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IEMed.

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
IEMed. 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.

Working to strengthen the Western Mediterranean Dialogue, the MedThink


5+5 offers the unparalleled possibility of increasing ownership of policy-making
processes. It allows research institutions to transfer their messages to decision-
and policymakers, while improving understanding of key challenges, needs and
trends that have an impact on sub-regional 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.

The IEMed is a consortium comprising the Catalan Government, the Spanish


Ministry of Foreign Affairs and Cooperation, the European Union and Barcelona
City Council. It also incorporates civil society through its Board of Trustees and
its Advisory Council.

The Centre for Transportation Studies for the Western Mediterranean


(CETMO), is an independent non-partisan Think Tank and non-profit International
Cooperation Organisation created in 1988 under the auspice of the United
Nations, with the objective of sustaining improvement of Transport and Logistics
and Socio-economic development.

CETMO belongs to, participates, and collaborates with an extensive network of


over 215 organisations facilitating Mediterranean Cooperation.

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

CHAPTER 1 - GLOBAL AND REGIONAL TRENDS 16

Mediterranean Logistics Post-COVID-19:


Opportunities Come with Challenges
Anwar Zibaoui 18

The Sustainability of Transport and Logistics in the


Mediterranean
Eduard Rodés 26

The Impact of the New Global Regionalism on


Production, Transport and Logistics Systems
Marco Ricceri 36

Mediterranean Sea and the COVID Pandemic:


A Turning Point for Globalisation?
Logistics and Global Value Chains
Giorgia Giovannetti & Arianna Vivoli 46

The COVID-19 Pandemic: What Impacts on the World


Economy and the International Supply Chains?
Focus on the Western Mediterranean Region
Jérôme Verny 56

COVID-19 and the Scramble for Trans-Mediterranean


Commercial Transportation Corridors:
Challenges and Opportunities
Michaël Tanchum 66

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 80
CHAPTER 2 - POLICIES 94

Integrated Transport Planning, the Digital Challenge


and Decarbonization of Transport
Francisco Cardoso dos Reis 96

The Ethics and Politics of Transport and Mobility in


the COVID-19 Aftermath
Andreu Ulied 104

Inter-Modal Transport in the Age of COVID-19:


UNECE Efforts to Help Build Pandemic-Resilient
Transport Systems
Roel Janssens 112

Initiative on Transport Prospects and Opportunities


in The Post-COVID-19 Era: The AMU Region
General Secretariat of Arab Maghreb Union 126

CHAPTER 3 - ROAD TRANSPORT 134

COVID-19: Key Lessons for the Road and Transport


Community
Patrick Malléjacq & José Manuel Blanco Segarra 136

Perspectives from Road Transport on the


Opportunities and Challenges of the Pandemic
Jens Hügel 148

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 156
Road Transport in Morocco: What is the Best Route
Out of the COVID-19 Crisis?
Jaafar Sallouhi 166

CHAPTER 4 - RAIL TRANSPORT 170

Rail Transport: Towards a New Normal


Marc Guigon 172

Synergies Between the Mediterranean Corridor and


the Trans-Maghreb Multimodal Corridor
Josep Vicent Boira & Matteo Berzi 180

CHAPTER 5 - MARITIME TRANSPORT 192

Shipping in the Mediterranean


Jan Hoffmann 194

Some Observations on the Impact of COVID-19 on


Shipping
Malta Maritime Forum 204

The COVID-19 Crisis: A Catalyst to Speed Up the


Digital Transformation of Ports
Mustapha Lhamouz 208

CHAPTER 6 - AIR TRANSPORT 212

Air Transport in the Post-COVID Era


Habib Mekki 214

Air Transport Development, the Tool to Achieve


Good Harvest Seasons
Ignacio Biosca 218
COVID-19, an Opportunity for African Airports to
Embrace Technology and Innovation
Ali Tounsi 224

A Broad Harmonisation of Regulations is the


Indispensable Corollary of a Sustainable
Liberalisation of Air Transport
Olivier Meynot 232

CHAPTER 7 - URBAN TRANSPORT 240

Urban Transport in the Post-COVID Era: the Same


Solutions for the Same Problems
Frederico Francisco 242

The Key Role of Sustainable Urban Mobility to Build


Back Better in Mediterranean Cities
Pere Calvet 250

CHAPTER 8 - LOGISTICS AND MULTIMODALITY 258

Logistic Platforms Post-COVID: Prospects and


Opportunities
Isabel Velasco Ortiz 260

Sustainable Supply Chains in Mediterranean: A


Concrete Roadmap for the Post-COVID-19 Era
Salvatore D’Alfonso 266

Digitizing Supply Chains: The Gateway for Post-


COVID-19 Era
Islam El-Nakib 274
Key Features and Challenges for the Mediterranean
Corridor
Iveta Radicova 282

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

lenses. Building on the networks of the As an example of this commitment, the


CETMO and the IEMed, the publication MedThink 5+5 network, in collaboration
offers a unique combination of comple- with CETMO, organised with leading
mentary perspectives and analyses, as experts, policymakers and stakeholders
well as valuable policy recommenda- a first thematic seminar related to trans-
tions that will undoubtedly generate in- port, which was held in Nouakchott
terest among Western Mediterranean (Mauritania) on the sidelines of the 9th
policymakers. Conference of Ministers of Transport of
the 5+5 Dialogue countries in De-
This publication, released as a policy cember 2018 under the title “The road
study, comes within the framework of towards integration: transport and logis-
the MedThink 5+5 network of Western tics in the Western Mediterranean: Tools
Mediterranean think tanks. Since its in- and projects for the implementation of
ception in May 2016, the network pro- a multimodal network in the 5+5 area.”
vides a multidisciplinary platform of
debate associated with the Western Following this first edition and building
Mediterranean Forum, also known as upon the present initiative “Mediterra-
the 5+5 Dialogue, with the aim to foster nean transport and logistics in a post-
regional integration by informing the COVID 19 era: prospects and
discussions of experts and policymakers opportunities”, the MedThink 5+5 net-
on key issues of the subregional agenda. work, together with the IEMed and the
Based upon the mandate conferred on CETMO, organises a second thematic
the IEMed by the Valletta Declaration of seminar dedicated to the transport and
the Western Mediterranean Forum from logistics sector in Malta. Taking advan-
October 2012, the MedThink 5+5 net- tage of the 10th Conference of Ministers
work, which is coordinated by the of Transport of the 5+5 Dialogue held
IEMed, has organised during all these on 10 October 2021 in La Valletta
years different annual fora and thematic (Malta), the seminar, entitled “The West-
seminars where experts from the whole ern Mediterranean Transport and Logis-
of the region analysed the factors under- tics Sector in the post-COVID-19 Era:
pinning economic, human, and sustain- Seizing New Opportunities, Acceler-
able development, as well as security ating Transitions“ is conceived as the
and stability in the Western Mediterra- natural extension of the discussions tak-
nean. ing place in this policy study.

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

only a neighbour for nearby regions, simply pass on additional costs to


but also for the world. shippers” (GSF, 2019).

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

is considered an economic pillar and an Relations in the field of transport be-


important factor for this integration of tween the European Union and its
all priority action projects. southern partners were formally estab-
lished in 1995 with the Barcelona Pro-
The need to invest in the Mediterra- cess. The key priority of this cooperation
nean logistics sector is a driving force for is the achievement of a safe, sustainable
development, which could be more if and efficient transport system in the
several elements, such as the devel- Euro-Mediterranean area.
opment of infrastructure, the private
sector and the complementarity of net- The future of the region depends on the
works between both sides, are rein- ability to adapt to new realities, build
forced. Joining the dots across so many bridges, create meeting spaces to trans-
Mediterranean countries is not easy. The form this threat into an opportunity and
result would be a more effective trans- turn weakness into strength. This would
port infrastructure, more trade and de- allow properly facing the challenges,
velopment, and a stronger and more creating a common future by adding ca-
united Mediterranean. pabilities and applying this synergy to
the search for new paths.
Moreover, we need to strengthen co-
operation on transport legislation and The task of making this sea a great
develop infrastructure to connect the platform capable of competing with
two sides of the Mediterranean Sea. other regions will be difficult but not
Transport is a key vector for achieving impossible. This can only become a
closer market integration and con- reality in an alliance between both
tributing to regional integration, shores in this Mare Nostrum.
economic growth, employment, tou-
rism and increased regional trade. In It is time to act to reposition the Medi-
the context of profound change in the terranean as the great logistics plat-
Mediterranean region, transport co- form for east-west flows and as the
operation between the EU and its best option to channel cargo between
neighbours is crucial and needs to be Asia, Africa and Europe. Logistics has
supported. never been as important as today.
24 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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/

UNION FOR THE MEDITERRANEAN (2016, 24 May). Untapping the potential


of the blue economy in the Mediterranean region. Union for the Mediterra-
nean. Retrieved from: https://ufmsecretariat.org/untapping-the-potential-of-
blue-economy-in-the-mediterranean-region/

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNC-


TAD) (2018). Review of Maritime Transport 2018. New York: United Nations
Publications, 2018 (UNCTAD/RMT/2018). Retrieved from:
https://unctad.org/system/files/official-document/rmt2018_en.pdf

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 concept of sustainability, although societies to look at themselves in the


opened to many interpretations, can mirror. It can now be understood that
be understood as based on two el- another way of organising our societies
ements. The first is the transport net- is possible and that everything is more
work, which is, at European level, ephemeral and fragile than previously
fundamentally structured by the work thought.
carried out in recent years by the Euro-
pean Commission (EC) on the Trans- Sustainability has become one of the
European Transportation Network critical factors in shaping the policies of
(TEN-T) and which necessarily con- all countries. The United Nations, with
ditions that of its neighbouring coun- its Agenda 2030 initiative, and the
tries, and therefore by extension European Union (EU) with the Green
Mediterranean countries. The trans- Deal, has set the course for a low-car-
port network is one of the three net- bon society in 2050. The COVID-19 has
works that are essential for economic further strengthened the need to carry
and social development. The second out this sustainability revolution. The
element is made of the energy and road ahead will not be easy and will in-
telecommunications networks, which evitably lead to drastic changes in the
are elements of the digitalisation pro- configuration of the transport and lo-
cess. The transport network is depend- gistics sector.
ent on the other two, both in terms of
efficiency and sustainability. A World in Transition

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

sumption of hydrocarbons and energy gion is also experiencing intense indus-


produced with fossil fuels is reaching trialisation and growth in tourism, put-
the end of the cycle. Governments face ting additional pressure on available
the need to seek alternatives that will energy resources” (UfM, 2019).
maintain economic activity while reduc-
ing the environmental impact of These regional challenges, if adequately
emissions. Energy efficiency and the addressed, can be turned into business
progressive penetration of renewable opportunities that can contribute to a
energies must enable economic reacti- sustainable energy transition. The Medi-
vation in the short term and, at the terranean is rich in renewable energy
same time, allow for the consolidation sources, such as wind, sun and water.
of the value chain associated with their Therefore, it has the potential to pro-
deployment. They are also the pillars mote the transition to more sustainable
of decarbonisation, which gives a and low-carbon energy systems. There
boost to the rest of the sectors while is also the potential to increase energy
improving business and industrial com- efficiency through the development of
petitiveness through a downward price new technologies that allow, for
path. example, energy-saving and storage.
Moreover, the development of gas and
The energy transition also promotes energy transmission interconnections
the implementation and development will lead to the progressive integration
of new technologies, which are funda- of energy markets in the region, which
mental for managing the demand for is an opportunity for countries to better
electricity and the supply of security in address the energy security challenges.
a 100% renewable system, in an indus-
try segment in which the Mediterra- The problem is addressed from various
nean has the potential to acquire perspectives depending on the “com-
leading positions. munity” from which it is analysed. The
most visible today is the city, which is
The development of hybrid plants currently undergoing a process of sig-
allows for more flexibility. Different nificant changes due to the evolution of
types of technologies can coexist in distribution caused by the rapid growth
the same system, which can already be of e-commerce (further accelerated by
seen, for example, in wind power the COVID-19).
plants utilising solar panels. In such
cases, the energy can be distributed Ports have initiated determined shifts
using the same connection point and towards an energy transition in their ter-
the access capacity already granted, ritories. This has led to the emergence
provided that the technical require- of professions such as officers in charge
ments are met. of the energy transition. The working
programmes go through the different
According to the Observatoire Médi- elements that make up energy con-
terranéen de l’Energie (OME), “it is es- sumption and their sources of produc-
timated that energy demand per tion.
capita will increase by 62% in the
Southern and Eastern Mediterranean The first issue is a legislative framework
countries by 2040 (using 2018 as the that has been developed to force the
reference year). The Mediterranean re- transition while maintaining a certain

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 29

rate of deployment. A second point re- evolving towards biomethane and


lates to savings and efficiency policies, hydrogen, biodiesel to second and
as these are aspects that can be ap- third-generation biofuels, liquid pe-
plied immediately and with excellent troleum gas to biogases, and bioetha-
results if used correctly. A third issue nol to synthetic ones. In all cases, it
relates to energy sources, and signifi- will be necessary for ships to dedicate
cant changes have already been made more space to storage, as the energy
in recent years in this regard. Gas has power is lower, and they will need a
played a leading role in the last ten higher quantity for a result similar to
years, and during this period gas- what is attained using traditional fuels.
powered ships have been built, supply
systems for trucks have been devel- Maritime transport in the Mediterra-
oped, and some tests with port ma- nean is considered to be “Short Sea
chinery have been established. Shipping”, which in turn represents
80% of the world’s fleet and one of the
One of the critical aspects that condition main contributors to air quality in port
the implementation process of low-sul- cities. Ports in the Mediterranean are
phur fuels with low CO2 emissions is the generally located in big cities and op-
possibility of the Mediterranean being erate alongside them, seeking a bal-
declared an Emission Control Area ance between the advantages of
(ECA). This is one of the most rapidly having a port that provides a service
changing scenarios for the future. The and the disadvantages of port-related
Mediterranean will be an ECA area no operations. What is clear is that Short
later than 2024, as decided at the meet- Sea Shipping is configured as a net-
ing of the Contracting Parties to the work in the area in which it operates.
Barcelona Convention (COP21) held in Ships from the Southern Mediterra-
December 2019 in Naples. The agree- nean work with the countries of the
ment will lead to the presentation of the North and vice versa. Therefore, the
proposal at the Marine Environment regulations that will be implemented
Protection Committee (MEPC) of the In- will necessarily affect practically all op-
ternational Maritime Organisation (IMO) erations. It seems clear that govern-
in 2022. ments will use coercive measures to
force a rapid move towards carbon-
This is a significant challenge for the neutral solutions.
shipping companies, which have been
working on the emission reduction as- At present in Spain, gas is at the fore-
pects for years. In 2018, the IMO front with a prepared infrastructure
adopted Resolution 304(72) on the in- that will make it possible to reach 2035
itial strategy for the reduction of without the need to invest in this con-
greenhouse gas (GHG) emissions from cept. For operators, it is profitable be-
ships, which set a reduction of 40% by cause they must bear a significant
2030 and 70% by 2050. The lifespan of initial investment to adapt their ships.
a vessel is approximately 30 years, so Still, the cost of fuel is more economi-
times should be calculated taking this cal, allowing a return on investment in
into account (IMO, 2018). a relatively short time.

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

Another essential aspect linked to the waters, managed by the “European


energy network is its management and Maritime Safety Agency”, is gaining
use. The “Smart Grid” concept is importance. Through it, it is possible to
based on a form of efficient electricity monitor the movement of ships in the
management that uses computer tech- Mediterranean, which in turn makes it
nology to optimise the production and possible to control environmental as-
distribution of electricity, to better bal- pects with the Clean Sea Net service.
ance supply and demand between pro- The European Commission has con-
ducers and consumers, and to improve tinued to improve single window sys-
the security and quality of supply fol- tems with a new initiative born at the
lowing the requirements of the digital height of the pandemic, namely the
age. Better energy management will “EU Single Window Environment for
make it possible to create energy com- Customs”, which aims to facilitate the
munities that will self-manage their actions of the various public adminis-
production and consumption. Initiat- trations involved in the clearance of
ives in this direction are being con- goods entering and leaving the Union.
sidered in the Port of Barcelona itself,
but the idea goes further. This capacity The ports have entered a period of
for knowledge and management that digitalisation of all their operations and
a computerised world allows gives rise territories. The Internet of things (IoT)
to different systems of governance, de- has made it easier to have a massive
pendence and resilience. Fortunately, amount of information available, which
it is not a question of technologies that in turn has made it possible to create a
are difficult to access for the countries knowledge base on which to support
of the Mediterranean basin, which al- much more efficient management sys-
ready have the necessary energy and tems. Ships have become sophis-
know-how. ticated centres of sensors and data
generators, producing and transmit-
Digitalisation has a fundamental im- ting information from anywhere, often
pact on transport. Advances in digital in real time. At the same time, ad-
mapping systems, fleet and transpor- vances in satellite communications are
tation management and the devel- improving connectivity, allowing for
opment of mobility management massive increases in the volumes of
networks are transforming its land- data transferred at an ever-lower cost.
scape. Each transport system has its
network. For land transport, the Euro- The Transition of the Transport Net-
pean Commission is working with the work
“Intelligent Transport System”, which
enables an integrated system of in- Finally, the transition of the transport
formation for traffic, safety, efficiency network, supported by infrastructure
and sustainability. In short, it is working and physical characteristics, and which
on the efficient management of the include ships, trains and trucks, and
transport network based on the mass structured around energy and informa-
collection of data and interaction with tion, needs to be addressed. When
the vehicles and drivers themselves. talking about transport in the Mediter-
ranean, we need to discuss what the
In the maritime world, the Safe Sea European Commission defines as the
Net, the vessel traffic monitoring in EU Motorways of the Sea and Short Sea
32 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

Shipping. The Commission is consider- ways of visualising freight and passen-


ing the creation of a single European ger transport in which digitalisation,
maritime space and, in a way, a Medi- and clean energies will play a funda-
terranean space. For the Commission’s mental role.
Motorways of the Sea Coordinator,
Kurt Bodewig, the second pillar of the Conclusions
three pillars of its strategy stresses the
need to ensure smooth maritime trans- The transitions in the energy, telecom-
port by improving multimodal connec- munications and transport networks
tivity, and thus ensuring better pose a disruptive change in the trans-
connections to the TEN-T corridors port sector. Companies will have to re-
and better links with neighbouring configure their strategies because they
countries (European Commission, will have to change their means to
2020). This programme was launched adapt to the new situation, and man-
in July 2020. It reflects the principles of agement systems will be increasingly
the new legislature of the European based on the digitalisation of oper-
Parliament adopted in June 2019, and ations, with artificial intelligence apply-
the guidelines set by the President of ing to their day-to-day activities. This
the European Commission, Ursula von brings about new opportunities for
der Leyen, and the “Green Deal” pro- companies and the entry of new
gramme, which is already setting the players from different markets. These
agenda for all the countries of the new players may have competitive ad-
Union. It is important to note that the vantages over the rest, something that
transport sector has been dramatically has already been witnessed in other
affected by the measures to contain sectors. Mobility will continue to be a
the pandemic. The continuity of ser- fundamental element in development
vices has been ensured by transport but will be adapted to a new reality
workers under challenging conditions, that has emerged from the COVID-19
showing that their role is critical in serv- pandemic. Companies will have to re-
ing the essential needs of the popu- configure many of the professional
lation. By extension, the transport profiles to adapt them to the new real-
sector will also be crucial in supporting ity and to favour the new skills that will
the post-COVID-19 economic re- be required for a circular economy.
covery. This will particularly rely on the These are what we call “Blue Skills”.
maritime and port transport sectors, Training to cope with this transition will
with cruise, ferry and Ro-Pax operators be a crucial factor in facilitating that
being the most affected. transition.

