-art Tanger Med
Port on the country’s Mediterranean
Nonetheless, as this study shows, the EU coast, 40 km east of Tangier. In late June
retains a critical window of opportunity 2019, Tanger Med became the Mediter-
to impact the direction of trans-Mediter- ranean’s largest port, surpassing Spain’s
ranean connectivity, as the future of Chi- Algeciras and Valencia ports, with a total
nese investments remains far from in container capacity of 9 million twenty-
certain in the post-COVID-19 period. foot equivalent units (TEU). The $1.5 bil-
China’s two largest policy banks, the lion capacity expansion was supported
China Development Bank and the Ex- by considerable Chinese investment
port-Import Bank of China, slashed their (CMG, 2017), but China has so far failed
combined lending in 2019 to only $4 bil- to capitalize on the investment as Beij-
lion, compared to $75 billion in the peak ing has been unsuccessful in establishing
year of 2016 (Wheatly and Kynge, 2020). an independent manufacturing chain in
Ultimately, the configuration of Africa- Morocco (Tanchum, 2020c).
to-Europe value chains that result from
investment relationships between the The importance of integrating infras-
Maghreb nations and their foreign part- tructure investment with industrial
ners will establish the geopolitical frame- manufacturing chains is illustrated by
work of these emerging trans-regional Morocco’s successful automotive in-
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 69
dustry, producing over 700,000 vehicles chain. Rabat’s highest strategic priority
per year and serving as the centerpiece is to extend a high-speed rail link to La-
of the country’s West Africa-to-Western gouira (La Güera) in the southernmost
Europe Corridor. In 2012, Groupe Re- point of the Western Sahara region,
nault established a second Moroccan which Morocco considers its Southern
manufacturing plant in Tangier to bene- Provinces. Running from Morocco’s
fit from the expanded Tanger Med Port Tanger Med Port across and down the
and the rail link to it, producing its mil- length of the Atlantic coast to the Mau-
lionth vehicle within five years. Europe’s ritanian border, the Tangier-Lagouira line
third largest automaker presently sends will create a high-speed commercial
six trainloads of Renault vehicles daily transportation corridor from the shores
from its Tangier factory to the Tanger of the western Mediterranean to the
Med port for shipment (Berrada, 2019). border of West Africa.
In June 2019, French automobile man-
ufacturer Groupe PSA, Europe’s second The Boraq high-speed rail line, as a
largest automaker, opened a manufac- French-Moroccan joint venture, is em-
turing plant in Kénitra, north of Rabat, blematic of France’s role as Morocco’s
because of the Boraq high-speed rail leading foreign investment partner as
link to the Tanger Med port (Ennaji, well as Paris’ new push to be seen as a
2019). In early 2019, automotive sectors positive change-agent for African eco-
sales accounted for 27.6 percent of Mo- nomic development. France provided
rocco’s exports (Groupe Société Génér- 51% of the financing for the project
ale, 2020). with Morocco providing another 27%.
The remaining 22% of the project was
Morocco’s present vehicle production financed by development funds from
led by French manufacturers Groupe the United Arab Emirates (UAE), Saudi
Renault and Groupe PSA, is supported Arabia, and Kuwait (Moqana, 2018).
by approximately 200 international sup- Along with France, the GCC nations –
pliers operating their own manufactur- in particular the UAE – have been
ing plants in the country, including major mainstays of foreign investment in Mo-
firms headquartered in Germany, rocco. The Boraq line reflects the fact
France, Italy, Spain, and Belgium. Some that France’s main partners in facilitat-
Chinese manufacturers are using the op- ing Morocco’s transformative infras-
portunity of Groupe PSA’s new car man- tructure development are the UAE,
ufacturing plant in Kénitra to integrate Saudi Arabia, and other GCC states.
into the French-led European value The EU27 collectively is Morocco’s
chain, such as CITIC Dicastal, which is es- largest trade partner, accounting for
tablishing $400 million plant in Kénitra, 55% of Morocco’s 2019 total bilateral
with a capacity to produce 6 million trade volume. Nonetheless, France’s
pieces annually to supply parts to PSA principal partners for strategic eco-
Groupe (Tanchum, 2020c). nomic engagement with Morocco are
Abu Dhabi and Riyadh, not Madrid,
Morocco continues to extend the Boraq Rome, or even Berlin.
line as part of its programme to create
1,500 km of additional high-speed rails Morocco’s economy is projected to un-
links, which are already forming the dergo a 6.3% contraction (World Bank,
overland transportation backbone of a 2020), but the contraction could be
France-led, Africa-to-Europe industrial worse depending on the depth and
70 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
duration of the contraction of the EU27 in the country’s capital Algiers. The re-
economy. The EU27 comprises 58% of cently formed Turkey-Italy-Tunisia tran-
Morocco’s export market and 70% of sportation network that slices across
its tourism industry, while also account- the centre of the Mediterranean, crea-
ing for 59% of Morocco’s foreign direct ting an arc of commercial connectivity
investment (FDI) (Chtatou, 2020). from the Maghreb to the wider Black
China’s attempt to establish its own in- Sea is currently the leading aspirant to
dustrial chain in Morocco by setting up form a Europe-to-Africa corridor via
an electric vehicle manufacturing plant the central Maghreb that utilizes Alge-
has so far remained stalled (Tanchum, ria’s connectivity. However, the main
2020c). However, the successful crea- challenge emerging to Turkey-Italy-Tu-
tion of an electric vehicle manufactur- nisia network is being posed by China’s
ing chain would significantly alter effort to construct El Hamdania, a
China’s position in the West Africa-to- large-scale transshipment port in Cher-
Western Europe corridor. chell.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 71
maritime link is also supported by the stant between Taranto and Tunis, Yil-
European Union as the southernmost port’s Malta terminal forms an impor-
link in the EU’s own “Scandinavian-Me- tant logistics centre for the
diterranean Corridor,” one of the nine Africa-to-Europe segment of the Tur-
core network corridors of the Euro- key-Italy-Tunisia corridor.
pean Commission’s Trans-European
Transportation Network, or TEN-T, pro- With its general focus on Italo-Tunisian-
gramme. TEN-T’s Scandinavian-Med- Algerian energy interconnectivity, Italy
iterranean Corridor is the EU’s central has literally laid the groundwork for the
north-south transportation artery, a expansion of the Turkey-Italy-Tunisia
route spanning the Scandinavian pen- corridor’s extension to Algeria through
insula, Denmark, Germany, Austria, the involvement of Italy’s leading con-
Italy, and Malta. Because the Turkey- struction firms, such as ITALCONSULT
Italy-Tunisia network’s Taranto-Malta and Anas International, Algeria’s mega-
segment was previously designated as project East-West highway traversing
TEN-T’s Scandinavian-Mediterranean the entire length of Algeria parallel to
corridor’s southern terminal link, Turkey the country’s coast. Without having
could become the operator of the hub coupled Algeria’s transportation infra-
of what may become the most prized structure development with inve-
Europe-to Africa corridor. By intercon- stments in local industrial production
necting the EU’s Scandinavian-Med- linked to a manufacturing value chain,
iterranean Corridor with Africa’s Italy’s role in Algeria’s commercial con-
Algeria-to-Nigeria Trans-Saharan High- nectivity remains far from certain as
way, the Turkey-Italy-Tunisia network’s Turkey’s military presence in Libya is in-
Italy-Tunisia segment potentially forms creasing Ankara’s political and econo-
the vital link for the creation of a mega- mic clout in neighboring Tunis and
corridor spanning Europe and Africa Algiers.
from 60o N. latitude to 6o N. latitude.
Turkey has made a strong inroads in Al-
The Turkish port operator Yilport Hol- geria through $3.5 billion dollars of in-
ding has been assembling the transfor- vestments, ranking Turkey as one of
mative connectivity of the the country’s top foreign investors
Turkey-Italy-Tunisia network (Tanchum, (Tanchum, 2020b). One month into Tur-
2020b). On July 30, 2019, Yilport com- key’s game-changing Libya interven-
mitted to an investment of a total of tion, Turkey’s President Recep Tayyip
€400 million for Taranto’s renovation Erdoğan visited Algeria on January 26,
and expansion to 4 million TEU by 2020, where he announced the goal of
2028 (Louppova, 2018). CMA CGM, raising Turkey-Algeria bilateral trade to
the world’s fourth largest container $5 billion. Declaring Algeria as “one of
transportation company, in which Yil- our strategic partners in North Africa,”
port’s chairman is a 24% stakeholder, during his January 2020 visit, Erdoğan
began service to the Taranto port on explained, “Algeria is one of Turkey’s
July 10, 2020. CMA CGM’s TURMED most important gateways to the Ma-
service now links Taranto and Tunisia ghreb and Africa” (Hürriyet Daily
via Malta’s Freeport Terminal at the News, 2020). Italy’s position in Tunisia
Marsaxlokk port operated by Yilport, is being undermined by the sizable in-
which is majority-owned and operated vestments of Turkey’s strategic partner,
by Yilport Holding. Roughly equidi- Qatar, whose approximately $3 billion
72 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
In July 2019, the Algerian government With approximately 103 million inhabi-
ratified and confirmed by presidential tants, Egypt has the largest population
decree its September 2018 Memoran- of any Mediterranean nation and the
dum of Understanding with China in third largest in Africa. Egypt is progres-
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 73
modal hub for a commercial corridor could make Egypt one of the world’s
extending from East Africa to Eastern leading green hydrogen producers.
and Central Europe via the Eastern
Mediterranean. Despite the COVID-19 pandemic,
Egypt’s Ministry of Finance forecasts
China’s construction of a high-speed that the Egyptian economy will grow
rail line from Egypt’s Red Sea port of 3.3% in fiscal year 2020-21 (Reuters,
Sokhna to its Mediterranean port at Al- 2020a). The June 2020 staff-level
exandria will accelerate the devel- agreement between Egypt and the
opment of rail transportation as the IMF on a $5.2 billion stand-by arrange-
major land component of an East Af- ment to offset COVID-19’s adverse
rica-Eastern Mediterranean corridor. economic impact will help ensure that
The $9 billion tender was awarded in the Egyptian energy juggernaut main-
September 2020 to a Sino-Egyptian tains momentum. Additionally, the
consortium led by the China Civil Engi- Egypt-IMF agreement was bolstered
neering Construction Corporation by a subsequent $2 billion loan coordi-
(Egypt Independent, 2020). Although nated by UAE-based lenders Emirates
European firms such as Thales and NBD Capital and First Abu Dhabi Bank
Siemens have been involved with up- (CGTN Africa, 2020). Egypt’s large
grading Egypt’s rail system, China is labor supply and consumer market,
playing the most strategic role in along with its ample energy resources,
Egypt’s transportation connectivity. may make the eastern corridor the
most attractive investment among the
Still, China has not developed a pro- three trans-Mediterranean corridors in
duction base in Egypt anchored in the immediate post-COVID-19 period.
manufacturing value chains to dom-
inate the commercial landscape in Conclusions
Egypt despite its participation in the
special economic zone created under North Africa’s leading foreign partners
Cairo’s Sustainable Development in trans-Mediterranean commercial
Strategy: Vision 2030. There remains a connectivity will be the countries that
great opportunity for Europe to as- invest in infrastructure that is directly
sume a strategic leadership role in the tied to Africa-to-Europe manufacturing
development of the East Africa-to- value chains. On 9 March 2020, the
Eastern Mediterranean corridor European Commission and the High
through EU incentivization of European Representative of the Union issued a
businesses to opening of manufactur- joint proposal for “a new comprehen-
ing plants in key sectors in Egypt. Al- sive EU strategy with Africa,” based on
ready with a surplus electricity a program of ‘five partnerships’ for 1)
generation capacity of over 10 GW, green transition and energy access; 2)
Egypt is one of the Mediterranean best digital transformation; 3) sustainable
suited nations for hydrogen produc- growth and jobs; 4) peace and govern-
tion. Cairo’s plans for an ambitious 61 ance; and 5) migration and mobility.
GW of installed capacity from renew- For the European Union to realise its
able energy resources – 32 GW from ambition to partner with Africa based
photovoltaic solar power, 12 GW from on the five partnerships framework, the
concentrated solar power, and 18 GW EU system must materialize its values-
from wind power (Tanchum, 2020a), based approach through European in-
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 75
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Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 77
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07/10/c_138212879.htm
The Health Crisis Re-Shuffles
the Cards of Geopolitics in the
Transport and Logistics Sector
in the Western Mediterranean:
The Case of the Maritime
Sector
Oumnia Boutaleb
Research Assistant in International
Relations, Policy Center for the New South
(PCNS)
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 81
Historically, transport has always been a It is precisely the case of maritime trans-
key sector in the operation of the world port and port infrastructures that have
economy. In the modern era marked by been put under strain during the COVID-
interdependence and interconnection of 19 crisis. The Mediterranean Sea is an
states, economies and world and re- important trade and maritime route be-
gional trade, the transport and logistics cause it serves many markets, whether
sector takes on an increasingly important regional or international. Comprising al-
role. It is therefore the driver of devel- most 87 ports with diverse specificities
opment and regional integration, particu- and activities, it has revealed the vulner-
larly in the countries of the ability of its activities and facilities as well
Mediterranean region that have experi- as their lack of efficiency and connectiv-
enced a real revolution in the two last ity. It is therefore clear that the maritime
decades in terms of the evolution of their sector and the port activity have been
infrastructures and means of transport. impacted by the new international dy-
The latter largely participate in the facili- namics and that they must strengthen
tation of mobility of people and goods their resilience and competitiveness in
and in the development of international the international market.
trade. Thus, better transport policies as
well as strengthening the transport and With the COVID-19 Crisis,
logistics infrastructures, be it air, port,
road or rail, are necessary to the econ- the Transport and
omic development of the countries of the Logistics Sector is
Mediterranean basin at a domestic and
regional level but also internationally.
Readapting in the
Moreover, solid modern infrastructures Western Mediterranean
are essential to encourage the growth of
the Mediterranean countries, their econ- The transport and logistics sector is un-
omic and social development, as well as questionably among the most harshly
their competitiveness in the international and directly hit by the crisis, whether in
market. Likewise, an efficient transport the Mediterranean region or elsewhere.
sector could only enable the devel- With the almost total interruption of air
opment of all economic sectors through connections, the reduction of maritime
a more substantial creation of jobs, activities and the drastic drop in rail and
greater attractiveness to foreign invest- road traffic, the two sectors have suf-
ment, and a social cohesion between the fered greatly, thereby impacting all
people around the Mediterranean Basin. economies in the region. However, de-
spite the great difficulties for Western
The current health crisis, beyond having Mediterranean countries, they have
severely tested the world health systems, taken some measures to counter the im-
has redefined world geopolitics. The pact of the virus and endeavour to re-
large transport networks must readapt launch the two sectors.
and adjust to the geopolitical evolutions
and the new world dynamics. The rela- While the health crisis has had a devas-
tionship between politics and transport tating effect on the air and urban trans-
is, therefore, paramount in the contem- port sectors, it has not completely
porary world. Moreover, there is a close brought an end to maritime traffic and
link between geopolitical dynamics and the activity of ports in the Mediterranean
the large transport networks. (AVITEM, 2020). Quite the contrary, the
82 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
situation has enabled the maritime ac- traditional means of transport have been
tors to urgently reflect on the activity and paralysed. Thus, several factories are
connectivity of Mediterranean ports and today relocating from Asian countries to
maritime activity. Indeed, this activity has North African countries. In Tunisia, for in-
been maintained while all other means of stance, several factories are under con-
transport have seen their activity stop or struction (Khdimallah, 2020).
at least drastically decrease and the
urban ports have emerged as the new In France, where ocean freight com-
points of trade stability. This is explained, panies have found themselves in dif-
for example, by the need to continue to ficulty faced with the effects of the crisis,
supply countries with raw materials and the Prime Minister has announced the
food products, as the value chains are provision of 30 million euros in the
dispersed in several continents and often framework of the government rescue
depend on one destination. More impor- plan to ensure that jobs are safeguarded
tantly, ocean freight has even had to fill in the sector as well as French competi-
the void left by air transport to enable the tiveness (Descamps, 2020). This amount
transit of goods even though world mari- complements loans to a value of 115
time transport accounts for 80% of world million euros recently granted to them
trade. Several ports have also had to in- (Le Figaro, 2020).
novate to maintain the level of activity,
such as in the case of Barcelona, which The Grand Port Maritime de Marseille
has diversified its port activity. Barcelona has been hard hit by the slowdown of
has implemented a new line, secured by maritime activity since February 2020.
the German company JSV Logistics, con- Although it has recorded a drop of 15%
necting Spain to the two Turkish ports of of its maritime traffic, and this only in the
Gebze and Ambarli. Along with reducing first quarter of the year (traffic of 33.6
delivery times for imports and exports, it million de tonnes compared to 39.5 in
should enable the development of trade the same period of the previous year),
relations with Turkey. and that for the end of the year a drop
of 20% of turnover is expected, the
Established very recently in July 2020, planned investment of 57 million euros
the ocean freight company Anarres Ship- has been maintained and 6.5 million has
ping, based in Cyprus, launched a new been added to encourage the relaunch
maritime line in August connecting three of the port and therefore trade activity
Western Mediterranean countries, i.e., (Dubessy, 2021c). Moreover, all the pro-
France through its port in Sète, Tunisia in jects initially planned have also been re-
Sousse, and Italy from Marina Di Carrara. sumed, such as the new Cap Janet
This initiative seeks to bring these coun- international terminal (Econostrum,
tries together by boosting activity in the 2020), which will connect France with its
non-priority ports of the Mediterranean Maghreb neighbours. This strategy of
region with a view to closer relations and investment maintenance has allowed a
economic integration. The effects of the rebound of activity even though it is still
health crisis have revealed the need to fragile. Incentive measures such as the
bring the supply chain closer. Several re- reduction of port fees and the signing of
gions like Africa or the Mediterranean, a covenant of commitment to meet the
which in the past had been supplied crises with the whole port community
from Asia or the American continent, have boosted the resumption of global
have been heavily hit by the crisis when maritime activity.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 83
These brief examples, albeit not exhaus- non, traditionally close to the West,
tive, nevertheless have the merit of would probably refuse to authorise such
shedding light on a key element. While, a Chinese enterprise in its territory, de-
in the past, Mediterranean ports oper- spite Hezbollah’s inclination to this possi-
ated independently of one another, fa- bility, which does not conceal its desire
vouring specific countries for their trade to reorient the country towards the East
activity, the health crisis has shown them by strengthening links with China and
the need to promote better regional co- Iran, especially because the United
operation and bring supply chains States has sounded the alarm about Chi-
closer. Moreover, maritime transport nese investments in the region. However,
and port activity seem to have taken a reconstruction of the port by France,
over from other means of transport Lebanon’s traditional ally, would be more
mainly at a time when the COVID-19 cri- feasible and less criticised by the United
sis has emphasised their resilience. States. The French have also expressed
their interest in the Lebanese port and
How Has the Mediterra- have multiplied the political, social and
aid actions in the aftermath of the ex-
nean Been transformed plosion that hit this country already
into a Geopolitical and weakened by the health crisis, thereby
consolidating France’s influence in Leba-
Strategic Arena for non. Meanwhile, Beijing has moved its
Confrontation in the trade activity towards the Libyan port of
Maritime Sector? Tripoli.
tween Abu Dhabi and Paris on the port transport and logistics sector, in the
issue would not be surprising. south-western Mediterranean countries.
China, the main country with ambitions
in the Mediterranean, began its port ex-
Maritime transport and port pansion in the framework of the New
facilities: new strategic Silk Routes well before the start of the
challenges of geopolitical health crisis. Historically, the Mediterra-
clashes in the Western nean area is not a prime location for Chi-
nese economic interests. It was not until
Mediterranean 2008, following the financial crisis and
the lack of interest of certain historical
The weakness of Southern Mediterra- partners in this region, that the Asian
nean countries opens the way to regional power showed renewed interest in this
and international ambitions. With a weak maritime space. In the framework of the
Libya, a Tunisia with an uncertain do- New Silk Routes, China has placed the
mestic future and a cooling of relations Mediterranean basin at the centre of its
between Algeria and Morocco, the deployment strategy mainly with re-
Maghreb is weakened. Turkey’s so-called spect to transport infrastructure and
neo-Ottoman ambitions as well as its de- port hubs through control of the Medi-
sire to become a real regional power terranean logistics chains and maritime
push the country to multiply the initiatives routes, investing considerably in the
in the Mediterranean. Its intervention in ports of the region.
Libya, which it sees as a obstacle to the
Maghreb and by extension sub-Saharan With the investment of Chinese enter-
Africa, explains its interest in the country. prises in Mediterranean ports, China has
Moreover, the new world geopolitical managed to impose its presence in the
dynamics can be seen, in relation to the most strategic points of the region.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 85
2008 Piraeus (Greece) COSCO obtains the concession for 35 years of the Piraeus port:
COSCO becomes main stakeholder of the port in 2016.
2013 Tanger-Med (Morocco) China Merchant buys 49% of Terminal Links from CMA CGM
Marseille (France)
Marsaxlokk (Malta)
2014 Ashdod (Israel) CHEC (China Harbour Engineering Company) is chosen to build
a deep-water port
2015 Kumport/Ambarli A Chinese consortium (40% COSO, 40% China Merchant,
(Turkey) 20% CIC Capital Corporation) buys 65% of the shares in the port
2015 Haifa (Israel) Shanghai International Port Group (SIPG) becomes the port
operator
2015 Venice (Italy) VOOPS project: a Sino-Italian consortium (with China
Communication Construction Company Group) undertakes
construction of an offshore terminal and a container terminal
2016 Vado-Savona (Italy) COSCO buys 49.9% of the shares in the port
2016 Cherchell-El Hamdania Decision to construct a 23-dock port with capacity of 6.5 million
(Algeria) TEU. CHEC and CSCEG (China State Construction Engineering
Group) will be the constructors and Shanghai Port the operator
2017 Valencia (Spain) Acquisition of 51% of Noatum Port, main Spanish operator
1
http://www.transport.tn/fr/article/240/le-ministre-detat-recoit-son-excellence-lambassadeur-des-
etats-unis-damerique-en-tunisie
86 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
well as support concerning the crisis in their desire for commercial and econ-
the two sectors at hand (Ministère tuni- omic diversification, and the Northern
sien du Transport, 2020). The first invest- and Southern Mediterranean countries
ment to this end, for an amount of 300 offer them a strategic location of choice.
million dinars, concerns the improve- The UAE are undoubtedly the most ac-
ment of the infrastructure of the port of tive country in the transport and logistics
Radès. It is worth recalling that in 2017 sectors in the Western Mediterranean.
a direct maritime line connecting this With the perpetual confrontation of
port with that of Quigdao in China had powers in its traditional area of in-
been implemented by the Spanish com- fluence, i.e. the Persian Gulf, and as a re-
pany Transglory. Its objective is to boost sult of the stagnation of the Libyan crisis
trade between Northern Mediterranean and its desire to increase its geostrategic
countries and China and Africa. More- influence in the Mediterranean, the UAE
over, the Chinese, who for some time have been forced to reorient their mari-
have sought to secure a port in the time strategy. In Algeria, for instance,
country, ideally Zarsis or Bizerte,2 are still Dubai Ports World is responsible for the
trying and have recently confronted management of two ports, Algiers and
American hostility. However, the Chi- Djen Djen. It is also present in Spain and
nese are persistent and continue their France in the port of Marseilles. Despite
progress in the transport and logistics the considerable investment in diverse
sectors in this Mediterranean country. transport infrastructure and logistics
Indeed, a meeting was held on 10 No- projects mainly with a view to securitisa-
vember 2020 between the Minister of tion of the ports, the UAE are faced with
Transport and a delegation of the com- their European and Chinese competitors
pany Huawei on the implementation of in this region.
technological and digital solutions in
transport infrastructure, i.e. airports, The UAE have indeed chosen one of the
ports and urban transport (Réalités, countries with the most strategic geo-
2020). China therefore seems very pres- graphical positions in the region, i.e.
ent through different channels in Tunisia Morocco, which in recent years has in-
despite the reticence of some of its ri- vested in ambitious transport projects
vals. that have driven it as a key actor in the
geopolitical scene in the Mediterranean.