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

EUROPEAN COMMISSION. (2020, May). CEF support to Maritime and Motor-


ways of the Sea. Innovation and Networks Executive Agency. Retrieved from
https://ec.europa.eu/inea/sites/inea/files/cefpub/cef_transport_2020-corridor-
report_maritime-mos_metadata.pdf

INTERNATIONAL MARITIME ORGANISATION (IMO). (2018, April 13). Initial


IMO Strategy on Reduction of GHG Emissions from Ships. Resolution
MEPC.304(72). Retrieved from:
https://wwwcdn.imo.org/localresources/en/OurWork/Environment/Docu-
ments/Resolution%20MEPC.304(72)_E.pdf

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

The Commitments of the silience. We endorse the G20


G20-2020 to Relaunch Riyadh InfraTech Agenda which
promotes the use of technology in
Global Development infrastructure, with the aim of im-
proving investment decisions, en-
In the Final Leader’s Declaration of the hancing value for money, and
G20 Summit (2020), chaired by Saudi promoting quality infrastructure in-
Arabia and held in Riyadh on 21-22 vestments for the delivery of better
November 2020, the heads of state social, economic and environ-
and government made, among other mental outcomes (p. 4).
things, specific commitments for the
sectors of international trade, transport Very significant the reference made to
and travel, investments in infrastruc- the role of institutional investors, to
ture. Important commitments, it must multilateral development banks MDBs,
be said at once, also for the prospects as well as to the compliance with the
for relaunching development in the principles on the quality of infrastruc-
Mediterranean area. ture investments in the same point 15:

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

Mediterranean area and, in particular, relative regulations, to build favorable


from its transport and logistics system? conditions for the promotion of a real
It is clear that a valid answer can only organic cooperation in the Med area.
come if the states of the area and their In the document, under discussion, the
international reference institutions are awareness of the need to act in this di-
able to offer global players a valid, con- rection is clear:
crete, well-verifiable platform of op-
portunities and advantages in its The EU budget for external action
contents, able to demonstrate to the to develop cooperation with
world the will to overcome the serious Neighbourhood countries is not
fragmentation occurred in recent times sufficient in comparison with the
and to resume the process of commu- size of the needs in infrastructures
nity integration of the Mediterranean and technologies to connect these
area. regions with European network.
This make it vital that it invests in
A great opportunity in this sense is of- areas where the Union can offer
fered, for example, by the commit- real European added value to pub-
ments that all the states of the lic spending at national level. Pool-
Mediterranean region, and not only of ing and blending resources can
this area, have assumed and confirmed achieve results that EU – Neigh-
several times with the approval of the bourhood countries cooperation
UN 2030 Agenda for Sustainable De- should take full advantage of the
velopment. As it is well known, the opportunities the Single Market
platform presents precise goals and offer. Other instances when pool-
tasks to be achieved in the economic, ing resources helps us do more in-
social and environmental dimensions clude catalysing key strategic
and is currently in a phase of full imple- investments (European Commis-
mentation; consequently it could be- sion, 2018).
come an opportunity for the
organisation of a common working This reference to the need for connec-
table between all the states of the tion infrastructures with neighbouring
Mediterranean region aimed at ident- countries shows the great relevance
ifying and defining interventions of a still today of the statements that Layola
general and specific nature, systemic De Palacio, EU Commissioner for
and not fragmented, with strategies Transport, made in 2005 on the occa-
and plans agreed in the main areas of sion of the presentation of the Wider
promotion of sustainable common Europe Report:
growth, among which the plans for the
maritime economy, transport and lo- A well functioning transport system
gistics are fundamental. connecting the Europea Union (EU)
and the neighbouring countries is
Another great opportunity is offered essential for sustainable economic
by the decisions, being defined in the growth and the wellbeing of alla
last months of 2020, that the European citizens in this part of the world.
Union will be able to take with the ap- Better integration of National net-
proval of the Multiannual Financial works will foster regional cooper-
Framework Budget 2021-2027 (MFF- ation and integration not only
Budget) and the updating of the between the EU and its neighbours
44 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

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EUROPEAN COMMISSION (2020b). Communication from the Commission: An-


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FINAL LEADER’S DECLARATION OF THE G20 SUMMIT. G20 Riyadh Summit, 22


November, 2020. Retrieved from https://www.mofa.go.jp/files/100117981.pdf

GOPINAH, G. (2020, 14 October). A Long, Uneven and Uncertain Ascent. IMF


Blog. Retrieved from https://blogs.imf.org/2020/10/13/a-long-uneven-and-uncer-
tain-ascent/

INTERNATIONAL MONTEARY FUND (2020). “World Economic Outlook, Oc-


tober 2020: A Long and Difficult Ascent”. World Economic Outlook Reports.
Washington, DC: International Monetary Fund. Retrieved from: https://www.imf.org/-
/media/Files/Publications/WEO/2020/October/English/text.ashx

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Covid-19 on maritime transport: strategic routes and global scenarios. Inter-
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poli: Giannini Editore.

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and-regional-blocs/

XII BRICS SUMMIT MOSCOW DECLARATION. XII BRICS Summit, Moscow, 17


November, 2020. Retrieved from: https://eng.brics-
russia2020.ru/images/114/81/1148126.pdf
Mediterranean Sea and the
COVID Pandemic: A Turning
Point for Globalisation?
Logistics and Global Value
Chains
Giorgia Giovannetti
Vice President for International Relations
and Full Professor of Economics, University
of Florence; Team Leader and Part-Time
Professor, European University Institute

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

and Morocco in fertilizers, Tunisia and possible relocations, with a potential


Morocco in electrical machinery and to further integrate countries of the
equipment, and Morocco and Tunisia southern Mediterranean shore into
in the production of aircrafts and their regional or global value chains with
components. This last sector is par- European countries, an argument also
ticularly important since, in the north- put forward by Javorcik, (2020) and
ern shore, France has a strong Ayadi et al, (2020). More importantly,
comparative advantage and several these are sectors that could unlock
multinationals have moved their pro- and push out Arab countries from
duction to Morocco and Tunisia. low-value segments of the GVCs,
These descriptive statistics seem to thereby reaching broader social out-
suggest that there are sectors that comes, such as poverty reduction or
might turn out to be attractive for social inclusion3.

Figure 1. Revealed Comparative Advantages in selected countries in the two


shores of the Mediterranean

Source: Authors’ elaboration on BACI-CEPII dataset

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

An interesting example is the aerospace export), France (12,59%) and Spain


industry in Tunisia and Morocco. Ac- (11,66%); for Morocco (2018) the
cording to Zaki (2019), in Tunisia there partners were Spain (23,68%) and
are 81 multinationals (e.g. Latécoère France (22,90) and for Tunisia (2017),
Group, Sabena Technics, Zodiac Aero- France (30,58%), Italy (16,47%) and Ger-
space) employing more than 17.000 many (11, 59%).
people and specialising in activities with
high value added, ranging from soft- Let us now consider the ten main trad-
ware/hardware engineering to the pro- ing partners for each country and com-
duction of aircraft systems. Nearly 70% pute their GDP contraction in 2020 (due
of total production is exported to the to the COVID-19 pandemic) to evaluate
EU. To exploit the benefits of the Tan- if having different trade partners can pe-
gier freezone, many aeronautic and nalize the trade performance of some
aerospace multinationals have also countries with respect to others. We also
shifted their production to Morocco consider the total value-added absorp-
(e.g. Safran, Airbus/ Stelia, Boeing, tion (both the domestic and foreign) as
Bombardier Aerospace, Eaton, UTC and a measure of how countries are exposed
Thales, see Del Prete et al, 2017). As of to risks. We report our calculations in
2019, Morocco counted over 140 firms Figure 2. On the one hand, higher
operating in aeronautics and aerospace, shares of value added originated and/or
sustaining almost 20.000 jobs with a absorbed abroad (on the vertical axes),
38% local integration rate4. Morocco ex- imply higher exposure to foreign shocks,
ports aeronautic components to Eu- given the size of the partners’ shocks.
rope, mainly to France and a popular say On the other hand, larger shocks to the
maintains that “there is no single air- trade partners (on the x axes) may affect
plane in the world that flies without at the country more severely, given the im-
least a component made in Morocco”. portance of the value-added linkages.

To evaluate the consequences of the We can easily detect two different


pandemic and the likelihood of enhanc- groups of countries. The most exposed
ing regional value chains, it is also im- countries out of the ones we analysed are
portant to look at the actual trade located at the top right of the chart: Italy,
partners. Some countries in the South Morocco, and Tunisia. Tunisia is the most
shore already trade more, especially in- exposed, both as far as the GDP contrac-
termediates, with EU countries more tion of trading partners is concerned as
than with other countries in the area, well as the total Value Added used and
while others seem to be more inte- produced abroad. The less exposed
grated among themselves than with Eu- countries are placed at the bottom left.
rope. The different mix impacts on the Egypt for instance, is expected to suffer
demand for specific goods and on the mainly from partners’ GDP contraction,
transmission of the shocks. For instance, but has a very low share of foreign VA ab-
from the World Integrated Trade Sol- sorption and a positive GDP growth as
ution (WITS) of the World Bank, we see well. On the contrary, the main threat for
that Algeria’s top exporting partners in Jordan comes from a large stake of in-
2017 were Italy (16,3% of total country’s ternational VA absorption.

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

least twice. Hence, countries trying to become more integrated in region


benefit from GVCs participation need value chains, would be vital for the re-
to address fragilities and key underly- gion to fully exploit its position as
ing factors of their logistics sectors. crossroads for all European, Asian, and
Countries ofthe southern shore of the African trade routes.
Mediterranean vary substantially in
terms of logistic performance; indeed, Conclusions
the World Bank’s Logistic Performance
Index (LPI) for 2018 ranks Egypt, Jor- The COVID-19 crisis is unprecedented.
dan, Morocco, Tunisia and Algeria re- The interconnected nature of inter-
spectively 60th, 76th, 87th,104th and national trade implies a high level of
107th out of 167 countries. exposure to foreign shocks that is likely
to have contributed to the fast propa-
Some countries made big improve- gation of the economic downturn. La-
ments in the recent past, such as bour intensive sectors, where workers
Egypt, that exhibits high shipping con- mobility is important, have suffered
nectivity, also due to the construction more than others (Smith et al., 2020),
of the second Suez Canal line, and Mo- both in manufacturing and services.
rocco, with the creation of the AMDL Services, which were partially sheltered
(Moroccan Logistics Development in previous economic crises, have been
Agency) and with the increase in the lo- badly hit, particularly tourism and
gistics training offer (from 2.500 places transport, more exposed to health risks
in 2010 to more than 7.200 in 2014-15 and lockdown measures. Services,
(Augier et al., 2019)). Morocco also im- however, are less involved in GVCs and
proved considerably its port infrastruc- to a certain extent, this could explain
ture capacities: the Tangier Free Zone, why, in some cases, GVCs may have
connected to the Tangier Med port, helped mitigate the negative effects
has grown significantly, now covering on national economies while for manu-
400 hectares. The industrial acceler- facturing, the main mitigation channel
ating zone of aeronautic, located in the could be the possibility of relying on
Greater Casablanca area, is, on the foreign demand or foreign suppliers
other hand, close to Mohammed V In- (Antras, 2020).
ternational Airport, Morocco’s main air-
port, which has also developed and is We highlighted that GVCs imply com-
now serving over 70 destinations plex relations between firms operating
worldwide. Other countries are facing in different countries. The related inter-
more challenges, for instance Tunisia, national activities, mainly offshoring
where port traffic has not increased and trade in intermediate goods, bring
since 2008 (Riera and Paetzold, 2020). about efficiency gains by means of divi-
When the pandemic started, it not only sion of labour and increased specialisa-
hit hard almost every country in the tion, but they also mean higher
world, with lockdowns and border clo- interconnectedness and possibly
sures that heavily restricted the move- higher exposure to risks. This is why
ment of good and people, but given many policy makers have started
the abovementioned endemic fragil- speaking about reshoring offshore fa-
ities, it affected the southern shore of cilities. Regional value chains are “geo-
the Mediterranean even more. Ameli- graphically closer” than Global Value
orating the logistics sector, in order to Chains. This could mean that the risks

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 53

are reduced, as is the pollution related upgrading of workers in the South to


to the fragmentation of production. We fully exploit the opportunities. A careful
believe that regionalisation of supply analysis of revealed comparative advan-
chains, where by regional we mean the tages could highlight which sectors
Mediterranean region, can be an effi- could be the basis to enhance the re-
cient solution for both the southern and gional links with mutual benefits for the
the northern shores of the Mediterra- two shores. Regional GVCs are closer to
nean. The economic cycles of countries consumer markets and more consoli-
in the two shores are not very correlated dated in terms of activities. They could
(given different endowments and be a solution to surf the COVID-19 crisis,
specialisation), labour costs are still without destroying the international pro-
lower in the southern shore, even duction network, which is a vital force for
though there could be a need for skill the world economy.
54 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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AYADI, R., GIOVANNETTI, G., MARVASI, E., VANNELLI, G. AND ZAKI, C.


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BERNHARDT, T. (2020). “Have North African Countries Upgraded and Diversi-


fied in Apparel and Automotive GVCs?” London School of Economics and
Political Science’s Middle East Centre Blog. Retrieved from
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graded-and-diversified-in-apparel-and-automotive-gvcs/

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World Economics 153.4: 675-701.

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(2017). “Transport and Connectivity to Global Value Chains: Illustrations from
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value-chains-english_0.pdf

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=2330&refresh=601821c6e69d01612194246
The COVID-19 Pandemic:
What Impacts on the World
Economy and the International
Supply Chains? Focus on the
Western Mediterranean
Region
Jérôme Verny
Professor of Supply Chain Management –
NEOMA Business School, Paris; Founder
and Director, Master of Science DISC
(Digital & Innovative Supply Chain);
Founder and Director of the Institute of
Transport and Innovative Supply Chain.
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 57

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

Figure 1. The role of supply chain risk management and digitisation

Source: Prepared by the author

Focus on the Western We should note that, since the emerg-


ence of the COVID-19 pandemic, the
Mediterranean Region actors of the pharmaceutical industry
have been concerned about the weak
Towards a Smart and Inclusive level of control of the logistical flows
Regionalisation of the for the active principles in particular.
Mediterranean Economies Although R&D and industrial produc-
tion are still present in Europe, the pro-
The Mediterranean is considered an duction of the active principles has
economic area marked by great dis- long been relocated especially in China
parities in terms of economic devel- and India. In this respect, some coun-
opment between the two shores. With tries including France have launched
its 450 million inhabitants, it is one of industrial projects aimed at relocating
the largest consumption basins. Its some links in the value chain of the
presence on the Asia-Europe sea pharmaceutical industry. Greater coor-
route gives it a status of a sea of tran- dination at the Euro-Mediterranean
sit and place of passage of flows level will be necessary to entrench
aimed at the northern range ports. these regionalisation/industrial reloca-
The current crisis puts on the agenda tion strategies.
of the economic policies of Mediter-
ranean countries the issue of the
economic regionalisation and spatial
Towards Digital Cooperation
reorganisation of the value chain for between the Western
certain strategic sectors with strong Mediterranean Ports
potential in terms of R&D but also of
outlets in the Mediterranean during Cooperation in terms of research, de-
the post-COVID-19 era. velopment and innovation (R&D&I) fo-
60 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

cused on digital technologies and their Recently, OneConnect Financial Tech-


capacity to question the existing eco- nology Co., in partnership with China
systems could be formalised under the Merchants Group, has launched the
concept of “digital cooperation”. The platform project to enable exchanges
spearhead of this model of cooper- and international logistics based on
ation lies in the capacity of the actors the blockchain technology. In a pilot
to communicate and share data and test, 200 TEU were exchanged with
later bring together innovative initiat- the partner Chinese ports. The tech-
ives with an ecosystemic approach en- nology linking the ports has reduced
abling the emergence of smart ports. the logistical import and export pro-
cesses from five to seven days to only
Digital cooperation based on experi- two days. The shipping and tariff
mentation with technological solutions costs for the enterprises have also de-
will undoubtedly develop very quickly creased by 30% (Port Technology,
in the coming years. The COVID-19 cri- 2020). Another example is that of the
sis and its bullwhip effects on the inter- American enterprise CUBEX GLO-
national supply chains seem to BAL,2 which has developed a market-
strengthen the resilience of the ports place enabling it to propose cargo
and their ecosystems. This resilience capacities available inside the con-
could, with time, boost the innovation tainers. An optimisation algorithm
processes and the development at providing a 3D view and visual repre-
scale of new technologies (digitisation, sentation of optimal container inter-
automation, optimisation). nal loading.

Figure 2. Optimisation model developed by CUBEX GLOBAL

Source: CUBEX GLOBAL 2020

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

This marketplace has the advantage communities. A digital twin is a rep-


of optimisation of loading ratio of the lica of the port and its facilities en-
containers and consequently of the abling optimisation of port
ships for better productivity (econ- operations, anticipation of the arrival
omy of scale) and better environ- of the ships and more globally the re-
mental performance (reduction of duction by over 10% of the costs of
externalities of maritime transport). port operations. Northern range
This solution could in the long term ports such as Rotterdam and Antwerp
be extended to the case of empty have already initiated pilot projects
containers by offering this visibility in exploring the potential of digital
real time thanks to the digital twin of twins. Solution integrators, such as
the container but also by extending those supplied by Bosch, enable the
its application to port terminals. In construction of tailored solutions for
the Mediterranean, North-South port communities. The ports of the
trade imbalances at the level of mari- Mediterranean must encourage the
time transport can be seen in the vol- emergence of ecosystems devoted to
ume of empty containers moved that innovation to accelerate port oper-
affect the optimisation and profitabil- ation digitisation projects. In this re-
ity of port operations. Solutions like spect, the Med Ports Association is an
the aforementioned can provide per- initiative bringing together 23 ports
formance and productivity gains for of the Mediterranean at a regional
the port terminals in the Mediterra- scale. Initiatives more focused on the
nean. technological and digital sections
must be developed prioritising a bot-
Digital twins in the ports also offer a tom-up approach; that is, based on
new field of deployment of advanced the needs of clients, ship-owners and
digital cooperation between the port shippers.

Figure 3. The pillars of digital cooperation

Source: Prepared by the author


62 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

Conclusions and each actor while seeking an optimal


Recommendations collective result at the level of the
Western Mediterranean region.
In this article, we have introduced
some lessons drawn from the current Finally, we can formulate the following
COVID-19 pandemic and its impact on recommendations for the ports of the
the global supply chains. Shaped to Mediterranean:
meet the challenges of optimisation
and scale economies, the latter have so • Encourage port initiatives that priori-
far rarely included risk management in tise a bottom-up approach combin-
the configuration of logistical net- ing strategic voluntariness of the
works. Since the appearance of the ports, smart cooperation and open
pandemic in early 2020, logistics pro- innovation.
fessionals and researchers agree that a
transition towards more resilient and • Accelerate the digital transformation
increasingly digitised supply chains of the port ecosystems in the Medi-
would enable risk management to be terranean.
anticipated. This anticipation would
enable prevention of disruptions along • Foster the development of short sea
the supply chain in the case of pan- shipping corridors in the Western
demic or crises of a different nature Mediterranean including the large
(geopolitical, economic, and so on). maritime ports and regional ports
from the two shores of the Mediter-
In this new logic, large sea ports and ranean.
regional ports will have to work to-
gether in an ecosystemic approach. A • Promote shared port services and a
mid- and long-term strategic planning door-to-door logistics to attract ship-
is necessary between the ports of the owners.
Mediterranean. Innovation, R&D and
scientific cooperation must be the pil- • Strengthen the attraction/connectiv-
lars of this new port management ity of the port hinterlands by propos-
model to be implemented, in which co- ing innovative logistical services/
operation and competition must co- multimodal logistical poles/innova-
exist in order to optimise the gains of tion clusters.