However, the view that powers tradi- It forms part of the country’s commercial
tionally confronted in the Mediterranean transport corridor between Africa and
region would be the only ones seeking Europe as well as Africa and Asia. Mo-
to impose their influence is outdated. rocco, having surpassed the whole of
The Gulf countries increasingly emerge the African ports in terms of capacity,
as key actors in the Western Mediterra- will not take long to emulate the biggest
nean. Although their interest mainly fo- European ports on the northern Medi-
cuses on transport in the eastern part of terranean shore, the Strait of Gibraltar
the sea, today we witness a growing in- or Algeciras, for instance. Moreover, this
terest of Gulf countries in North Africa port has enabled Morocco to become a
and Southern European countries. In- point of passage or a real maritime and
deed, their maritime strategy is led by commercial hub. In other words, the
2
http://kapitalis.com/tunisie/2020/09/28/maghreb-un-nouvel-enjeu-geopolitique/
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 87
hood. It is from this perspective that the them to avoid a repeat of the dif-
Centre for Transportation Studies for the ficulties experienced during the
Western Mediterranean (CETMO) COVID-19 crisis.
signed an agreement protocol with the
United Nations Economic Commission • Northern and Southern Mediterranean
for Europe (UNECE) in November 2018. countries, which during the crisis suf-
The objective was to create an intercon- fered because of their supply depend-
nected Mediterranean transport cor- ence on relatively distanced countries,
ridor and to develop all the means of have understood the need for a rap-
transport, i.e. road, rail, port and airport prochement. It therefore seems im-
networks. It will act as a link between the portant to develop maritime
continent and Africa through the West- connections between the European
ern Mediterranean. However, it is true Northern and Southern countries to
that the European countries of the re- encourage regional integration as
gion and those belonging to the Arab well as a socioeconomic devel-
Maghreb Union (AMU) do not enjoy the opment, mainly between the five
same level of development, another rea- Maghreb countries that have been
son to take this factor into account in the severely hit by the health crisis.
midst of the economic crisis. Europe will
have to provide aid to the most affected Recommendations
countries and help harmonise the adop-
tion of legal instruments in the field of • European initiatives aimed at the
transport. Moreover, the rupture of the transport and logistics sector are
world supply chains has revealed the many. However, the European strat-
need to bring them closer together. The egy vis-à-vis its neighbours continues
agreement should insist on the devel- to be blurred, despite great progress.
opment of efficient logistics and trans- It would therefore be necessary for it
port infrastructures that will enable the to engage in a clear and defined strat-
supply chains to be perfected in the re- egy. The 10th Group of Transport Min-
gion and make the Western Mediterra- isters for the Western Mediterranean
nean countries key actors in (GTMO 5+5) Ministerial Conference
international trade. could provide the opportunity to dis-
cuss the effects of the crisis on the two
Conclusions sectors, identify the shortcomings in
terms of transport and infrastructure
• With the weaknesses of transport re- in order to boost activity, and imple-
vealed by the current health crisis and ment scenarios for a way out of the cri-
the fact that the maritime sector has sis. The EU should also help the
proven more resilient than air, road Western Mediterranean countries to
and rail sectors, in the coming years mobilise funders, whether national or
the maritime sector will emerge as the international, with the aim of
one that will channel the main stra- strengthening the transport and logis-
tegic interests in the Western Mediter- tics sector in the post-COVID-19 era.
ranean.
• The strategy of development of hubs
• The world value and supply chains do in certain towns, such as the Tanger-
not seem to be controlled by the dif- Med port, which has made the town
ferent states that should integrate into of Tangier a port and maritime hub, or
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 89
References
ALGÉRIE PRESSE SERVICE (2020, October 5). Port du Centre : un coût de réalisa-
tion estimé entre 5 et 6 milliards USD. Algérie Presse Service. Retrieved from
https://www.aps.dz/economie/110580-port-du-centre-un-cout-de-realisation-es-
time-entre-5-et-6-milliards-usd
DUBESSY, F. (2020b, November 6). “The virus did not win against the ports”,
says Bernard Valero, Avitem’s general manager. Econostrum. Retrieved from
https://en.econostrum.info/The-virus-did-not-win-against-the-ports—says-Ber-
nard-Valero-Avitem-s-general-manager_a773.html
DUBESSY, F. (2021c, January 15). La crise sanitaire au Maghreb impacte les résul-
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Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 91
GRESSEL, G., & POPESCU, N. (2020, November 3). The Best Defence: Why the
EU should forge security compacts with its eastern neighbours. The European
Council on Foreign Relations. Retrieved from https://ecfr.eu/publication/the-best-
defence-why-the-eu-should-forge-security-compacts-with-its-eastern-neighbours/
LE FIGARO (2020, August 20). Prêts garantis par l’Etat : 115,5 milliards accordés
aux entreprises. Le Figaro. Retrieved from https://www.lefigaro.fr/conjoncture/
prets-garantis-par-l-etat-115-5-milliards-d-euros-accordes-aux-entreprises-
20200820#:~:text=Conjoncture-,Pr%C3%AAts%20garantis%20par%20l’%C3%
92 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
89tat%20%3A%20115%2C5%20milliards,d’euros%20accord%C3%A9s%20aux%
20entreprises&text=Le%20montant%20des%20pr%C3%AAts%20garantis,%2C5
%20milliards%20d’euros.
PONS, J. (2020, March 23). Le coronavirus provoque une chute du trafic aérien
dans les pays du Conseil du Golfe et du sud de la Méditerranée. Atalayar. Re-
trieved from https://atalayar.com/fr/content/le-coronavirus-provoque-une-chute-
du-trafic-a%C3%A9rien-dans-les-pays-du-conseil-du-golfe-et-du
RÉALITÉS (2020, November 10). Réunion entre le ministre des Transports et Hua-
wei autour de l’accélération digitale des transports publics. Réalités online. Re-
trieved from https://www.realites.com.tn/2020/11/reunion-entre-le-ministre-
des-transports-et-huawei-autour-de-lacceleration-digitale-des-transports-publics/
ROOLEY, J. (2020, July 9). How COVID-19 has affected the aviation industry and its
approach to risk. Willis Towers Watson. Retrieved from https://www.willistowerswat-
son.com/en-GB/Insights/2020/06/how-covid-19-has-affected-the-aviation-industry?
fbclid=IwAR0d5tgHO_wVeblHd4aga7iChXap0IgtKQTHZOxw5sGobQMCloaHJnHKjUU
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 93
UNION FOR THE MEDITERRANEAN (2020, June 3). L’impact du COVID-19 sur
les ports et le transport maritime dans la région méditerranéenne [webinar]. Re-
trieved from https://youtu.be/mRV1n71OoiE
POLICIES
The major disruption that COVID-19 has brought to the transport sector calls
for a pause to analyse the functioning and priorities of the current transport
system and its policies. Is this the transport system we want for the future?
Has the pandemic revealed any relevant aspects to be included in the
planning of the target transport system?
All the actors involved in the development of the transport system, from the
administration to user associations, including managers and operators, have
the responsibility to work together to identify and define the guidelines that
should make the transport system a tool in favour of society. A safe,
accessible, affordable and sustainable system that contributes to social
integration and facilitates access to essential services.
Integrated Transport Planning,
the Digital Challenge and
Decarbonization of Transport
Francisco Cardoso dos Reis
Head of International Union of Railways
(UIC) Europe Chairman. UIC Rail System
Forum Chairman
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 97
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 99
and improve our performance by adopt- they can communicate with their cus-
ing a coherent overall vision and devel- tomers.
oping new policies to implement new
solutions in terms of systems, equipment, In view of this reality, it is important to
infrastructure and transport operations. focus on investing in policies aimed at
promoting cleaner, more efficient trans-
We could keep on citing figures to illus- port options to link smart regions and
trate the incredible growth in demand in cities through smart modes of transport
recent years, the characteristics of the at high performance levels in terms of
system and the transport sector’s impor- economic, social and environmental
tance and its impact on our lives, but no benefits.
additional arguments are required to
describe the current situation. To achieve this, it will be necessary to
make investments and take certain
Furthermore, in response to the purpose measures, a list of which is provided
of this document, we must conclude below:
which are the most important challenges
involved in addressing citizens’ future • Increasing heavy and light rail trans-
mobility demands in terms of infrastruc- port solutions for both passengers and
ture, equipment and range of services. freight by moving towards detection-
Most importantly, we must take a hol- and automation-based solutions, such
istic approach when designing and op- as smart trains that run on smart infra-
erating the transport system while structure;
keeping in mind that a digital mindset is • Gradually building smart, connected
key to designing a system that must be road infrastructure with new materials
seamlessly implemented everywhere. to ensure perfect vehicle-infrastruc-
ture communication and offer addi-
The Digital Challenge and tional features such as electrical
charging solutions for moving ve-
Decarbonisation hicles;
• Making a firm commitment to the digi-
We will now address the issue of the talization of maintenance processes,
digital challenge in the context of the re- for both equipment and infrastructure
vamped transport system we need. in general, by optimizing their lifespan
and maximizing the economic return
Communication with transport network on transport operations;
users has evolved from personal contact • Making a firm commitment to the
to digital “self-service”, which requires renovation and construction of inter-
more online services. An increasing modal stations and transport coor-
number of services are currently avail- dination centres, including
able on user portals managed directly widespread use of digital systems;
by transport companies, infrastructure • Streamlining and implementing inte-
managers or third parties in collabora- grated ticketing and payment sol-
tion with the first two. The paradigm of utions supported by digital
the Internet and social networks has operational and financial management
given rise to new ways to access ser- systems, and potential solutions based
vices, which prompt leading transport on biometric control and contactless
providers to adapt to new channels so technology in general;
100 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 101
• Protecting the interoperability and With this cooperative vision, it will be im-
integrity of transport systems, which portant to promote specific discussions,
are complex, automated and inter- especially concerning topics such as co-
connected – a growing concern, operation in joint innovation actions and
given the systems approach we ad- joint projects.
vocate;
• Protecting security, operational and Moreover, as a means of engaging in
commercial information against ex- more in-depth technical discussions and
ternal and internal attacks by sharing knowledge and good practices,
strengthening network security, an intervention within international as-
particularly in light of the relevance sociations such as UIC, UITP and PIARC,
of systems and critical equipment in particular, would be desirable to help
and infrastructure; generate an effective return.
• Designing the systems architecture
to meet the challenges of cyberse- Our coordinated action at political and
curity (safety by design); technical level is a hugely important fac-
• Promoting and developing strat- tor that must be expanded on and de-
egies based on cooperation and veloped through more joint initiatives
good practices between all entities such as conferences, debate forums and
– CSIRTs cooperate in a network; projects.
• Implementing credible, certified
solutions for all elements of the sys- It is up to us to respond positively to all
tems and moving towards effective these challenges presented by the new
standardization. reality.
Policy Study n. 5
The Ethics and Politics of
Transport and Mobility in the
COVID-19 Aftermath
Andreu Ulied
Partner-General Director of MCRIT
Multicriteria
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 105
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 107
priority –the people’s right that deserved Figure 2. GDP forecasted in summer by
paramount protection- in most demo- the European Commission (graphic by
cratic countries. But concrete policies dif- statista)
fered significantly from country to
country, even among richer countries;
shaped by historical legacies, political
culture and social mores. In less devel-
oped countries, limiting economic activ-
ities may cause even worse impacts on
people’s wellbeing and public health. To-
talitarian surveillance technologies ap-
plied in Asian countries demonstrated to
be more effective than citizen empower-
ment policies in European countries.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 109
Facing tragic dilemmas, a sense of pru- case scenario and providing right in-
dence and common sense would rec- formation for people to adapt their be-
ommend to apply measures gradually, haviour to the circumstances. This
sooner than later, to begin by not so ex- should have been the first reasonable
pensive measures of buying all medical decision on the 14th of February, after
equipment necessary to face a worse- closing the World Mobile Forum.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 111
References
ADLER, MATTHEW D., POSNER, ERIC A. (2001). Cost-Benefit Analysis. Legal, Econ-
omic and Philosophical Perspectives. Chicago & London: The University of Chicago
Press, 2001.
HARARI, YUVAL NOAH (2020, 20 March). The world after coronavirus, Financial
Times.
TAYLOR, CHARLES (1991). The Ethics of Authenticity. Cambridge & London: Har-
vard University Press.
Inter-Modal Transport in the
Age of COVID-19: UNECE
Efforts to Help Build
Pandemic-Resilient Transport
Systems
Roel Janssens
Secretary, Working Party on Transport
Trends and Economics, United Nations
Economic Commission for Europe (UNECE)
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 113
the preparedness and resilience of coun- tary situation at many land border cross-
tries to possible future outbreaks. ings across the region.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 115
1
https://unsdg.un.org/sites/default/files/2020-03/SG-Report-Socio-Economic-Impact-of-Covid19.pdf
116 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
for international inland transport and for The report also identifies several poss-
the customs and border management ible recommendations for consider-
sector. ation and possible endorsement of the
ITC at its 84th Session in February
Lessons learned for international in- 2021.
land transport include:
• The importance of immediate coor- Discussions in the framework of the
dination in response to the outbreak Working Party on Transport Trends
and the effective ongoing coordina- and Economics (WP.24)
tion at regional, national and inter-
national levels. In order to understand the impact of
• The importance of efficient supply COVID-19 on intermodal transport
chains and keeping goods moving. and logistics, the Chair and Vice-Chair
• The need to collect and feed evidence of WP.24 with support of the WP.24
and data into decision making. secretariat organised and held a vir-
• The digitalization of processes has tual Friends of Chair meeting to dis-
made them contact-free and safer and cuss those impacts and the lessons
more efficient. learned in the industry.
• The need for clear communication to
the public and to operators on WP.24 continued the discussion on
changes to procedures and new rules. COVID-19 and intermodal transport
• Engagement across sectors (e.g. and logistics at its 63rd session held
health, transport, customs, business) on 28-30 October 2020. The dis-
has been crucial in using an evidence- cussion focused on the developments
based approach to decision making. and impacts from the evolving pan-
demic, response measures taken and
Lessons learned for customs / their assessment as well as prospects
border management include: for freight transport. WP.24 confirmed
• Need for enhanced preparedness – the lessons learned exchanged during
use of electronic services, risk man- the Friends of the Chair meeting. It
agement (selectivity and profiling be- confirmed and called for recovery
fore conducting physical checks), measures which would create the
non-intrusive inspection (NII) equip- necessary conditions to increase com-
ment, availability of disaster response/ petitiveness of intermodal transport
mitigation plans and business continu- in particular versus road transport. It
ity plans. warned of unwarranted freight trans-
• Need for enhanced coordination – use port subsidies which may distort the
of a whole of government approach, transport market and slow down its
Coordinated Border Management transition to a more sustainable one.
(CBM), coordination with neighbour- WP.24 recognized that the pandemic
ing countries and/or at regional levels, has pushed governments to increase
especially in case of pandemics. the importance they give to the digi-
• Streamlining and simplifying Customs talisation of transport documents.
procedures – green lanes for freight WP.24 underscores that digitalisation
traffic. should be an integral part of the very
• Transparency of documentary require- much needed transport optimization
ments – all necessary information process in both operations and infra-
should be publicly available. structure. WP.24 endorsed, during its
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 117
Figure 1. Changes in road traffic levels in Great Britain for different vehicle types
compared to 1st week of February 2020.
Source: UK DfT
These traffic trends are also visible in data compared with previous years’ provisional
for other countries. For example, Ger- monthly data. Figure 2 shows the change
many’s truck toll mileage index at its mini- in fatalities between April-June 2019 and
mum on 30 April 2020 was 15.6 per cent April-June 2020 for all available countries
lower than the baseline, whereas an index with monthly data, with a negative
measuring total land mobility hit a low of number indicating a decrease. Users are
59 per cent below the baseline. Similarly, strongly advised to consult country sites
in the United States of America, the daily linked to on the online wiki prepared by
passenger Vehicle Miles Travelled index UNECE in order understand the limita-
hit a low of 60% below the baseline on 12 tions of these provisional numbers.
April 2020.
Figure 2 shows that most countries did
Measuring changes see a year-on-year decrease in traffic
in road safety fatalities in the second quarter of 2020,
with many experiencing over a 30 per
With record falls in road traffic levels in cent reduction. These falls in fatalities
many countries, there has been great in- are undoubtedly good news, but also
terest in the impact on road traffic acci- need to be considered in the context of
dents. The secretariat found relevant record falls in traffic in many countries,
monthly data for twenty ECE member which were typically much larger (as evi-
States, and in addition data for some sub- denced in the traffic data above).
national entities such as New York City,
Greater London and Northern Ireland. Public transport
The impact on road traffic accident
numbers has varied considerably by When public transport data are based
country, with some countries seeing rec- on ticket or card swipes, or entry/exit
ord decreases in fatalities while others sensors, it is often possible to publish
seeing insignificant changes from the weekly or even daily passenger figures
baseline or even small increases. Com- with a short time lag. This is the case for
parisons across time are challenging as countries including Denmark (Copen-
provisional data are typically collated on hagen), Portugal (Lisbon), the United
a different basis to finalized annual Kingdom of Great Britain and Northern
numbers. Therefore, data have only been Ireland (London Underground) and
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 119
United States of America (New York City an index compared to the average
subway). Figure 3 shows weekly pas- number of passengers on weekdays in
sengers on the Copenhagen metro as the eighth and ninth weeks of 2020.
Figure 2. Reductions in road traffic accident fatalities, April-June 2020 versus April-
June 2019. Available countries only.
The Global Forum for Road Traffic works and border crossings should
Safety (WP.1) is establishing a formal be kept operational when confine-
group of experts to prepare a new con- ment measures need to be put in
vention on the use of automated ve- place;
hicles in traffic. - Explore the development of a
stress-test mechanism to evaluate
The World Forum for Harmonization of the resilience of various ECE (and
Vehicle Regulations (WP.29) promotes other) Conventions to identify
ITS matters on-board of vehicles, such where amendments can/should be
as Lane Departure Warnings Systems made in order to turn these legal in-
(LDWS), Advanced Emergency Braking struments more pandemic proof.
Systems (AEBS) and on-board diag- • As per its original mandate, in close
nostics (OBDs) to name just a few. coordination and cooperation with
other UNECE Working Parties under
Intelligent and automated transport ITC auspices, the Group will continue
systems tend to reduce the frequency to explore whether a new inter-
and duration of human-to-human con- national regulatory regime for the in-
tact (social distancing) while in trans- land transport sector in case of
port and thus reduce the likeliness of epidemics, pandemics and other
contagion of communicable diseases. cross-border emergency issues is
needed or whether making amend-
Possible way forward in ments to existing legal instruments
turning inland transport administered by ECE and other
stakeholders suffices.
systems more pandemic • As per the recommendations of its
resilient, ongoing UNECE 2020 report, it will explore whether
activities efforts need to be undertaken to-
wards the development of a uniform,
At regulatory level: broadly accepted certificate (similar
• As its eighty-third session in February to the one in Annex 3 of the Green
2021, the UNECE Inland Transport Lane Communication) that certifies
Committee mandated the continu- that the driver is a transport worker
ation (under WP.5 auspices) of the and, as such, waived from border
work of the informal multidisciplinary crossing restrictions.
advisory group on developing trans-
port responses to the COVID-19 and At the level of existing United Nations
similar international crises. legal instruments / Conventions:
• In 2021, the Advisory Group will con- • Consider introducing e-health certifi-
tinue to build on the work done in cates for crew and/ or passengers,
2020, in particular it will: such as to the existing UN transport
- Continue to identify specific conventions and their electronic/
measures/ tools to be developed digital applications such as eTIR,
aimed at increasing the resilience of eCMR etc.
the inland transport system to fu- • Consider developing rules for transit-
ture pandemics, including through ing and cooperation among trans-
the development of, e.g. Emerg- port authorities in case of
ency plans/ protocols highlighting pandemics/ cross-border emerg-
for instance which transport net- encies, such as amendments to the
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 121
(SC.1); the Working Party on Rail the Working Party on the Transport of
Transport (SC.2), the Working Party on Dangerous Goods (WP.15); the Work-
Inland Water Transport (SC.3); the ing Party on Intermodal Transport and
Working Party on Transport Trends Logistics (WP.24) and the Working
and Economics (WP.5); the Working Party on Customs Questions Affecting
Party on Transport Statistics (WP.6); Transport (WP.30).
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 123
References
UN Conventions
UNITED NATIONS CUSTOMS CONVENTION ON THE INTERNATIONAL
TRANSPORT OF GOODS UNDER COVER OF TIR CARNETS, Geneva, 1975, UN
Treaty Series, available from 14 November 1975: https://treaties.un.org/Pages/
ViewDetails.aspx?src=TREATY&mtdsg_no=XI-A-16&chapter=11&clang=_en
UN publications
UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE (UNECE), Inter-
modal Transport in the Age of COVID-19 – Practices, Initiatives and Re-
sponses, Building Pandemic Resilient Transport Systems (Geneva: United
Nations, 2021), available from: https://unece.org/sites/default/files/2021-
02/2017694_E_web.pdf
UN Reports
United Nations (UN) Secretary-General report, entitled “Shared responsibility,
global solidarity: Responding to the socioeconomic impacts of COVID-19”,
New York, March 2020, available from:
https://unsdg.un.org/sites/default/files/2020-03/SG-Report-Socio-Economic-
Impact-of-Covid19.pdf
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 125
European Commission
EC, “Green Lane Communication” (Brussels, March 2020), available from:
https://ec.europa.eu/transport/sites/transport/files/legislation/2020-03-23-
communication-green-lanes_en.pdf
Initiative on Transport
Prospects and Opportunities
in the Post-COVID Era:
The AMU Region
Infrastructure Directorate of the General
Secretariat of the Arab Maghreb Union
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 127
Since its creation, the General Secretariat This pandemic has had profound social
of the Arab Maghreb Union has made and economic consequences for the
huge efforts towards promoting regional countries of the AMU, as in all coun-
cooperation in the field of infrastructure, tries around the world. The measures
especially across the different transport to fight COVID-19 have had serious
modes, by carrying out feasibility studies economic and social repercussions and
and drawing up regional agreements in compounded the difficulties faced by
the field of land, rail, maritime and air poor and vulnerable communities, but
transport with a view to achieving intra- the situation is less tragic than in the
Maghreb connectivity. West.
Despite its late arrival in Africa, especially The World Bank has predicted that Af-
North Africa, COVID-19 is rapidly rica will suffer its first recession in 25
spreading and resulting in an unpreced- years. The continent’s economy is ex-
ented global economic recession and pected to contract by between 2.1%
widespread social deprivation. and 5.1% in 2020, compared to 2.4%
growth experienced in 2019. The har-
The Maghreb countries reacted quickly to dest hit sectors are air, sea and road
their first COVID-19 cases. The measures transport, freight transport and logis-
taken have helped limit the impact of the tics, tourism, oil and gas, and whole-
disease and the AMU countries are now sale and retail trade. COVID-19 has
dealing with the economic and social con- turned the transport sector upside
sequences of this health crisis. down, from aviation and logistics to
public transport.