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 63

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connect-and-china-merchants-group-launch-linked-port-blockchain-project/

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
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abstractid=3545758&mirid=1

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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

Introduction of its future geopolitical influence in


North Africa and the effectiveness of
The COVID-19 has reshuffled the deck the EU’s efforts to develop a compre-
in the strategic scramble to establish hensive partnership with Africa as a
Europe-to-Africa commercial transpor- whole.
tation corridors across the Mediterra-
nean basin. Prior to the pandemic’s Keys Factors for
outbreak, the European Union (EU) sys-
tem already faced a pressing strategic Trans-Mediterranean
challenge to form a coherent and ef- Connectivity in the
fective policy in North Africa to re-
spond to the increasingly significant
Post-COVID-19 Period
roles played by China, Russia, Turkey,
and the Arab Gulf states in the devel- Prior to the outbreak of the COVID-19
opment of trans-Mediterranean con- pandemic, Morocco’s West Africa-to-
nectivity. The severe economic impact Western Europe corridor was the most
of the COVID-19 pandemic could re- advanced in its development while the
sult in those actors exercising an out- Egypt-based East Africa-to-Eastern
sized influence in reshaping the basic Mediterranean-to Eastern/Central Eu-
economic architecture and the geopol- rope corridor was at a more prelimi-
itics of trans-Mediterranean connectiv- nary stage of development, albeit with
ity in the absence of European action. enormous economic potential. The
central corridor based in Algeria was
China’s apparent early economic re- still in a formative state, with its rudi-
covery may provide Beijing a new first- mentary condition characterized by a
mover advantage in each of the three jockeying among international actors
emerging trans-Mediterranean com- to establish a successful corridor.
mercial transport corridors: Morocco’s
West Africa-to-Western Europe corri- Morocco’s success has demonstrated
dor, an Algeria-anchored central Ma- that commercial corridors only emerge
ghreb corridor, and the Egypt-based where the requisite large investments in
East Africa-to-Eastern and Central Eu- port and rail infrastructure are coupled
rope corridor via the eastern Mediter- with an industrial base anchored in a
ranean. The existential rivalry between manufacturing value chain. These re-
Turkey and the United Arab Emirates quirements reflect the two fundamental
(UAE) will ensure that Turkey, along needs in Africa’s current growth phase
with its strategic partner Qatar, and the more generally – increased commercial
UAE will remain highly engaged across connectivity to consumer markets and a
North Africa. Egypt’s positive eco- larger industrial manufacturing base.
nomic growth outlook raises the pos-
sibility that progress in establishing the The Moroccan example (as well as the
eastern corridor could sufficiently sur- Algerian example) also shows that if
pass the other corridors to reorient the European Union system does not
commercial flows from those corridors. work effectively to partner with North
The manner and extent to which the African nations to meet these require-
EU exercises leadership in the devel- ments, then EU member states playing
opment of trans-Mediterranean con- leading roles in trans-Mediterranean
nectivity will determine the parameters connectivity will partner with actors
68 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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.

France remains bereft of European The Turkey-Italy-Tunisia network’s cen-


partners willing to play a strategic role tral hub is Italy’s deep-sea port of Ta-
in Morocco’s infrastructure devel- ranto located on the Italian peninsula’s
opment. Morocco is well-suited for southern tip in the strategic heart of
electric vehicle manufacturing and hy- the Mediterranean Sea. Managed by
drogen production, both of which are Turkish port operator Yilport, the Ta-
EU priorities. In the absence of strate- ranto port began servicing the Turkey-
gic coordination in Morocco between Italy-Tunisia network in early July 2020.
France and other EU members or with The Taranto-Tunisia segment of the
the EU system, Morocco’s Africa-to-Eu- network simultaneously forms the core
rope corridor will increasingly depend link of a potential Europe-to-Africa
on the strategic relationship between commercial transportation corridor, by
France and its Arab Gulf partners. In- connecting North Africa’s coast to the
stead of the EU’s “five partnerships” major markets and manufacturing cen-
framework for African development, tres of Italy, Germany, and northern
the confluence of strategic interests Europe via Italy and Europe’s high-
among Rabat, Paris, Abu Dhabi and Ri- speed rail systems. From Tunisia’s Bi-
yadh will set the terms for Morocco’s zerte port, the corridor can also link by
West Africa-to-Western Europe com- highway to Algiers, the Mediterranean
mercial corridor. coastal terminal for the Trans-Saharan
Highway (Route 2 in the Trans-African
COVID-19 and the Highway (TAH) system), potentially ex-
tending the Italy-to-Tunisia corridor
Competition for a Central southward into West Africa as far as
Maghreb Corridor Lagos, Nigeria.

The Turkey-Italy-Tunisia network is a


The efforts to develop a Europe-to- multi-modal transportation route
Africa corridor through the Central Ma- whose Europe-to-Africa segment ex-
ghreb presently revolve around tends from the network’s central node
Algeria’s road connectivity within the at Taranto to Malta and then the port
Trans-African Highway system, starting of Bizerte in Tunisia. The Taranto-Malta

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

of investments (Gulf Times, 2020) ranks which Algeria agreed to participate in


it as Tunisia’s second largest investor, be- Beijing’s BRI programme (Xinhua,
hind France but leapfrogging ahead of 2019b). Slowed but not deterred by
both Italy and Germany (Tanchum, the COVID-19 pandemic, nor Algeria’s
2020b). changing political environment, Beij-
ing’s China International Development
While the Turkey-Qatar partnership has Cooperation Agency signed, on 11 Oc-
gained economic and political influence tober 2020, an economic and technical
in the central Maghreb, it has not secu- cooperation agreement with Algiers to
red a dominant position in the develop- deepen Algeria’s BRI participation
ment of central Africa-to Europe (APS, 2020). Nonetheless, requiring
corridor either. Bizerte and Tunisia’s five seven years of construction at a current
other medium-sized ports, do not pro- estimated cost of $6 billion (Agenzia
vide an economy of scale to sustain an Nova 2020), whether and when El
economic corridor. With an expected Hamdania will actually be completed
20% contraction of the Tunisian eco- remains uncertain, as Algeria’s econ-
nomy in 2020 (Asala, 2020), it remains omy has been forecasted to contract
unclear when construction will begin on by 5.5% in 2020 (IMF, 2020) forcing a
Tunisia’s proposed deep-sea port at En- reduction of the planned investments
fidha. In the absence of a modern deep- of its state-owned energy company So-
sea port, the Turkey-Italy-Tunisia natrach by 50% (Reuters, 2020b).
network could become a sub-system in
China’s Belt and Road Inititiative (BRI) ar- While a sufficiently strong recovery in
chitecture. energy prices could push Algeria’s pos-
itive economic growth in 2021, Algiers
The incorporation of the Turkey-Italy-Tu- would require an oil price of $157.2 to
nisia network into a BRI-oriented central balance its budget. Despite depleting
corridor may be accomplished with its foreign reserves, Algeria has so far
China’s construction of El Hamdania been reluctant to seek assistance from
port in the Algerian municipality of Cher- the International Monetary Fund
chell. Following China’s CITIC Construc- (M’vida, 2020), leaving it more vulner-
tion’s success in building most of able to increasing its dependence on
Algeria’s East-West highway, Algiers China, Russia, and Turkey.
inked a deal in 2016 with the China State
Construction Engineering Corporation Post-COVID-19 Advance
and the China Harbor Engineering Com-
pany to construct El Hamdania as a mas- of the Eastern Corridor:
sive transshipment port located about 60 Egypt and the East
km west of Algiers (Bonface, 2016). With
a container capacity of 6.5 million TEU,
Africa-to-Eastern Me-
El Hamdania could function as the hub diterranean Corridor-to-
of an Africa-to-Europe corridor linked to Eastern/Central Europe
the Taranto port.

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

sing toward becoming a hub for an The emerging East Africa-to-Eastern


East Africa-to-Eastern Mediterranean Eastern Mediterranean commercial
commercial transportation corridor corridor centered in Egypt is a multi-
that connects to the European main- modal corridor whose African segment
land at the massive Chinese-run trans- will be primarily based on rail connec-
shipment port in Piraeus, Greece. tivity as Cairo has prioritised shifting its
Piraeus’ port operator China Ocean commercial transportation from road
Shipping Company (COSCO) provides to rail (Dornier, 2019). Egypt is creating
freight rail service through the Balkans rail connectivity with Sudan that could
and Central Europe to reach Austria, forge a new north-south rail corridor
the Czech Republic, Germany, and Po- with the White Nile countries with
land, extending the East Africa-to-East- whom Egypt is more closely aligned,
ern Mediterranean corridor to the extending southward to Egypt’s part-
major markets and manufacturing cen- ner Tanzania and the other East African
tres of Eastern and Central Europe. countries of the wider Lake Victoria
basin. This development has been fa-
Egypt has been engaged in a pro- cilitated by Egypt’s warming relation
gramme to increase its total container with the new Sudanese government
capacity of its Mediterranean ports to after the April 2019 ouster of Sudan’s
partner with Piraeus as the dominant former strongman Omar al-Bashir and
transshipment hubs in the Mediterra- the multibillion-dollar support pro-
nean basin. China occupies a preemi- vided to Sudan’s new government by
nent position in Egypt’s both the Egypt’s close strategic partners the
operation of Egypt’s Mediterranean UAE and Saudi Arabia (Abdelaziz,
ports and their capacity expansion. The 2019).
majority of Egypt’s foreign trade is han-
dled by the Alexandria port and its On 25 October 2020, Egypt and Sudan
auxiliary El Dekheila port with a com- signed a new transportation connectiv-
bined container capacity of 1.5 TEU. ity agreement that will create modern
The port is run by the Hong Kong- rail connections between Egypt and
based Hutchison Port Holdings, as a Sudan (Egypt Today, 2020). The first
joint venture between Hutchison, the rail link of the project will be con-
Alexandria Port Authority, and Saudi Al structed with funding from the Kuwait
Blagha Holdings (Mooney, 2016). Hut- Fund for Economic Development and
chison is also developing a 2 million will run from Egypt’s southern city of
TEU port at the nearby Abu Qir pen- Aswan to the Sudanese border town of
insula that will start operations in 2022 Wadi Halfa, which presently is the
(Egypt Today, 2019). The 5.4 million northern terminus of Sudan’s rail line
TEU Suez Canal Container Terminal from the country’s capital Khartoum.
(SCCT) at East Port Said is owned by Combined with the eventual upgrade
APM (55%) and COSCO (20%) with the and completion of South Sudan’s rail
remaining 25% stake split among the links between its borders with Sudan
Suez Canal Authority, the National and Uganda, Egypt will preside over a
Bank of Egypt, and Egyptian private rail corridor that links the booming
sector participants. The SCCT services economies of East Africa to Eastern
the entire Suez Canal Economic Zone Mediterranean coast. With maritime
mega-project in which China is the connectivity from Egypt’s ports to Pi-
largest investor (Xinhua, 2019b). raeus, Egypt will become the multi-
74 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

vestments in trans-Mediterranean con- EU should promote green transition


nectivity that create local manufactur- through incentivizing European electric
ing that participates in European value vehicle manufacturers to open produc-
chains. In the absence of coherent Eu- tion facilities in Morocco, Algeria, or
ropean Union system policy to incen- Egypt to employ North Africans. North
tivize EU member states and European African countries are expanding their
firms to cooperate in effectively part- power production capacity from rene-
nering with North African nations, wable resources as well as their infra-
leading EU member states will partner structure for the storage and transport
with actors outside the union to create of liquified natural gas. The EU should
Africa-to-Europe corridors. Any space take the lead in developing the potential
left by the European Union in the devel- of newly emerging trans-Mediterranean
opment of trans-Mediterranean connec- hydrogen geographies through incenti-
tivity will be filled by China, Russia, vizing European-African joint ventures in
Turkey and the GCC States. hydrogen production from renewable
energy resources and the infrastructure
The EU system should incentivize closer for hydrogen storage and transport.
coordination among member states and
European firms to make investments on The absence of EU partnerships with
a strategically significant scale in trans- North African nations on a strategically
portation connectivity and in manufac- significant scale will likely result in trans-
turing facilities that will utilize that Mediterranean connectivity that neither
commercial connectivity in European represents European values nor serves
manufacturing value chains. While EU Europe’s interests. The European
values, often manifested through regu- Union’s window of opportunity is now in
latory systems, are viewed by the Union the immediate post-COVID-19 period.
as one of its primary contributions, these The implementation of a robust partner-
will be more readily accepted when ship between the European Union and
adopted by European firms operating North Africa that produces Africa-to-Eu-
manufacturing production facilities in rope value chains will result in trans-re-
North Africa. gional architectures of commercial
connectivity based on the values of the
Automative manufacturing is one of the five partnerships framework that will op-
key growth sectors for North Africa and erate for generations beyond the pan-
trans-Mediterranean connectivity. The demic.
76 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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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.

In its search for influence in the Western


The case of the Beirut port, Mediterranean, Turkey sees the port of
representative of the Beirut as a key point of presence and, as
geopolitical challenges in the it only has its national ports in the region,
Eastern Mediterranean would wish to expand its presence
through the Lebanese capital. Neverthe-
While Chinese companies exert their in- less, given the French-Lebanese relation-
fluence in several ports in the region, ship and Lebanon’s reticence about
thereby providing access to Middle East- greater influence of Ankara in the region,
ern markets and opening a door to Af- which it criticises for intervening in the Li-
rica, such as the case of Alexandria or byan conflict, a reconstruction of the
Haifa in Israel, the recent explosion in the port by Turkey is quite unlikely. More-
port of Beirut has stirred Chinese inter- over, the United Arab Emirates (UAE),
est. The resumption of the management whose Mediterranean ambitions have
of this port has revealed a real geopoliti- led them to become interested in the
cal arm-wrestle between regional and in- port of Beirut, share French fears over
ternational powers. For China, a point of Turkey. The UAE have contributed hu-
anchorage in the Lebanese port would manitarian aid to Lebanon through their
enable a maritime route to be secured, company Dubai Ports World, which they
in the framework of its initiative “The often use as a geopolitical lever. The re-
New Silk Route”, towards Arab countries cent tensions between the countries and
while avoiding the obstacles found in closer relations between other countries
other ports of the region because of do- have been transposed to the Eastern
mestic political issues. However, Leba- Mediterranean region. An alignment be-
84 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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.

Figure 1. The presence of Chinese enterprises in Mediterranean ports

Source: J. Verny, O. Oulmakki, Th. Blayac, (2019). Positionnement stratégique de la Chine en


Méditerranée : Le projet « Belt and Road Initiative ». Les cahiers scientifiques du transport (nº75).
Pages 63-79.

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 85

Figure 2. Main Chinese investments in the Mediterranean

Year Location Projects

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

Source: J. Verny, O. Oulmakki, Th. Blayac, (2019). Positionnement stratégique de la Chine en


Méditerranée : Le projet « Belt and Road Initiative ». Les cahiers scientifiques du transport (nº75). Pages
63-79. Extrait de : https://vdocuments.mx/document/les-cahiers-scientifiques-du-transport-n-752019-
pages-63-79-2020-2-20.html

China has recently signed an economic Its Tunisian neighbour, considered an


and technical cooperation agreement ally of certain Western powers in the Li-
with Algiers. In the framework of this byan issue, also enters the recent geo-
agreement, Beijing plans the construc- political game. With the health crisis,
tion of a deep-water port in El Hamdania Tunis has recorded significant negative
(Cherchell). This major project, in which effects on key sectors of its economy,
China will invest 5 to 6 billion dollars, will i.e. transport and logistics. The transport
be one of the biggest maritime ports at sector accounts for 7% of GDP as well
world level and consolidate China’s Silk as 11.5% of investments (Business
Route project (Algérie Presse Service, France Tunis, 2020). In order to counter
2020). This new project will be able to the attempts of Turkish and Russian in-
accommodate ships up to 21.500 EVP fluences in the country as well as the in-
(Demmad, 2020). Moreover, it will make creasingly significant Chinese presence,
Algeria a regional commercial hub and the American ambassador met the Tuni-
will unquestionably offer Beijing an sian Minister of Transport and Logistics
opening to an African trade corridor and in October. The discussion dealt with the
greater influence on the continent. possibilities of bilateral cooperation1 as

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

port of Tanger-Med provides the trusted to a Chinese company but


country with a significant geostrategic seems to be crumbling, has stirred Emi-
position and Euro-Mediterranean an- rati and Saudi interests, which have ex-
chorage and transforms it into a port pressed their intention to invest. This
highly coveted by the international ac- would not only risk competing with the
tors (Ministère de l’Equipement et des project of the Dakhla Atlantique port in
Transports du Maroc, 2011). Morocco is which Morocco is so deeply invested but
also the first African country to have a would also counterbalance Moroccan in-
high-speed train whose extension will terests in Mauritania. Russia, which has
be able to connect Europe to Africa. The RSW (Refrigerated Sea Water) vessels in
Chinese have announced their desire to Mauritanian waters with a competitive
participate in the extension of this rail capacity, would also be attracted by
connectivity although it is not guaran- Mauritanian ports.
teed by France, traditionally the most
important presence. With the COVID-19 Moreover, Turkey seems to gain ground
crisis and the greater investment and in the Western Mediterranean through
Chinese interest in the country, France a rapprochement with Italy. Indeed, in
further mistrusts an omnipresence of the July 2020, Turkey established a transport
Asian power, thereby complicating its corridor bringing closer Italy but also
implementation. It is also hindered by Tunisia. Formed around a focal point,
France’s lack of European partners, which is the deep water port of Tarento
above all because Morocco has been in southern Italy, a strategic place in the
very open to cooperation with other Mediterranean managed by the Turkish
countries such as Russia through the sig- company Yilport, this corridor will en-
ning of economic association agree- able closer trade relations between
ments. Until now these countries have three regions, i.e. Africa, Europe and the
only invested in the energy sectors but Middle East. Along with connecting the
investment in transport infrastructures Southern Mediterranean countries to
should not be dismissed, especially if the European countries through Italy
they decide to join Chinese or Emirati and the rail systems, this corridor has
projects. Both have also shown interest even greater strategic interest for Turkey
in Morocco by resuming most if the air and Europe. From Algeria and through
links. the trans-Saharan route, it opens the
way towards sub-Saharan Africa, which
However, the Emirati interest in Moroc- Turkey increasingly covets.
can airport facilities has somehow been
undermined since 2018. Today, Saudi In contrast to the international actors in-
Arabia and the UAE are seeking to se- vesting in the two sectors in search of in-
cure their political and military influence fluence, the European strategy turns out
in Mauritania through major investment to be different. Little motivated by its
in transport infrastructure and airport fa- geopolitical ambitions, Europe mainly
cility projects. In 2018, the Mauritanian relies on regional integration and the
authorities entrusted the management development of Western Mediterranean
of Nouakchott airport to Abu Dhabi Air- countries. Indeed, along with the coun-
ports Company PJSC for 25 years (Yabi- tries in the north-western shore forming
ladi, 2019). Moreover, the management part of the European Union (EU), the
of the port of Nouadhibou at the border Maghreb countries located on the
with Morocco, which had been en- southern shore are its closest neighbour-
88 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

Mohamed VI airport, which has turned should enable an increase in the


Casablanca into a key air hub between commercial flows as well as a reloca-
Asia, Africa and Europe, should be tion of the industrial activity in the re-
continued and intensified. gion, thereby bringing about
economic and social development. In
• Finally, it would be appropriate to de- order to back up these efforts, the
velop the motorways of the sea in the development of road transport must
Western Mediterranean in order to be supported to enable connections
enable a connection between the even within the countries and boost
European ports and countries and the development of the whole trans-
the southern shore. This initiative port chain.
90 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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Chapter 2

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

Introductory Notes modal systems where the focus is on


autonomous and automated driving
These early years of the 21st century modes and the widespread use of
have brought unprecedented growth electrical propulsion and alternative,
and development in human activity non-polluting fuels;
and society. This era has given rise to • Implementation of efficient co-mobility
new challenges and demands, and the supported by complementary, collab-
pandemic has added even more pre- orative systems and technologies be-
viously unseen phenomena. tween modes of transport, from the
heaviest (i.e. trains) to the lightest (i.e.
To increase the transport sector’s con- pedestrians);
tribution to economic, social and envi- • Use of digital technologies based on
ronmental sustainability and respond artificial intelligence, big data, cloud
to these demands, innovation must be computing, the Internet of things, etc.;
at the service of the common good, as
well as the environmental, health-re- Regarding infrastructure:
lated and functional challenges facing
society as a result of climate change • Widespread digitalization of infrastruc-
and all other emerging threats. ture, and construction of more effi-
cient and eco-friendly smart
In keeping with our preferred line of infrastructure;
reasoning, the key factors for the suc- • Implementation of more effective and
cess of our sustainability and decarbon- more energy-efficient mechanisms in
ization ambitions are integrated all areas of asset management;
transport planning, organization of • Renovation/construction of new
transport with rail as the backbone, and multimodal stations as integrated
a focus on public and digital transport. spaces for mobility and the promo-
tion of complementary transport ac-
To provide guidance and some initial con- tivities;
siderations on structuring the transport • Digital overhaul and automation of
system, we will underline some of our rec- logistics areas used for goods trans-
ommended principles and options. port, especially through the use of
automatic freight couplers for recep-
Regarding mobility: tion/ training operations.

• Mobility that is safe, clean (without air Transport System


and noise pollution), fluid, free from
bottlenecks and accidents, and inte- Indicators and
grated into the landscape where it Inefficiencies
takes place;
• Mobility that is energy efficient and This introductory section, which aimed
environmentally friendly; to structure and clarify our thinking, will
• Mobility that is smart, shared, inter- now be followed by a description of
connected and user-centred; some key indicators and inefficiencies
that characterize the transport system
Regarding systems and technologies: and help provide an insight into the
complexity and scale of the problem at
• Connected and interconnected multi- hand.
98 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

Some indicators and trends to consider • Road infrastructure is currently used


are as follows: for 75% of the land transport of
goods. It is vital that a significant por-
• The world’s population has grown tion of this be transferred to rail infra-
12-fold in three centuries, from 600 structure;
million people at the start of the • To achieve the objective of climate
18th century to almost eight billion neutrality by 2050, as set out in the
in the second decade of the 21st European Green Deal, transport
century. This is putting great press- emissions must be reduced by 90%;
ure on the global and local econ- • Today, more than three billion people
omies, land use and transportation in the world have a smartphone. Con-
systems; nected mobility therefore has plenty
• After the Second World War, the of potential for success.
human population trebled and there
was a six-fold increase in the con- We will now highlight the most signifi-
sumption of energy, most of which cant transport system indicators and in-
came from fossil fuels; efficiencies that must be addressed:
• The number of passenger cars in cir-
culation grew from 40 million to one • Pollution and emissions produced by
billion, with road transport leading the the transport system;
way and representing the biggest pol- • The rate of road traffic accidents, the
luter (EU: 72%), way ahead of any number of which is unacceptable and
other mode; must be addressed;
• Europe’s railways (EU) carry 439 billion • The high average cost of
passenger-kilometres and 261 billion transport/passenger, according to the
tonne-kilometres per year (2019), ac- system’s current structure, and which
counting for a market share of 7.8% must be reduced;
and 18.7% of the total volume trans- • The low capacity of infrastructure
ported, respectively, and are a far cry used, given the intense use of individ-
from our decarbonization targets; ual transport and its low occupancy
• Maritime transport is fundamental to rate;
the global freight transport system, • The low energy efficiency of internal
but its relative carbon footprint is high, combustion engine vehicles, which
given that it accounts for around 4% have not significantly increased in the
of CO2 emissions; last hundred years;
• Aviation is an essential, innovative sec- • The system’s inefficient global trans-
tor for long-distance transport, but its port supply, given the modal rather
carbon footprint is also very high, than integrated approach;
since it is responsible for around 14% • Excessive land use by the system,
of CO2 emissions. New forms of mo- given the return generated, especially
bility in this market segment are there- with respect to road infrastructure;
fore crucial; • The transport sector’s heavy depend-
• The European transport sector is re- ence on energy from fossil fuels.
sponsible for 25% of CO2 emissions;
• The European road sector is respon- We Are Very Inefficient!
sible for around 26 million deaths per
year, a figure that must be reduced In light of the above observations, it is
considerably; imperative that we change our practices

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

• Promoting user-friendly and barrier- system based on contributions from


free solutions for all system users, es- different modes, which must also be
pecially people with reduced mobility. adapted to respond to all kinds of
crises, including those relating to
To describe our preferred approach in health;
greater detail, we believe it is necessary • Promotion of barrier-free access to sta-
to respond to the challenges mentioned tions, interfaces, trains, underground
by identifying specific system require- trains, trams, buses and other modes
ments in terms of infrastructure, trans- to guarantee reliable and fluid inter-
port equipment and range of services. connections, while also promoting
real-time public information on trans-
Requirements and port operations and direct and indi-
rect commercial opportunities.
Characteristics of the
FUTURE Transport System With respect to digital infrastructure
management, we must focus on the fol-
Regarding infrastructure, the following lowing:
requirements and characteristics are
key: • Communications
Next-generation services on public
• Increased implementation of auto- mobile networks create opportunities
matic traffic management systems and for powerful, engaging applications.
operational support systems; Network coverage and standardiza-
• Widespread implementation of digital tion are also key factors for success in
infrastructure protection systems and this area.
relevant equipment (safety and secur-
ity); • Navigation systems
• Promotion of greater energy efficiency Satellite navigation to ensure that po-
in facilities and across all transport in- sitioning forms an integral part of all
frastructure management activity; navigation systems. Deployment of
• Widespread implementation of infra- Galileo and addressing integrity are
structure maintenance following a crucial for transport management.
non-traditional approach based on a
dense network of sensors installed • Analytics
mainly in infrastructure components, As sensor and business data develops,
structures and equipment; big data and business intelligence
• Increased use of reliable new materials tools can be used to transform data
in infrastructure and equipment, such into accessible information. Forecast-
as materials with a regenerative capa- ing and planning are the main areas of
city to minimize the risk of break- application.
downs and incidents;
• More widespread use of artificial intel- • Computing systems
ligence, self-learning mechanisms and Mobile computing has evolved to
IoT in asset management; allow user applications to help deliver
• Renovation, construction and manage- complex, IoT-based services and vir-
ment of stations and secure interfaces tually unlimited applications through
to meet the needs of an increasingly the use of inexpensive connected
complex, interconnected transport hardware.

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 101

In terms of equipment and the range of to be considered and adopted in each


services, the following requirements and situation.
characteristics are key:
A Holistic Approach to
• Increasing the use of heavy and light
smart trains, whose construction sol- Transport Policy
utions, including infrastructure sol-
utions, will be increasingly efficient, In addition to these measures for the
advanced and based on intercon- promotion of a new transport policy,
nected digital systems; we firmly believe that only the holistic
• As in the case of infrastructure, and in approach should be used for strategic
keeping with previous measures planning of the future transport sys-
taken, increasing the use of systems tem.
and solutions for predictive mainten- In our opinion, integrated transport
ance of vehicles; planning is therefore an essential
• Making significant developments in requirement and a duty that will help
automation of transport operations; address matters such as overall effi-
• Ensuring the widespread use of 5G by ciency, functional optimization of the
improving the IoT and creating a more multimodal network, transport safety,
extensive commercial range of and supply predictability and stability.
smarter transport options;
• Automating the processes associated This type of holistic strategic planning
with the movement of goods (auto- will make it possible to optimize the
mated robots, automatic coupling, investment programmes associated
etc.) with a particular focus on move- with it, thus maximizing performance
ments at logistics terminals and opti- and the benefits for the community.
mization of the costs associated with
this type of transport; In addition, it is necessary to provide
• Ensuring the widespread use of digital a clear definition of system objec-
systems supported by artificial intelli- tives, as well as in-depth knowledge
gence for relationships with system of each modal network, a demand
users in service outsourcing, monitor- forecast and the contribution ideally
ing and implementation, and in the made by each mode to the result, i.e.
sale of products to complement trans- transportation of a person or a load
port services; from point A to point B under the
• Promoting integrated multimodal best possible conditions of comfort,
transport solutions for both passen- safety, price and time.
gers and goods based on digital
systems and dedicated algorithms; Finally, it should be noted that adopt-
• Increasing shared mobility in each ing a planning methodology for each
mode of transport and between mode of transport is an erroneous ap-
modes while optimizing each proach that squanders scarce and ex-
mode’s operational management pensive resources. It should be
systems. replaced with our preferred method:
a network-to-network approach that
Much more could be added, but we contributes to an optimized end re-
have already covered a long list of initi- sult in terms of cost and service
atives, areas of intervention and systems quality.
102 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

The Challenge of What Type of Cooperation


Cybersecurity is Required?
We will now focus on a subject that is Finally, we would like to touch on the
becoming increasingly relevant in type of cooperation that should be pro-
light of the growing digitalization of moted among us, the countries located
our systems: the issue of cybersecur- in Southern Europe and North Africa.
ity. Transport solutions are naturally linked
to the landscape in which they take
As we all know, cybersecurity repre- place and will therefore always have
sents a complex new challenge that specific characteristics that set them
must be tackled, given the increasing apart. However, what sets them apart is
use of digital technology and result- far less important than what unites
ing real and potential weaknesses. them.
These weaknesses must be minimized
by enhancing the efficiency of protec- Thus, the exchange of experiences and
tion/prevention mechanisms. good practices and each country’s par-
ticipation in standardization processes
To achieve this macro-objective, the are key approaches and contributions in
items in the following non-exhaustive the construction of efficient, low-cost
list of measures are essential: networks and systems.

• 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

Has COVID-19 Pushed Us black-box algorithms? Would people


Into a “New Era”? become against globalisation and wish
to reinforce old political borders and Na-
“There can no longer be any doubt, tion-States? Are future governance
COVID-19 has pushed us into a new paradigms up with people choices? The
Era” stated Nasser Kamel the Secretary evolution of technology will leave us to
General of the Union for the Mediterra- more authoritarian or more participatory
nean (UfM). type of government? To what extend
the experience of COVID-19 will change
The need for a paradigm shift has been ourselves? The way we work, we move
advocated by most European political and communicate, the way we live? The
documents. According to the European policies we need? Are we moving to-
Union’s 2020 “Circular Economy Action wards a dystopia close to “Qualityland”,
Plan” for instance, over the next forty the novel by Marc-Uwe Kling published
years, global consumption rates of bio- in 2018?
mass, fossil fuels, metals and minerals
are expected to double, and annual The CETMO and the IEMed launched a
waste generation is projected to in- joined initiative to explore post-COVID-
crease by 70% by 2050. Half of all green- 19 scenarios in June 2020. “COVID-19
house gas emissions and over 90% of has had an unprecedented impact on a
biodiversity loss and water stress are the planetary scale”, stated both institu-
result of resource extraction and pro- tions. “Economic recovery is an immedi-
cessing. These numbers exemplify the ate challenge, as well as knowing what
highly resource-intensive “Take-Make- new medium and long-term scenarios
Waste” economic model of the world this pandemic will draw”. What happens
economy. Is COVID-19 hard experience when everybody works from home and
going to make easier the implementa- communicates only at a distance? when
tion of the “paradigm shift”? millions of people get used to ecom-
merce? While passenger transport was
To what extend COVID-19 will actually reduced to the minimum, as well as
represent a tipping point, a moment of many global logistic chains, ecommerce
change, when political-aims and strat- was booming.
egies agreed years ago can be actually
implemented moving us towards a new At the moment I am writing, December
Era –as stated by Nasser Kamel? Will our 2020, the COVID-19 vaccine is being
future be different because of the whole mass produced by pharmaceutical in-
world passed through the COVID-19 ex- dustries and thousands of millions of
perience –a singular time when entire doses are planned to be distributed
countries served as “guinea-pigs” (Ha- early next year to the whole world popu-
rari, 2020) in large scale social experi- lation. The most likely hypothesis is that
ments? COVID-19 impact will be to accelerate
already existing trends (e.g. digitalisa-
Would people, everywhere around the tion, from ecommerce to teleworking)
world, be ready to accept their intimacy but hardly inducing significant short-
being monitored in order to increase term changes on social values, policies
public health and security? Would and governance processes. The solution
citizens prefer a technocratic/authoritar- to the pandemic has been scientific and
ian government based on data and technologic, at least in the Western
106 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

World. In a moment of rising political mass customisation and specialised


populism, the prestige of scientists, the freight transport, fast automatized logis-
work of health professionals and the ef- tics relaying on intelligent machinery or
ficiency of the industry has been recog- robots, and people at home, working to
nised. Economic policies adopted in provide virtual services to others, mov-
most developed countries, particularly ing just at a walking distance from
in Europe, learnt a big deal from the ex- home. Many people in large cities
perience of the 2008 crisis. Austerity bought stationary bikes though Internet,
policies applied by European institutions and got them just few hours or days
in the 2008 crisis were easily forgotten afterword’s. Lucky people had detached
and expansionary policies were applied houses in suburbs or small villages, had
instead, without hesitation, by the Euro- more time to take care of their gardens
pean Central Bank. We learnt a lot dur- while working through smart mobile
ing COVID-19, we have more phones. The conventional criteria to as-
information and knowledge, but our sess transport and mobility policies
values, and desires, will likely remain seemed by then obsolete (e.g. most ef-
roughly the same. fective mobility policies can no longer
be those able to transport as many
This article further investigates tragic people as possible, as fast as possible
moral dilemmas highlighted by how and at minimum cost, just if people was
COVID-19 has been handled in different like freight).
countries. Even if mobility and transport,
and the Mediterranean region, are al- Key political ideals such as decoupling
ways in the background of the article, economic growth from transport de-
the ethical and political discussions aim mand, were also tested. On 28-29
a wider scope. March 2019, in Nicosia, Cyprus, the
MED Urban Transports Community co-
CV-19 as Large-Scale organised two conferences on circular
economy and sustainable mobility, just
Global Experiment before COVID-19. “The shift from sec-
toral planning to integrated planning
When the World Mobile Congress in can provide better and more sustainable
Barcelona was cancelled the 12th Feb- possibilities for the urban spaces, while
ruary 2020 because of global American ensuring the safety of citizens and the
corporations such as Google, Amazon protection of the environment”, was
or Facebook, or Apple, decided not to stated in Nicosia, involving alternatives
attend, few experts were able to see the solutions that reduce transport needs,
future ahead, and no politician was be- active and low-impact mobility solutions,
ginning the preparation for a “worse- multimodal transport as an integrated
case” scenario. service and optimised freight capacity
through shared solutions and distributed
During months, all over world people centres.
physical mobility was restricted to just
indispensable reasons. At the same It was a time of dilemma. The decisions
time, virtual communication grew expo- people and governments took in such a
nentially. It was a living laboratory of a turbulent times faced “tragic dilemmas”
different world, an utopian world work- indeed. Values such as safety and secur-
ing at two speeds: production based on ity, or public health, were considered a

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.

It was also a time of paradoxes. Political


decisions that in normal times could take
years of deliberation were approved in a
matter of hours. New information and Facing Tragic dilemmas
communication technologies were
pressed into service, as well as labora- China, then South Korea, Hong-Kong,
tories of pharmaceutical corporations to Taiwan or Singapore, relied on social dis-
develop a vaccine. After an initial shock on cipline, ubiquitous sensors and powerful
stoke markets, some companies (the same algorithms:
first to cancel their participation on the
Barcelona World Mobile Congress) begun By closely monitoring people’s
to grow rapidly. The NASDQ index hardly smartphones, making use of
reflects the impact of the COVID-19. At hundreds of millions of face recog-
the same time, the reductions on GDP in nising cameras, and obliging people
Europe were enormous, particularly in to check and report their body tem-
Southern Mediterranean regions. perature and medical condition, the
Chinese authorities can not only
Figure 1. NASDQ www.macrotrends.net/ quickly identify suspected coronavi-
2489/ nasdaq-composite-index-10- rus carriers, but also track their
year-daily-chart movements and identify anyone
they came into contact with. A
range of mobile apps warn citizens
about their proximity to infected pa-
tients (Harari, 2020)

There are 200 million surveillance


cameras in China, many of them
equipped with a very efficient facial
recognition technique. They even
capture the moles on the face. It is
not possible to escape from the sur-
veillance camera. These cameras
equipped with artificial intelligence
108 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

can observe and evaluate every a drastic reduction in economic activity,


citizen in public spaces, in shops, on which would result in a reduced welfare
the streets, at stations and at air- for “the vast majority” of people, in par-
ports. The entire infrastructure for ticular low-income classes and young-
digital surveillance has now proved sters. The most important social benefit,
to be extremely effective in contain- obviously, was saving lives mostly from
ing the epidemic (Han, 2020).  the elderly population.

The Swedish historian Sverker Sörlin, After monitoring the experience in


himself a CV-19 survivor, noted in an ar- China, a group of modellers at the Im-
ticle that there was never just one global perial College London concluded that if
pandemic but many, each shaped by its the epidemic was not aggressively con-
own national culture. Sweden opted for tained in the UK, half a million people
a calmer – and highly controversial – ap- would die— and more than 2 million in
proach, empowering citizens. Instead of the US. Models such as this one helped
draconian lockdown, and digital surveil- to persuade the British government to
lance, social distancing was a matter of follow much of continental Europe, fol-
self-regulation. Citizens were instructed lowing the experience of China and
to use their judgment, and to take indi- South Korea in putting the economy
vidual responsibility within a framework into a coma (Tim Harford, Financial
that rested on mutual trust, rather than Times 27 March 2020).
top-down control. The “Swedish
model” could have been exported to Donald Trump argued at the White
countries such as Spain, Italy or Greece? House on 23 March that the nation
In Mediterranean countries levels of so- might have to accept drastic public-
cial and institutional trust are much health consequences for the sake of
lower, societies are less disciplined and keeping the economic growth. A few
not so eager deploying digital tech- hours later, one of his Republican allies
nologies to monitor people daily lives. went quite a bit further down the same
path. Dan Patrick, Texas’ Republican
“I want to stress that for the vast major- lieutenant governor, on Monday night
ity of the people of this country, we suggested that he and other grand-
should be going about our business as parents would be willing to risk their
usual” said Boris Johnson on March 3. health and even lives in order for the
Other political leaders, in Europe and United States to “get back to work”
America, for similar reasons, were also amid the coronavirus pandemic. “Those
reluctant to anticipate bold decisions, of us who are 70 plus, we’ll take care of
when still the number of people poten- ourselves. But don’t sacrifice the
tially affected by CV-19 was expected to country,” Patrick said on Fox News’
be small enough. From a pure economic Tucker Carlson Tonight. The GOP offi-
point of view, it is understandable that cial, who’ll turn 70 next weeks, went on
public administrations hesitated so to say, “No one reached out to me and
much to engage is bold measures such said, ‘As a senior citizen, are you willing
as restricting mobility to the minimum to take a chance on your survival in ex-
and stopping the economic activity of change for keeping the America that
the whole country for weeks. Measures America loves for its children and grand-
to be taken by governments to flatten children?’ And if that is the exchange,
the CV-19 growth curve would provoke I’m all in.”

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 109

It is against common sense to believe beyond just reducing physical distances


that it can be economic normalcy or by faster travel. This does not mean that
whatsoever while a pandemic sweep reducing travel time is no longer an im-
through the population. The damage to portant welfare gains, for instance to
the social values of the citizens may be millions of workers commuting daily by
devastating, because the rights of the public transport, to intercity rail
minority of elderly people were dis- travellers, to intercontinental air busi-
regarded after a life of work, once re- ness travellers. Instead, it means that
tired, and therefore everybody will learn transport policies aim at improving a
that they should expect a similar future. more comprehensive set of goals such
as accessibility, sustainability, liveability
Introducing New Values and affordability.
When Assessing There are important positive and
Transport Policies negative externalities of the measures of
restricting mobility to be also con-
We know that in the new digital world sidered. Some analysts estimate that
our experience of distance and time more lives were saved in Wuhan due to
changes radically. Our beliefs, which the reduction in air pollution than the
have existed for centuries, are resistant numbers who have died from the virus –
to change: but we need new concepts perhaps as much as 20 times as many.
to better understand the new reality and Given this fact, how much mobility
support our decisions. A strong need should be restricted in Wuhan from now
arises for a paradigm shift on transport on? How much should we invest on the
planning and management, just because electrification of car fleets? How much
of emerging new technologies and life time travellers should agree to loose in
styles and values of new generations. order to reduce pollution and save lives?
Forcing people to stay at home gener-
As planes stop flying, people stop mak- ates psychological stress that should
ing unnecessary journeys, and streets also be considered. Mobility is a human
are freed of cars, the impacts of mobility need, just like freedom, or prosperity.
is often invisible (because taken-for-
granted) become starkly apparent. One A possible conclusion is the need to re-
of the more spectacular visualizations of think the criteria conventionally applied
the first months of 2020 was a compari- in transport and mobility policies to
son of air pollution (nitrogen dioxide) measure “social wellbeing” (e.g. stated
around Wuhan before and after the strict in official guidelines such as the 2014
quarantine measures were introduced. European Commission Guideline ap-
Nitrogen Dioxide is a product of the plied by INEA or the EIB). After the
combustion of fuel. We rightly take COVID-19 we have learnt a big deal in
emergency action to combat COVID-19 relation to trade-offs between the value
but not to combat air pollution caused by of public health, social inclusion and
auto mobility, or even climate change. conviviality, on the one hand, and the
value of economic growth in terms of
We recognise that the political land- providing those jobs people also need,
scape is shifting. Nowadays, European and how restraining the fundamental
mobility and transport policies have a people’s right of free movement impacts
comprehensive set of goals, well on both.
110 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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.