Measures Taken by the
AMU Countries The Transport Sector in
The Maghreb governments reacted AMU Countries: Post-
quickly to contain the spread of the COVID-19 Challenges
128 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Transport plays a key role in the Magh- has therefore become a real concern
reb countries and each country’s trans- that could push many African airlines
port sector is characterized by the into bankruptcy.
implementation of transport economic • The 10 largest African airlines include
restructuring, major reforms designed three Maghreb companies (Royal
to demonopolize and liberalize trans- Maroc, Air Algérie and Tunisair) and,
port activities, a commitment to the according to a study by the Inter-
development of international trans- national Air Transport Association
port, and the establishment of tools, (IATA), the drastic reduction in traffic
mechanisms and procedures to facili- has grounded between 80% and
tate the movement of goods and 90% of the global aircraft fleet. The
people. consequences for the AMU countries
will be as follows:
Aviation Sector
Algeria
• The critical importance of air transport
in conducting diplomacy and busi- The suspension of flights due to
ness, the growth of the economy and COVID-19 could cost the Algerian
the development of trade have thrust economy 3.1 billion dollars, while air
this sector into the spotlight. Although passenger traffic is expected to fall by
this is not the first crisis experienced around 8 million passengers.
by the aviation sector, it has un-
doubtedly caused the most damage The reduction in the number of pas-
in a relatively short period of time. sengers will result in revenue losses for
• The aviation industry supports more Algeria of around 800 million dollars
than 6.2 million jobs in Africa and ac- and will threaten 161,800 jobs.
counts for 2.6% of the continent’s
GDP, or nearly 56 billion dollars, ac- Morocco
cording to a statement from IATA,
AFRAA, UNWTO, the World Travel The suspension of flights will cost the
and Tourism Council and the Airlines Moroccan economy 4.9 billion dollars.
Association of Southern Africa Air passenger traffic will see approxi-
(AASA). This observation also applies mately 11 million fewer passengers.
to the Arab Maghreb countries,
where employees have been dis- The reduction in the number of pas-
missed at certain companies and sengers will result in revenue losses of
there has been a drastic reduction in around 1.7 billion dollars and will
flights. threaten 499,000 jobs.
• On the financial side, an overall decline
of 287 billion euros in airline turnover Tunisia
compared to 2019 has been announced
(according to the same source). The suspension of flights will cost the
• In general, airlines around the world Tunisian economy 1.2 billion dollars.
have only about three months of Air passenger traffic will see approxi-
cash liquidity. However, this rule mately 3 million fewer passengers.
does not apply to Africa, where most
companies have just a few weeks’ The reduction in the number of pas-
worth of liquidity. The liquidity crisis sengers will result in revenue losses of
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 129
around 600 million dollars and will hit hard, as lockdown and prevention
threaten 92,000 jobs. measures have had a major impact
on people’s mobility.
Recommendations • All cities have experienced a reduc-
for the Aviation Sector tion in public transport, which has li-
mited demand, reduced the supply
• Restore passenger confidence: in a sur- of public transport and, to some ex-
vey conducted by IATA, feelings of fear tent, favoured non-motorized trans-
and uncertainty, psychological strain port.
and the drastic measures proposed by • The sustainable future of cities is
different countries for activities to re- under threat from the rise in the
sume were all cited by travellers as rea- number of private vehicles, which is
sons for their lack of confidence. The expected to have a significant impact
study, carried out in 11 countries on congestion, emissions and social
around the world, showed that only exclusion.
14% of passengers would be willing to • The formal and informal public trans-
board a plane once restrictions are port sectors are facing severe finan-
lifted. In addition, 46% would prefer to cial difficulties due to the reduction
wait one or two months, while 40% in demand for transport and services.
would wait six months or longer. Most formal and informal operators
• Ensure political commitment to sup- are on the verge of bankruptcy. They
port the civil aviation industry and take have suffered a sharp drop in rev-
appropriate action. enue from fares due to social distanc-
• Standardize all initiatives proposed for ing measures, reduced economic
the African civil aviation industry. activity and people’s risk-averse atti-
• Develop a comprehensive, unified re- tude towards public transport, all of
sponse strategy that takes account of which have undermined their ability
the interests of all stakeholders in the to recover operating costs.
African civil aviation industry. • To compensate for public transport
• Create regional funds, such as an Afri- revenue losses, some cities have ne-
can common fund controlled by Afri- gotiated an increase in fares, which
can heads of state and governments, has an impact on users.
to deal with the impact of COVID-19
on the African civil aviation sector. Recommendations for the
• Use all available funding sources to Public Sector
support the African aviation industry.
• Implement measures to allow airports • Provide the public transport sector in
and air navigation service providers to cities with rapid, comprehensive sup-
resume operations. port to (i) prevent massive job losses,
• Ensure multilateral cooperation at re- (ii) prevent disruption to public ser-
gional and continental level. vices that can increase the social ex-
clusion of vulnerable populations,
and (iii) avoid hampering the effi-
Public Transport ciency of cities.
(Road and Rail) • Define sustainable funding schemes
to compensate for revenue losses
• Formal and informal public transport from social distancing and new mo-
sectors in Maghreb cities have been bility protocols while avoiding long-
130 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 131
protected, since the global maritime the oil sector are being directly af-
transport industry is vital for people dur- fected. However, the visible impacts
ing these times of crisis. It also called for are not expected for several months,
ports to accept crew changes, as around depending on how long the pandemic
100,000 crew members around the lasts.
world need to change shift every month.
Estimates by the International Labour
On 26 March, Ursula von der Leyen, Organization (ILO) indicate that unem-
President of the European Commission, ployment will rise significantly. Based
said, “The free movement of goods and on different scenarios relating to the
services is therefore our strongest, and impact of COVID-19 on global GDP
frankly, our only asset to ensure supplies growth, preliminary ILO estimates
can go where they are needed most”. show a rise in global unemployment
ranging from 5.3 million (best-case
scenario) to 24.7 million (worst-case
AMU, Activities and Roles scenario) from a baseline of 188 million
in 2019. The medium-case scenario
• Active participation in the PIDA-PAP suggests an increase of 13 million (7.4
2 process (2021-2030): establishment million in high-income countries).
of a list of priority projects.
• Organization of online seminars. While these estimates are highly uncer-
• Development of a digital policy within tain, all figures point to a substantial
the AMU Secretariat to respond to rise in global unemployment. By com-
and cope with the pandemic. parison, the global financial crisis of
• Monitoring of the epidemiological 2008-2009 caused unemployment to
situation of the pandemic in AMU rise by 22 million.
countries through statistics and ana-
lyses of its evolution and the sharing The impact on employment will result
of information with member states. in major income losses for workers.
Overall work income losses are ex-
Responding to the pected to be between 860 billion and
3.44 trillion dollars globally. The loss of
COVID-19 Crisis: Effects work income will translate into less
of Employment on consumption of goods and services,
which will have a negative effect on the
Infrastructure sustainability of businesses and the re-
Development silience of economies.
effectively. Preparedness is the prod- reason, they are at the core of efforts
uct of a combination of planning, re- to achieve the Sustainable Devel-
source allocation, training, exercises opment Goals. Whether they concern
and organization to create, maintain health, education, hygiene or other
and improve operational skills based sectors, most of the Sustainable Devel-
on risk assessment. opment Goals involve improvements in
infrastructure, which plays a fundamen-
Emergencies call for long-term invest- tal role in each of the three dimensions
ment without immediate results. How- of sustainable development: the econ-
ever, the more is spent on preparation, omy, the environment and society.
the easier it will be to respond to
emergencies and control their scale. Infrastructure should not be viewed as
a set of individual resources, such as a
Infrastructure obviously heads the list power plant, hospital or water supply
when it comes to fundamental network, but rather as different com-
measures in emergency preparedness ponents that make up a system and
plans. Without roads and railways con- work together to offer considerable
necting different parts of the country, potential to strengthen the three pillars
it would be very difficult to meet the of the Sustainable Development Goals
population’s medical needs. And with- mentioned above.
out electricity supply and ICTs, it would
be impossible to contact people and Infrastructure should be seen not as a
alert them to danger. goal in itself, but rather as a means of
delivering essential services. As
Importance of pointed out by Jo da Silva, founder
and director of international devel-
Infrastructure opment at engineering consultancy
Arup, “We need to make a shift to
Infrastructure plays a crucial role in de- thinking about infrastructure as what it
velopment. In transportation systems, does – protects, connects or provides
energy production plants, ICTs, and essential services – not what it is. It is
water and sanitation systems, the ser- infrastructure that is brokering our abil-
vices that enable society to function ity to manage finite resources and get
and the economy to thrive are pro- those resources to where there are
vided through infrastructure. For that human needs.”
Policy Study n. 5
Chapter 3
ROAD TRANSPORT
Road transport played an important role during the emergence and
expansion of COVID-19, ensuring the supply of essential goods. Some
measures were adopted to deal with unexpected and unimaginable situations
before the pandemic, such as the closure of borders. However, international
associations involved in the sector are calling for lessons to be learned from
what happened, in order to face future disruptions with greater international
coordination and more forceful measures to support the sector. These
measures should help to increase its resilience.
This text is based on an earlier article the associated economic and social cri-
published in PIARC’s Routes/Roads sis. As early as March 2020, the PIARC
magazine and on PIARC COVID Re- COVID-19 Response Team organized a
sponse Team’s full Technical Report. series of webinars for practitioners and
experts to share their experience,
Introduction knowledge, and some of the most ef-
fective responses that are emerging. It
The COVID-19 pandemic is a global is recognized that, while current prac-
health and societal emergency that re- tices are not yet fully validated, and what
quired immediate and effective action works in some parts of the world may
in multiple dimensions. In this context, not be relevant globally, these shared
road transport, which is an essential experiences can be valuable tools dur-
service critical to maintaining the ing crisis management, where a good
movement of key workers, goods, idea now could save lives, improve busi-
supplies and services, has to remain ness resilience and minimize service dis-
operational. Effective crisis manage- ruption both now and in the future.
ment requires cooperation and coordi-
nation among several stakeholders, This article presents some of the key
including government decision- observations and learnings from these
makers, road owners and operators, webinars. They are detailed in a Tech-
public transport, logistics and mobility nical Report which PIARC published in
providers, and emergency services, December 2020, available as a free
while keeping the concerns and safety digital download to all.
of employees and road users and cus-
tomers at the forefront. PIARC COVID-19
PIARC (World Road Association) Webinars
moved quickly to establish a formal
COVID-19 Response Team (CRT) A total of 23 international webinars
tasked with organising the rapid shar- were held between 25 March and 29
ing of knowledge and practices be- July 2020, in English, in French and in
tween its members on the impacts of, Spanish. They provided an overview of
and responses to, the pandemic and the current situation with COVID-19 in
138 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Source: Figure from Christos Xenophontos (USA) & Valentina Galasso (Italy) presentation, PIARC
webinar 29 July 2020
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 139
A dedicated area of PIARC’s website portant. Decision makers are also try-
has been created with copies of all the ing or have tried to re-open econ-
videos and presentation slides from all omies, lifting or replacing national
the webinars. This valuable information lockdowns with localized measures.
is accessible to everyone, for free, in The challenge is to guarantee the
French, English and Spanish. In ad- health and safety of workers and cus-
dition, two Bulletins summarizing the tomers, while restoring business and
findings from the webinars have been consumer confidence and providing
published and are available in PIARC the right economic and fiscal stimulus.
virtual library, and a detailed Technical
Report was published in December. To assist in the analysis of this process,
PIARC’s COVID-19 Response Team
Impact of COVID-19 on had identified three phases that would
follow the first lockdown:
Roads and Road • Reopening, with risks carefully man-
Transport aged until vaccine and more effective
therapeutic treatments are available.
The current global COVID-19 pan- Partial or full short-term or localized
demic has struck the entire world in lockdowns in many countries are still
2020 and is having multiple and acute happening; life is unlikely to get back
impacts over and above a conventional to “normal” in the immediate and
disaster. As of early October 2020, the near-term future.
number of global cases surpassed 36.2 • Recovery of national and local econ-
million with over 1.05 million deaths. omies. Expected to extend well bey-
This crisis is as much an economic col- ond 2021, this will involve
lapse and a social catastrophe as it is a accelerated infrastructure delivery,
public health emergency, which has technology research and other tools
brought with it a dramatic slowdown in of economic stimulus and industrial
business activity, the standstill of inter- strategy.
national travel and large increases in • Reimagining on how transport sys-
job furloughs and lay-offs. Global GDP tem will meet future needs, reflecting
by the end of 2021 is expected to be the impacts, challenges and oppor-
6.5% below pre-COVID-19 levels and tunities of COVID-19 and other
the time horizon for full recovery of agendas; transforming and future-
some sectors is 2022-2024. proofing transport infrastructure and
services towards 2025 and beyond.
Policy goals around COVID-19 have This phase has already started.
evolved over the year 2020 in many
countries. First half of the year was Experience has shown that these
marked by what the IMF has called phases can actually happen simulta-
“The Great Lockdown”, a widespread neously, not one after the other, but
and intense slowing in economic and they remain a good framework for
social activity, and restrictions on per- analysing priorities and options. In-
sonal mobility and travel to such an ex- deed, the pandemic is still raging in
tent that in April half the World’s many parts of the world. Public pol-
population were asked or ordered to icies continue to evolve about
stay at home. Containing the infection COVID-19 containment and about
remains a challenge and is vitally im- fostering recovery. Last but not least,
140 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
the perspective of effective vaccines vide a lifeline to even the most remote
is a strong hope signal for the year places. This is true of passenger traffic
2021. as well as of freight traffic. This, in itself,
is a major success for road administra-
Strengths and Resilience tions and operators.
of the Road Sector Road operators have been impacted in
all aspects of their work. The figure
Roads have remained open during the below shows the most well-known im-
pandemic. Road transport has been pacts on road transport and the per-
able to maintain connectivity and to pro- spective of road operators:
Source: Figure from Valentina Galasso (Italy) presentation at PIARC webinar 29 July 2020
Road networks are a fundamental com- on the supply chain. Comparing pan-
ponent to the effective running of the demics and other hazards, the environ-
economy and the pandemic has high- ment in which business continuity
lighted the strategic and essential management is carried out is quite dif-
value of road transport for social and ferent because the challenge when
economic survival and the unavoidable pandemics is to continue road and
need to protect roads and their man- transport management activities effec-
agement to ensure mobility. PIARC’s tively with limited and restricted
series of webinars has made it possible human and material resources while
to identify a number of good and note- taking measures to cope with infec-
worthy practices that have been imple- tious diseases. And it should be noted
mented by different jurisdictions across that the occurrence of pandemics and
the world. other types of disaster may overlap.
So, as CRT report has stated “in the
The measures to prevent disease trans- post-COVID-19 era, it will be more
mission have had big impact on road necessary than ever to address the re-
and transport management and also silience of roads, transport and road-
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 141
related functions.” The following sets Federal Road Network, Intercity Pas-
this out in more detail: Developing a dis- senger Transport and continuity of
aster-resistant road network (tunnels, Telecommunication and broadcast-
bridges, embankments, etc.), securing ing services;
road infrastructure in times of crisis, • General impacts and approaches,
maintaining inspection and diagnosis of road network operations, freight and
roads with appropriate measurement logistics, construction works and
and monitoring procedures and technol- economic impacts and future resil-
ogies, sharing information dynamically ience planning;
(the significant expansion of data base, • Longer-term implications beyond the
data analytics and processing capability, immediate crisis under behavioural
including via social media offers a major change, business resilience plan.
source of information which can be ex-
ploited), and sharing experiences to Additionally, in July 2020, members of
create policies, procedures and best PIARC TC 1.4 “Climate Change and
practices and to prepare combined dis- Resilience of Road Networks” and the
aster scenarios in terms of business con- PIARC CRT published an article with
tinuity operations. The Resilience Shift titled “A pivotal
moment for the transport sector – and
The topic of resilience has been cov- lessons for resilience”.
ered throughout the PIARC COVID-19
webinars in the context of: As illustrated in the Figure below, there
• Continuity of construction and main- is a need to integrate lessons learned
tenance work; from a resilience perspective. Future
• Actions to address pandemic from a pandemics and any other new and un-
resilience perspective focused on conceivable threat will (and must) find
transport corridors, transport restric- road and transport administrations
tions & closed municipalities, plus ac- better prepared, building up flexibility
tions in Freight Transport, Public and ability to recognize and choose the
Transport, Toll Highways, National/ most sustainable measures.
Source: Figure from Roberto Aguerrebere and Juan Fernando Mendoza Sánchez (Mexico)
presentation at PIARC webinar 13 May 2020
142 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
The practices shared are very relevant How should longer term policies and
since we are still obliged to adapt to initiative in roads and road transporta-
the new circumstances as long as the tion be adapted to cope with the new
current destabilising reality that is affect- realities and the challenges presented
ing the personal, social, working and by COVID-19?”
economic lives of workers, individuals, (Oscar de Buen, Past President of
communities, companies, administra- PIARC, 29th July 2020 Seminar)
tions and countries continues.
PIARC’s detailed Report is based on
Road and transport organisations have the extensive programme of webinars.
demonstrated their speed of reaction It presents conclusions and recommen-
and adaptability to safely maintain daily dations for all road operators and ad-
activity in offices, road inspection, road ministrations; most of them are
maintenance (by their own means, con- applicable for all countries.
tracted or concession), continue to man-
age road actions and mitigate as far as Declaration of Emergency
possible impacts on the supply chain
and productivity, all while collaborating • Mandate authorities with appropri-
with many other agencies and stake- ate emergency powers
holders. • Be prepared to issue interpretative
orders and instructions to ensure the
Road sector employees have continued provision of critical or essential serv-
their duties under conditions of acute ices for the protection of people,
professional and personal disruption property and places, and maintain
and accompanied, in the private sector, activity in key (essential) economic
by considerable stress, employee fur- sectors
lough and lay-offs. The impacts on the
personal and professional lives of many Economic Measures to
working in the sector have been un- Support Businesses
precedent: it is requiring to set up new
roles, to find workarounds to problems • Establish recommendations for con-
and innovate in how to continue to get tracts, especially for PPPs
the job done. Road workers deserve • Plan to maintain road-related activity
public recognition and appreciation, and and business continuity
there are lessons to be drawn from this • Mitigate the economic and financial
flexibility. consequences of reduction in traffic
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 143
stockpiles of material that could be- • Look into how we can build flexibility
come in short supply in the event of in the infrastructure that we build to
global disruption of supply chains allow for the changing and uncertain
mobility dynamics and expectations
Data that our customer base is facing.
• Analyse how ITS can help public tran-
• Think about data as something of sit provide more reliable service
great value for road transport organ-
izations Freight and Logistics
• Recognise that real time information
is needed to meet the needs of users • Establish guidelines/agreements on
and operators national/international level to keep
• Evaluate the power of partnership freight moving during pandemics -
for data collection and management keep key road networks and facilities
to drive innovation through road open and operational
transport • Prepare and implement amendments
to the law/regulations to have more
Security flexibility regarding exemptions dur-
ing pandemics or other disruptions.
• Recognise that physical security and • Support the digital transition for ITS
cyber-security are essential for the solutions in logistics and freight
application of the concepts related transport to reduce physical handling
to resilience: prepare, prevent, pro- and control processes and to mini-
tect, respond, recover mize obstructions on traffic flows
• Increase the security of I.T. systems • Prioritize investments for key freight
corridors for economic recovery and
Disaster Management and good framework conditions for long
Resilience distance road freight transport
ures for potential road safety improve- open during the crisis; road freight
ments worked)
• Educate and inform • Include investments in road infrastruc-
ture or road transport in national
Winter Service COVID-related economic recovery
plans
• Implement heightened precautionary
measures to protect workers Fill Gaps in Evidence / Evaluate
• Learn from each other and employ
techniques used by Southern Hemi- • Evaluate all measures that have been
sphere agencies during the first wave implemented in a hurry during the crisis
of the pandemic • Identify actual user needs and policy
demands; i.e., what is the “new normal”
Workforce
Share Knowledge
• Celebrate road workers
• Apply health and safety protocols like • Promote the use of all available knowl-
all businesses edge
• Design work-from-home processes • Engage with LMICs in particular
with care • Continue providing a networking tool
• Apply success factors that enable for people to connect
women to continue to thrive at work • Analyze the PIARC survey, renew it
• Use technology wisely when appropriate
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 145
Source: Figure from Dennis Ganendra presentation (Malaysia) at PIARC webinar 13 May2020; and
presented by Caroline Evans (Australia) presentation at PIARC webinar29 July 2020
References
PIARC WORLD ROAD ASSOCIATION (2020). COVID-19: initial impacts and re-
sponses to the pandemic from road and transport agencies. PIARC.ORG. Re-
trieved from https://www.piarc.org/en/order-library/34613-en-COVID-19:
%20initialimpacts%20and%20responses%20to%20the%20pandemic%20from%
20road%20and%20transport%20agencies
Policy Study n. 5
Perspectives from Road
Transport on the
Opportunities and Challenges
of the Pandemic
Jens Hügel
Senior Adviser, World Road Transport
Organisation (IRU)
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 149
As the world road transport organisa- global goods transport losses are ex-
tion, IRU (World Road Transport Organ- pected to exceed USD 679 billion in
isation) represents more than 3.5 million 2020, a turnover loss of 18% in compa-
road transport operators around the rison to 2019.1
globe. As the lifeblood of global trade,
road transport is the critical link to un- Commercial road transport operators
locking international prosperity. With have maintained services where pos-
this in mind, we use data from our dedi- sible, despite an often higher cost base
cated market intelligence team to in- due to transport, routing and delivery
form our advocacy work, making the restrictions. Many road transport busi-
voice of the industry heard so it can play nesses have managed to survive up to
its vital role in global supply chains. now, but anecdotal evidence from IRU
members and research from our market
Trade facilitation is at the core of our intelligence team indicates that they will
work. Under a United Nations mandate, not survive much longer without finan-
IRU manages TIR, the only global transit cial assistance. Following this concern-
system and an important trade facilita- ing discovery, IRU assessed two key sets
tion tool. Governed by the TIR Conven- of financial indicators that provide an
tion and operational in 60 countries, TIR early warning on the risk of business de-
provides customs guarantees, enabling fault and insolvency. Both point to an
goods to flow easily, securely and re- approaching wave of bankruptcies in the
liably across borders. The digital version road transport sector over the coming
of the system, eTIR, is entirely paperless, year, 2 which would have a devastating
making it even more streamlined and se- effect on global supply chains and trade
cure. networks. Road transport operators in
all regions, including the Western Med-
iterranean, are facing a high or very high
COVID-19 and the Road risk of defaulting on loans. This would
Transport Sector lead to a deterioration in their credit-
worthiness, which in turn would increase
their cost of borrowing, particularly for
IRU has a global network of members in vehicles.
the road transport sector, with whom we
have been in close contact throughout In spite of a bleak outlook for road trans-
the pandemic to build a picture of its fi- port companies, governments have
nancial and operational impact. We can failed to act. While many administrations
confirm that the global economic slow- have implemented support measures
down caused by the pandemic has for businesses, IRU analysis of govern-
greatly affected the road transport in- ment measures in 79 countries, includ-
dustry. In addition, the transport restric- ing France, Italy, Malta, Morocco,
tions put in place by governments to Portugal, Spain and Tunisia, revealed
control the spread of the virus have dis- that very few transport operators bene-
rupted mobility networks and supply fitted. This lack of action shows the ex-
chains. According to IRU research, tent to which the importance of the road
1
IRU: COVID-19 Impact on the Road Transport Industry - Update November 2020.
2
Ibid.
150 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
transport sector is underestimated. Ho- people and essential goods will not be
wever, without it we would not have the transported to where and when they are
essential goods and services we need to needed and economic development
survive. Over 80% of commercial land and recovery will come to a standstill.
transport of mobility and logistics ser-
vices (in tonne-kilometres and passen- Opportunities for a more
ger-kilometres) are provided by the road digital sector
transport industry.