HAN, BYUNG-CHUL (2010, 22 March). La emergencia viral y el mundo de mañana,


El País.

HARARI, YUVAL NOAH (2020, 20 March). The world after coronavirus, Financial
Times.

REBALANCE (2020). H2020 Research Project, ISISNOVA, Ersilia Foundation and


others.

TRÄGÅRDH, LARS  AND ÖZKIRIMLI, UMUT (2020, 21 April). Why might Sweden’s


Covid-19 policy work? Trust between citizens and state. 

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 Role of Transport in shock to the global economy. According


COVID-19 Pandemic to WTO figures the global economy
(GDP) is projected to contract in 2020
Development, Spread sharply by up to 8% and global trade will
and Containment decrease by up to 32% in 2020 due to
the COVID-19 pandemic. The Purchas-
Patchwork of uncoordinated ing Managers’ Index (PMI), an index of
the prevailing direction of economic
actions trends in the manufacturing and service
sectors recorded in March 2020 a dra-
In an initial reaction to the outbreak of matic decline in the manufacturing sec-
the pandemic, many Governments tors. While railway freight transportation
closed their land, air and sea borders to which has a number of distinctive com-
non-essential traffic. These measures parative advantages such use of less
had as a result that tens of thousands of manpower over long distance, efficiency
trucks got stuck at borders not only and environmental performance suf-
across the ECE region but across the en- fered less, at least in the UNECE region,
tire globe which had a significant impact the road freight transport sector on the
on the delivery of essential goods, such contrary was hit hard. According to In-
as foods, pharmaceuticals, medical ternational Road Transport Union (IRU)
supplies and fuels, especially for the data, revenue decreased by 40% during
economically most vulnerable countries the confinement period (in comparison
which often rely heavily on imports to to 2019 figures). Many transport oper-
cover their basic needs. ations including transport of automotive
parts, clothing, flowers and construction
The lessons learned from the immediate materials almost came to a complete
and short-term measures taken by Gov- stand still during confinement.
ernments show that the transport sector
was not prepared to operate in the con- Vulnerabilities of international
ditions resulting from the pandemic. Im- transport systems revealed
plementing policies like stay@home,
which created an increased need for In less than no time the extreme vulner-
consumption and a 360 degree turn to- ability of international transport systems
wards e-business, cannot be accom- to outbreaks of communicable diseases
panied by closing borders or imposing became apparent. Also in the post-
a series of restrictions to truck drivers. COVID-19 era however the world will
This combination created a disruption of likely remain extensively interconnected
international supply chains and there- and will further rely on seamless and ef-
fore temporarily shortages in food, es- ficient transport and logistics systems.
sential supplies and medicines. As communicable diseases have oc-
curred repeatedly in the past two dec-
Transport sector and broader ades, like H1N1, H5N1, MERS, SARS,
economic impact Ebola, and will likely continue to mani-
fest themselves in the future, a global
These often-excessive restrictions to initiative is needed to enhance inter-
cross-border and transit freight trans- national cooperation and coordina-
port further aggravated the economic tion among inland transport
and social impacts of the pandemic authorities and in doing so strengthen
114 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

the preparedness and resilience of coun- tary situation at many land border cross-
tries to possible future outbreaks. ings across the region.

UNECE Sustainable The UNECE Sustainable Transport Divi-


sion took a number of initiatives to en-
Transport Division – sure that borders continued to let goods
Immediate Responses through:

Border crossing facilitation • In February 2020, UNECE, in partner-


ship with other UN Regional Commis-
initiatives sions and partner organizations,
established an Observatory on border
When countries around the world began crossing status due to COVID-19. This
closing borders and imposing lock- online platform collects and illustrates,
downs, the global supply chains were on a systematic basis, information
deeply affected. Perhaps you, yourself about the status of inland freight
experienced a lack of basic goods at the border crossings, including policies
supermarket or pharmacy. With cus- and regulatory requirements in place.
tomers buying in bulk out of fear, shops The main objective of the Observatory
struggled to restock their shelves. is to be an information-sharing plat-
form for transport sector stakeholders,
There are various UN Conventions, such providing information on measures im-
as the Customs Convention on the Inter- posed by different Governments en-
national Transport of Goods under abling transport companies to adapt
Cover of TIR Carnets (TIR Convention, their itineraries and transport solutions
1975), the Convention on the Contract accordingly. The Observatory, as of
for the International Carriage of Goods October 2020, is a platform that pro-
by Road, (known as CMR and its addi- vides updated information on the cur-
tional protocol, e-CMR), the Inter- rent border crossing status in 174 UN
national Convention on Harmonization Member States.
of Frontier Controls of Goods (or Har- • In parallel, UNECE put in place an
monization Convention) that govern the “Open the borders” campaign to
transport of goods across borders, en- keep the borders open for transport
suring a smooth and efficient transit of goods. On 16 April 2020, the
through customs. As countries imple- Executive Secretary of UNECE and the
mented strict border measures, the Secretary General of IRU sent a joint
usual, internationally agreed upon regu- letter to all Heads of Customs auth-
lations and conditions, which apply to orities calling on them to consider the
transport were set aside. This crisis not application of specific measures and
only led in some cases to shortages in good practices to minimize the impact
food and other essential goods it also of COVID-19 on the international
resulted in social impacts where trans- supply chains.
port professionals including truck • eTIR International System: UNECE and
drivers, customs and border officers IRU have been working on an elec-
often got stuck for days in a row at tronic version of the TIR system allow-
border clearance posts, exposed to ing for a paperless and contactless
possible COVID-19 contagion given the operating environment while continu-
often precarious infrastructure and sani- ing to ensure the safe and secure

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 115

transport of goods. In the midst of the Establishment of an Informal Multidis-


COVID-19 crisis it was decided to ac- ciplinary Advisory Group on Transport
celerate the implementation of the Responses to the COVID-19 Crisis
eTIR international system contactless At its eighty-second annual session
environment to assist in countering (Geneva, 25–28 February 2020), the In-
the spread of the virus. The United land Transport Committee (ITC) “Re-
Nations (UN) Secretary-General’s re- quested the UNECE secretariat, in close
port1 entitled “Shared responsibility, cooperation with the Bureau, with the
global solidarity: Responding to the support of interested Governments and
socioeconomic impacts of COVID- key stakeholders to conduct necessary
19”, mentions: “Innovative tools such research on provisions in existing frame-
as UN eTIR/eCMR systems and other works and new needed areas of work to
tools that allow the exchange elec- promote cooperation between trans-
tronic information without physical port authorities in the field of counter-
contact and facilitate the flow of acting the effects of emergency
goods across borders should be situations of cross-country nature, in-
used”. Furthermore, after the initial cluding epidemics and pandemics, and
call to implement eTIR (7 April 2020), present this information to the Working
17 Governments and the European Party on Transport Trends and Econ-
Union (28 Member States) re- omics (WP.5) for consideration of further
sponded positively. steps and for inclusion to its programme
• Implementation of the United Na- of work.”
tions Development Account (UNDA)
project on “Transport and trade con- In response to this tasking, and as the
nectivity in the age of pandemics: pandemic further evolved, the secre-
UN solutions for contactless, seam- tariat established, under auspices of the
less and collaborative transport and Working Party on Transport Trends and
trade”. The project promotes the im- Economics (WP.5) an Informal Multidis-
plementation of United Nations sol- ciplinary Advisory Group on Transport
utions, including standards, Responses to the COVID-19 Crisis which
guidelines, metrics, tools and meth- had its first virtual meeting on 9 June
odologies to immediately help Gov- 2020 and its second on 8 September
ernments, including customs and 2020 as part of the thirty-third session of
other border agencies, port auth- WP.5. Based on inputs received from
orities, and the business community Governments and other stakeholders
world-wide, to keep transport net- during these Multidisciplinary Advisory
works and borders operational, to fa- Group sessions and based on guidance
cilitate the flow of goods and received from WP.5 in September 2020
services, while at the same time con- and the ITC Bureau at its session in No-
taining the further spread of the vember 2020, a working document has
COVID-19 virus. been prepared by the secretariat and
submitted to Inland Transport Commit-
Offering a platform for tee for consideration and possible en-
multi-stakeholder cooperation dorsement of next steps. Inter alia, the
and coordination report identifies a set of lessons learned

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

63rd session, a Handbook for national or tolling/vehicle measurement


master plans for freight transport and sources, to allow reasonably accurate
logistics which, among others, show- data to be released on a monthly,
cases these transport optimizations weekly or even daily basis. These in-
processes. The handbook will be dicators may not always have the
published in the spring of 2021. label of official statistics, but when
produced to a high degree of quality
WP.24 also recognized that the pan- by official statisticians, they provide a
demic may bring about more diversifi- useful, trusted source of data in a
cation and local sourcing for supply timely fashion. Since the crisis began,
chains. Such a development may have the ECE secretariat has been monitor-
a positive impact on freight transport ing transport impacts through the
in a medium term. production and maintenance of a wiki
of short-term official statistics sources
Bringing these considerations to- relevant to transport monitoring. At
gether, in order to support a further the time of writing, there are more
development of intermodal freight than 150 sources linked to pages
transport – a development very much from almost every ECE member
needed to continue freight transport State. These data cover a wide range
system transition to a more sustain- of transport topics.
able one, as well as one which would
be more resilient to emergency situ- Measuring changes in road
ations such as pandemics – WP.24 ap- traffic levels
proved a resolution on strengthening
intermodal freight transport. The res- The use of vehicle counters and, in
olution proposed by WP.24 has been some cases, toll data have substan-
adopted at the 83rd Session of the In- tially increased their prominence dur-
land Transport Committee in Feb- ing 2020. The number of vehicles per
ruary 2021. day on key corridors can be a very
pertinent proxy for overall traffic
Measuring the Transport levels, and aggregating multiple
Impacts of COVID-19 points with other information can pro-
vide a useful index that can be com-
Official annual statistics remain a vital parable to vehicle-km. Data can also
benchmark to track progress over be obtained from tolling data on main
time, but the COVID-19 crisis has also highways, as is the case in Germany.
forced policy makers and statisticians Figure 1 shows an index of different
alike to consider new types of data traffic types on roads in Great Britain.
sources. With some traditional sur- The data are an index based upon an
veys, censuses and even some admin- equivalent day in the first week of
istrative data sources either February 2020, for cars, Light Goods
hampered or completely unavailable, Vehicles (LGVs) and Heavy Goods Ve-
statisticians have been forced by hicles (HGVs). Data are not seasonally
events to try to measure transport adjusted, and so public holidays are
and mobility in different ways. There clearly visible as dips. The graph
has been an emergence of “flash” in- shows that car traffic was consistently
dicators, often based on either mo- lower than goods vehicles throughout
bile network operator location data the lockdown period.
118 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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.

Figure 3. Index of Copenhagen Metro usage on a weekly basis, 100=average

Source: Statistics Denmark

Intelligent Transport Systems safe introduction of future tech-


nologies. Since 2004, the ECE Trans-
Intelligent Transport Systems (ITS) port Division has led the discussion
have the potential to revolutionize on ITS and in 2012 it formulated a
mobility, changing everything from Road Map for promoting ITS.
the way we move and communicate
to how we design transport legis- Practically all UNECE Inland Transport
lation and regulate vehicles. ECE Committee (ITC) Working Parties have
offers a unique platform for shaping been and are dealing with Intelligent
the legal framework and ensuring the Transport Systems. For example:
120 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

Harmonization Convention, e.g. by specialized agencies IMO and ICAO)


means of an additional annex. to share experience, and regularly re-
• As referred to above, conduct stress- view and discuss cooperation across
tests on the various ECE Conventions modes to prevent international
to identify where amendments spread of communicable diseases
can/should be made in order to through transport in the future and
make them more “pandemic-resil- enhance regional and inter-regional
ient” (i.e. TIR/ eTIR, CMR/eCMR and coordination to facilitate border-
the Harmonization Convention) to be crossings. This could as well be an
undertaken by relevant Working agenda item as part of existing ECE
Parties. intergovernmental platforms.
• Build on and further strengthen the
At the level of digitalization: Transport, Health and Environment
• Continued support for transport/ Pan-European Programme (THE PEP)
trade digitalisation: raise awareness initiative, jointly led by UNECE and
globally and if possible, accelerate WHO Europe which in the wake of
the digital implementation possibil- the COVID-19 pandemic has estab-
ities of various of the already existing lished a Task Force composed of rep-
transport legal instruments in the in- resentatives of member States,
land transport sector: TIR/eTIR, international organizations, civil so-
CMR/eCMR, the URL/ eURL consign- ciety, academia and other stake-
ment note for rail transport etc. A holders. The initiative aims at
focus on digitalisation and auto- developing principles for environ-
mation could turn out effective pan- mentally sound and healthy transport
demic mitigation tools as direct systems based on sustainability and
human contacts in clearance pro- resilience and will explore long-term
cesses are no longer needed. Online and strategic changes for the sector.
training modules on the use of these • Following the recent publication of a
digital instruments could be devel- UNECE publication on “Intermodal
oped and deployed across the world Transport in the Age of COVID-19 –
with the support of the relevant ECE Practices, Initiatives and Responses,
Working Parties (WP.30, SC.1, SC.2, Building Pandemic Resilient Trans-
WP.24 etc.). Here it should be noted port Systems”, the development of
that an eLearning module on deploy- further resource materials gathering
ment of the eTIR international system experiences from transport auth-
is being developed with the support orities in the ECE region and beyond
of the Organization for Security and in responding to the COVID-19 crisis
Co-operation in Europe (OSCE). is being considered.

At the level of continuous regional Acknowledgements


and inter-regional/ inter-governmen- This paper is a product of work of the
tal dialogue/ information exchange: UNECE Sustainable Transport Divi-
• In accordance with the tasking of the sion. Invaluable inputs to the elabora-
UNECE ITC at its eighty-third tion of this publication have been
session, continue the organization of provided by the secretaries of the fol-
multisectoral meetings as necessary lowing Working Parties under Inland
(involving also the maritime and avi- Transport Committee (ITC) auspices:
ation sectors, including through the the Working Party on Road Transport
122 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

(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

CONVENTION ON THE CONTRACT FOR THE INTERNATIONAL CARRIAGE OF


GOODS BY ROAD (CMR), Geneva, 19 May 1956, United Nations,  Treaty
Series , vol. 399, p. 189 available from: https://treaties.un.org/Pages/ViewDe-
tails.aspx?src=TREATY&mtdsg_no=XI-B-11&chapter=11&clang=_en

ADDITIONAL PROTOCOL TO THE CONVENTION ON THE CONTRACT FOR


THE INTERNATIONAL CARRIAGE OF GOODS BY ROAD (CMR) concerning the
Electronic Consignment Note (eCMR), Geneva, 20 February 2008, United Na-
tions,  Treaty Series , vol. 2762, p. 23 available from: https://treaties.un.org/doc/
Treaties/2008/03/20080303%2006-53%20PM/CTC-xi-B-11b.pdf

INTERNATIONAL CONVENTION ON HARMONIZATION OF FRONTIER CON-


TROLS OF GOODS, Geneva, 21 October 1982, United Nations Treaty Series,
available from: https://treaties.un.org/Pages/ViewDetails.aspx?src=
TREATY&mtdsg_no=XI-A-17&chapter=11&clang=_en

UNECE Transport, official documents


REPORT OF THE MEETING OF THE FRIENDS OF THE CHAIR OF THE WORK-
ING PARTY ON INTERMODAL TRANSPORT AND LOGISTICS (WP.24) on the
COVID-19 impacts on intermodal transport and logistics – outcomes and ways
forward, ECE/TRANS/WP.24/2020/5, (Geneva, 28-30 October 2020), available
from: https://undocs.org/ECE/TRANS/WP.24/2020/5

WP.24 RESOLUTION ON STRENGTHENING INTERMODAL FREIGHT TRANS-


PORT, ECE/TRANS/2021/22 (Geneva, February 2021), available from:
https://unece.org/sites/default/files/2020-12/ECE-TRANS-2021-22e.pdf

TAKING STOCK OF THE RESILIENCE OF THE INLAND TRANSPORT SECTOR


TO PANDEMICS AND INTERNATIONAL EMERGENCY SITUATIONS,
ECE/TRANS/2021/4 (Geneva, February 2021), available from:
https://unece.org/sites/default/files/2020-12/ECE-TRANS-2021-4e.pdf

UNECE Information Portals


OBSERVATORY ON BORDER CROSSING STATUS DUE TO COVID-19, available
from: https://wiki.unece.org/display/CTRBSBC/Observatory+on+Border+Cross-
ings+Status+due+to+COVID-19+Home

UNECE DATA SOURCES ON CORONAVIRUS IMPACT ON TRANSPORT , avail-


124 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

able from: https://wiki.unece.org/display/DSOCIOT/Data+Sources+on+Coronavi-


rus+impact+on+transport

TRANSPORT, HEALTH AND ENVIRONMENT PAN-EUROPEAN PROGRAMME (THE


PEP) initiative COVID-19 Task Force, available at: https://thepep.unece.org/pep

VIRTUAL MULTIDISCIPLINARY ADVISORY GROUP MEETING ON TRANSPORT POL-


ICY RESPONSES TO THE COVID-19 CRISIS (under auspices of the UNECE Working
Party on Transport Trends and Economics, WP.5)

1st session, 9 June 2020, available at: https://unece.org/fr/node/17494

2nd session, 8 September 2020, available at:


https://unece.org/transport/events/ 2nd-informal-multidisciplinary-advisory-
group-meeting-transport-responses-covid-19

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

Relevant UNECE web pages


UNECE Sustainable Transport Division, available at: https://unece.org/transport

UNECE Inland Transport Committee, available at:


https://unece.org/transport/inland-transport-committee

UNECE eTIR International System, available at: https://unece.org/about-etir

Working Party on Road Transport (SC.1): https://unece.org/transport/road-


transport

Working Party on Rail Transport (SC.2): https://unece.org/about-us-14

Working Party on Inland Water Transport: https://unece.org/transport/inland-


water-transport

Working Party on Intermodal Transport and Logistics: https://unece.org/trans-


port/intermodal-transport

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 125

Working Party on Customs Questions Affecting Transport:


https://unece.org/transport/border-crossing-facilitation/about_us

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

Introduction epidemic by taking appropriate


measures in the various regions as the
Since the outset, the goal of the Arab pandemic developed. These included:
Maghreb Union has been to gradually
work towards the free movement of • Closure of schools and universities
people and goods between the Magh- • Cancellation of air and sea links
reb countries and unify legislation in • Closure of borders
economic matters with a view to achiev- • Cancellation of sporting events
ing economic integration. • Closure of restaurants, cafés and night
clubs
The desired Maghreb integration can- • Implementation of lockdown measures
not succeed without advanced infra- • Social distancing on public transport
structure. The AMU countries have and locking
invested heavily in multimodal, road, • Mobilization of public administrations
rail and air transport infrastructure and
implemented far-reaching regulatory Social and Economic
reforms to facilitate private sector in-
volvement and encourage investment. Consequences

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

term fare increases, in particular by suffering the effects of the pandemic


studying the possibility of allocating due to both the economic slowdown
funds to support urban transport op- and the lockdown measures imposed
erations. by most countries.
• Consolidate, formalize and structure
the informal sector with a view to in- The measures taken in some countries
creasing its resilience. require ships to undergo a 14-day
• Improve governance, funding and quarantine before being allowed to
capacity building by (i) strengthening dock, while other ports have simply
land use management and transport closed down. Crew changes have also
planning in cities, and (ii) designing been banned, which has put personnel
funding mechanisms to ensure the in a very difficult situation. Meanwhile,
long-term financial viability of urban passenger transport has virtually
transport operations and guarantee stopped in many places.
that they are affordable for users, es-
pecially the most vulnerable groups. This decline in activity has brought ship
• Support a modal shift from private orders from shipowners to a halt and
vehicles to high-capacity transport reduced shipyard activity.
systems, primarily by planning an in-
tegrated multimodal transport sys- On 19 March, Kitack Lim, Secretary-
tem with adaptable and resilient General of the International Maritime
modes of transport. Organization (IMO), alerted govern-
ments to the risks associated with the
Cross-Border Trade decline in shipping: “In these difficult
times, the ability for shipping services
• Disruptions to cross-border trade, es- and seafarers to deliver vital goods, in-
pecially factors such as the slowdown cluding medical supplies and food, is
in demand, the drop in commodity central to responding to, and event-
prices, supply chain bottlenecks, ris- ually overcoming, this pandemic (...) I
ing freight costs and export bans, urge a practical and pragmatic ap-
have likely played a role in the down- proach, in these unusual times, to is-
turn in trade in North Africa. sues like crew changeovers, resupply,
• Most governments are seeking to repairs, survey and certification and
strike a balance between limiting the licensing of seafarers.”
long-term spread of the virus and fa-
cilitating emergency and essential On 24 March, the International
trade. COVID-19 could be around for Chamber of Shipping (ICS) sent an
some time, and governments will be open letter to the governments of the
required to adapt and innovate to fa- G20 countries calling for increased pro-
cilitate new, “safer” means of carry- tection of the supply chain to allow it
ing out cross-border trade. to fulfil its essential mission for people
and businesses.
Maritime Transport
On 25 March, the United Nations Con-
Maritime transport, which plays an es- ference on Trade and Development
sential role in globalization and is re- (UNCTAD) also called for supply chains
sponsible for moving more than 80% of and maritime traffic, including to land-
the world’s raw materials and goods, is locked countries, to be kept open and

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.

As in the rest of the world, the Magh-


reb countries have been experiencing Emergency Preparedness
extraordinary circumstances since the
start of 2020 because of the spread of The term “preparedness” can be de-
COVID-19, and no one knows how fined as the knowledge and ability of
long the situation will last. governments, response organizations,
communities and individuals to antici-
Some key sectors are already experi- pate the occurrence of many different
encing a sharp slowdown due to the likely, imminent or current disasters,
pandemic. Tourism, air transport and and to respond to them and recover
132 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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.

Digitisation is expected to be one of the bases of this future resilience, as an


unavoidable tool for gaining safety, efficiency, and modal integration. So far,
some steps have already been taken, but without achieving widespread use. It
remains to be seen whether COVID-19 provides the necessary impetus to
consolidate and extend its implementation and use. Nonetheless, the
effectiveness of digitalisation, in particular, and of road transport in general,
requires the existence of internationally harmonised regulations and
standards that do not act as barriers to transport and trade.
COVID-19: KEY Lessons for
the Road and Transport
Community
Patrick Malléjacq
Secretary General of Secretary General of
the World Road Association (PIARC)

José Manuel Blanco Segarra


Secretary of PIARC Technical Committee
1.1 Performance of Transport
Administrations
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 137

Consequences of the COVID-19 on the HELLASTRON Network in Greece (Attica Tollway,


Metamorphosis East Plaza on 5 March and 2 April, 2020 (from Bill Halkias presentation at PIARC
Seminar held on 8 April 2020)

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

different countries; the issues faced by These webinars included presentations


road operators and administrations; from about 100 speakers from all parts
best practices from relevant PIARC re- of the world and touched on all areas
ports; emerging planning, operational of relevance for road operators and ad-
and customer service responses. ministrations.

Figure 1. Summary of PIARC COVID-19 Webinar Activities

Source: Valentina Galasso for PIARC COVID-19 Response Team


PIARC is also very proud that the following international partner organizations agreed to take part
in its webinars and could share their specific experience and projects.

Figure 2. Other Bodies Involved in PIARC COVID-19 webinars

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:

Figure 3. Impact of COVID-19 on Road Network 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.

Figure 4. A resilience perspective

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

Key Conclusions and Road Works


Recommendations Areas • Be alert and agile
• In certain cases, accelerate some
For roads and road transport, COVID- maintenance works to take advan-
19 has presented specific challenges: tage of low traffic volumes, with op-
How should roads and road transport erations adjusted according to the
help to overcome the pandemics? traffic decrease
How can roads and road transport help • Secure access to adequate resources
to fight the economic crisis and move to ensure that work can be continued
towards a “new normal?” • Investigate the feasibility of strategic

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

• Address the resilience of roads, Intelligent Transport Systems


transport, road-related functions,
connections with other modes and • Focus on integration and manage-
connections with other stakeholders ment of the road network with an end-
as a whole to-end and user-centered approach
• Develop a disaster-resilient road net- • Consider low-cost ITS solutions as a
work, securing road infrastructure in valid option for road network opera-
times of crisis tions, for all countries and for large
• Apply the Preparedness, Response, and small jurisdictions. ITS does not
Recovery, Prevention/Adaptation have to be expensive to be effective.
model • Even in ITS: Do not reinvent the wheel,
• Be prepared to face additional dis- and instead aim to benefit from
asters while facing a pandemic others’ experiences and knowledge

Passenger and Public Transport Road Safety

• Restore citizen’s confidence in collec- • Recognize the risk situations created


tive (mass) public transport by the crisis
• Analyze how the urban landscape shifts • Identify local or network-wide meas-
144 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

A series of implementation actions are Final Remarks


also presented for the road community:
The pandemic is still ongoing; therefore
Monitor the New Transport impacts are not yet complete across the
Normal full cycle and public policy objectives
continue to evolve in containing the
• What is demand for transport going to virus and fostering recovery whilst in the
look like from now on, including the roads and transport sector a wide range
work from home? of responses have been adopted with
• How can we build some uncertainty varying degrees of application and suc-
into our models and processes? cess but there has not been already de-
• Pay even more attention to the needs termined what constitutes best practice
of the users to be more “customer – and under what circumstances.
centric”
• Do not lose focus of society’s pre- In many parts of the world, relaunch-
COVID expectations regarding GHG ing the economy is now a high prior-
emissions, cost-efficiency, resilience, and ity on the political agenda. Roads and
service levels… They are still relevant road construction are ideally placed to
play a leading role in investment plans,
Contribute to Economic not only because the sector is vital to the
Recovery social and economic fabric of society,
but also because road construction is a
• Recognise that roads are key for purveyor of jobs that can help address
economies and societies (they stayed the unemployment juggernaut.

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 145

Figure 5. Mobility Patterns as a Result of COVID-19

Source: Figure from Dennis Ganendra presentation (Malaysia) at PIARC webinar 13 May2020; and
presented by Caroline Evans (Australia) presentation at PIARC webinar29 July 2020

Looking forward, there is an opportunity son, which took place on 30 Sep-


to re-imagine the post-COVID world. tember, in Spanish. Following its initial
This includes accelerating key trends, activities, PIARC is now continuing to
such as digitisation, online services, and organize further webinars, bringing in
automation, as well as renewed commit- new countries, organizations and focus
ment to tackling pressing pre-pandemic areas. It is also intended that PIARC’s
challenges, such as congestion, pollu- more than twenty Technical Committee
tion, and climate change, with new re- and Task Forces will pick up on COVID-
solve. This means reconfiguring road 19 issues relevant to their topics and
and transport systems and services to lines of enquiry as relevant and appro-
drive a better, greener recovery which priate.
supports more sustainable, resilient, and
happier communities. As we head into Proof of the importance that PIARC at-
2021, we should look beyond today’s taches to resilience and to reflect the
trials and tribulations, and focus on pre- megatrends that are impacting the
paring well to build the economy and road sector, is decided to broaden the
society of tomorrow. themes of next winter service con-
gress, to be held in Calgary (Canada),
These issues, and how they are han- to include resilience so it will be the
dled across the globe, was the topic of XVIth World Winter Service and Road
the first PIARC webinar of the new sea- Resilience Congress.
146 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

References

PIARC WORLD ROAD ASSOCIATION (2021). COVID-19 - PIARC’s response.


PIARC.ORG. Retrieved from https://www.piarc.org/en/News-Agenda-
PIARC/Coronavirus-PIARC-and-Covid-19

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

ECLAC, ESCWA, ICAO, IMO, UNCTAD, UNECA, UNECE, UNESCAP (2020, 17


September). Joint Statement on the Contribution of International Trade and
Supply Chains to a Sustainable Socio-Economic Recovery in COVID-19 Times. Re-
trieved from https://www.iru.org/resources/iru-library/joint-statement-contribu-
tion-international-trade-and-supply-chains-sustainable-socio-economic-recovery-c
ovid-19-times.

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. The future of TIR is digital. Retrieved from https://www.iru.org/what-we-


do/facilitating-trade-and-transit/tir/future-tir-digital.

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.

UNITED NATIONS (2020, March). Shared Responsibility, Global Solidarity: Re-


sponding to the socio-economic impacts of COVID-19. Retrieved from
https://unsdg.un.org/sites/default/files/2020-03/SG-Report-Socio-Economic-Im-
pact-of-Covid19.pdf.

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

Introduction Importance of Regulatory


Convergence in Promoting
Transport is essential to life and of vital
importance for society, ensuring every- Cross-Border Transport
day mobility of populations and allowing and International Haulage
them to perform their economic and so-
cial activities. Transport is also pivotal for
and Upgrading road
growth and competitiveness of econ- Transport Performance in
omies enabling economic activities, the South Mediterranean
production and distribution of goods as
well as trade. International transport is Region
of strategic importance playing a vital
role to international trade, which has a Roads are by far the most common
major impact on the economic devel- transport mode for both passenger and
opment. On the other hand, transport inland freight transport, being extremely
negatively affects people’s safety and cost-efficient. However, in order for the
health as well as the environment. For cross-border transport by road to per-
these reasons, transport is a strategic re- form efficiently, there is a need for inter-
sponsibility of Governments, which can nationally harmonized standards and
play a major role in promoting its effi- regulations. Heterogeneous transport
ciency, through the development of regulations that vary from one country
transport networks and a regulatory to another are real barriers to inter-
framework within which transport ser- national transport and trade.
vices can develop efficiently and under
the best possible conditions of safety For more than six decades, UNECE pro-
and environmental protection. vides a platform for intergovernmental
cooperation to facilitate and develop in-
This article, dedicated to road transport, ternational transport, while improving its
draws on the experiences from the on- safety and environmental performance.
going work under the European Union The results are reflected in 58 inter-
(EU) funded EuroMed TSP (2017-2022) national legal instruments. These instru-
and previously the EuroMed Road, Rail ments, supplemented by EU legislation,
and Urban Transport (RRU) Project (2012- represent the best European and inter-
2016) (hereafter called EuroMed Pro- national practices. By applying them,
jects), highlights the importance of the EuroMed partners may only benefit,
regulatory convergence in the EuroMed since they are effective tools not only for
region, being one of the two major com- the facilitation and development of in-
ponents of the Regional Transport Action ternational transport, but also for up-
Plan (RTAP) for the Mediterranean (2014- grading the performance of their
2020), along with the establishment of national inland transport systems.
the future Trans-Mediterranean Transport
Network (TMN-T). It also presents the se- At its Action 8 (Efficient Land Transport
lected regulatory frameworks developed Systems) and 9 (International Land Trans-
under the United Nations (UN) and Euro- port Haulage), the RTAP 2014-2020,
pean Union (EU) auspices that were pro- inter alia, advocates for a regulatory con-
moted in the region and describes the vergence promoting cross-border trans-
EuroMed partner country efforts and port and international haulage in the
achievements. region and encourages EuroMed coun-
158 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

tries to accede and effectively imple- Road transport and road


ment the main UN road transport agree- safety agreements
ments and conventions. Moreover, RTAP
Action 8 calls partner countries to The Convention on Road Traffic, of
pursue efforts for improving the effi- 1968, aims at facilitating international
ciency of the road transport sector, road traffic and trade as well as tourism
and addressing the professionalism of and increasing road safety through the
drivers, of operators, the technical adoption of uniform road traffic rules on
state of the vehicle fleet and road all factors influencing international road
safety. RTAP Action 9 also makes par- traffic and its safety, including the driver
ticular reference to the AETR, ADR, (uniform licences, training and testing,
ATP, TIR Convention, Harmonization etc.) and the vehicle. Acceding to this
Convention, the 1958 and 1997 Convention help countries harmonise
Agreements and describes the bene- their road traffic regulatory framework
fits of Mediterranean partners by be- with that of other 84 countries world-
coming contracting parties to them, wide, Contracting Parties to it.
while RTAP Action 10 (Road Safety)
encourages countries addressing the The Convention on Road Signs and Sig-
technical inspections of certain types nals, of 1968, establishes a set of com-
of vehicles and the minimum stan- monly agreed road signs and signals
dards towards which the vehicles are classified in three categories (danger
to be tested. warning, regulatory and informative),
and provides for each of them definitions
Main UN and EU Road and physical appearance (dimensions,
shapes, and colours, etc). Acceding to
transport relevant this Convention help countries harmon-
Regulatory Frameworks ise their respective legislation and facili-
tate international road traffic.
Selected for Promotion in
the EuroMed Region, The European Agreement concerning the
Expected Benefits Work of Crews of Vehicles engaged in In-
ternational Road Transport (AETR), of
1970, aims at preventing drivers and crews
Main UN road transport of commercial vehicles of more than 3.5
agreements selected tonnes, or transporting more than 9
people, engaged in international road
Nine (9) road transport legal instru- transport, from driving excessive hours and
ments where selected by the con- defines the control devices (tachographs)
cerned countries and the EuroMed that are used to control those periods.
Projects to focus their efforts, repre- AETR Agreement creates a level playing
senting the basic regulatory frame- field in the road haulage industry, helps
work facilitating cross-border road prevent road accidents and introduces
transport and international haulage, better conditions for professional drivers.
increasing road safety, and upgrading
road transport performance using Border crossing facilitation
them as models for national regula-
tions. Here follows a short instruction The Customs Convention on the Inter-
of them. national Transport of Goods under

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 159

Cover of TIR Carnets (TIR Convention), The Agreement on the International


of 1975, sets up the international Cus- Carriage of Perishable Foodstuffs and
toms Transit procedure that permits the on the Special Equipment to be Used
seamless international transport of for such Carriage (ATP), of 1970, estab-
goods by road through as many signing lishes uniform prescriptions for the pres-
countries without undergoing customs ervation of the quality of perishable
procedures or the need to make a finan- foodstuffs for international transport and
cial deposit at each border. The agree- defines uniform norms and standards for
ment provides a cross-border guarantee the special transport equipment
system to cover duties and taxes for required. It also sets up uniform distin-
each transport operation. eTIR launched guishing marks to be affixed to the
as a project in 2003 to fully secure elec- specially equipped vehicles. The con-
tronic data exchange among customs formity of the equipment is displayed
administrations, is being developed. The through an international certificate and
TIR Convention results to a considerable an ATP plate affixed to the vehicle facili-
reduction of international transport tating transport by avoiding repetitive
costs and facilitates international trans- controls.
port of goods.
Vehicle regulations
The International Convention on the
Harmonization of Frontier Controls of The Agreement concerning the Adop-
Goods (Harmonization Convention), of tion of Uniform Technical Prescriptions
1982, is a framework Convention that fa- for Wheeled Vehicles, Equipment and
cilitates international border crossing for Parts which can be fitted and/or be used
transported goods through harmoniza- on Wheeled Vehicles and the Conditions
tion and reduction of administrative for- for Reciprocal Recognition of Approvals
malities, and of the number and granted on the basis of these Prescrip-
duration of border controls. Thanks to tions, of 1958, (1958 Agreement), pro-
this one-stop-shop principle for border vides the legal framework for the
controls, international freight operators development of the safety and emission
save time and money. regulations for all types of motor ve-
hicles manufactured in Europe and in
Transport of dangerous goods many other parts of the world. The legal
and perishable foodstuffs document comprises 131 UN Regula-
tions and has contributed considerably
The Agreement concerning the Inter- to technical progress, increased vehicle
national Carriage of Dangerous Goods safety, and drastically reduced vehicle
by Road (ADR), of 1957, aims at ensur- emissions.
ing the highest possible level of safety
for dangerous goods transport at an ac- The Agreement concerning the
ceptable cost. It defines which danger- Adoption of Uniform Conditions for
ous substances are eligible for Periodical Technical Inspections of
international transport and which are not Wheeled Vehicles and the Reciprocal
and establishes the conditions under Recognition of such Inspections, of
which they can be carried and provides 1997, (1997 Agreement), provides the
requirements for transport operations, legal framework for the technical in-
driver training as well as vehicle con- spections of vehicles and is especially
struction and approval. useful for setting up national period-
160 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

Figure 1. EuroMed Partners’ Accession to the selected UN road transport legal


instruments, October 2020

Source: EuroMed Transport Support Project

Conclusions and drivers and operators and improved


Recommendations technical state of the vehicle fleets,
should remain the highest priority in
The high importance of the regulatory the region, since they are considered
convergence in promoting cross- prerequisites for the development of
border transport and international efficient land transport systems for
haulage and upgrading road trans- the promotion of cross-border trans-
port performance in South Mediterra- port and international haulage. Ac-
nean region, has become apparent to companied with National Strategies,
EuroMed partner countries. However, including on Road Safety, Intelligent
while the focus of the efforts was to- Transport Systems (ITS) and Digital-
wards road haulage, which holds the ization of Transport, will lead to en-
largest share of the overall freight hanced operations and management
land transport movements, the cross- of transport systems, reduced con-
border road freight transport in the gestion and GHG emissions and im-
South Mediterranean region remains proved network efficiency.
rather limited, due to subregional
conflicts and security concerns. Moreover, existing national inland
While EuroMed partners have made transport strategies should be re-
substantive progress in the past viewed and whenever not in place
years, a lot of efforts are still required. elaborated. Such strategies should
Regulatory reform and convergence define national regulatory approaches
of transport legislation, development for improving the road transport sys-
of harmonized transport rules and tem, facilitating cross-border trans-
standards, higher professionalism for port and international haulage, and

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

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EU, UNECE, EUROMED RRU (March 2016). “Food security for transport” Road
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trans/areas-of-work/transport-of-perishable-foodstuffs/road-map-for-accession-
and-implementation-of-atp.html

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content/EN/ALL/?uri=CELEX%3A32009R1071

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

Introduction continuity of freight operations. How-


ever, the crisis has not affected all
Like many other countries across the freight transport companies to the
world, Morocco was affected by an same degree. Suppliers in certain sec-
unprecedented economic and social tors under particular strain (food, re-
crisis in 2020 as a result of the COVID- frigeration, essential products,
19 pandemic. courier, etc.) were highly productive,
while others came to a virtual stand-
During this crisis, road transport com- still. This situation was the result of
panies across all sectors played a criti- the transport sector’s high depend-
cal role in moving goods, supporting ence on its client industries (shippers
the operation of supply chains, repat- and contractors), which experienced
riating citizens and transporting a slowdown or partial or total suspen-
people to their workplace, all while sion of operations, and the increase in
increasing the risk to their employees’ demand for essential products, which
health and well-being. gave rise to situations that were
sometimes difficult to manage (flow
However, the effects of the crisis were imbalances, non-guaranteed loading
quickly felt and impacted several sec- rates, empty returns, adjustment of
tors, including transport and logistics, transport plans, etc.).
which experienced significant chal-
lenges. Admittedly, the COVID-19 crisis has
had a huge, unprecedented impact
Road passenger transport has been on mobility operations and transport
particularly hard hit by the virus, es- systems, but it has also exposed the
pecially when one considers the lock- weaknesses and structural failings in
down measures, restrictions on the Moroccan sector.
movement, protective measures, the
fact that transport seems to be a Although it is somewhat premature to
major factor in transmission of the draw definitive conclusions and les-
virus and the speed with which the sons for the transport sector, one
virus spreads. In fact, the measures thing is certain: this health crisis
taken by the Moroccan authorities, marks a “before” and an “after” for
particularly the health authorities, to the sector. It will give rise to a new
contain the spread of the virus since context in which the transport sector
the first cases of COVID-19 appeared will be forced to consider new ways
in March 2020 have had dramatic re- of adapting and evolving to meet fu-
percussions on the profitability of ture challenges and be better pre-
public and private passenger trans- pared to strengthen its resilience and
port companies, especially as a result face a future marked by uncertainty.
of the complete shutdown of public
passenger and tourist transport. Decarbonization of
Nevertheless, freight transport com- Transport: Towards
panies were affected to a lesser ex- Greater Awareness?
tent, in part due to the collective
efforts of the authorities and profes- Although the COVID-19 crisis has had
sionals in the sector to ensure the a severe impact on economic and so-
168 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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.