While the overall impact of COVID-19 is
During the pandemic, the road transport undeniably negative, the response to
industry played a key role, delivering the pandemic presents governments
medical and other essential supplies and the transport industry in the West-
throughout the Western Mediterranean ern Mediterranean with an excellent op-
and around the world. Drivers put them- portunity to improve transport networks
selves at risk to keep goods moving and and strengthen logistics chains. The cri-
serve their communities under increas- sis revealed the shortcomings in regional
ingly challenging conditions. Restrictions supply networks and highlighted the
and reduced demand have led to a seri- necessity of effective risk management.
ous liquidity crisis in road transport. Op- Flexibility, adaptability and the use of
erators desperately need targeted digital tools will be key to survive and re-
financial and non-financial support main competitive in a post-pandemic
measures from governments if they are trading environment. Fundamental
to survive. Such measures include direct changes to business processes are en-
cash grants, reductions in taxes and couraging digital innovation, as a value
charges, extensions on loan repayments, chain based on digital solutions is more
support for unemployed workers and reliable and able to mitigate all types of
greater flexibility on the interpretation risk. It is therefore the ideal moment for
of driving rules and restrictions. It is vital governments to implement paperless
that governments implement these and simplified procedures for road
measures to prevent mass bankruptcies transport operations.
and job losses.
IRU’s eTIR system and e-CMR digital
Global economic and social recovery consignment note are two tools that
from the pandemic is dependent on a have received widespread recognition
well-functioning road transport sector, for their potential to support economies
which in turn depends on millions of through recovery from the COVID-19
road transport operators staying in busi- crisis. In April, the United Nations Sec-
ness and continuing to run services for retary-General said that, “innovative
their clients. It is urgent that govern- tools such as UN eTIR/e-CMR systems
ments act accordingly. If no support is and other tools that allow to exchange
provided to the road transport sector, electronic information without physical
mass insolvency of road transport com- contact and facilitate the flow of goods
panies is inevitable. As a result, the glo- across borders should be used”.3 A few
bal recession will be more devastating months later, the heads of eight United
and longer than currently predicted, Nations specialised agencies, including
3
United Nations: Shared Responsibility, Global Solidarity: Responding to the socio-economic
impacts of COVID-19. March 2020.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 151
the United Nations Economic Commis- sia. Goods companies, drivers and those
sion for Europe (UNECE) and the United receiving shipments use a CMR consign-
Nations Conference on Trade and De- ment note, which presents information
velopment (UNCTAD), released a joint about the shipped goods and the trans-
statement in which they affirmed that “a porting and receiving parties. Until re-
safe and efficient intermodal transport cently, CMR notes were only in paper
system is facilitated by the use of United form, but an electronic format has been
Nations instruments, such as the United in development since 2008. Western
Nations TIR Convention and its eTIR sys- Mediterranean countries have spear-
tem […]. These instruments allow for headed the use of e-CMR electronic
moving cargo across borders without consignment notes, with the first ship-
requiring physical checks and for reduc- ment using e-CMR taking place in Janu-
ing contact between people”.4 ary 2017 between Spain and France. In
its paper-based format, the CMR con-
Paperless systems have obvious short- signment note brings many benefits: it
term public health benefits in terms of harmonises contractual conditions for
reducing human contact and preventing goods transported by road and helps fa-
the spread of the virus, but digitalisation cilitate goods transport overall. A wider
also carries economic benefits and a implementation of the e-CMR solution
range of related opportunities to facili- would modernise the system, retaining
tate intermodal transit and trade. Logis- its benefits while removing paperwork
tics operators are suffering financially and the related costs. It would also allow
and streamlining customs procedures for faster invoicing and a reduction in
with tools such as eTIR will reduce trans- delivery and reception discrepancies, as
port times, cutting costs and helping information is available to all parties in
them to manage the business impact of real time. Its digital nature means that e-
the pandemic. eTIR can be used for in- CMR can be easily integrated with other
termodal transport operations between services used by transport companies,
Europe and North Africa, as long as at such as customs declaration or transport
least one leg of the itinerary is carried and fleet management services. By mov-
out by road. This flexibility makes it an ing to an electronic format, the three
extremely useful trade facilitation tool parties involved in each shipment bene-
and ideal for use in the Western Medi- fit from better overall logistics efficiency,
terranean region. resulting in increased economic com-
petitiveness.
Another digital tool to be leveraged to
boost trade during and following the Transport digitalisation has been high on
pandemic is the e-CMR digital consign- agendas for some time, and even before
ment note. Rules for transporting goods the pandemic it was progressing
internationally are covered by the steadily. In February 2008, a protocol
United Nations Convention for the car- was added to the CMR Convention in-
riage of goods, known as the CMR. This troducing the electronic management of
Convention has been ratified by most CMR through e-CMR. This protocol en-
European states, as well as several other tered into force on 5 June 2011, and to
countries, including Morocco and Tuni- date 17 countries have acceded. In Feb-
4
Joint statement on the contribution of international trade and supply chains to a sustainable socio-
economic recovery in COVID-19 times.
152 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
ruary of this year, a landmark was the TIR customs transit procedure.
reached when signatories of the TIR UNECE, IRU, the TIR Contracting Parties
Convention unanimously adopted the and the private sector all recognise this
new legal framework that will power the potential.”5 TIR is proven to reduce jour-
future of TIR and its fully digital eTIR sys- ney times by up to 72%6 and eTIR is set
tem. eTIR will replace the paper TIR car- to reduce them further, cutting costs for
net, which serves as a customs operators. Shorter transit times and
guarantee and accompanies a shipment lower costs will facilitate trade, helping
throughout its itinerary. With eTIR, cus- to restart the global economy following
toms officials receive cargo information the pandemic and supporting long-term
electronically before the shipment ar- economic growth.
rives, making procedures more efficient
and secure. The adoption of the legal In the Western Mediterranean, the inter-
framework for eTIR demonstrated the modal functions of TIR make it the per-
backing by governments and industry fect trade facilitation tool for operations
leaders of TIR as the only global transit between Europe and North Africa. Al-
system and a valuable and competitive geria, France, Italy, Malta, Morocco,
tool to facilitate trade worldwide. It also Portugal, Spain and Tunisia are already
represented a positive step towards TIR operational. Tunisia has joined an
trade facilitation and increased transit upcoming UNECE eTIR pilot project,
security. With the international legal showing dedication to modernising its
frameworks in place, these tools are transport systems and an interest in
ready to be implemented in the Western trade digitalisation. TIR is already in use
Mediterranean, which would bring sig- for routes from France and Italy to Tur-
nificant benefits to transport operators key, eliminating the need for physical
and other stakeholders in the supply cargo inspections along the route.
chain.
Multilateral cooperation for
For transport operators, the financial more resilient supply chains
guarantees provided by TIR help to re-
duce the financial commitments and Another opportunity to be grasped dur-
risks related to customs tax and duties. ing the pandemic relates to greater glo-
Digitalisation and the shift to eTIR will bal and cross-border coordination. The
further reduce these risks, as it provides chaos caused by travel restrictions at the
a robust and secure communication start of the pandemic, and the continu-
platform for all parties involved in TIR ing issues during the second wave, re-
transport. The full life cycle of a TIR vealed a genuine and pressing need for
guarantee, from its issuance by IRU to its greater coordination between govern-
termination, can be controlled in real- ments. For transport operators, it is cur-
time with the use of TIR IT tools. Accord- rently complicated to comply with the
ing to Olga Algayerova, the Executive wide variety of restrictions put in place
Secretary of UNECE, “The digitalisation by different countries. This slows down
of the TIR system will enhance the the delivery of essential goods, leading
speed, efficiency and transparency of to shortages for communities and finan-
5
IRU: The future of TIR is digital.
6
IRU: TIR cuts transport times between Saudi Arabia and Oman by 72%.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 153
cial difficulties for operators, who are un- must be able to ask for and receive re-
able to work at their usual rate. muneration for the data they provide.
Without coordination between govern-
IRU recommends Western Mediterra- ments, operators and data aggregators
nean governments to coordinate the es- will have to work with a patchwork of na-
tablishment of green lanes for trucks at tional regulations, complicating their
all borders, backed by policies and work with a detrimental effect on digi-
procedures that prevent additional and talisation efforts.
systematic stopping of trucks. Govern-
ments should take joint steps to allow Looking to the future
for maximum flexibility on the interpre-
tation of driving rules and restrictions. The digitalisation of trade and transit
Measures to prolong the validity of ex- networks in the Western Mediterranean
pired control documents, including cannot be successful without a high level
visas, certificates and licences could also of cooperation between countries. As
be coordinated between countries. Es- supply chains are digitalised and paper-
tablishing such multilateral cooperation less transactions become the norm,
now would have lasting economic bene- political engagement and mutual trust
fits and make supply chains more resil- will be essential. Governments should
ient to future crises. take a policy approach, implementing
short and long-term measures to sup-
As transport digitalisation progresses, port the development of the transport
cooperation between governments will sector and protect the supply chains
also be important to manage effectively upon which economies rely.
the huge amount of data produced.
There is currently no international or We can expect to see the benefits of
European legal framework specifically digitalisation for economies and so-
for regulating the use of business-to- cieties. Processes throughout the value
business data. Transport operators have chain will be more efficient, saving both
no visibility regarding where their data time and money. This will mean goods
is stored, how it used and by whom. arriving where and when they are
Their consequent hesitancy to share needed. IRU has been supporting digi-
data will slow down digitalisation, pre- talisation around the globe, with several
venting us from reaping its benefits. To ongoing projects on different conti-
establish trust and data fairness, a multi- nents. We stand ready to help countries
lateral legal framework is needed that in the Western Mediterranean to imple-
explicitly includes the principles of the ment the eTIR system to facilitate trade
voluntary sharing of data and reciprocity during and following the pandemic.
in data access. The obligations and re- However, if governments do not provide
sponsibilities of data aggregators must the necessary support now, the road
be clearly defined, along with the rights transport industry will crumble, remov-
of data generators. Transport operators ing vital links in supply chains.
154 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
References
IRU (2021, 4 January). Impact on the Road Transport Industry – Update No-
vember 2020. Retrieved from https://www.iru.org/resources/iru-library/covid-19-
impact-road-transport-industry-update-november-2020.
IRU (2020, 18 September). TIR cuts transport times between Saudi Arabia and
Oman by 72%. Retrieved from https://www.iru.org/resources/newsroom/tir-cuts-
transport-times-between-saudi-arabia-and-oman-72.
Policy Study n. 5
Importance of Regulatory
Convergence in Promoting
Cross-Border Transport and
International Haulage and
Upgrading Road Transport
Performance in South
Mediterranean Region,
Efforts, and Achievements
Michalis P. Adamantiadis
Team Leader & Road Freight Transport Key
Expert, EuroMed Transport Support
Project (EuroMed TSP)
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 157
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 159
ical technical inspection systems and odic training of drivers of certain road
minimum standards towards which vehicles for the carriage of goods or
the vehicles are to be tested. Acces- passengers, ensuring that the driver is of
sion to and implementation of this a standard to have access to and carry
agreement help countries ensure that out the activity of driving. The Regula-
safer and less polluting vehicles are tion obliges drivers, in addition to a
circulating on their roads, while the driving permit, to hold an initial qualifi-
reciprocal recognition of the tests in- cation and to undergo periodic training
troduced by it facilitate the cross (every 5 years) intended to improve road
border circulation of vehicles. safety and the safety of the driver. In
order to establish that the driver
Selected EU regulatory complies with the obligations, the driver
frameworks must possess a certificate of professional
competence, referred as ‘CPC’. Such
In addition to the above, that also provisions have as a result the improve-
make part of the EU road transport ment of the professionalism of profes-
regulations, the following four (4) EU sional drivers.
legal frameworks addressing the pro-
fessionalism of drivers and operators Technical condition of
as well as the technical inspections of vehicles and inspection
vehicles, were selected for promotion
amongst EuroMed partners. Directives 2014/45/EU of 3 April 2014
and 2014/47/EU of 3 April 2014 of
Regulation (EC) No 1071/2009 of the the European Parliament and of the
European Parliament and the Council Council on periodic roadworthiness
of 21 Oct. 2009 establishing common tests and on technical roadside in-
rules concerning the conditions to be spection of commercial vehicles, re-
complied with to pursue the occupa- spectively, ensuring that vehicles are
tion of road transport operator and kept in a safe and environmentally ac-
laying down minimum conditions gov- ceptable condition during their use,
erning admission to the occupation of following the technical standards and
road transport operator. The Regula- requirements applicable in the Union
tion obliges undertakings to have (a) in accordance with the set UN Agree-
an effective and stable establishment; ments and Regulations and the EU
(b) be of good repute; (c) have appro- legislation.
priate financial standing; and (d) have
the requisite professional compet- EuroMed Partner
ence. Such provisions have as a result
the improvement of the profession of Country Efforts and
road transport operators. Achievements with
EuroMed TSP and RRU
Training of Professional
Support
Drivers
Harmonization of national legislation
Directive 2003/59/EC of the European in the region along the said regal
Parliament and of the Council of 15 July frameworks, is rigorously promoted
2003 on the initial qualification and peri- through regional and national work-
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 161
shops, seminars and technical assis- Concerted efforts are also pursued in
tance missions organized by EuroMed the region for enhancing profession-
Projects in all partner countries. Study alism of drivers and operators as well
tours were held under EuroMed Pro- as technical state of vehicle fleet.
jects, in Geneva, Switzerland and Mandatory training for professional
Haute Savoie, France and in Padua- drivers of certain road vehicles cat-
Vicenza-Venice area, Italy. Roadmaps egories inspired by Directive
on accession and implementation of 2003/59/EC is pursued already by
AETR, ATP and 1958 and 1997 some EuroMed partners and their
Agreements were elaborated and drivers safety performance is being
published in cooperation with improved by respecting driving and
UNECE. High-level participation of rest times rules following the AETR
EuroMed officials in the work of se- Agreement. Rules for the access to
lected UNECE intergovernmental the profession of transport operator
bodies in Geneva, were encouraged inspired by Regulation 1071/2009/EC
and facilitated. National strategies are applied in several EuroMed coun-
were elaborated and or reviewed with tries and same is valid the transport
EuroMed Projects support, aimed at of dangerous goods. The technical
promoting accession to and effective state of the vehicle circulating in the
implementation of UN Agreements region has been drastically improved
along with studies, analytical work, through the application of some of
economic impact assessments, and the Regulations annexed to the UN
pilot actions. 1958 and 1997 Agreements and EU
best practice, including elements of
These efforts raised awareness Directives 2014/45/EU and
amongst EuroMed partners on the 2014/47/EU.
vital importance of the UN Agree-
ments and respective EU legislation EuroMed Projects have been instru-
and helped them familiarize with the mental in assisting partner countries,
relevant work of UNECE and EU. Na- harmonize their transport regulations
tional legislations have been modified and enhance the performance of
in almost all EuroMed partners, in- transport operations in the region in
spired by those UN Agreements and support of the implementation of the
EU best practices, while accession regulatory aspects of the RTAP 2014
and implementation to these agree- – 2020. However, in spite the efforts,
ments is ongoing. The accession of as seen in the following table, acces-
Palestine to the TIR Convention, in sion to the selected UN road trans-
2017 and to the Road Traffic Conven- port legal instruments is still not well
tion, in 2019 as well as that of Tunisia advanced. Lack of Human recourses
to the 1997 Agreement, in 2020, are at the concerned Ministries and lack
among the concrete achievements, or limited cross-border road freight
while Egypt’s accession to the TIR transport operations reducing the ur-
Convention is forthcoming. Moreover, gency of the need for harmonisation,
EuroMed partner efforts led to the are among the problems facing Eu-
opening of AETR to Algeria, Jordan, roMed countries with regard to their
Lebanon, Morocco, and Tunisia, while accession to these legal instruments.
soon AETR will be opened also to The COVID-19 pandemic has also
Egypt. negatively affected this process.
162 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 163
improving road safety, for which ac- environmental challenges before the
cession and full implementation of global economy, taking note that
the said UN legal instruments is es- transport is responsible for 27% of
sential. Strategies should also address total EU-28 Greenhouse Gas
climate change with all its adverse ef- emissions, 72% of which come from
fects, being the biggest social and road transport (EEA, 2017).
164 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
References
EU, UFM, JORDAN (March 2015). Regional Transport Action Plan for the Medi-
terranean Region (RTAP) (2014-2020). Brussels. Retrieved from https://ec.eu-
ropa.eu/transport/sites/transport/files/themes/international/european_neighbour
hood_policy/mediterranean_partnership/docs/rtap2014_2020_en.pdf
EU, UNECE, EUROMED RRU (March 2016). “Food security for transport” Road
Map for accession to and implementation of the “Agreement on the international
carriage of perishable foodstuffs and on the special equipment to be used for
such carriage (ATP)”. Geneva and Brussels. Retrieved from http://www.unece.org/
trans/areas-of-work/transport-of-perishable-foodstuffs/road-map-for-accession-
and-implementation-of-atp.html
EU, UNECE, EUROMED RRU, UNITED NATIONS (March 2017). European Agree-
ment concerning the Work of Crews of Vehicles Engaged in International Road
Transport (AETR) - Road Map for Accession and Implementation. New York and
Geneva. Retrieved from http://www.unece.org/index.php?id=45577
EU, UNECE, EUROMED TSP (June 2019). For Safer and Cleaner Vehicles-Road
Maps for accession to and implementation of the UN 1958 and 1997 Agree-
ments. Geneva and Brussels. Retrieved from http://www.unece.org/trans/main/
wp29/roadmap_accession_implementation.html
Policy Study n. 5
Road Transport in Morocco:
What is the Best Route Out of
the COVID-19 Crisis?
Jaafar Sallouhi
Adviser to the Director of Land Transport
and Logistics, Ministry of Equipment,
Transport, Logistics and Water, Kingdom of
Morocco
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 167
cial aspects of Morocco’s transport sec- ment has further highlighted the need
tor, it has also brought positive effects, for digitization. The lack of a digital sol-
thanks in large part to the unpreced- ution was widely revealed by the sus-
ented lockdown and restrictions on pension and termination of services and
movement and travel. These benefits in- the exceptional extension of validity
clude a reduction in environmental ex- periods for certain documents issued to
ternalities, especially a cut in CO2 users.
emissions, better air quality and im-
proved road safety indicators due to the Paperless administrative procedures and
drop in the number of road fatalities and the use of electronic documentation are
injuries. therefore becoming essential to ensure
the continuity of services. They also pro-
Raising awareness regarding these posi- vide a real opportunity to speed up digi-
tive aspects may well have a lasting ef- tal transformation and ultimately boost
fect on future mobility behaviour and economic growth and development.
could encourage the country’s political
decision-makers to set up a national Through cross-sectoral interactions be-
strategy for sustainable mobility, to con- tween Morocco’s various strategies, the
sider more low-carbon solutions and to transport sector is playing a central role
support a transition towards safer, more in this dynamic and has been forced to
efficient, more accessible, more inclusive follow this trend, above all to support its
and more resilient transport systems. development. Digitization is therefore
no longer an option for transport stake-
Management of the pandemic and its holders and professionals, but rather an
economic and social consequences absolute necessity to adapt to the de-
must not overlook measures to com- velopment and constant changes in the
bat climate change in transport. On market.
the contrary, post-COVID-19 public
policies and economic recovery plans In this context, the Ministry has launched
must allow for further progress to- several projects, in particular the digit-
wards green, sustainable solutions for ization of transport procedures and
the transport sector. documents, including those issued to
freight transport professionals, promo-
Physical Distancing: tion of virtual freight exchanges, deploy-
ment of teleservices and the widespread
A Catalyst for application of online appointments for
Digitization in Transport public services such as driving licences,
registration documents, periodic tech-
The handling of the COVID-19 pan- nical inspections and the individual ap-
demic has served to reinforce argu- proval of vehicles.
ments in favour of digitizing services
and the trend towards “zero paper” The Ministry is also focusing on complet-
in several sectors, especially transport ing and upgrading its legal and regula-
and related services. tory tools governing the sector with a
view to monitoring the developments
The context created by the spread of and changes that it has undergone dur-
the virus, lockdown measures, social ing the pandemic and even to anticipate
distancing and restrictions on move- such changes in the future.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 169
With respect to human capital, new oc- infrastructure in rural areas through sev-
cupations will inevitably emerge in this eral programmes, most notably the Na-
context, which is overflowing with new tional Rural Roads Programme (PNRR-1
technologies. To that end, the govern- and PNRR-2), the Territorial Upgrading
ment will focus on preparing and de- Programme (PMAT) and the Programme
ploying adequate training plans aimed for the Reduction of Territorial and Social
at capacity-building in areas related to Disparities (PRDTS), these interventions
digitization and information systems have not fully delivered on the popu-
(TMS, WMS, etc.). lation’s growing expectations in terms of
accessibility, nor have they improved the
Improving Transport social conditions of rural areas or ad-
equately responded to the need to
Services in Rural Areas: boost economic activities.
The Path to Social Equity?
Thus, if these investments are to provide
The current crisis has also highlighted the the rural population with significant
inequalities in the provision of transport economic and social benefits, a more
solutions and revealed the need for gov- comprehensive approach should be
ernments to implement mobility rights adopted by the public authorities and
for all citizens, regardless of whether the various stakeholders to improve
they live in urban, peri-urban or rural transport planning and implement addi-
areas. In this regard, it should be noted tional measures to address both infra-
that the challenges facing transport po- structure development and the provision
licymakers when it comes to establishing of quality transport services that meet
and guaranteeing the foundations of a the specific mobility needs of rural areas
fair, equitable and sustainable transport and are compatible with the rural popu-
system are complex and highly diverse. lation’s purchasing power.
RAIL TRANSPORT
Before the appearance of COVID-19, the rail transport sector was already
working on a series of trends aimed to contribute to its reinforcement, by
increasing its weight in the overall flow of freight and passengers. These
include the resilience of the sector, its impact on the sustainability of the
transport system, its interest in consolidating itself as the backbone of a
multimodal system and digitalisation processes.
It is clear that this scenario will result in passenger traffic, the borders re-
heavy losses in 2020 with respect to mained open for freight. That said,
passenger operations, which will re- manufacturing output has fallen in
main significantly elevated in the some countries, which has led to a de-
medium term. cline in freight transport.
The impact on the freight sector can- Losses in freight operations in the first
not be compared to the passenger half of 2020 were lower than those in
sector because the activities differ and the second half of 2020. Most coun-
the lockdown during the COVID-19 tries, particularly China, but also Euro-
crisis frequently gave rise to a shift pean countries, experienced a shift
from road to rail transport. In addition, from road to rail transport during the
while many borders were closed to lockdown.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 175
Note: A value close to one indicates that the economic measure is highly desired by the respondent.
Long-term analysis revealed entirely changed. In the long term, a level play-
different priorities compared to short- ing field for all modes of transport re-
term analysis. While the most impor- placed a reduction in infrastructure
tant measure remained direct financial access changes, which fell to third
assistance, the second priority place.
Note: A value close to one indicates that the economic measure is highly desired by the respondent.
While financial measures have been im- the scope of application is limited to
plemented in other transport sectors in infrastructure management or to train
many parts of the world, similar operations and rolling stock mainten-
measures are expected for the rail sec- ance, or encompasses both.
tor, which has clearly been severely af-
fected by the crisis. It is worth noting that, in this post-lock-
down phase, most members are facing
The priorities of different railway sector serious cash flow issues and have ex-
organizations may differ between pressed a preference for direct finan-
world regions, depending on whether cial assistance over tax cuts and a level
176 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
playing field between all modes of longer and habits have changed, par-
transport, which nevertheless remain ticularly with regard to the way of
long-term issues. people work and travel.
The rail sector is undergoing an un- The pre-crisis trends in Europe were:
precedented crisis that calls for econ-
omic measures from the government. • Moderate economic growth.