According to the projections of the Mo-


roccan general population and housing Conclusion
census (RGPH) established by the High
Commission for Planning (HCP), nearly Plans and solutions to overcome the crisis
32.2% of the Moroccan population will and mitigate its impact must be ad-
live in rural areas by 2030. Therefore, im- dressed by all economic sectors, includ-
proving means of access and mobility ing transport. The silo mentality of
will be key to achieving objectives for sectoral public policies must become a
growth and the reduction of social and thing of the past. Now is the time for all
territorial disparities. To achieve this, stakeholders to pool their knowledge
however, it is crucial to adopt and imple- and come up with ideas to provide con-
ment public policies concerning trans- crete, innovative and sustainable re-
port in rural areas, including road sponses to the immediate challenges
infrastructure, modes of transport and posed by this crisis, and also to long-term
transport services. challenges that could arise unexpectedly.
Of course, in the world of the “new nor-
Nevertheless, despite the substantial in- mal”, the transport sector must make
vestments made by the Moroccan public great efforts to adapt and sometimes
authorities since the mid-1990s in the even transform itself if it is going to play
development and rehabilitation of road its full part in recovery.
Chapter 4

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.

The evolution of these trends is directly linked to new demand patterns, as


the health crisis has led to a change in habits among some sectors of the
population (teleworking, e-commerce, etc.). Potential new supply patterns
must also be taken into account, such as the availability of new services and
better integration between modes of transport within urban and metropolitan
areas. And finally, innovation and research processes that may affect stations,
rolling stock, signalling and control, are aspects where harmonisation plays a
key role.
Rail Transport:
Towards a New Normal
Marc Guigon
Passenger Director. Coordinator of the
Latin America Region. Coordinator of the
COVID-19 Global Rail Task Force. UIC –
International Union of Railways.
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 173

Introduction ation during the lockdown and the


measures implemented by the rail
In February 2020, UIC set up a task sector during the fight against the
force to work with its members, ex- epidemic.
perts and global rail transport associ- • “RAILsilience: Back on Track”,
ations with a view to sharing and which presents the measures taken
providing information on the crisis by members to resume rail traffic.
caused by the coronavirus (COVID- • Other documents issued include:
19) and its consequences for the rail “Masks, Ventilation and Social Dis-
transport sector. Shortly afterwards, tancing”, “Thermographic Cam-
specific needs led the working group eras”, “First Estimation of the
to produce several operational docu- Global Economic Impact of COVID-
ments in multiple languages 19 on Rail Transport” and “Con-
(www.uic.org/ covid-19/): tamination Rates on Trains”.

• “Management of COVID-19: Gui- A Global Economic


dance for Railway Stakeholders”,
which outlines potential measures Assessment
to support railway stakeholders and
provide reliable information on In our assessment of the economic
specific challenges facing the in- impact on the rail industry carried
dustry. out in mid-2020, at the end of the
• “Potential Measures to Restore first wave, we concluded that de-
Confidence in Rail Travel Following mand for travel will mostly be de-
the COVID-19 Pandemic”, which layed until 2021. Passenger demand
lists the various measures that could in 2020 was expected to decline on
be taken by railway stakeholders to average by around 30% compared to
increase a sense of safety among 2019, while the freight sector was ex-
passengers. pected to decline on average by up
• “RAILsilience: How the Rail Sector to 10%. Unfortunately, passenger
Fought COVID-19 During Lock- confidence was expected to remain
downs”, which describes the situ- low.
174 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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.

Economic Support UIC members also mentioned


Measures measures such as short- to medium-
term wage compensation during
An initial estimate, carried out in mid- COVID-19 crises and long-term debt
2020, of the global economic impact reduction.
on the rail industry was around 125 bil-
lion dollars for 2020. Respondents were asked to rank the
proposals from 1 to 6, where 1 was the
In mid-2020, UIC asked its members economic measure they considered
which of the following short- or most important and 6 was the least im-
medium-term support measures they portant. Therefore, a value close to
would like: one indicated that the economic
measure was highly desired by the re-
• Direct financial assistance. spondents.
• Reduction in infrastructure access
charges. In the short and medium term, it is clear
• Reduction in / elimination of VAT and that the top priority involves the im-
other taxes. mediate recovery of economic losses.
• Secured loans.
• A level playing field for all modes of All the other economic measures pro-
transport. posed received similar scores.

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 175

Priorities for short- or medium-term economic support measures.

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.

Priorities for long-term economic support measures.

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

Introduction system (Figure 1 and 2). TEN-T net-


work is therefore a strategic scheme to
In this contribution the authors explore ensure and enhance the mobility of
the potential synergies between the both people and goods, as declared in
Mediterranean Corridor, developed the Schengen Treaty.
within the Transeuropean Transport
Network and Trans-Maghreb Multi- The regulatory framework is defined in
modal Corridor (TMC) in the post Regulation 1315/2013 (EC, 2013),
COVID19 Era. Firstly, both Corridors which establishes the guidelines for the
are presented, stressing on the impor- development of a Trans-European
tance of railway as an efficient and sus- Transport Network, determining the
tainable transport mode for freight and projects of common interest and speci-
passengers. The importance of Mo- fying the requirements that must be
rocco and Spain for both Corridors will met. To achieve those goals, the Com-
also be highlighted. Secondly, the po- mission introduced the Connecting Eu-
tential synergies between Mediterra- ropean Facility Fund (CEF) through the
nean Corridor and TMC will be Regulation 1316/2013. Furthermore,
proposed according to three comple- other EU funding programmes support
mentary geographical scales: the Albo- TEN-T development like the European
ran Sea as an emerging geo-economics Fund for Strategic Investment (EFSI),
maritime space, the Spanish-Moroccan Horizon 2020 (for research and devel-
Cooperation and, finally the EU-Magh- opment projects), Cohesion Fund (CF)
reb role in connecting transcontinental and the European Regional Devel-
flows. opment Fund (ERDF).

The Mediterranean The European Corridors seeks to


achieve two basic pillars, interoperabil-
Corridor: Towards a ity and intermodality through the coor-
Resilient Transport dinated execution of works and
projects. Indeed, the appropriate plan-
Network ning of the Trans-European Transport
Network is crucial to enable efficient
The Mediterranean Corridor is one of and long-distance transport oper-
the 9 main corridors designed by the ations. Regarding the railway system,
European Union within the Trans-Euro- the main goal is to achieve the full con-
pean Transport Network (TEN-T). It is nection between the main nodes (Core
conceived as a multimodal corridor Network) of each Corridor by 2030 in
that crosses 6 countries (Spain-France- accordance with the following require-
Italy-Slovenia-Croatia and Hungary) ments:
along 3,500 km. It will provide multi-
modal links from the ports and ter- • Implementation of Standard track
minals of the Western Mediterranean gauge (1435mm)
to Central and Eastern Europe. The • Train length > 740 m
Med Corridor is interconnected with • Electrification 25Kv
other 7 corridors and it provides an ef- • ERTMS Communication System
ficient, sustainable, and fast link be- • Axle loads ≥ 22.5 tons
tween the main European markets and • Improve rail connections with ports
the Spanish Mediterranean economic and terminals.
182 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

The Mediterranean Corridor is much logistics to boost the growth of inter-


more than a railway infrastructure. It is a modal terminals and port connections.
large multimodal transport project
which also includes roads, ports and air- Finally, it is necessary to better integrate
ports in a more sustainable and com- the infrastructure in urban nodes. For
petitive way. Beyond the infrastructural example, in Spain between Barcelona
improvement, it is important to promote and Almeria there are more than 11
operations and services for passengers cities with more than 100,000 inhabit-
and freights. In this sense, the new sec- ants, which requires specific attention to
tions should be complementary for both how the corridor crosses densely popu-
uses. Another important challenge is the lated areas. But all these efforts will not
development of a wide logistics strategy be enough without the accurate plan-
linking ports, airports, Rail-Road Ter- ning of passenger and freight services,
minals, and industries together. Not sur- which aims at providing fast and effec-
prisingly, the Mediterranean Corridor tive transport. To achieve this goal, it is
will develop its full potential when its dif- fundamental that infrastructure devel-
ferent modes of transport are con- opment is based on reliable and truthful
nected. That is why we need to redefine analysis.

Figure 1. Transeuropean Transport Network (TEN-T)

Source: European Commission

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 183

Figure 2. The Mediterranean Corridor in Spain

Source: own elaboration

The Transmaghreb ridor, the total length would reach


6,700km for freight traffic and 5,400
Multimodal Corridor: for passengers, 4,000km would be
Multi-Scale Territorial shared between both modes (CETMO,
Project 2019). However, significant works for
the modernization and extension of
the infrastructure are needed to be-
The Transmagreb Multimodal Corridor come an efficient, safe, interoperable
(TMC) is the most ambitious project of and intermodal transport system. In-
multimodal corridor of the Southern vestment for the rail mode of more
Mediterranean Shore, from Mauritania than 50,000 million Euros was esti-
to Libya, passing through Morocco, Al- mated in 2018 (more than 4,000 million
geria, and Tunisia, that is, the countries €/year).
that make up the Maghreb. This East-
West link is one of the most important Beyond the Mediterranean scale, TMC
in Africa (African Development Bank represents an opportunity to connect
Group, 2015), like the TEN-T network, Sahel countries with the core of Europe
aims to connect the main cities and the in a more efficient, sustainable, and
strategic nodes for freight transport of safe way. Like all commercial and trans-
the involved countries through the port interconnection projects at the in-
modernization of road and rail infra- ternational level, it is expected that the
structures. Among the most important TMC will promote a certain political
there are the ports of Nouadhibou and stabilization and improvement of inter-
Nouakchott (Mauritania), Tangier Med, national relations in both the Maghreb
Nador, Casablanca and Agadir (Mo- and the Sahel. Influential exponents of
rocco), Oran, Arzew, Annaba, Alger, the business sector have already ex-
Djen-Djen and Skikda (Algeria), Tunis- pressed their support to such an ambi-
Radés (Tunisia). Regarding the rail cor- tious initiative (Figure 3).
184 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

Figure 3. Position of Issad Rebrarb, President of the Algerian industrial group


Cevital, in favour of the development of a transcontinental rail corridor
in Africa.

Source: Twitter, Issad Rebrab (@IssadRebrab) March 21, 2017

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)

bilateral (Spain-Morocco) and Euro-


Synergies Between Mediterranean (EU-Maghreb). The
Mediterranean Corridor common denominator among all these
all these scales is the railway, con-
& Trans-Maghreb ceived as intermodal transport net-
Corridor work, interoperable, competitive, and
environmentally sustainable.
Synergies and Complementarities be-
tween the Mediterranean Corridor and Regional Scale: complementarity in the
the Trans-Maghreb Multimodal Cor- Alboran Sea
ridor can be explained at three differ- The Alboran Sea represents a shared
ent scales: regional (Alboran Sea), maritime space between Morocco, Al-
186 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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.

Figure 4. Main ports of the Alboran Sea and railway connections

Source: own elaboration

Strengthening Spain-Morocco Mediterranean Corridor is for Spain.


Cooperation in railway Both countries need to promote their
rail freight transport for domestic and
development
international markets. They railway net-
works are the links between the Sahel
The Trans-Maghreb Multimodal Cor- and Europe. Moroccan rail freight
ridor is as strategic for Morocco as the transport is above many European

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)

Source: CETMO (2019)

MEDC and TMC: able way to reach the economic heart


of Europe (Prytherch, & Boira, 2011; Li-
intercontinental connection bourel, 2017; Loyer 2020). The ports of
between Africa and Europe Andalusia, Murcia, Valencia, and Cata-
in Post-COVID era lonia will be connected in the medium
term with the standard gauge, so that
CETMO, as well as other institutions a part of these flows could be routed
and research centers, have demon- by freight trains to France, Germany
strated how Euro-African freight flows and the other countries without inter-
have been growing constantly in the ruptions or train changes. The Mediter-
last ten years (before the outbreak of ranean Corridor already counts with
the pandemic crisis). Many African the only Spanish port that is fully inter-
countries supply European markets operable and already connected to Eu-
and its industries with raw materials rope, that is the Port of Barcelona.
such as energy products and raw min-
erals. Conversely, Europe provides In the Post-COVID-19 Era, Governance
semi-finished products and basic agri- is a crucial dimension for the achieve-
cultural or industrial products to Afri- ment of the objectives of both Corri-
can countries. Many of these products dors. The pandemic has unveiled the
are compatible with rail transport. In fragilities of the pre-COVID transport
this sense, the two corridors play a fun- sector, namely the lack of digitalization,
damental role in capturing and distrib- of infrastructural interoperability, and
uting such goods. The Mediterranean of synergies between all modes. Trans-
Corridor represents the fastest, most port and logistics need to be more re-
efficient, and environmentally sustain- silient. In this sense, we think it is
188 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

strategic to align the Trans-Maghreb al, 2021) and cross-border cooperation


Multimodal Corridor to the TEN-T and urban nodes. A TMC Coordinator
scheme as established in Regulations could also be defined as well as Na-
1315/2013 and 1316/2013: similar ob- tional Coordination Offices for each
jectives, requirements, deadlines, fi- state involved and a general Workplan
nancing opportunities and governance could also be developed. Last but not
approaches could be also imple- the least, the pedagogical aspect of
mented in the southern shore of the TMC should be promoted to the cit-
Mediterranean Sea. In this sense, the izenship, being the infrastructural back-
MEDA TEN-T project developed by bone of the Maghreb, a true
CETMO is a good starting point. The- Euro-African gate. A Geographic Infor-
matic Working groups could be also mation System (GIS) could be a suit-
set up to strengthen cooperation net- able instrument for this task. Based on
works, to tackle common challenges our experience, an open GIS with up-
and to exchange good practice on to-date information on both infrastruc-
specific topics such as last mile connec- ture and services is highly demanded
tion, bottlenecks removal (Medeiros et for civil society, media, and industries.

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 189

References

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viaires en Afrique. Les options de politiques de financement. Abidjan : Banque
africaine de développement. Retrieved from https://knowledge.uclga.org/
IMG/pdf/les_infrastructures_ferroviaires_en_afrique.pdf

BATTLE, S. (2020, March). Project TRAILS, an example of cross-border cooper-


ation. Retrieved from https://piernext.portdebarcelona.cat/en/mobility/pro-
ject-trails-an-example-of-cross-border-cooperation/

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Estrecho de Gibraltar 2000‐2017. Edición 2019

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with-china/

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Tech: a model of active cooperation between Morocco and China. Retrieved
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ing plant in Tunisia. Retrieved from https://www.ecofinagency.com/finance/
0509-38919-saic-motor-to-build-a-car-manufacturing-plant-in-tunisia

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rocco/

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ments nationalistes de la côte est de l’Espagne : le cas du corridor méditerra-
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MEDEIROS, E., FERREIRA, R., BOIJMANS, P., VERSCHELDE, N., SPISIAK, R.,
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[01/02/2021.

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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.

In the Western Mediterranean, facing these uncertainties takes on special


importance due to its position in global container flows and their interrelation
with trans-Mediterranean flows, the existence and planning of large port
infrastructures and the special impact expected from the effects of climate
change in the Mediterranean area. Consequently, the restoration of normality
will imply important challenges for the maritime transport sector in the
Western Mediterranean.
Shipping in the
Mediterranean
Jan Hoffmann
Chief Trade Logistics Branch, Division on
Technology and Logistics, United Nations
Conference on Trade and Development
(UNCTAD)
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 195

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.

Figure 1. Liner Shipping Connectivity Index of countries, quarterly, Q1 2006 to Q4


2020

Source: UNCTAD, based on data provided by MDS Transmodal.


Data for all countries is available under http://stats.unctad.org/maritime.

The best-connected country in the In addition to allowing for compari-


Mediterranean is Spain, followed by sons at the country level, the Liner
France and Italy. The three countries Shipping Connectivity Bilateral Index
benefit from both, their geographical lo- (LSBCI) depicts the level of connecti-
cation and their domestic markets and vity between countries (Table 1). The
hinterlands. Algeria, Libya, Mauritania, highest bi-lateral connectivity among
and Tunisia, on the other hand, have the 10 Mediterranean economies
very low liner shipping connectivity. analysed for this chapter is recorded
Their LSCI has not increased since 2006. between Spain and Italy, and be-
Morocco initially had the same low con- tween Spain and Morocco; followed
nectivity as Algeria, Libya, Mauritania, by the bilateral connectivity between
and Tunisia, but thanks to the private France and Italy, and between France
sector investment in Tanger Med now and Spain. The lowest bilateral con-
counts on a state-of-the art tranship- nectivity is between Tunisia and
ment hub and has the fifth highest LSCI Greece, and between Tunisia and
of the region (Figure 1). Egypt.

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 197

Table 1. Bilateral connectivity index, 2019

Source: UNCTAD, based on data provided by MDS Transmodal.


Data for all countries is available under http://stats.unctad.org/maritime.

Port Performance used for all types of cargo; they are


used more often when cargo volumes
Thanks to Automatic Identification are low and there is less incentive to
System (AIS) data, provided by Mari- deploy more specialized ships. Liquid
neTraffic, we have detailed information bulk carriers are the most important
about how many ships and what type vessel type only in Libya.
of ships call in each country’s ports. An-
nual and semi-annual reports about The fastest turnaround times for con-
port calls and the time spent in port tainer ships in 2019 are recorded in
are available on UNCTAD-stat. The Spain (0.65 days per ship in port), fol-
same data set also allows us to see the lowed by Portugal (0.69), France
median time ships spent in port, as well (0.75) and Morocco (0.78). Container
as their average age and the average ships spent longest in the ports of Al-
and maximum cargo carrying capacity. geria (3.22 days per ship in port),
Table 2 provides two illustrative Tunisia (3.12), Libya (2.32) and Maur-
examples. itania (1.97) (Table 2).

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

Source: UNCTAD, based on data provided by MarineTraffic.


Data for all countries is available under http://stats.unctad.org/maritime.

Maritime Profiles are important providers of some ship-


ping segments, notably ship owning
The UNCTAD Maritime Country Pro- (Greece) and ship registration (Malta).
files show each country’s participation However, most countries of the region
in maritime businesses. Figure 2 pro- are predominantly users of maritime
vides the example of Morocco. It is in- transport services (reflected in their
teresting to see how some countries share of vessel calls) than providers.

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

Source: UNCTAD, https://unctadstat.unctad.org/CountryProfile/MaritimeProfile/en-GB/380/index.html


200 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

The Impact of COVID-19 cargo ships went down by 7.8%, while


calls by dry bulkers and tankers declined
In all countries, during the first semester by 4.1% and 4.9%, respectively. The
of 2020, port calls in most vessel types highest declines were recorded for
declined significantly. Globally, in 2020, Ro/Ro vessels (minus 12.8%) and Pas-
port calls of container shipswere 2.8% senger ships (minus 18.3%) (Table 3).
lower than in 2019; this sector saw the Thus, cargo carrying ships fared better
earliest recovery. Port calls by general than ships that carry people.
Table 3. Port calls in 2020, and change over 2019

Source: UNCTAD, based on data provided by MarineTraffic.