Members expressed their preference • Development of tourism.
for direct financial assistance, although • Liberalization in the world of rail
several other options could be con- transport.
sidered, such as lower infrastructure • Balanced multimodal competition.
charges, a reduction in or elimination • Major technological progress.
of VAT and other taxes, secured loans • Important developments in ticket
and a level playing field between all distribution activities promoted by
modes of transport. UIC.
• Developments in intermodality.
The New Normal • Increased environmental awareness.
What is the new normal? It refers to the The COVID-19 crisis curtailed some of
stable situation that will be reached these activities, in particular through:
once the pandemic and its direct after-
effects have been overcome. It is clear • Widespread teleworking for posi-
that, in countries where the crisis has tions in which this was an option.
lasted a long time, the after-effects will • A certain amount of counterurban-
be felt for many months, or even years, ization, with many people leaving
in the form of an economic downturn. cities to telework in quieter, less ex-
The new normal will therefore take pensive locations such as towns and
place after this period, along with all rural areas.
the long-term consequences. Indeed, • Economic collapse in some sectors.
trends that should have occurred over • Significant restrictions on tourism.
the long term have taken place earlier • A halt on new infrastructure con-
than expected because of the crisis. struction work.
Depending on the country, this new • A need for extensive financial re-
normal will begin sometime between sources.
2021 and 2025. • Development of “virtual mobility”
through remote meetings.
In some countries, the new normal will • Less priority given to environmental
resemble predictions made before the issues.
crisis, given the short duration and low • An impression that public transport
impact of the crisis. This applies par- modes are less safe than individual
ticularly to China, where more or less transport in terms of health.
normal activities were resumed very
quickly before the summer of 2020, The post-COVID-19 environment will af-
and which therefore did not have time fect rail mobility in the following ways:
to make lasting changes in behaviour.
• Most pre-COVID-19 trends will be
In other countries, especially in Europe expedited.
and the Americas, the crisis has lasted • The balance between physical mobil-
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 177
ity and virtual mobility will shift in fa- quite substantially in the countries
vour of the latter. Many companies around the Mediterranean.
have found that remote meetings are
at least as effective as face-to-face Business trips will decrease and be
meetings. This has been particularly replaced by online meetings, a situ-
true at UIC with respect to inter- ation that will continue for some
national meetings, in which the time.
number of countries involved has
grown significantly during the crisis. Some countries will adopt laws to fa-
This has made it unnecessary for par- cilitate teleworking, which will have
ticipants to travel, thus saving both two opposing consequences:
time and money. On the other hand,
meetings have to be scheduled in ac- • A reduction in the volume of sub-
cordance with each country’s time urban and regional daily trips.
zone, and there is no substitution for • An increase in certain long-distance
meeting in person when it comes to trips due to the relocation of
getting to know people, making people who have left their homes in
technical visits and taking decisions. cities to live in towns or rural areas.
Moreover, some cultures (especially They might prefer to book hotel
in Asia) prefer face-to-face meetings rooms once or twice a week so they
to online meetings. can go to the office.
• Public funds will shrink because of
the soaring debts of countries during For companies, this rise in telework-
the crisis. ing could lead to substantial savings
• It will take some time for passengers in office rental, since companies
to return to train travel. could set up shared offices or hot
• Environmental awareness will in- desks for coworking.
crease, which favours rail travel with
respect to air travel over medium dis- Teleworking will also be the norm in
tances. In particular, before the crisis, university studies, remote exams, re-
on three-hour rail journeys, as many mote medical consultations, etc. Fur-
people travelled by train as by air. thermore, growth of the circular
The total travel time is actually four economy will have an impact on pas-
hours or more. This makes a strong senger and freight transport.
case for bringing back night trains,
which could replace overnight hotel In cities, traditional modes of trans-
stays if the quality is good enough. port will be partially replaced by so-
Some countries will reinforce this called “soft” mobility, which will
trend by not allowing air carriers to require different investments in infra-
operate on routes in direct competi- structure and new travel regulations.
tion with high-speed trains.
Tourism will continue to increase, but
Evolution of Mobility more environmentally friendly modes
of transport will be more common.
Demand Stigmatization of air travel (flight
shaming, plane bashing and the
The factors described above will cause Greta Effect) will continue to increase
the demand for mobility to change among all social classes.
178 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
It is precisely the right moment for gov- This was particularly evident in Italy with
ernments to promote ambitious policies the competition between NTV-Italo and
to develop more environmentally FS-Trenitalia, which led to highly signifi-
friendly modes of transport, in particular cant developments in the volume of high-
those that favour rail transport. speed train traffic that benefited both
railway operators. The rail / air modal split
The COVID-19 crisis may present an op- between Milan and Rome thus increased
portunity for the rail sector, given that from 36% in 2008 to 80% in 2018, while,
countries and supra-state organizations at the same time, the share of air traffic
will provide vast funding to restart the decreased from 50% to 14%.
economy.
This recent crisis strongly affected new
This could involve new investments for railway operators, as the volume of the
high-speed lines, which are highly suc- global market did not allow several op-
cessful in Western Europe, and in Asia erators to compete for the same routes.
(China, Japan, South Korea), and repre- They therefore reduced their devel-
sent a key factor in economic devel- opment plans for the near future.
opment. There are still vast areas not
accessible by high-speed rail around the The expected reduction in mobility as-
Mediterranean Basin. These investments sociated with new working habits will
could be earmarked for new high-speed also force infrastructure managers to re-
lines (above 250 km/h) or for upgrading duce the cost of accessing infrastruc-
existing lines for speeds above 200 ture. The role of the public authorities
km/h. will therefore be to establish a new bal-
ance between subsidies and the infra-
Environmental Awareness structure charges paid by railway
operators.
Most of the world’s rail companies have
pledged to reach carbon neutrality by Conclusion
2050 by signing a pact proposed by
UIC, which means that measures in this Governments must provide the rail sec-
direction will be taken in the sector with tor with strong support while promoting
vital support from national and regional the safest, most sustainable mode of
authorities. transport, which plays a major role in the
future mobility system of most countries.
This also requires support for intermodal-
ity to promote the use of several modes This is especially true for rail freight,
of transport, in line with the specific fea- which can play a crucial role in supporting
tures of each mode: ticketing, amenities a sustainable logistics value chain, but
in stations, redesign of the urban environ- also applies to passenger operations, at
ment around “soft” transport. a time when travel conditions and expec-
tations are changing dramatically.
Other Factors
This support could be provided through
Competition between rail companies fol- investments in new infrastructure, but
lowing liberalization may have a positive could also take the form of government
impact on both transport prices and the policies that support and give rail transport
quality of services offered to customers. a real social and economic advantage.
Policy Study n. 5
Synergies between
the Mediterranean Corridor
and the Trans-Maghreb
Multimodal Corridor
Josep Vicent Boira
Government Commissionner for the
Mediterranean Corridor, Government of
Spain
Matteo Berzi
Office of the Government Commissionner
for the Mediterranean Corridor,
Government of Spain
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 181
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 183
On the global stage, this project is stra- • A 1.000ha new logistics zone in the
tegic for the Belt and Road Initiative port of Zarzis, (Tunisia).
(BIR), promoted by the Chinese gov- • The new railway line Zarzis-Gabès
ernment, who’s industrial and transport (Tunisia);
investments will improve logistics and • The new Tunisian car factory of
multimodal freight transport (especially SAIC– the Chinese state automobile
railways) in the countries of the TMC manufacturing company (Ecofin
(Zulfikar Rakhmat, 2014). Some of the Agency, 2018).
most interesting initiatives are:
Morocco as key player for TMC
• The Construction of the Cité Tanger Within this project, the country with
Tech Mohammed VI (Morocco), a the most advanced railway infrastruc-
new industrial, logistics and tech- ture is surely Morocco. 60% of its rail
nological centre (2000ha) which is ex- network is electrified and freight trans-
pected to generate more than port is comparable, in terms of total
100,000 jobs (CGNT Africa, 2020). tons, to Spain and other European
The new port will have a capacity of countries (Table 1). 70% of the traffic
9 million containers. goes to sea ports and passes through
• New car factories and car com- the dry ports of Casablanca, Fez and
ponents industries in Morocco (Elia- Marrakech. The destination is es-
son, 2019). pecially the port of Tanger Med, the
• The construction of the port of el- largest in the Afro-Mediterranean area
Hamdamia (Algeria), which will be and the 35th in the world by volume of
the second largest in the Mediterra- traffic. In January 2021, the third ter-
nean after Tanger-Med (CGNT Af- minal was inaugurated, increasing Mo-
rica, 2019). roccan leadership in maritime traffic.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 185
Within rail freight transport, a strategic components have been recently built
activity is car transport. In 2017, and they are the first of their kind in Af-
334,000 cars were transported by rail rica. As a result, the logistics sector will
(ONCF, 2018), that is, half of the total be a priority for the Moroccan economy
cars transported throughout Spain in the and the railway will play an important
same period. These flows are explained role in a multimodal perspective. Sub-
by the recent establishment of European stantial advances have also been made
automotive factories (Renault, PSA, Fiat) for passenger transport with the Tangier-
and China (BYD) and it is expected a Kentira High-Speed Line in 2018, the
substantial increase in the future, as 90% first section of the Moroccan High-
of this production is exported (Oxford Speed Line (HSL) ‘Al Boraq’, aimed at
Business Group, 2021). Within the connecting Casablanca with Tangier
framework of the Belt and Road Initiat- (338km) in 1.30h (estimated by 2022 or
ive, the Memorandum of Understanding 2023). Furthermore, Morocco planned
(MOU) signed between Morocco and to connect its main cities with the HSL
China has already generated important by 2035. It is the first high speed line in
results: two factories for aluminium car Africa.
Table 1. Comparison between rail infrastructure and rail freight transport between
Spain and Morocco
Sources: Morocco ONCF (2017); Spain: 1, 3, 5, 6 EU Statistical Pocketbook 2019 (2017 data), 2
Anfac (2019), 4 OTLE, 2019 (2018 data)
geria, and Spain in the westernmost of The Alboran Sea is truly emerging
the Mediterranean Sea. The main mari- geoeconomic space, where the com-
time flows are concentrated between plementarity and optimization of the
Tanger-Med and Algeciras for obvious existing infrastructures should be en-
geographical reasons: the Port of Al- hanced. Alboran ports act both as at-
geciras is a true economic engine for tractors of global maritime flows and as
Spain and for the Mediterranean poles of regional redistribution and
basin, being one on the busiest port mutual exchange (Figure 4). Among
of Europe and in the world. Nonethe- them, RoRo traffic is of primary impor-
less, according to a regional perspec- tance. In this sense, it is not difficult to
tive there are other important ports imagine a scenario in which those ports
for the exchange of freight and pas- will exchange rail-port flows in a com-
sengers, such as Almería, Motril, Cart- petitive way, thanks to the interoper-
agena, Málaga, Melilla, Nador and ability of both railway infrastructure
Oran. Some of them are part of the and the interconnection with other
TEN-T Network and they will be a ports and urban nodes in Spain and in
competitive option for multimodal Maghreb. A study on the enhancement
transport (Almería and Motril). Those of logistics and multimodality in the Al-
on the southern shore of the Mediter- boran Sea would be very useful to fore-
ranean are already included in the see future synergies and to boost the
TMC. development of both corridors.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 187
countries and at the same level of Spain CETMO (tab.2) constitutes a good start-
(in terms of total annual tons). We be- ing point. At a financial level, attention
lieve that it is necessary to strengthen should be paid to European Multiannual
mutual trade relations, specifically multi- Framework 2021-27: the reactivation of
modal services, through a coopetition the Spain-Morocco cross-border coop-
approach: cooperate bilaterally to com- eration program could be a good op-
pete globally. It will be interesting to portunity to finance pilot projects.
focus on potential Spanish Moroccan Interesting initiatives have been funded
railway operation, sea-short shipping by the EU Program POCTEFA – Cross-
(Table 2) and on the removal of technical Border Cooperation Program between
and administrative obstacles. The study France, Spain and Andorra, like the
of bilateral trade relations prepared by TRAILS Project (Batlle, 2020).
Table 2. Main maritime relation between Med Corridor ports and Maghreb (import)
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 189
References
CGNT AFRICA (2019, July). Algeria ratifies BRI agreement with China, Re-
trieved from https://africa.cgtn.com/2019/07/10/algeria-ratifies-bri-agreement-
with-china/
MEDEIROS, E., FERREIRA, R., BOIJMANS, P., VERSCHELDE, N., SPISIAK, R.,
SKONIEZKI, P., ... & BERZI, M. (2021). Boosting cross-border regions through
better cross-border transport services. The European case. Case Studies on
Transport Policy.
OXFORD BUSINESS GROUP (2021, January). The Global Car Industry Is Finally
Set To Rebound. Retrieved from https://oilprice.com/Energy/Energy-
General/The-Global-Car-Industry-Is-Finally-Set-To-Rebound.html
Policy Study n. 5
Chapter 5
MARITIME
TRANSPORT
Maritime transport, and in particular container transport, has become an
essential link in global supply chains over the last decades. The direct impact
of the COVID-19 crisis during the first months of 2020 implied an adaptation
to the conditions imposed by the health emergency. However, the adaptation
to a “new normality” raises questions about the future organisation of
maritime transport and the functioning of ports. In addition, there are other
aspects prior to the outbreak of the health crisis to consider, such as the
effects of adaptation to climate change, the processes of vertical and
horizontal integration of the maritime industry in recent years or, the process
of digitalisation.
Port and shipping services handle more covered in the present article can be
than 80% of global trade volumes, and arranged into three groups.
this share is even higher for most de-
veloping countries. Despite the grow- • First, in Europe (from West to East),
ing eCommerce – in fact invigorated Portugal, Spain, France, Italy and
by it – the physical movement of goods Greece have national markets and
across oceans remains at the core of hinterland connections. The maritime
trade driven development. To participate services through which they are
in global value chains, Mediterranean connected to overseas suppliers and
countries depend on well-connected markets tend to serve a combination
ports and cost-effective shipping serv- of domestic demand, a wider
ices. hinterland, as well as transhipment
services in the case of Spain, Italy
Beyond being users of port and ship- and Greece.
ping services, Mediterranean coun-
tries also generate some income by • Second, Morocco, Malta and Egypt
providing services and hosting mari- have some national cargo volumes,
time businesses themselves. Some but above all benefit from their
countries of the region are important geographic position, providing
players in ship owning, registration, transshipment services in the global
and transshipment services. liner shipping network. Morocco and
Egypt are the two African countries
In recent years, the issue of climate with the highest liner shipping
change as emerged as major chal- connectivity. The third highest liner
lenge to those who use and provide shipping connectivity for African
maritime transport services. Mediter- countries is recorded in South Africa,
ranean countries need to adapt to the i.e. the three best connected countries
impacts of climate change, including are those in the geographical corners
rising sea levels and more frequent of the continent.
extreme weather events that affect
ports. As the industry moves towards • Third, Mauritania, Algeria, Tunisia
decarbonization, Mediterranean and Libya connect mostly through
countries also need to assess and RoRo and passenger services to
mitigate the potential effects that de- European countries. Algeria and
carbonization measures may have on Libya are also important exporters of
transport costs and connectivity. oil and thus receive a large number
of tankers.
In order to help countries, assess op-
tions for their maritime policies, this UNCTAD publishes a quarterly Liner
article looks at the maritime profiles, Shipping Connectivity Index (LSCI) on
port performance, and shipping con- the country- and port-levels. The
nectivity of 12 countries in Southern index is generated in collaboration
Europe and Northern Africa. and with data from MDS Transmodal
on the deployment of container ships.
Maritime Connectivity The underlying six components in-
clude hard data on the number of
In terms of their maritime transport ships, their container carrying capac-
connectivity, the twelve countries ity in TEU (Twenty foot Equivalent
196 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Units), their size, the number of com- ment. The index provides a useful in-
panies the number of services, and dication of each country’s and each
the number of countries or ports that port’s position in the global liner ship-
can be reached without transship- ping network.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 197
The highest total number of ships calls Everything else equal, it should actually
in 2019 among the 12 countries be expected that time in port would be
covered in this article were recorded in longer in those countries with more
Italy, with 233 081 arrivals, followed by container traffic, given that each ship
Greece (159 583) and Spain (142 773). has to load and unload more con-
Most of the ship calls in these three tainers. However, there is also a causal-
countries were passenger ships, includ- ity going in the opposite direction:
ing ferries and cruise ships. More efficient ports are more attractive
for shippers and carriers and, thus,
The lowest number of vessel calls shorter time in port is a positive indi-
were recorded in Mauritania (806), cator of a port’s efficiency and trade
Libya (2 772), Tunisia (4 068) and Al- competitiveness.
geria (6 188). In these Northern Afri-
can countries, a high share of the With limited gateway cargo, there are
vessel calls are general cargo dry fewer outside trucks causing conges-
break bulk carriers. These ships are tion in the yards, and with cargo arriv-
198 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
ing and departing in large batches, po- sumed by container operations, i.e.
tentially planned days ahead, tranship- the time between the first and last
ment ports have some fundamental container lifts, while the remaining
advantages. Last and not least, most are time may be due to pilotage, moor-
operated by global terminal operators, ing, possibly Customs formalities and
and many are set-up as cost centres or other operational or procedural re-
joint ventures with the ship operators. quirements. There exists a huge spread
in average port times, and this should
On average, 75-85 per cent of port be seen as an opportunity for improve-
call time of container ships is con- ment.
Table 2. Vessel arrivals and time spent in port, 2019. Examples of Algeria and Spain
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 199
Figure 2. Market shares from maritime country profiles, 2019. Examples of Italy
and Tunisia
Among the 12 countries covered in are the two markets most heavily af-
this chapter, Morocco (-26.5%), Spain fected by the pandemic. Mauritania is
(-24.8%), France (-22.1%) and Italy (-20.8%) the only country that recorded an in-
saw the largest decline in port calls crease in port calls in 2020, albeit
throughout the pandemic. These starting from the lowest base, and
countries also have a high share of benefitting from growing arrivals of
passenger and Ro/Ro traffic, which tankers.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 201
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 203
References
The statistical information included in the article is largely drawn from the
UNCTAD on-line statistics, available under http://stats.unctad.org/maritime.
The statistics are regularly updated as new information becomes available. The
underlying raw data comes from a wide range of national and international
sources, including Clarksons Research (https://sin.clarksons.net) for the fleet
data, MarineTraffic (https://www.marinetraffic.com) for the port calls and time
in port statistics, and MDS Transmodal (https://www.mdst.co.uk) for the con-
tainer ship fleet deployment liner shipping connectivity indices.
The maritime profiles for 230 economies are available on-line https://unctad-
stat.unctad.org/CountryProfile/MaritimeProfile/en-GB/012/index.html . They
are updated annually.
For further discussion of the performance indicators, country profiles, and the
impact of the covid-19 pandemic, see UNCTAD, Review of Maritime Transport
2020, Geneva: http://unctad.org/RMT.
Some Observations
on the Impact of COVID-19
on Shipping
Malta Maritime Forum
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 205
The problems created by the Covid pan- The recovery in Chinese exports during
demic to the carriage and distribution of the summer months was immediately
goods caught everyone including the counterbalanced by the drop in demand
major container carriers unaware and particularly in Europe as a result of lock-
necessitated the introduction of short down measures introduced in the vari-
term measures in order to safeguard ous European countries. Hence the
both the coherence of the logistical problem shifted from supply to demand
cycle as well as the financial sustainabil- but the net result was the same – less
ity of the carriers. The situation that seaborne cargo to be carried.
evolved between March and June saw a
plummeting of cargo volumes and an The effect of this situation, particularly in
unprecedented situation of port clo- the Mediterranean, reflected itself in a
sures (mainly in China) which left the car- drop of the volume of cargo handled,
riers grappling at situations never estimated in the region of 35% to 40%
experienced before and which needed which was mainly caused by the
immediate solutions. measures taken by the main line carriers
to cut down on the number of voyages
The economic downturn in China as a with the aim of reducing operating
result of the curtailment in manufac- costs.
turing and exportation had an im-
mediate effect on the amount of The effect of the blank sailings on con-
cargo available for export from Far tainer shipping was very well highlighted
East to the rest of the world. As early in the study commissioned by UNCTAD
as March, the UN had already pub- under the heading “Covid 19 and
lished a study wherein it estimated Maritime Transport Impact and Re-
that China’s reduced exports cost sponses”. The below graph repro-
other countries and their industries duced from this study shows the
over USD 50 billion. The regions impact of blank sailings on the port of
most effected in order of priority Marsaxlokk (Freeport) Malta, where
were the European Union, the United the weekly port calls in the first and
States, Japan, South Korea, Taiwan second quarters of 2020 dropped by
and Vietnam. 42% and 39% respectively.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 207
1
The ports managed by the National Ports Agency (ANP) moved 92.5 million tonnes of goods in
2020, 5.1% more than in 2019.
210 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
2
“Accelerating Digitalization: Critical Actions to Strengthen the Resilience of the Maritime Supply
Chain”, World Bank Group, IAPH and WPSP, December 2020.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 211
AIR TRANSPORT
Air transport has been one of the sectors most affected by the COVID-19
crisis, especially in terms of passenger transport. Airlines and airports
represent the first line of those affected, followed by all services and
businesses linked to tourist activity, among others. In addition to the direct
impact of the reduction in the number of flights, there is the loss of passenger
confidence, which does not augur well for a rapid recovery of the sector. All
of this is forcing airport managers and operators to reflect on the adoption of
new measures to achieve user safety and comfort.
But what far-reaching measures would facilitate the recovery of air transport?
Would the opening up of markets and the liberalisation of bilateral air
transport agreements be a measure to be taken into account for possible
recovery? In this respect, the Mediterranean region has several fronts open
to it. On the one hand, there are the possible Euro-Mediterranean air services
agreements. On the other, the Single African Air Transport Market (SAATM).
These processes must be based on the harmonisation of air transport
regulations, in order to achieve efficient implementation.
Air Transport in the
Post-COVID Era
Habib Mekki
General Director of Civil Aviation. Tunisia’s
Ministry of Transport and Logistics
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 215
With the overall severity and duration On this basis, the International Civil
of the COVID-19 pandemic still uncer- Aviation Organization published the
tain, four different recovery paths provisional results for 2020 compared
under two indicative scenarios have to 2019, which show a 49.5% reduc-
been developed: tion in seating capacity and a reduc-
tion of 2.69 billion passengers
• Baseline: counterfactual scenario in worldwide (i.e. a 60% reduction).
which the COVID-19 pandemic Moreover, air carriers recorded losses
never happened, i.e. as originally of 369.7 billion USD.
planned or business as usual.
• Scenario 1: two different paths According to the organization, this
(similar to Nike-swoosh- and W- downward trend is set to continue
shaped). throughout the first half of 2021, com-
• International pared to 2019 levels, with at least a
- Path 1: Smooth capacity re- 42.1% reduction in seats offered by air-
covery through rebound of lines, 1.1 billion fewer passengers (i.e. a
pent-up demand, but at a dim- 50% reduction) and revenue losses of up
inishing rate of growth. to 156 billion USD for airlines.
216 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Tunisia has not been spared the ef- session of a certificate that shows a
fects of this situation; air traffic to and negative RT-PCR test result and then
from Tunisian airports has been hit undergo a 14-day quarantine period,
hard, with a substantial drop in 2020 although there are some exceptions.
(compared to the same period in Nevertheless, even with this health
2019) of 75.5% for passenger traffic, protocol and all the precautionary
64.8% for aircraft movement and measures required of passengers, air-
14.4% for cargo tonnage. lines and airports, demand for air
transport cannot increase and keep
This decline is a natural consequence growing unless passenger confidence
of the suspension of commercial pas- is restored.
senger traffic to and from Tunisian air-
ports from mid-March until 27 June It is therefore essential to reassure
2020. During this period, traffic was passengers who are worried about
limited to repatriations, medical and catching the virus during air travel
humanitarian operations and cargo. and convince them that the risk of
being infected at the airport or on
Commercial traffic in Tunisia resumed on board the plane is minimal.
27 June 2020. The process was carried
out cautiously, gradually and, most im- In fact, airports are actually clean, safe
portantly, in accordance with a health places; all passengers must wear a
protocol that was developed by the mask at check-in, while boarding, dur-
Ministry of Transport and Logistics, in ing the flight and when disembarking.
coordination with the Ministry of Health, Physical distancing of at least 1 metre
and that took account of guidelines is- at check-in desks and while boarding
sued by the International Civil Aviation is mandatory. Temperature screening
Organization (ICAO) and the World is also mandatory before entering the
Health Organization (WHO) and the rec- terminal, and body temperature is
ommendations of the European Union checked again prior to boarding. Dis-
Aviation Safety Agency (EASA), the In- infection and cleaning are carried out
ternational Air Transport Association continuously and hydroalcoholic gel
(IATA) and Airports Council International dispensers are available everywhere.
(ACI).
Moreover, planes are very safe places
This protocol outlines a series of with respect to COVID-19 trans-
requirements and recommendations mission, given that mask wearing is
for airport operators, aircraft oper- compulsory, the cabin air is renewed
ators and other relevant stakeholders every two to three minutes and the
and stipulates that they must coor- cabin is equipped with HEPA particle
dinate their actions with the health filters, which absorb 99.9% of particles
authorities and local airport facilita- and are identical to those used in op-
tion committees with a view to erating theatres. This renewal ensures
achieving effective risk mitigation and that the air on board is healthy.
ensuring compliance with national
public health requirements. Insurance and precautionary measures
could be considered once a vaccine is
Currently, people who want to visit available. These could include making it
Tunisia by plane must be in pos- compulsory for passengers to have the
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 217
1
At airports between 1 and 10 million Air Traffic Units. For more complete information at airports
with different traffic levels, see Intervistas: “Economic Impact of European Airports”.
220 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
every 10% increase in connectivity was land gives us the fruit it can develop.
associated with an increase in GDP per We have to plough the land. Invest-
capita of 0.5%. Air transport is a clear ment in infrastructure, good and
catalyst for economic growth. But, al- price-competitive hotels, and high
though being extremely important, safety and security standards, are es-
not only the economy counts. Air sential to build a destination to which
transport also ties cultural bonds and passengers and tourists are willing to
brings understanding between re- travel. And, efficient airports, from
gions and societies, which is the foun- the operational and economic points
dation of a peaceful and sustainable of view for the airlines. All these infra-
development, with the direct effect structure and conditions combined
this has in the lives of their citizens. allow for the next step: to prepare the
Only with a proper and balanced pol- soil with mineral and nutrients.
icy that gradually opens the market,
we will seed the plants that eventually Once we have the land in the right
will allow us to harvest the fruit of a conditions, it is necessary to provide
developed and peaceful Mediterra- the adequate nutrients and to water
nean area. the soil. In the air transport sector, the
combination of nutrients and water
But, what are those seeds? Where can comes in the form of an open market.
we get them? What are the drivers for Open skies agreements allow airlines
growth and prosperity in our region in to properly develop their activity in a
a post COVID-19 era? Being from the healthy and sustainable manner. As
Mediterranean, I am sure that we all mentioned before, the policy the
feel familiar with the basic ingredients European Union fosters in its Com-
of our ancient agricultural tradition. mon Aviation Area, allows for market
Wheat, grapevine, olives. Allow me to opening and regulatory convergence,
use this metaphor to describe how we which gives confidence to airlines to
can use the air transport sector to de- explore and develop new routes.
velop our land. New routes that allow passengers to
fly and discover destinations, with the
First, we need a fertile land. In our correspondent benefit for the regions
sector, a fertile land means an attract- they visit.
ive destination. No one doubts that
the Mediterranean, from Greece or With our fertile land, the seeds prop-
Turkey to Spain, from Croatia or Al- erly planted, and the nutrients and
bania to Morocco or Egypt, and in- water of an open market, we will be
cluding all the rest of the countries in ready to collect the results of the har-
the region, is a privileged one. Mild vest and to take them to the market-
weather, amazing cultural sites that place.
show the birth of human civilization,
and a rich gastronomy, are the essen- As in any marketplace, in the air trans-
tial elements of a highly attractive port sector, you have to sell your
destination. We do not only have an product. Airports and destinations
extremely fertile land, but also the play a key role in “selling the destina-
right seeds ready to be planted. tion” to airlines and tour operators.
However, we have work to do. We The best way to do it is by joining ef-
cannot just sit and wait that this fertile forts and coordinating messages. Air-
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 221
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 223
convinced that this figure can grow There is nothing more common and
significantly with the positive results closer to us in the Mediterranean than
it means for the jobs and economies, bread, wine and olive oil. Let us work to-
and therefore for the people, of the gether as if we were farmers to be able
whole Mediterranean area. to collect the harvest our land offers.
COVID-19, An Opportunity
for African Airports to
Embrace Technology
and Innovation
Ali Tounsi
Secretary General, Airports Council
International (ACI) Africa
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 225
months, it will be even more important The need for systems and processes
for airports to listen, understand, and re- at airports to cope with the new chal-
spond to the changing needs and ex- lenges posed by the COVID-19 crisis
pectations of the travelling public. in the facilitation of passengers and
Indeed, passengers will naturally ex- handling of cargo and baggage is evi-
pect to be able to clear airport formal- dent. Based on the lessons learnt
ities such as security, customs and from this crisis and in a bid to improv-
immigration swiftly, avoiding crowds ing its business continuity resilience at
and long queues, and to have more all levels, the industry is determined
choices about how they will interact to take the lead in many areas aimed
with airlines, airports and border con- at addressing public health-related is-
trol authorities. This new travel mindset sues, managing queues and crowds,
was already an expectation of the cur- and optimizing use of resources by
rent generation of travellers, but it is adopting automation and advanced
likely that this change will be acceler- technologies, facilitating data ex-
ated now with the COVID-19 pandemic. change and embracing digital sol-
Addressing and tracking the new drivers utions such as biometric recognition
of satisfaction in the redesign or new de- technology.
sign of the passenger journey through
airports will be the key to confidently re- There are numbers of areas where
assuring passengers about the safety of significant opportunities exist within
air travel. the control of national authorities to
foster the introduction of technology
Technology and and innovation, such as enabling
faster clearance of passengers by
Innovation to Play a border control agencies, promoting
Centre Stage in Boosting adoption of automated and electronic
processing by customs, and simplify-
Passenger Confidence ing inspection points throughout the
passenger journey at airports. In a
The impact of the COVID-19 pandemic nutshell, this crisis must actually be re-
on air travel certainly presents airports garded as the catalyst for change to
with a lot of challenges and complexities swiftly embrace technology and inno-
but also with a unique opportunity to vation in passenger processing in the
think strategically and adopt a system- airport industry, and review and
atic approach to understanding, evalu- adapt all the national regulatory
ating and adapting to the changing frameworks needed to support the
expectations of passengers for a safe, change.
secure and hygienic air travel experi-
ence. Growing Appeal for
Technology and automation is bound Touchless and Remote
to play a crucial role and artificial intel- Processes
ligence will offer an ideal platform to
automate tasks and increase efficiency The current crisis has highlighted the
while improving safety and security need for greater use of mobile and
and ensuring lower margin of errors, if automated solutions, including touch-
implemented correctly. less self-service and biometrics, and
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 227
Nevertheless, over the last years, a now will bring significant return on in-
few countries in Africa, such as South vestment in the long term. Innovation
Africa, Morocco and Ghana, have does not have to mean expensive
started to introduce technology to technology as better use of data for
improve the overall passenger experi- efficient operations, and a move to
ence, mainly with self-service and cloud-based computing may be low-
automated processes. Lanseria Inter- hanging fruit to save costs in the short
national Airport in South Africa is so and long term. For instance, during
far the only airport on the continent the COVID-19 pandemic, the cargo
with self-bag drop facilities. The room industry has demonstrated this flex-
for self-service and automation ible approach and resilience when
growth is huge on the continent, and substantial capacity constraints re-
with the COVID-19 pandemic, there is sulted from the imposed passenger
an opportunity for all African airports, travel restrictions. A harmonized ap-
irrespective of size, to embrace this proach to modify processes, e.g.
technology as it will gradually and loading cargo on aircraft and moving
confidently help to embark on the to paperless operations, overcame
contactless passenger journey experi- some significant challenges in ex-
ence. Addis Ababa Bole International ceedingly short time scales. The same
Airport of Ethiopia has clearly under- approach should now be used in
stood this vision and is currently inte- other areas of airport operations.
grating this technology at its new
airport. The Future of Air Travel
as Envisioned by the
Financial Implications
NEXTT Initiative
Versus Long Term
Investment New Experience Travel Technologies
(NEXTT) is a joint initiative of Airports
It is important that in the process of Council International (ACI) and Inter-
introducing a contactless experience national Air Transport Association
at airports, the entire journey must be (IATA). NEXTT encapsulates the
redesigned to identify all the touch- shared vision of both associations for
points that can be made contactless the future of travel encompassing the
and this can be achieved through a complete journey from home to end
journey mapping exercise taking into destination by focusing on three con-
consideration the different passenger cepts for passengers, baggage, cargo
profiles, setting clear objectives and and aircraft operations, namely: (i) off-
goals, and matching the technology airport activities, (ii) advanced pro-
that will fit each and every process. It cessing technology such as robotics
is important to bear in mind that and biometrics, and (iii) interactive
there is no “one size fits all”. There is decision-making (NEXTT, 2020).
always a solution that fits every
budget and every process. The NEXTT vision used to remain a
long-term focus on the future of
Finance will indeed be an issue in the travel for many airports, with its im-
current testing times for the airport plementation considered in a phased
industry, but solutions implemented manner. However, with the COVID-19
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 229
data sources. Airports would experi- ciency for airports and airlines remain
ence enhanced understanding of the key drivers of innovation and technol-
needs of their passengers because of ogy.
the collaboration offered with open Ap-
plication Programming Interface (API) Around the world, technology,
platforms. On the other hand, tracking through contactless solutions, self-
technologies and situational awareness service and automated processes,
would increase the reactivity of passen- and biometrics, is gradually taking the
gers to changes made during their travel centre stage in helping both airports
journey. and airlines overcome the challenges
of the new reality of air travel. While
During the current crisis and in a post- the global crisis has placed air trans-
COVID-19 world, the need for accurate, port industry growth ambitions on
relevant and up-to-date information on hold, it has also presented an oppor-
travel requirements and authorizations, tunity for meaningful innovation and
especially with respect to health proto- transformation to be accelerated, a
cols, has all its pertinence for passen- sure investment for the future.
gers. For airports, advanced information
on passengers and on their specific In the current context, where the
needs will also become key in anticipat- COVID-19 pandemic has impacted
ing potential issues and adjusting the heavily on air travel, passenger trust
processes and resources allocation to and airport operations, the concepts,
enable a pleasant and seamless passen- on which NEXTT rest, are certainly the
ger journey experience through the air- way forward to achieving the para-
port. Solutions, such as mobile apps and digm shift in the passenger journey
exchange of data through APIs, will be experience.
critical to enable passengers to navigate
through their journeys. For African airports, the time is op-
portune to confidently embrace tech-
The Way Forward nology and innovation so as to
improve, once for all, on the effi-
Although short-term growth projec- ciency of processes at all levels whilst
tions have dramatically changed, the guaranteeing passengers with a safe,
need to provide immediate solutions secure, healthy and harmonised air
required to mitigate COVID-19 risks travel experience within and out of
when travelling, and to improve effi- Africa.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 231
References
ACI (2020). ASQ 2020 Global Traveller Survey. COVID-19: Understanding Fu-
ture Behaviours for a Successful Recovery. ACI. Retrieved from
https://store.aci.aero/product/asq-2020-global-traveller-survey/
ICAO (2020). CART - Council Aviation Recovery Task Force Report. ICAO.
Retrieved from https://www.icao.int/covid/cart/Pages/CART-Report—-Rec-
ommendations.aspx
A Broad Harmonisation of
Regulations is the
Indispensable Corollary of a
Sustainable Liberalisation of
Air Transport
Olivier Meynot
Head of missions at the Directorate
General of Civil Aviation in France -
European Air Transport Agreements
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 233
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 235
competition is fair, the rules are the countries of the Western Mediterranean
same for everyone, and the services are need not go this far, since the ECAA
ever more efficient. agreement forms part of the process to
gradually integrate the countries of the
The liberalization of air transport within Western Balkans into the European
the European Union has resulted in in- Union and reflects their commitment to
creased connectivity, diversification of fully embrace the European acquis.
supply, lower fares and, therefore, in-
creased traffic. There are now four times Drawing on this Gradual,
more routes (or pairs of cities served)
than in 1992, when the liberalization pro- Comprehensive Approach
cess began, and eight times more routes to Build the “Single
on which at least three carriers compete,
all for the benefit of air transport users
Aviation Market for the
(source: European Commission). Western Mediterranean”
The European Union’s single aviation The creation of a single aviation market
market has been extended to the six for the Western Mediterranean should be
countries of the Western Balkans (Al- based on these same principles: a grad-
bania, Bosnia and Herzegovina, Kosovo, ual opening up of markets linked to a cer-
North Macedonia, Montenegro and Ser- tain degree of harmonization of the rules
bia) through an agreement to create a applicable to air transport. This construc-
European Common Aviation Area tion could be considered a gradual pro-
(ECAA) that was signed in 2006. As well cess, the first step of which would involve
as the 27 EU member states and the six the execution of Euro-Mediterranean-
Western Balkan states, this area also en- style agreements relating to air services
compasses Iceland and Norway. These between each of the Maghreb countries
35 states will eventually share the same and the European Union; at the same
air transport rules in a space where air- time, the Maghreb countries could work
lines holding a carrier licence issued by together to open up their markets in the
one of the states can operate freely. spirit of the Yamoussoukro Decision
However, integration of the Western (1999) and within the more general
Balkans into the single airspace is a framework of the creation of the Single
gradual and conditional process; the African Air Transport Market.
agreement provides for two meetings to
transpose its provisions into national law With respect to north-south
and ensure that the countries of the Bal- relations
kans implement a predefined list of
European standards, as set out in the The European Union has already em-
agreement. At each stage, new rights barked on the journey to open up its avi-
are granted to air carriers. The number ation market to some Maghreb
of routes between the European Union countries as part of its external air trans-
and the countries of the Western Bal- port policy dedicated to neighbouring
kans trebled between 2006 and 2018 countries. This policy concerns Algeria,
(source: European Commission). Libya, Morocco and Tunisia.
pean Community and its Member that of the agreement with Morocco,
States, of the one part and the Kingdom namely an opening up of markets based
of Morocco of the other part” sets out on a certain degree of harmonization of
the conditions for the operation of com- the rules applicable to air transport. Ar-
mercial air services between the King- rangements have been made to ensure
dom of Morocco and the 27 countries of a smooth transition between the current
the European Union. Air services are al- situation and the full opening up of the
ready largely open, and Moroccan and market between Tunisia and the Euro-
European air carriers are permitted to pean Union with a view to supporting
operate unlimited services between any the efforts of Tunisian air carriers to
airport in the Kingdom and any airport in adapt to this new situation.
the European Union. This opening up of
markets is accompanied by a process of Since 2008, the European Commission
regulatory harmonization in several areas has also had a negotiation mandate for
of air transport, albeit not to the extent Algeria; in other words, an authorization
provided for by the ECAA agreement. issued by the Council of the European
Ultimately, when the joint committee, Union and EU member states to open
the body responsible for managing the negotiations with Algeria on a European
agreement, confirms Morocco’s imple- air transport agreement. It is therefore
mentation of all air transport regulations possible that negotiations between Al-
provided for by the treaty, air carriers will geria and the European Union will be
benefit from additional opportunities launched on the basis of an agreement
(i.e. certain fifth-freedom rights, es- that sets forth the same principles as the
pecially within the European Union for two preceding agreements once the two
Moroccan carriers). parties are ready to do so.
Since this agreement with Morocco was With respect to the other two Maghreb
implemented in late 2006, the number countries, i.e. Libya, which has observer
of city pairs served has doubled (there status within the Union for the Mediter-
were 198 different connections between ranean and is involved in the European
Morocco and the European Union in Union’s neighbourhood policy, and
2018), the average fare has fallen by Mauritania, which is not included in this
more than 60% and the number of pas- policy, relations with the European Union
sengers has doubled (15 million in 2018) in the field of air transport remain to be
(source: European Commission). defined, especially since the intensity of
traffic between these two states and EU
A similar agreement between Tunisia member states remains marginal.
and the European Union, the text of
which was initialled in November 2017, The figures below provide more insight
should finally be implemented in 2021 into the priorities and effects of the
after a delay caused by legal problems European Union’s aviation policy to-
within the European Union. The philos- wards its neighbours in the Eastern
ophy of this agreement is in keeping with Mediterranean (sources: Eurostat):
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 237
The economies of Morocco and Tunisia for Morocco, given that existing bilateral
are highly dependent on tourism, and agreements generally do not allow
the rise in passenger numbers between European low-cost carriers to operate
the former and the five European coun- from a member state other than the one
tries within the Western Mediterranean that issued them with a carrier licence.
is being fuelled by the benefits of the The forthcoming signing of the air
European agreement, which allows all agreement between Tunisia and the
Moroccan and European carriers, es- European Union will make it possible to
pecially low-cost airlines, to operate all observe the effects of liberalization on
possible routes between the airports of passenger flows. Finally, in the case of
Morocco and those of the European Algeria, certain bilateral agreements re-
Union. It is important to note the reper- tain limitations and restrictive conditions
cussions of the events of 2015 on tourist on the level of access to the market,
traffic in the two countries. With regard which is likely playing a role in the stag-
to Tunisia more specifically, the flow of nation of traffic and the maintenance of
passengers is rising less drastically than fares deemed excessively high.
Given current air traffic levels between ual liberalization of scheduled and non-
Libya and Mauritania and the European scheduled intra-Africa air transport ser-
Union, the relationship between them in vices. This Decision has precedence
the field of air transport has yet to be over any multilateral or bilateral agree-
defined. ments on air services between State
Parties which are incompatible with
With respect to relations this Decision.”
between the Maghreb
Besides the gradual liberalization of ser-
countries vices (the first five freedoms of the air),
without limitation in terms of capacity or
The Yamoussoukro Decision of Novem- frequency, the key features of a single
ber 1999 begins with these words: market, the Decision also includes a no-
table addition, i.e. the possibility of
“We, African Ministers in charge of civil states to designate an airline from
aviation meeting in Yamoussoukro, another state party to the Yamous-
Côte d’Ivoire on 13 and 14 November soukro Decision.
1999, (...) hereby adopt this decision
(...): In 2018, two essential annexes were
This Decision establishes the arrange- added: Annex 5 on Regulations on
ment among State Parties for the grad- Competition in Air Transport Services
238 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
within Africa and Annex 6 on Regula- field of aviation safety and security, es-
tions on the Protection of Consumers of pecially when states avail themselves of
Air Transport Services. This is surely the option to designate air carriers
proof that a single market cannot be whose regulatory oversight in these
viewed from a liberalization viewpoint fields is guaranteed by another state.
alone, and that the convergence or,
better still, harmonization, of certain In addition, the increased flow involves
rules is essential to guarantee that it the risk of saturating the airspace and air
functions properly. traffic control bodies. The search for
greater efficiency in this area, especially
The official launch of the Single African in terms of the economy and environ-
Air Transport Market in January 2018 ment (e.g. reduction of greenhouse gas
placed the Yamoussoukro Decision in emissions), should result in ever stronger
the context of Agenda 2063 and revived cooperation, one of the advanced
a liberalization process that was initiated stages of which could be the establish-
20 years earlier. Thirty-four African ment of so-called functional airspace
states, including Morocco, have already blocks (FABs), based on the European
made “solemn commitments” to the Union’s model. These functional air-
SAATM, and 18 states have already space blocks are designed to address
signed the Implementation Protocol the fragmentation of airspace and or-
aimed at ensuring coherence between ganize airspace according to flows
the Yamoussoukro Decision and their bi- rather than national borders. Such coop-
lateral air service agreements (source: eration levels between countries, or be-
website of the African Civil Aviation tween air traffic control services, can be
Commission). conceived only on the basis of highly or
even fully harmonized regulations.
In the foreword to the 2018 edition of
the Yamoussoukro Decision (Single Afri- It should be noted that cooperation in
can Air Transport Market - Towards a the field of air navigation already ex-
Single African Sky), Moussa Faki Maha- tends across the Mediterranean, as re-
mat, Chairperson of the African Union flected in the partnerships established
Commission, said that air transport lib- between the BLUE MED FAB (the Medi-
eralization in Africa would lead to terranean functional airspace blocks that
greater connectivity, a “massive reduc- links Cyprus, Greece, Italy and Malta)
tion in air ticket prices” and growth in and the air navigation service providers
intra-African traffic in terms of passen- of Egypt and Tunisia, which participate
gers and freight, which would improve as “associated partners”, as well as the
the profitability of African airlines. These Hashemite Kingdom of Jordan, which
remarks are supported in particular by a enjoys observer status.
study by InterVista titled “Transforming
Intra-African Air Connectivity: The Econ- The first building blocks of air transport
omic Benefits of Implementing the Ya- liberalization between the countries of
moussoukro Decision”. the Western Mediterranean have been
laid; the next steps should take shape as
The effective implementation of liberal- the SAATM progresses.
ization is likely to reveal a broader need
for regulatory harmonization. This need All of these building blocks (European
should quickly become evident in the agreements with certain Maghreb coun-
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 239
URBAN TRANSPORT
The lockdown measures applied to reduce the spread of COVID-19 had a
clear impact on urban mobility, in some cases leading to a reduction of an
estimated 90% of journeys. On the one hand, the experience of how it could
be to live in cities with low pollutant emissions was presented. However, on
the other, there was a drop in confidence in the use of public transport, one
of the primary means of achieving the medium and long-term low-emission
target scenario.
Freedom from the Car As One of the meanings of “smart and sus-
the Ultimate Goal of tainable mobility” translates into the
concept of Mobility as a Service
Urban Transport (MasS). Like so many corporate
buzzwords, its meaning is also not en-
We are all familiar with the history of ur- tirely clear. Most often, it is used in
banization in the last two centuries, connection with ride-sharing, car-
mainly in Europe and North America, pooling, e-bike or e-scooter-sharing
spreading in the last 50 years to the rest mobile applications. Also like many
of the world. Of course, each city has its corporate buzzwords, all players in
own history, but it is fairly easy to ident- the sector suddenly feel like they
ify long term continental and worldwide need to adopt it if they are to remain
trends. at the forefront of innovation. The
truth is that most solutions that adopt
The overarching trend in urban transport the MaaS label are individual mobility
since the 1950’s has, undoubtedly, been solutions, even if, at the end of the
motorization. From America, to Europe, day, ridesharing and car-pooling are
to Asia and Africa, some sooner some simply glorified taxi services.
later, all large metropolises cope with
congestion, scarcity of parking and pol- There are, of course, positive examples
lution caused by car traffic. Even cities and true useful innovation. Bike-sharing
with old, large and developed public services are a good example, as they
transport networks, the increase in mo- help overcome an important barrier to
torization coincided with a long pause in initial adoption of the bicycle as a mode
the expansion of transit networks, at the of transport. These services help to
same time new express ways were being bring more people to cycling.
built.
The “sustainable” part usually refers to
More recently, the dominating trend in electrification or, more generally, energy
the discourse has been around the con- transition in transport. Combustion en-
cept of “smart and sustainable mobil- gines in cars and buses are gradually
ity”, exemplified by the recently being exchanged for batteries and elec-
published European Commission Sus- tric motors. It is still not clear if hydrogen
tainable and Smart Mobility Strategy can overcome its technical limitations
[EC 2020]. It is often completed with and become widespread.
other adjectives such as connected,
shared and digital. However, we must bear in mind that
electric cars are not environmentally
The exact meaning of smart and sus- neutral. In fact, there are no environ-
tainable mobility is not entirely clear, mentally neutral solutions, there are only
and it does not necessarily help when better and worse solutions, from an en-
other adjectives are added, like “con- vironmental point of view. An electric car
nected”, “shared” or “digital”. It is still needs energy, and needs batteries
also likely that different stakeholders to store that energy, that needs to be
interpret them differently. This be- produced somewhere. A railway takes
comes clear when almost all transport up space, needs earthworks, tunnels
solutions assign themselves several or all and viaducts, it needs large quantities of
these adjectives. concrete and steel.
244 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
The overall point is that simply shifting As restrictions have been eased and
from combustion to electric engines will reintroduced, people seem to grad-
only help solve the problems with pollu- ually revert to their previous commute
tion and greenhouse gas emissions. habits. Of course, we must also ac-
Shifting from privately own cars to count for the impact of the drastic re-
shared cars, whatever their power duction in tourism that is likely to last
source, will only partially reduce the de- for several years. The combined ef-
mand for parking, while its effects on fects of regular and occasional pas-
congestion may even be negative. sengers have been asymmetric in
different cities.
Generally speaking, individual moto-
rized transport is almost always worse The data collected by both Apple and
than either collective or individual active Google from their respective mobile
mobility. There will always be excep- mapping platforms has been made
tions, but this is true for the vast majority available in mobility reports that yield
of cases, most certainly in cities. some interesting results [Apple 2020,
Google 2020]. Although these data-
The Need to Regain Trust sets have limitations, they provide us,
at least, a proxy for the tendencies in
The COVID-19 pandemic, the lock- transport usage throughout the year
downs and the need for social distanc- 2020. The data provided by Apple ac-
ing had a devastating impact on all tually allows us to compare the re-
collective transport systems. In a matter quests for itineraries by car, on foot
of days, streets became empty, while and public transport and compare
buses and trains became emptier, but their evolutions.
not completely empty.
Taking, for example, the data from three
Even if urban transport systems al- European capitals, Paris, London and
ways have a significant portion of di- Madrid, we can see that, while in Paris
rect public funding, ticketing revenue public transport usage recovered faster
is still an indispensable part of their than car usage, in London and Madrid it
operating budgets. The situation was the other way around. A good ex-
combined a sudden fall in ridership planation for this difference would
with the need to keep most services require a detailed study of the different
in operation to transport essential factors, like the importance of tourism,
workers, while attempting to keep so- policies during the lockdown or the ex-
cial distancing. This led us to realize tent and duration of the lockdowns
that there are large amounts of themselves.
workers that cannot work remotely,
especially, among what we now know The immediate take from these re-
as “essential workers”, as trains and sults, shown in Figure 1, is that we
buses were still transporting too many should not take the loss in public
people to allow for the recommended transport as definite. Once the re-
social distancing. On the other hand, strictions are eased, people tend to
we intuitively perceive that some come back to their normal lives quite
people became afraid of using collec- quickly. Even when restrictions remain
tive transport and returned to their in place, fatigue leads to a slow rever-
cars for their commute. sion to the mean.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 245
Figure 1. Mobility trends from Apple Maps application usage in Paris (top left),
Madrid (top right) and London (bottom). Red lines are for car, orange for on foot
and blue for public transport.
However, being an important milestone others, but we will most likely arrive in a
in people’s lives, and indeed causing un- few months or a couple of years with
expected changes like unemployment more or less the same problems de-
or new employment for significant manding the same solutions.
numbers of people, there is an oppor-
tunity to lead people to change their ha- Ephemeral and
bits and adopt public transport as their
transport of choice. While it is not poss- Lasting Effects
ible to build new transit lines in a matter
of months, it is possible, for example, to Many cities have used the empty streets
reduce fares. As has been shown in Por- during the lockdown as an opportunity
tugal in 2019, a fare reduction has the to redistribute public space, in what has
ability to immediately cause a measur- become known as tactical urbanism. For
able shift in public transport usage. the most part, this has materialised in
the establishment of pop-up bike lanes
It is still unclear how long it will take for and other means for reserving public
people to fully regain trust in collective space for future deeper interventions.
transport, but all indications lead to a
fairly quick return to a previous normal, Some of these initiatives have faced the
despite all the talk about a new normal. usual resistance when new bike lanes
It may take longer in some places than taking up space that was previously de-
246 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
voted to car circulation or parking face. The second way that technology is
Others have already been removed, brought into the debate about trans-
such as the one in High Street Kensing- port is when entirely new solutions are
ton, London. The dispute for public promoted to tackle the challenges of
space is ongoing and has not paused mobility. These technologies come in
during the lockdowns. different stages of maturity but almost
always with soaring promises to revol-
One the other hand, the sudden clo- utionize mobility. Examples of such are
sure of most businesses caused a HyperLoop, autonomous cars, flying
sudden shift to remote work. This is cars or autonomous flying cars, the
another aspect that has been lauded latter being dubbed as drones.
as part of a new normal. Indeed, this
is not a new trend, but it is limited to Arguably, this kind of proposals can
some specific kinds of jobs, mostly, mislead for policy makers, by shifting
qualified office jobs. A vast portion of their attention from readily available
workers, now called essential, that solution in favour of a promise of a
cannot work from home. These much better “revolutionary” concept,
workers also have a high correlation usually promised for only a few years in
with lower incomes. the future. The problem is that the
promises, often, don’t survive a de-
It is very tempting to assume long- tailed scrutiny and, when they are feas-
lasting trends from short-term effects, ible, might be decades in the future,
but it can be misleading. If it seems like HyperLoop or only affordable for
that tactical urbanism will be success- elites, like flying cars.
ful in cities that can take swift action
to make the changes permanent, it Of course, technology is far from irrel-
remains to be seen how much remote evant, but the solution must fit the
work will remain. problem and not the other way
around. As mentioned above, the key
challenge of urban mobility today is
Technology Is Not the Key modal shift away from individual moto-
rized transport. The key transport tech-
There are two main ways in which tech- nologies needed for this are,
nology comes into the debate about essentially, the ones that have been
transport. available for over a century: trains,
trams, buses and bicycles. Of course,
The first and most common one is the being old, they all have had over a cen-
talk about digitalization. Digitalization tury of incremental improvement, lead-
will not bring about any major change ing to new approaches to those same
by itself, but it may help the transition. technologies like tram-train or Bus
One example is the already men- Rapid Transit (BRT).
tioned bike-sharing services. In collec-
tive transport, digital technologies The layer of digital technologies and ap-
enable integrated ticketing and jour- plications allows to make these systems
ney planning. However, no digital and networks easier to operate and to
platform can move thousands of use, and that is their key goal, but they
people without adequate infrastruc- do not replace the investment in infra-
ture and rolling stock. structure and equipment.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 247
City Design Is the Key a more attractive option, and local com-
merce increase their movement. In the
One key difference between urban end, a dull and dangerous avenue can
transport planning nowadays and the be turned into a lively neighbourhood
first half of the twentieth century is the plaza.
central role that urban planning and
public space architecture have taken in The role of the neighbourhood should
the planning of the transport networks also be highlighted here. The concept
themselves. of a “15-minute neighbourhood”,
where all essential services are within
In the late nineteenth and early twen- reach for every resident without the
tieth centuries, major cities embarked use of a car, has seen widespread
on the construction of transit networks adoption in academic and planning
that tried move people while trying to communities. There are good
avoid the congestion on the surface. examples of entirely need neighbour-
This was the golden age of underground hoods built under this principle, but it
and elevated urban rail networks. Al- is more difficult and certainly slower to
though some fast-growing cities in transform an existing part of a city into
China have built huge underground net- such a neighbourhood. Many cities al-
works in the last few decades, the trend ready went through a decades long
across the world has been to move to- process of urban sprawl with vast resi-
wards the coexistence of transit net- dential areas built around the car.
works on the surface, making them These situations present a great chal-
more effective and efficient. lenge. Still, the redistribution of public
space is an indispensable part of it, and
The vast majority of non-built-up areas often one of the first steps.
in any major city is devoted to the auto-
mobile, either for circulation or parking. This is why the shift towards a transit-
Some cities in North America took this oriented development is the only
car dominance of the public space to ex- change that can bring about a truly deci-
tremes, with vast parking lots and wide sive modal shift in urban transport. A city
avenues and expressways cutting made up of multiple neighbourhoods,
through the centres of major cities. crossed by public transport lines that
connect to other neighbourhoods.
Public space is a scarce resource in
cities. For that reason, it is a matter of
social equity, before all, to ensure its ad-
Railway Stations
equate distribution. It is inevitable that As Central Hubs
space for cars needs to be reduced in
order to provide more space for walk- The transit neighbourhood principle ex-
ing, cycling, for public transit or even just plores in the previous section can be
to stay. Despite frequent resistance from adapted to a larger scale when we are
residents and local businesses, it has talking about larger cities that have large
been shown time and again that this and very dense centres. Also, when con-
kind of intervention in city streets leads sidering a territory with multiple cities of
to positive results for all concerned: different sizes, the urban transit system
public space becomes more pleasant, of each one of them needs to connect
public transport works better, becoming to the intercity transport network. The
248 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
sustainable mode of transport for inter- These two projects serve just as
city travel is, unquestionably, the rail- examples to illustrate their common as-
ways. pects. In their function as transport hubs,
they concentrate all modes and scales of
This is why, in many cities across the transport, from intercity trains to local
world, great railway stations are reas- trains, to urban mass transit, to bike
serting their role as central hubs, not parking and sharing. In their other func-
only of mobility, but of public life. tion as hubs of public life, they offer large
and beautiful in-door and out-spaces, in-
In New York City, the demolition of Penn cluding shops, restaurants and gardens.
Station in the 1960’s has been re-
garded as one of the largest acts of The overarching theme of this article
public vandalism in history. An effort to has been to show how we already
make it right is underway, along with have the key problems identified and
the expansion of the station itself, mak- the required solutions. In the world,
ing it ready to handle 900 000 passen- and indeed in the Western Mediterra-
gers every day. On the first day of nean region, countries and cities ad-
2021, a new Train Hall has been vance at different paces, but there
opened, partially recovering the past should be no shame in copying the
grandeur of this historic station [MTH good examples next-door and learn-
2020]. ing from others’ mistakes. It is im-
possible to know if, a few decades
In Paris, Gare du Nord, the busiest rail from now, we will be able to look at
station in Europe is also going the years 2020 and 2021 as a turning
through a major renovation and ex- point in urban transport. Let us, at the
pansion, along with the public space very least, not reverse the positive
surrounding it [StatioNord 2021]. trends that are already underway.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 249
References
We are facing a global pandemic that is Worldwide, over 13 million local jobs are
profoundly deepening inequalities and linked to public transport services. For
undoing progress on the Sustainable De- every direct job in public transport, 2.5
velopment Goals (SDGs). At the same additional jobs exist in the supply chain
time, we continue to face many global and the local economy. A recent study
challenges with irreversible impacts for carried by United Nations and the Inter-
people. In the responses to these inter- national Labour Organization (ILO) sug-
connected crises, we cannot afford to gests that employment opportunities
tackle just one or the other. Indeed, cli- would indeed be opened up by the pro-
mate, health, social inclusion, road safety motion of green and healthy transport.
and the economy are all under attack Stimulating the use of public transport
and public transport, driven by innova- by doubling investment could create at
tion and service quality, is a vital part of least 2.5 million additional jobs in the
the solution. transport sector worldwide. This in-
252 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
creases to at least 5 million jobs if the dioxide (NO2) concentrations can rapidly
wider impact on other sectors of the be reduced by up to a third. While in the
economy is considered. current crisis, several cities have decided
to suspend existing car use and parking
Public transport brings people together restriction policies or delay new ones to
and equal opportunities to all citizens, as help healthcare workers and essential
the accessible and affordable option to deliveries, it is vital that these proven in-
ensure access to public services. It plays struments for cleaner air be fully reacti-
a crucial role in local development, offer- vated as soon as possible. The main risk
ing mobility to all and maintaining terri- for catching COVID-19 is undoubtedly
torial and social cohesion, leaving no one contact with an infected person, and
and no place behind after the crisis. healthcare quality is vital in determining
outcomes. However, studies show that
According to the World Health Organi- air pollution could matter in several
zation (WHO), seven million premature ways. For example, higher death rates
deaths are due to air pollution. It ac- due to lungs and hearts weakened by
counts for one-third of deaths from the dirty air. Pollutants also inflame the lungs,
leading non-communicable diseases making inhabitants more susceptible to
(stroke, lung cancer, heart attacks and the virus. This raises concerns about ris-
chronic obstructive pulmonary disease). ing pollution levels after lockdowns.
Over 90% of the world’s population live
in areas where air pollution exceeds safe If we are to limit the rise in global tem-
levels. There must therefore be no ‘back perature to 1.5°C as per the Paris Agree-
to normal’ where it is dangerous just to ment, we must cut global emissions by
breathe. 7.6% every year for the next decade. As
outlined in the UITP Declaration on Cli-
According to the European Environment mate Leadership, this requires more am-
Agency, public transport is four times bitious national commitments and
more efficient per pax-km than private tougher targets to reach carbon neutral-
cars. Every kilometer travelled on public ity by 2050. Non-state actors like the
transport saves 95 grams of GHG emis- public transport sector have shown in-
sions and 19 grams of NOx compared to creased determination and commitment
motorized private transport. to achieving a low-emissions future and
harnessing related opportunities. The
Investing in health prevention by reduc- fastest and most cost-efficient way to de-
ing air pollution would bring down the carbonize people’s daily mobility and re-
cost of treating non- communicable dis- duce the footprint of their mobility
eases in the 21st century. A significant choices is to promote public transport,
part of the health solution would involve walking, and cycling.
equipping cities and their inhabitants
with integrated public transport, reduc- Road traffic injuries are the 10th leading
ing risks from traffic injuries, obesity, air cause of death globally, responsible for
pollution and noise. Those would benefit more than 1.2 million deaths per year.
all and reduce the social inequalities in 90% of these casualties happen in devel-
front of these hazards. oping countries. Around 50 million
people are also injured on the world’s
Decreased traffic resulting from the lock- roads every year, costing governments
down in many cities shows that nitrogen up to 3% of GDP. The number of road
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 253
traffic deaths continues to climb steadily city strategy they also represent new op-
and the rate of death relative to the size portunities to enrich the mobility op-
of the world’s population has remained tions and facilitate a car free lifestyle.
constant, meaning we are way off deliv- Cooperation, partnerships and dia-
ering on the goal set by SDG 3.6 to halve logue are key to enable a redefined
the number of global deaths and injuries public transport system, integrating
from road traffic accidents. Public trans- these new complementary services
port has a critical role to play as access with mass public transport in an effi-
to a safe and sustainable urban transport cient and sustainable way. In the
system for all, which includes expanding context of Mobility as a Service
public transport, is a recognized solution (MaaS), no shared or collective mode
to achieve this objective. of transport should be left out of this
dialogue.
Cities Need Better
This crisis represents a vital opportunity
Mobility to definitively change things for the
better, handing cities back to the people.
Throughout history, the urban landscape The decisions taken in the coming weeks
of the Mediterranean cities has evolved and months will define how healthy, re-
in response to social, economic and en- silient, and livable our cities will be going
vironmental changes. Today, with more forward. But we can only do this by step-
people moving to urban areas, cities are ping up collaboration among stake-
responsible for 75% of energy consump- holders to support public transport.
tion and 70% of global carbon dioxide Public transit institutional frameworks
emissions. The way we plan and build and market regulations differ in line with
our cities defines our quality of life. local specificities, but the starting point
Urban planners and decision-makers are to any city’s strategic development plan
being pushed to rethink how mobility is should be to craft a common vision (both
organized. vertically and horizontally) in which urban
mobility is posited to deliver on the city’s
Cities across our Region have under- strategic objectives and secure wider so-
stood that with this crisis now is the time cioeconomic benefits. Twinning long-
to move forward on sustainable urban term strategies with tactical measures
mobility and many have already begun fosters a stream of consistency in the
to remodel their urban space and review decision-making process, not subject to
the allocation of road space dispropor- political terms. Current short term initia-
tionately allocated to private cars during tives enabling walking and cycling should
the last decades. The complementarity evolve in long term solutions associating
and integration of active, shared and col- public transport stakeholders.
lective modes of transport is key.
Health is not only an indicator for mon-
The digital revolution has brought radical itoring progress, but an essential ele-
changes to our economies, including ment to ensure sustainable
freight and passenger mobility, and has development. Placing health and well-
encouraged new actors to enter the mo- being at the center of the planning pro-
bility market. If the new services affect cess can foster good livelihoods, build
city mobility management and impacts resilient and vibrant communities, and
the urban streetscape, as part of a wider give voice to vulnerable groups, while
254 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 255
Plan and the next Multiannual Finan- door-to-door seamless journeys and
cial Framework will be key in some eliminates the need for the private car.
countries of the Mediterranean eco-
system. We need to move forward 5.Travel demand management plays a
with concrete figures allocated to key role to decongest the peak. Pub-
public transport on the next long- lic authorities and private actors
term budget and Next Generation should collaborate to monitor and
EU by the end of the year. Alter- realign strategies affecting the short
native funding schemes, such as con- and, especially, long term impacts of
gestion charging or road pricing, the current crisis on the dynamics of
should be considered. Clear rules cities and mobility. Supported by
and a coherent approach at regional/ technological solutions and flexibil-
global level by competent authorities ity, efficient responses to optimize
are key, while providing agile regu- and adapt the network will influence
latory frameworks and financial in- smart travel.
centives to build and deliver urban
transport systems that have the 6.Grounded in data and the science,
levels of capacity and increased qual- positive communication measures
ity of environment people desire. are key to restoring people’s trust in
the public transport sector. All the
3.The current crisis is setting the scene tools are already in place, be a com-
for doing what so many cities wanted bination of policy decisions, active
but lacked the opportunity to do. measures and reassurance of clients.
Through transport-oriented devel- Public transport authorities and op-
opment, the need for motorized travel erators must strengthen their inter-
and the trip length can be reduced. action with the media to explain the
Residential, work and leisure districts important sector pillars (customer
must become more closely connected focus, cleaning and sanitary meas-
and intermixed. Cities must prioritise ures and efficiency) and to accelerate
accessible, safe, breathable, and walk- levers (innovation, digital transfor-
able streets through urban planning, mation and strategic partnerships).
putting people at the heart, by imple-
menting the careful coordination of Conclusion
land use and long term mobility plan-
ning with the engagement of all stake- Cities and countries have been re-
holders from project start. There is sponding to short term emergencies,
now a golden opportunity for policy- but now we must move beyond, en-
makers to integrate and strengthen sure the survival of the public transport
these policies. and seize a historical unique opportu-
nity to start over and shape the future
4.Public transport should be the back- of our cities.
bone of urban mobility across all exit
strategies that aim to shift individual Our urban mobility sector is strongly
motorized transport in cities towards inter-linked with many other challenges
more sustainable modes as part of an (climate, health, social inclusion, road
integrated public transport system safety, etc.) that will not be met with-
(administrative, modal, fare…) that out a clear priority given to public trans-
combines mobility services, provides port as a vital pillar for economic, social
256 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
and environmental recovery, both in the much less risk than other public places
short and long-term. or private gatherings. Unfortunately, it
has been too often stigmatized without
Public transport stakeholders have dem- any solid arguments. Based on scientific
onstrated that although they didn’t have findings and practical experience avail-
the experience to deal with such sanitary able today, public transport is taking the
crisis, they have reacted extremely rap- appropriate measures to reduce those
idly to the situation and demonstrated risks to a level that is manageable and
their great sense of responsibility to- acceptable by users.
wards their staff and the communities
they serve. Nevertheless, additional efforts should
be made to strongly communicate pub-
Numerous scientific studies and empiri- lic transport benefits to society and re-
cal analysis show that public transport is store citizens´ trust.
Policy Study n. 5
Chapter 8
LOGISTICS AND
MULTIMODALITY
The existence of efficient logistics is one of the requirements for the good
development of economic activity. This efficiency resides, in part, in the
existence of alternatives for the routing of goods, allowing users to choose
between them according to their priorities (costs, quickness, response
capacity, etc.). In this sense, the availability of good connections between the
different modes of transport is a key element. Logistics platforms, ports and
land terminals play an important role in multimodality. Furthermore, transport
corridors represent the prioritisation exercise in moving towards an orderly
and planned implementation of multimodality within the transport system.
There are many speculations about the As it stands, both existing centers and
impact of the Coronavirus crisis on new centers that can be developed
economic activity, but in the transport have the capacity to respond to the
and logistics sector it is increasingly evolving needs of the logistic sector
obvious that its effect will go far that demands excellent connectivity
beyond changes in processes and op- measures in a quality and reliable infra-
erations. structure.
could receive most of the reloca- These policies also reflect an interest in
tions. The recovery of increased in- transferring the volume of road freight
dustrial activity in Europe is obviously transport to rail and inland waterways.
what companies want.
The movement of goods to rail must
• This hypothetical scenario of de-glo- continue if we are to meet the emission
balization could have two effects: a reduction target and export to the
change in business strategy and less European continent under the same
efficiency with a knock-on effect of conditions as our competitors from the
higher costs. The cost would inevi- East, who rely on the Chinese railway
tably be directed at the final con- line, the Silk Route. But to do so, every
sumer. But it is something that we single player in the rail sector, particu-
will have to accept, and which cannot larly administrations and public entities
be allowed to spread into global with competence in the field, have to
supply chains. Companies may move change their mindset on one hand, to
away from just in time models to seek to change the focus from “trac-
adopt safer models. Higher stock tion to transport”, and on the other
levels imply a greater need for ships hand, to develop a loyal partnership
to store and serve more efficiently. with the road transport companies, the
ones that currently move most of the
• These circumstances, together with goods in Europe, imports and exports.
the increased environmental aware-
ness of consumption habits and the In addition, nowadays logistic plat-
impact of transport on air quality, forms are already developing active
also appear to have an impact on the policies for the development of sus-
enhancement of local trade, dimin- tainable environmentally friendly mo-
ishing purchasing from third coun- bility by optimizing the transport
tries. short haul operations, enhancing the
intermodal long-distance rail traffic
Sustainable mobility and integrating urban structure and
public passenger transport.
We should take the guidelines set out
in the “Green Deal” into account, that The concept, cooperation between
brings us to the concept of Green Lo- different modes of transport is funda-
gistics, i.e. all efforts to measure and mental to logistic platforms enabling
minimize the environmental impact of sustainable development for all trans-
logistic activity, particularly carbon port and logistic operators.
footprint control. The Green Deal was
formalized in December 2019 by the Logistic platforms are key within a
EU and the road map is being con- sustainable transport system because
sidered for the coming years. More they facilitate the development and
specifically the transport sector is cooperation of different modes of
being translated into legislative propo- transport (rail, road, plane and ship)
sals and changes that will accelerate to reduce transit times, lower cost
the transition to sustainable and intel- and increase the volume of goods
ligent mobility: the overriding objec- transported effectively increasing the
tive is to reduce emissions by 90% by overall efficiency of transport by pro-
2050. moting large freight traffic corridors.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 263
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 265
projects from 71 ports, covering 38 dustry to fully reshape its business and
countries and five continents. The make the industry more efficient and
World Ports Sustainability Program has sustainable. The International Port
developed a practical framework on Community System Association (PCS)
how ports can implement each of the promotes adoption of a Single Win-
17 UN SDGs in practice. Resilient Infra- dows to manage port and logistic pro-
structure, Climate and Energy, Com- cesses through a single submission of
munity Outreach and Port City data and to connect transport and
Dialogue, Safety and Security and, fi- supply chains. The digital platforms
nally, Governance and Ethics are the provide also an intelligent exchange of
main addressed domains. So far, few information between public and pri-
projects have been delivered from vate stakeholders, fostering PPP initi-
Mediterranean Ports. atives, co-developing innovation and
cutting operational costs.
In this article we would like to highlight
some of the current project to which The Building Information Modelling
the Mediterranean Ports should in- (BIM), a process for creating and digi-
volve themselves to make more effi- tally managing information on a con-
cient the supply chains and contribute struction project across the project
to the sustainable growth of the Medi- lifecycle, also gives the opportunity to
terranean Region, whilst maintaining leverage business capability regarding
and rebuilding ecosystems. lifecycle management of port and in-
frastructural assets in all phases - from
project development, planning, build-
Resilient Infrastructure ing, operation and maintenance until
the fading out of these objects. With
Resilience is the capacity to anticipate the application of BIM since the feasi-
and plan for disruptions, resist loss in bility studies, ports can allocate its re-
operations and/or absorb the impact sources more efficiently in the planning
of disturbances, rapidly recover after- and building phases both on construc-
wards, and adapt to short- and long- tion materials and personnel. More-
term stressors, changing conditions over, BIM models help with project
and constraints. To successfully oper- control, especially for cost and time di-
ate, the maritime transport system mension. This information can be vis-
must be resilient. Stressors that affect- ualised via the digital twin and/or by
ing it include environmental, human-in- mean of immersive experience through
duced, energy-related, and others. virtual and augmented reality, in order
Planning for mitigation to minimize dis- to help in the communication process
ruptions from these and other poten- with stakeholders. Once the objects
tial stressors will serve to streamline are finished and ready for operational
operation of the maritime transport. In phase, the sensors built into these in-
this regard, we highlight the impor- frastructures are connected as IoT ap-
tance of digital solutions and an inte- plications with artificial intelligence
grated approach to enhance its resulting in capability on predictive
resilience. maintenance for better cost-efficiency
in operation of infrastructural assets.
Digitalisation is one of the recent main As regards Climate Change, a multi-
factors driving the traditional port in- stakeholder coalition so called “Navi-
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 269
gate Climate Change” (NaCC) supports of IAPH are ongoing, as well as Onshore
the sector encouraging operators and Power Supply (OPS), port calls optimiza-
users of maritime infrastructure to face tion, port incentives for energy-efficient
climate change reducing Greenhouse vessels and Clean Marine Fuels (CMF).
Gases (GHG) and improving prepared-
ness to adapt to the changing climate. Onshore Power Supply consists of con-
To this aim, the World Association for necting the ships to the port grid and
Waterborne Transport Infrastructure ap- turn-off ships engines. The solution ap-
pointed in 2015 a Working Group of 20 pears effective to reduce air pollution in
experts, which provides methodological ports and GHG emissions from vessels,
guidance to support climate change and it is giving momentum with an in-
adaptation decision-making in the ports creasing number of ports that are adapt-
and navigation sector. It is a four-stage ing the infrastructure to this aim. The
methodological framework based on: port calls optimization implements the
understanding the context of reference, Just-In-Time arrival of ships helping the
understanding climate-related impacts, reduction of GHG. A practical guide on
identifying vulnerability and risks, and this solution was developed by the
identifying and implementing measures. IMO’s Global Industry Alliance. Port in-
The proposed methodology covers a centives award cleaner vessels on the
range of day-to-day activities such as the basis of an Environmental Shipping
management, operation and mainte- Index (ESI), calculated taking into ac-
nance of infrastructure, conservancy, count the amount of NOx and SOx
dredging, pilotage and engineering. It is emitted, and also based on the use of
also considering possible climate onshore power that reduces CO2 and
change implications for the design and PM emissions. The Clean Marine Fuels
construction of new development proj- (CMF) Working Group aims to tackle cli-
ects and it reflects on interdependencies mate change and improve air quality by
such as hinterland connections. The focusing on safe bunker operations for
foreseen outcome is a useful, well-struc- new fuels as well as Liquified Gas Natu-
tured and practical guidance designed. ral (LNG).
Templates are available to help in iden-
tifying relevant stakeholders, preparing It is worth to highlight also the Global
an inventory of climate-vulnerable infras- Maritime Energy Efficiency Partnership
tructure assets and operations, and de- (GloMEEP), a joint initiative of IMO-GEF-
termining monitoring needs. UNDP, which delivered toolkits for ships
and ports to understand the nature of
emission and analyze strategies to re-
Climate and Energy duce them. Trainings have been held in
ports to instruct participants on how
The reduction of CO2 and Greenhouse conducting emissions inventories and
Gases (GHG) from ships is the highest develop actions in port areas.
priority in the maritime domain. The in-
itial strategy adopted in 2018 by IMO’s
Marine Environment Protection Com- Port-Rail Integration
mittee (MEPC), envisages a reduction in
GHG emissions from international ship- Connectivity to the hinterland is be-
ping by at least 50% by 2050 compared coming ever more important for ports,
to 2008. To do that, different initiatives which are upgrading their rail connec-
270 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 271
tion of the ports could be made with the IFIs for a further assessment, or
the active role of the MEDport Associ- submitted to the European funding
ation, launched in 2016. mechanisms to move to the next steps
of the project lifecycle (feasibility, de-
• Update the Trans-Mediterranean Net- tailed design, implementation, moni-
work map and focus on the objective toring).
of its validation, extending the pol-
icies, the financial instruments, the
best practices and the operational Conclusions
models applied at European and inter-
national level. The validated map The analysis carried out highlights the
should take into account the plans to existence of initiatives and working
connect TMN-T with the African Trans- groups at international level, which are
port Network, Arabian Peninsula and studying and developing concrete sol-
Asia, in order to achieve the vision of utions aimed at introducing the con-
an enlarged and harmonized network. cept of sustainability in maritime
transport and at extending innovative
• Analyse the key performance indica- processes and techniques to the entire
tors needed to establish a sustainable, transport supply chains. The Mediter-
efficient, well-organized and frequent ranean institutions responsible for pro-
maritime service, including the envi- moting concrete transport projects in
ronmental and social dimensions the Mediterranean can benefit enor-
(socio-economic and environmental mously from the projects already
aspects), the energy issues, transport started, triggering a virtuous circle by
issues (ship equipment, road and rail stimulating potential stakeholders,
intermodality, operations, efficiency of starting the project concept and moni-
services and port facilities), economy toring the subsequent stages of pro-
(cost-benefit analysis, demand fore- ject maturation and implementation.
casts), the regional integration and the Finally, it is essential to find resources
institutional framework. Sustainable at all stages of the project life cycle. To
indicators and outcomes of the rating this aim, their active role in promoting
system adopted for the project assess- projects included in a “system vision”
ment will allow to select the projects that highlights their interdependence
“highly sustainable”. and overall, the long-term framework
of the transport networks, can be car-
The selected projects could be en- ried out through the activation of tech-
dorsed by the Union for the Mediterra- nical workshops with the main
nean for labeling, directly proposed to International Financial Institutions.
Policy Study n. 5
Digitizing Supply Chains:
The Gateway for
Post-COVID-19 Era
Islam El-Nakib
Professor of Logistics and Supply Chain
Management. Arab Academy for Science,
Technology and Maritime Transport,
Alexandria, Egypt
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 275
some countries of the world (UN, The virus, which reached 2.5 % with
2020). Multinational companies had the possibility that the organization
lowered their forecasts on global will make further adjustments in light
economic growth before the out- of current uncertainty. Note that com-
break of the COVID-19 epidemic. For panies pointed to some of the exist-
instance, the International Monetary ing challenges that could be an
Fund revised its forecast from 3.3 % obstacle to achieving rates the
to 3.2 % in 2020 following the emerg- growth it referred to, including trade
ence of Virus (IMF, 2020), while it is and geopolitical conflicts and finan-
currently moving to amend these ex- cial turmoil (ICMA, 2020). In addition,
pectations after the spread of the the repercussions of the COVID-19 on
COVID-19, taking into account its im- the global economy is facing a state
pact on the negative side of global of uncertainty, and the lack of access
supply and demand, especially after until now to discover vaccines to treat
the slowdown in the determinants of it, so international and regional or-
global demand represented by the ganizations have tended to review ex-
slowdown global consumption and in- pectations economic growth for
vestment (OECD, 2020). 2020, and recently adopting more
realistic scenarios to assess the threat
In addition to the movement of inter- of the outbreak of the epidemic on
national trade that has been paralyzed the global economy Consequently,
after countries close their borders, lowered its global growth forecast to
and restrict the movement of goods 2.4 % (WTO, 2020a). Figure 1 illus-
and individuals. The global economy trates coronavirus scenarios highlight
is in a deeper recession than it wit- the adverse impact on growth. The
nessed during the global financial cri- change in GDP growth in 2020
sis in 2008 (WTO, 2020b). In the same relative to baseline, percentage
context, the World Bank predicted points.
that the global economy will grow by
about 2.4 % in 2020, except for the in- Simulated impact of weaker domestic
dicated that the uncertainty surround- demand, lower commodity and
ing the global economy still exists equity prices and higher uncertainty.
(IMF, 2020). The World Bank (2020a) Base-case scenario with the virus out-
indicates that these expectations can break centered in China; broader con-
be modified in line with current con- tagion scenario with the outbreak
ditions and potential threats it is spreading significantly in other parts
caused by the outbreak of the epi- of the Asia-Pacific region, Europe and
demic, despite international efforts North America.
and stimulus packages launched by
multinational companies, international According to World Economic Forum
organizations and governments and (2020) their estimates a decline in glo-
the global central banks. On the other bal economic growth is attributed to
hand, the United Nations (2020) indi- the modification of the US economic
cated that the global economy in light growth in 2020 as a result of the out-
of the COVID-19 outbreak, it is ex- break of the virus from 2.3% to 1.9%
pected to grow by less than 2 % in due to the decline in public and pri-
2020 compared to its expectations vate consumption, And uncertainty
before the emergence. about asset prices. In the EU area, a
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 277
growth rate of 0.8 % is expected in- creased Its growth from 4.7 % in the
stead of 1.2 %, due to lower exports first quarter of 2019 to about 2.8 %
and slowing consumption. The in the third quarter of 2019. The de-
growth rates have also been adjusted cline is expected to continue, es-
the Japanese economy went from pecially as the outbreak of the
negative 0.7 % to -0.2 % in 2020. COVID-19 has had a negative impact
Growth rates have also been adjusted in the short term on a number of im-
the Chinese economy went from 6.1% portant services that represent the
to 4.9%, and there are still other basis for the balance of payments of
negative risks to the global economy countries such as air transport, and
in view of the uncertainty prevailing in tourism services, which are the main
the world in this period (World Bank, sectors most affected by the out-
2020a). break of the virus (WTO, 2020a). For
example, a trade scale was recorded
International Trade of passenger air transport services and
the merchandise transport services
Goods and Services trade scale are 93.5 and 94.3 points,
respectively (IMF, 2020).
International trade was paralyzed
during the short period of the out- Where Which recorded losses in EU
break of the COVID-19, which in turn countries, where the majority of hotel
affected all from exports and im- reservations were canceled after the
ports, as the World Trade Organiza- announcement of the virus outbreak
tion expected a slowdown in the the tourism sector in EU incurred
movement of merchandise trade heavy losses. The tourist sector is not
around the world in the short term, as expected to recover during the re-
a result of the disruptions caused by mainder of 2020, as the impact may
the virus’s repercussions of con- extend until the end of 2021, it may
ditions of uncertainty and border clo- begin to recover, but not at the level
sures between countries, including it was before the crisis even in If the
countries of the EU. The World Bank virus recedes, due to the negative im-
(2020) indicates that the global ser- pression about the disease that domi-
vices trade is witnessing a significant nated international tourists (European
slowdown since 2019, as the rate de- Central Bank, 2020). In this regard, it
278 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 279
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 281
References
FLYNN, D. (2020). CDC provides first guidance to a specific meat plant for com-
bating COVID-19 among employees. Retrieved from https://www.foodsafety-
news.com/2020/04/cdc-provides-first-guidance-to-a-specific-meat-plant-for-com
bating-covid-19-among-employees/
OECD (2020). Coronavirus: The world economy at risk. OECD Interim Economic
Assessment. Paris: OECD.
UN (2020). World Economic Situation and Prospects 2020. Washington DC: UN.
WORLD BANK (2020a). World Bank Group Increases COVID-19 Response to $14
Billion To Help Sustain Economies. Protect Jobs. Retrieved from https://www.world-
bank.org/ en/news/press-release/2020/03/17/world-bank-group-increases-covid-
19-response-to-14-billion-to-help-sustain-economies-protect-jobs
WORLD BANK (2020b). Global Economic Prospects: Slow Growth and Policy
Challenges. Washington DC: WB.
WORLD ECONOMIC FORUM (2020). The Travel & Tourism Competitiveness Re-
port. Geneva: WEF.
WTO (2020b). New WTO indicator finds services trade weakening into second
half of 2019. Services Trade Barometer. Geneva: WTO.
Key Features and Challenges
for the Mediterranean
Corridor
Iveta Radicova
Coordinator of the Mediterranean
Corridor, one of the nine TEN-T core
network corridors
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 283
tential to shift from road/air to rail both and the other instruments that the EU
for freight and passengers, utilizing disposes off, we can think of a truly
better the high-speed network be- European infrastructure policy.”
tween dynamic urban zones and con-
ventional/regional rail lines for the Ms. Radicova is proud to be appointed
transport of goods and passengers.” as Coordinator of the Mediterranean
Corridor. In the exercise of this posi-
The Mediterranean Corridor and the tion, she performs a double political
rest of the TEN-T corridors were estab- and analytical function.
lished in 2014. That year, the EU trans-
port policies also underwent an “I was very pleased when the European
important adaptation, as explained by Commission proposed me to become
the Mediterranean Corridor Coordina- one of the European Coordinators for
tor hereafter. the TEN-T network. This was an oppor-
tunity to join a team of distinguished
“The EU transport infrastructure policy personalities, who commit themselves
has evolved in the last several years. At to help enhancing Europe’s transport
the beginning of 2000, the whole of EU system.” “Given my past political ex-
transport investment was limited to perience, I exchange with Ministers, re-
cross-border issues in the context of bi- gional governments, infrastructural
lateral cooperation between Member managers and European citizens on the
States. common planning of transport infra-
structure. Infrastructure that is interoper-
Transport infrastructure policy had a able, that invests in removing
very limited link with horizontal issues bottlenecks, that focuses on cross-
of sustainability, decarbonisation, inno- border dimension and addresses ad-
vation, congestion or modal shift. It equate attention to the most
merely focused on a group of selected environmentally modes of transport
projects. such as railways, Motorways of the Sea
and inland waterways. In my interaction
2014 marked the beginning of a new with involved stakeholders, I constantly
era in European infrastructure policy. appeal for stable and logic programing
Nine Core Network Corridors were es- of actions that lead to a full completion
tablished, a robust governance system of the Corridor.
headed by European Coordinators was
created and a solid financial scheme On the analytical side, I prepare Corridor
for investments in infrastructure was Work plans. They consist of a detailed
set up thanks to Connecting Europe overview of the state of compliance of
Facility (CEF). the Corridor infrastructure with the TEN-
T requirements. The ambition is to show
Since that moment, the adoption of good examples of progress achieved, to
the new Regulation on the trans-Euro- inform about the state of modernisation
pean transport network, combining in- with regard to key standards agreed by
dividual cross-border projects into real the TEN-T Regulation, to point out to
multimodal corridors, with horizontal challenges and weak points that still
topics of sustainability, modal shift, in- have to be addressed, if we want to
telligent transport systems, and a clear achieve full compliance of the network
EU investment planning through CEF along the MED Corridor by 2030.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 285
My team also analyses the socio-econ- operable and borderless transport in-
omic situation of the Corridor and its frastructure based on common trans-
transport flows through a dedicated port standards and formalities.
transport market study. I make sure that
there is a clear plan of the investment The current crisis corroborated a cru-
needed on the Corridor for all modes to cial role TEN-T corridors can play for
reach the EU targets of 2030.” the effectiveness and functionality of
the overall transport infrastructure in
Europe. It is obvious that we need to
The COVID-19 further invest in cross-border solutions,
and Transport Corridors remove bottlenecks that remain in na-
tional sections of transport grid, we
need to further invest in digital sol-
COVID-19 has had a high impact on utions and intelligent transport systems
the transport sector, but it has also and measure that decarbonise trans-
allowed to draw lessons on the TEN-T port.”
as the backbone of transport. This is
the vision expressed by the coordina-
tor of the Mediterranean corridor. Advancing in Multi-
Modality and
“We know only part of the pandemic‘s Interoperability of the
dramatic effects on people and econ-
omies so far. The transport sector con- Mediterranean Corridor
tinued to be heavily impacted by the
containment measures in Europe and The improvement of cross-border con-
worldwide. nections was already a priority before
COVID-19, especially with regard to
The European Commission reacted multimodality and interoperability,
quickly to the evolving pandemic situ- basic characteristics of the TEN-T core
ation. The concept of “Green Lanes” network corridors. For this reason, Ms.
was established in the first weeks of Radicova wanted to emphasize some
the crisis in order to implement uni- actions that will be carried out in cross-
form border management measures to border sections to improve connectiv-
ensure the availability of goods and es- ity between modes, contributing to the
sential services. efficient operation of the corridor in
the medium and long term.
What is important from my point of
view is that the common practice set “The Mediterranean Corridor is about
up at all the relevant internal-crossing 3000 km long. We must prioritize in-
points used the trans-European trans- vestments and make sure that they are
port network (TEN-T) as a reference. not fragmented. Continuity and multi-
modal logic of highest standards are
The Covid crisis proved the utility and the key words applying to the Corridor.
resilience of the transport corridors in We need to resolve major bottlenecks
Europe built around the TEN-T con- that exist among various modes of
cept. At the same time, it demon- transport. The most important is the
strated further, a need and completion of key missing links, no-
added-value for investing in truly inter- tably the cross-border sections. The
286 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
The Lyon Turin project is the key sec- “If I look specifically at the Iberian Pen-
tion on which the optimal functioning insula most ongoing and planned invest-
of the whole Corridor hinges. This is ments aim at upgrade to UIC gauge by
the major link connecting the Iberian either modernising the existing lines or
Meditterrean coast with Italy and constructing parallel new platforms in
South-East Europe. Without the mod- the most congested sections.
ern base tunnel and high capacity ac-
cess routes, the traffic flow across the The usage level of cross-border tunnel
Alpine border remains confined to Le Perthus has not reached expected
road transport affecting this environ- levels yet mainly due to the lack of con-
mentally sensitive area. They will also nectivity in UIC gauge to traffic gener-
be deviated to other routes (such as ators and lack of interoperability
Ventimiglia) causing unnecessary con- (different voltage and signalling sys-
gestion and creating additional costs. tems, limited number of adapted loco-
motives). Both the extension of the UIC
The upgrade of Trieste/Aurisina and gauge to the south to Algeciras, cur-
Divača requires an upgrade to meet rently ongoing investment along the
TEN-T standards. I hope for a con- coastline of various sections, and the
clusion of this section on the Italian construction of the missing link be-
side by 2026. The same applies to tween Montpellier and the end of the
cross-border section between Slovenia Le Perthus section are very important
and Croatia.” to realise the potential of the tunnel.
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 287
duced the travel time between two tive transport infrastructure, offering
major urban nodes of Valencia and competitive solutions across selected
Barcelona. modes of transport. Only then, it is a
decision of market players what offer
• Between Tarragona and Barcelona the to take, what preferred option for
works are ongoing with regard to in- travel to take.”
stallation of a third rail in the existing
conventional tracks. Next Challenges of the
• The line between Granada and Alme- Mediterranean Corridor
ría will be electrified and upgraded to
UIC gauge by 2025. Beyond final impacts of COVID-19 on
transport sector, there are some chal-
• Regarding the Antequera-Algeciras lenges that transport policies cannot ig-
line, preparatory works started with nore to guarantee the resilience of the
the drafting of the engineering project sector in future scenarios, with climate
for the construction of the two electric neutrality being the most important of
supply substations required for the them, as pointed out by the coordinator
electrification of the line. of the Mediterranean Corridor.
Policy Study n. 5
CONCLUSIONS
CONCLUSIONS.
The COVID-19, a Follow-On in
the Evolution of Transport
and Logistics
Centre for Transportation Studies for the
Western Mediterranean (CETMO)
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 293
The first trend is the increase in re- and mutual leverage of existing tech-
shoring and nearshoring processes. nologies to gain in productivity and
The trend of relocation of some com- transparency, as well as to improve
panies from developed countries in products with digital capabilities and
search of cheap workforce, occurring asset management, among others. It is
since the 1980s, has been losing sup- based on key enabling technologies,
port in recent times as a result of trade which can be adopted and improved
wars between countries, the growing progressively, given their scalability.
awareness of value chains’ high de- The transport and logistics sector can
pendence on countries such as China, take advantage of the experience of
the financial crisis that began in 2008, other sectors to selectively adopt these
and the emergence of regional or glo- new technologies and achieve substan-
bal disruptions jeopardizing the proper tial benefits, without the risks that past
functioning of global value chains. technological changes transmitted.
Under these premises, the processes of The need to resume work and econ-
reshoring (relocation of production to omic activity after the first wave of the
the country of origin) and nearshoring pandemic, guaranteeing the safety of
(outsourcing production to countries the population, helped to visualize the
close to the origin) have been increas- high potential for the application and
ing in recent years, facilitating control development of these technologies in
of production, reducing transportation the different sectors of activity.
costs, and gaining agility in the face of
disruptions on value chains. The The technologies of the fourth indus-
COVID-19 crisis has been an example trial revolution with a potential impact
of disruption, interrupting and unbal- on transport and logistics notably in-
ancing the functioning of global value clude artificial intelligence leveraging
chains, which has led to look for closer Big Data Analysis, robotics and auto-
alternatives, theoretically less fragile. mation, the Internet of Things (IoT), au-
tonomous vehicles and drones,
These nearshoring processes are of augmented and virtual reality, indus-
special interest in the Mediterranean trial 3D printing, digital platforms and
region, as they strengthen trade rela- blockchain, among others. For
tions between territories of the region example, an increased connectivity and
and encourage the improvement of visibility of value chain can be achieved
connectivity between both shores, pro- through a combination of IoT, cloud
moting regional integration. In addi- computing and artificial intelligence.
tion, there is also the impact on the
country hosting relocated companies, The latest trend is to increase the re-
contributing to its development. But in silience of value chains. The COVID-
a long-term view, a good business en- 19 has had a high impact on global
vironment and efficient logistics should value chains. The temporary closure of
be provided in order to attract and re- production centres and the inter-
tain potential companies. ruption of sea, land and air transport
services not associated with basic
Secondly, the fourth industrial revol- necessities disrupted the operation of
ution. Although popularly referred to value chains. Different speeds of re-
as digitalisation, the fourth industrial covery around the world and changes
revolution is based on the integration in consumption patterns related to e-
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 295
Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 297
The initiative “Mediterranean transport This transformation is still alive and that
and logistics in a post-COVID-19 era: will need to be followed closely to take
prospects and opportunities” aimed to advantage of the opportunities that
build region developing a collective may arise to build a more sustainable,
knowledge from contributions of inter- safe, accessible and connected trans-
national institutions and experts from port system.
the region.
In the meantime, we must take the op-
This process of research, reflection and portunity to continue working to-
socialisation has highlighted the situ- gether, generating and sharing
ation of transformation that is experi- knowledge, establishing dialogues on
encing the transport and logistics the priorities of the region and ident-
sector, accelerated by the COVID-19. ifying common visions and strategies.
298 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities
References
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Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 299
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