Note: In this table, only ships of 5000 GT and above are considered.
Additional data is available under http://stats.unctad.org/maritime

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

Conclusions and location. Diversification may be more


Policy Implications important and multi-sourcing
approaches may guarantee greater
resilience than approaches that
The countries in the sub-region are concentrate production in a single
above all users of maritime transport location, whether at home or abroad.
services. They are not ship building Especially for smaller economies,
countries (most ship building takes including most of those covered in this
place in China, Japan, and Korea), nor article, would benefit more from
– with the exception of Greece – ship stronger regional integration rather
owning countries. Only Portugal and than aiming at reducing foreign trade.
Malta have significant ship registries,
i.e. foreign-owned ships fly the flag of • Third, harness data for monitoring and
these countries. policy responses. The use of fast-
evolving data capabilities can support
The main interest of the Mediterranean efforts to forecast growth and monitor
region countries lies in port calls and recovery trends. New sources of data
traffic. And here there are large differ- and enhanced possibilities emanating
ences in in the performance, as from digitalization provide ample
measured for example in the liner ship- opportunities to analyse and improve
ping connectivity index and the time policies. The pandemic has
ships spend in port. highlighted the potential for real-time
data on ship movement and port
Building on the UNCTAD Review of traffic, as well as information on
Maritime Transport 2020, there are six shipping schedules to generate early
priority areas for policy action to be warning systems for economic growth
taken in response to the COVID-19 and seaborne trade.
pandemic and the persistent chal-
lenges facing the maritime transport • Fourth, enable agile and resilient
and trade. maritime transport systems. There is a
need to invest in risk management
• First, Mediterranean countries need and emergency response
to continue their support to trade so preparedness beyond pandemics.
it can effectively sustain growth and Future-proofing the maritime supply
development. Protectionism or chain and managing risks requires
export restrictions, particularly for greater visibility of door-to-door
essential goods in times of crisis, transport operations.
bring economic and social costs.
• Fifth, maintain the momentum on
• Second, carefully analyse the options sustainability, climate-change adap-
to improve the resilience of supply tation and resilience-building. The
chains. For example, a shortening of International Maritime Organization
supply chains through re-shoring or (IMO) has embarked on a programme
near shoring may reduce transport aimed at the decarbonization of
costs and fuel consumption, but it shipping. According to the fourth
does not necessarily future-proof Green-House-Gas Study of the IMO,
supply chains against disruptions that the share of shipping emissions in
could take place, regardless of the global anthropogenic emissions has
202 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

increased from 2.76% in 2012 to parent trade procedures, and at the


2.89% in 2018. The goal of the IMO same time better protection of pub-
is, however, to reduce the emissions, lic interests. For example: By dema-
and eventually to achieve zero-carbon terializing processes, data can be
shipping. The resulting energy transmitted faster and physical “so-
transition in shipping is the most cial” contact can be reduced. Ac-
important challenge for maritime cepting digital copies instead of
transport in many decades, comparable paper originals, pre-arrival process-
to the shift from wind to steam ships, ing, electronic payments, Customs
or from steam ships to oil-fuelled ships. automation, applying risk-manage-
The transition will impact the ships ment techniques, and the cooperation
and port operations, as well as the among agencies (within the same
cargo carried, as currently about 40% country, and with trading partners), all
of seaborne trade consists of energy help speed up the processes of inter-
products (oil, coal, gas). Especially national trade. At the same time, all
some of the Northern African countries these measures also help agencies
could become important future such as Customs, ministry of health,
providers of alternative fuels for the bureau of standards or the border po-
future world fleet. lice do an even better job at detecting
unwanted activities. Our Policy Brief
• Sixth, the COVID-19 pandemic has with a 10-point action plan puts it as
led to a further push towards trade follows: “Facilitating trade and the
facilitation, especially solutions that transport of goods has become more
require digitalization. In their re- important than ever, to avoid logistics
sponses to the crisis, governments obstacles that lead to shortages of
and port authorities are pushing for necessary supplies. The concrete
reforms that aim at keeping trade measures proposed in this policy brief
flowing while still protecting popu- help to facilitate transport and trade
lations, transport workers, and of- and to protect the population from
ficers working at the ports. It would COVID-19.” As governments and re-
be wrong to think that there is a kind gional organizations have enhanced
of trade-off between trade facilita- international cooperation and in-
tion and controls, or that govern- vested in further trade facilitation re-
ments would have to strike a forms and digitalization during the
balance. The contrary is true: Prac- COVID-19 crisis, the progress
tically all trade facilitation measures achieved should also help revive inter-
that are included, for example, in the national trade. It will be important to
Trade Facilitation Agreement of the assess what worked and what didn’t,
World Trade Organization help so that we can lock-in the progress
achieve both: faster and more trans- made during lockdown.

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.

Liner Shipping Connectivity of the port of Marsaxlokk (Percentage change Q1 &


Q2 2020 - Q1 & Q2 2019)
206 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

The issue of the blank voyage as an providers found themselves in control


economic tool to stem losses gave of so much volume of cargo that they
the desired results to the carriers who attracted the attention of the con-
in the meantime started reporting tainer carriers who had already been
positive results but caused tremen- viewing them as potential clients. 
dous financial damage to terminals, This development has immense rami-
hauliers and other service providers fications for the future of logistics not
within the logistical chain.  The appli- only for the Mediterranean but world-
cation of blank sailings reduced the wide because once the consumer
supply of slots available at a time gets to grips with the convenience of
when exports from the Far East ordering and paying online with guar-
started increasing again and this anteed delivery within a short period
pushed up freight rates because of of time, it will be difficult to dissuade
the limited space available.  Accord- the consumer from such a system and
ing to a report carried in the Lloyd’s revert to systems which entailed em-
List of 5th October, the Asia-Europe ployment of more time to source and
freight rates reached a new high secure delivery of goods. 
which was not experienced in pre-
Covid times. It is definitely to be ex-Particularly within the Mediterranean
pected that the container carriers, these developments can translate
having learnt to their satisfaction thethemselves into more shortsea intra-
outcome of a disciplined approach, European services.  This development
will do their utmost in future to main-brought even more to the fore the
tain this mechanism which is the epit- concept of intermodalism as a logis-
ome of the economic forces of supply tical pipeline to channel cargo be-
and demand.  tween producer and consumer. One
is to expect cargo to move on fast
The other development which means of transport such as trains
evolved throughout the first half of which link to ports that in turn facili-
this year and which is influencing lo- tate services for shortsea fast ferry
gistics to a substantial degree is the vessels.  The transport by sea
purchasing online on a mass level.  throughout the whole journey, es-
Lockdown conditions, fear of con- pecially on a regional level, will be
tagion and other measures adopted seriously challenged by intermodal
by governments to reduce social con- solutions whereby the sea plays a part
tact, generated a demand for home and not the whole logistics cycle. 
delivery service and this was ex- Such a scenario however will bring
tended from the food industry to back to the European discussion table
every imaginable consumer good that the existing bottlenecks that hinder
was facilitated by ordering online.  or obstacle the fast movement of car-
This movement of goods created a goes especially through ports. The
paradigm shift in the logistics of lack of the single window and an ef-
cargo transport whereby the online fective customs union that can do
service provider in combination with away with customs barriers, will
courier services replaced to a certain hinder the development of this inter-
degree the freight forwarder and the modal solution because the logistics
line agent whose task it was to source process gets bogged down with
and book cargoes.  The online service bureaucracy and inefficiencies. Were

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 207

this development to take its natural forwarders, customs and receiver.


course, intra-European traffic will These represent links in the supply
flourish because of: chain and it goes without saying that
the malfunction of one link jeopard-
1. The just-in-time buying. ises the strength and coherence of
the whole chain. Post Covid has to
2. The need to diversify sources of ensure that appropriate protocols are
supply to avoid the situations cre- in place to facilitate the proper func-
ated by Covid in China. tioning of each link. It is only through
such an approach that we can look
These developments necessitate a back at this period and feel that les-
functioning infrastructure which in- sons have been learnt to sustain im-
volves ports, terminals, vessels, crew, pacts of epidemics in future.
The COVID-19 Crisis:
A Catalyst to Speed Up the
Digital Transformation of Ports
Mustapha Lhamouz
Activities and Operators Supervision
Director, Strategy and Regulation Branch,
National Ports Agency of Morocco
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 209

Moroccan ports have played a major munity system known as PORTNET,


role in managing the COVID-19 which has become the single-window
health crisis. In fact, the port sector system for foreign trade procedures.
has demonstrated strong resilience Since this community information sys-
and great agility by adapting its vari- tem was implemented, around 50,000
ous operational processes to the new customers have used PORTNET’s ser-
context, which requires that health vices and more than 40 port, customs
measures be taken into account to and foreign trade processes have
deal with the pandemic threat. Mo- been digitized through this platform;
roccan ports have thus continued to these include vessel arrival notifica-
fulfil their role as platforms serving tions, requests for allocation of posts,
the country’s foreign trade, thereby the hazardous goods list, import
ensuring supply chain continuity with documents, manifest declarations,
respect to strategic products and gate passes, inspections, and the
keeping the channels open for na- entry and exit of goods.
tional exports to foreign markets1.
The direct and indirect effects of the
It is important to note that Moroccan COVID-19 health crisis have made the
ports represented the only border port community more aware of the
point that remained in operation after added value for port users of speed-
the airports and land borders were ing up the digitization of new pro-
closed during the lockdown. cesses to ensure greater fluidity of
port traffic and improve the competi-
As part of the national port sector’s tiveness of ports.
efforts to manage this crisis, digitizing
port processes and making them pa- For the National Ports Agency, which
perless has represented a crucial has already been involved in an ex-
move that has enabled the sector to tensive programme to enhance the
meet the challenge of service con- digital transformation of Moroccan
tinuity. ports for several years now, the health
crisis has served to speed up the im-
With the health crisis, the use of pa- plementation of its SMART PORT pro-
perless trade to reduce physical inter- gramme, whose goal is to achieve
actions has proved essential and has “zero paper” ports.
become a key element of the busi-
ness continuity plan implemented by The objective of the SMART PORT
the National Ports Agency. programme is to strengthen the com-
petitiveness of national ports by ex-
The context of the COVID-19 pan- ploiting the opportunities offered by
demic has thus revealed the impor- digital technology and new tech-
tance of the National Ports Agency’s nologies in general.
strategic choice to digitize port pro-
cesses in 2008 through the implemen- During the COVID-19 crisis, this pro-
tation, together with all stakeholders gramme was adapted to the context
in the port ecosystem, of a port com- and several new services were set up

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

via the PORTNET single-window sys- International Association of Ports and


tem, including: Harbors (IAPH), digitalization is essen-
tial if ports are to recover successfully
• The procedure for inspecting ships’ from the COVID-19 crisis and effec-
stopover documents, which has been tively prepare for future crises.2 Ac-
extended to the services of the General cording to this report, we are now
Directorate for National Security definitively entering a new era in
(DGSN) and the Ministry of Health; which digitalization will be a port’s
• Issuing of customs release forms, which key factor for success.
was implemented on the community
platform on 4 May 2020; Thus, the year 2020 constitutes a his-
• Orders for related activities (ship chand- toric turning point, since it allowed
ling, surveillance, etc.); the maritime and port digitalization
• Automatic notification of the arrival of process to gather speed.
goods at the port, plus traceability
and tracking; In addition to digitalization of in-
• Digitization of the procedure for re- formation flows between the various
questing port access passes, etc. stakeholders in the port ecosystem, a
• Electronic payment for all types of flood of new innovations is being im-
port and goods inspection services. plemented in several ports, which are
seeking to take advantage of the la-
test technologies, such as the Internet
The Digital Transformation of Things (IoT), blockchain and 5G, to
of Ports: A Driving Force devise new, “disruptive” ways of
for Competitiveness carrying out procedures.

Several initiatives of this kind have


The COVID-19 health crisis has served been launched, including the creation
as a catalyst for a trend that was already of a blockchain platform (Maersk), im-
well under way and will help speed up plementation of a smart bollard (Port
the digital transformation to spark a real of Rotterdam) and testing of auton-
digital revolution geared towards the di- omous vessels.
gitization of port processes.
At national level, and in the same
Digitalization currently represents a cru- spirit, in December 2020, the Na-
cial challenge for ports across the world tional Ports Agency announced the
and will pave the way for a genuine first Smart Port Challenge in Morocco
breakthrough in the port and maritime and Africa in the form of an entirely
industry, which has seen few innovations online hackathon designed to encour-
since the container was introduced back age companies, start-ups and univer-
in the 1950s. sities in Morocco and abroad to offer
innovative solutions to address several
Indeed, according to the latest report port issues in areas such as electronic
published by the World Bank and the payment, energy efficiency, port infra-

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

structure management, port security Advances such as the digital trans-


and environmental protection. formation of ports and making port
processes paperless are now paving
This event, which finished at the end of the way for greater regional collab-
January 2021, benefited from the par- oration aimed at facilitating trade.
ticipation of more than 500 researchers,
experts, start-ups and professionals Indeed, optimization of the global
from more than 10 countries and re- logistics chain requires that port
sulted in the submission of more than 70 ecosystems are connected at re-
projects. gional level through the implemen-
tation of a data exchange system
Through this new innovation-based between the different port commu-
community approach, the National Ports nity systems to increase the effi-
Agency intends to boost the perform- ciency of port transit by providing
ance and competitiveness of national real-time information to all foreign
ports by coordinating the actions of the trade stakeholders.
various stakeholders with a view to pro-
viding innovative solutions to major port Emerging new technologies (block-
challenges. chain, IoT, etc.) will simply serve to
strengthen this concept of sharing
The Digital Transformation key trade information at regional
level, in particular by facilitating the
of Ports: Facilitating acquisition and exchange of data
Regional Trade throughout the global supply chain.
Chapter 6

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

The COVID-19 pandemic could be - Path 1a: Smooth capacity re-


the greatest challenge the global avi- covery at first, followed by a
ation industry will ever face. The ef- downturn due to over-capacity.
fects are being felt throughout the • Domestic
ecosystem, including airlines, airports - Path 1: Swift capacity rebound
and air navigation bodies. pushed by pent-up demand
but at a diminishing rate of
Recent estimates by the International growth.
Civil Aviation Organization indicate - Path 1a: Smooth capacity re-
that the 2020-21 air traffic recession covery at first, followed by a
will take one of the following shapes: downturn due to over-capacity.

• V-shaped: the normal shape for a • Scenario 2: two different paths


recession; a brief period of sharp (similar to U- and L-shaped).
economic decline followed by a • International
quick/smooth recovery. - Path 2: Return to trend growth
• U-shaped: prolonged contraction accelerates after slow progress
and muted recovery to trend line of capacity recovery.
growth. - Path 2a: Capacity recovery at a
• L-shaped (depression): long-term decreasing speed due to res-
downturn in economic activity; a pite and continuous demand
steep drop followed by a flat line slump.
with the possibility of not returning • Domestic
to trend line growth. - Path 2: Gradual capacity re-
• W-shaped: a double-dip recession covery followed by accelerated
consisting of a “down-up-down-up” growth.
pattern before full recovery. - Path 2a: Capacity recovery at a
• Nike-swoosh-shaped: a sharp re- decreasing speed due to slug-
bound that quickly flattens. gish demand growth.

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

COVID-19 vaccine before boarding primarily on innovative procedures and


and setting up a health passport (inter- technologies to restore passenger con-
national vaccination record). fidence in air transport.

Several international organizations are The liberalization of air services,


currently working on this. The Inter- whether within Africa (SAATM) or with
national Civil Aviation Organization the European Union, must make allow-
published the second edition of its ances for the difficulties experienced
“Take-off” guidelines on 17 November by airlines following the COVID-19 cri-
2020: Guidance for Air Travel Through sis and should be based on fair com-
the COVID-19 Public Health Crisis petition to preserve the economic
(CART II), which includes additional sustainability of airlines and avoid
recommendations and guidance in further eroding their results, which
light of new developments relating to have already been negatively affected
the COVID-19 crisis and supplements by the COVID-19 crisis.
the recommendations included in
CART I, published in June 2020. In conclusion, the COVID-19 pandemic
is not only a health crisis, but also an
All countries now face a new challenge economic, social and humanitarian cri-
and must implement a post-Covid air sis. Given the dramatic global econ-
transport recovery plan based on inno- omic and social impact it has caused,
vation, digitization and the use of tech- the aviation system now stands on the
nologies such as digital credentials and verge of rapid transformation.
artificial intelligence, which must play a
key role in the restart and recovery of air Admittedly, the light at the end of the
transport after the crisis and steer it onto tunnel is not yet visible, but this pan-
the most sustainable path possible. demic will one day come to an end
and the world of air transport will put
Countries must also share information, the most serious crisis in its history
expertise and good practices based behind it.
Air Transport Development,
the Tool to Achieve Good
Harvest Seasons:
How Aviation Can Play a Key
Role in the Prosperity of a
Post-COVID-19 Mediterranean
Ignacio Biosca
Head of International Relations, Airport
Marketing and Airlines Assistance, AENA
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 219

It is hard to write an article on travel and between the EU and Morocco in


tourism these days. We are only a few 2006. The number of passengers that
weeks from finishing 2020, the year in flew between Spain and Morocco, as
which travel stopped. In the midst of a reference, grew more than 50% in
COVID-19, airlines and airports struggle only one year, and in 2019, it was 4
to survive in the hardest crisis that the air times higher than that of 2006. Other
transport industry has seen in its entire agreements have been signed since
history. Yet, there is consensus that, then with Jordan and Israel, and ne-
once the pandemic is controlled, travel gotiations are on-going with Lebanon
and tourism will resume, and we will and Tunisia. If the Common Aviation
again be able to enjoy such an impor- Area reached its goals, it could en-
tant aspect of our lives, and of course, compass up to 50-55 states and a
of our economies. total population of 1 billion inhabit-
ants. The opportunity this brings for
If we go back to 2019, we can get an the Mediterranean area has to be
idea of the dimension of air transport properly valued by the air transport
between countries in the Mediterranean and tourism stakeholders and by pol-
area. The seats put on sale by airlines icy makers.
that flew internationally between two
points of the region was around 130 mil- This opportunity may seem just an
lion in 2019. This is certainly not a small illusion in 2020, when the entire world
figure. has nearly stopped, and travel and
tourism are far from being a priority.
How was this figure achieved? We can Health authorities are focused in con-
be certain that the liberalization process trolling the pandemic and restrictions
that allows for open markets, in which in mobility are an essential part of the
airlines make decisions on where to fly strategy to fight against it. In fact, in
based on the profitability of the routes the Mediterranean area, the 130 mil-
they operate, has played a key role. In lion seats mentioned before, were re-
this sense, the policy promoted by the duced by more than 60% in 2020, and
European Union to sign open skies given the extremely low load factors
agreements with its neighbouring coun- experienced this year, we can esti-
tries, has proved to be extremely fruitful. mate that passengers are only around
20% of those in 2019. However, it is
The Common Aviation Area, designed not an illusion.
to allow a gradual opening of the market
between the EU and its neighbours, has Air transport is a key element for the
offered opportunities for airlines and a development of the regions it serves.
wider choice for passengers. At the For every million passengers, the
same time, it has allowed a regulatory study carried out by Intervistas for
convergence on safety, security, environ- ACI Europe estimates that around
mental and other areas of the industry. 950 direct jobs are created1, and if we
count the indirect and induced ones,
A good example of the efficiency of this figure can easily be 3 times
this policy is the agreement signed higher. The analysis also found that

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

port operators and tourism auth- achieve. We have extremely relevant


orities, both, have the right pieces of challenges to overcome. The econ-
information to convince an airline, or omy in the Mediterranean area, as in
a tour operator, that if they fly to their the rest of the world, will be seriously
region, the result from the economic damaged by COVID-19. To what ex-
point of view will be positive. And not tent the evolution of the pandemic
only positive, but also more profitable will improve with the vaccines that
than alternative options. A way to have become available from early
work together is by creating the so- 2021, and the recovery pace of the
called “Route Development Commit- economy, remains to be seen. Health
tees” (RDC). In these Committees, experts agree that in 2021 the com-
tourism authorities, city councils, bination of the vaccination process,
chambers of commerce and airports, the development of new and more
each one in the area of their compet- accurate tests, the discovery of an
ence, offer market information, pro- early treatment and the natural evol-
motion and incentives in a joint ution of the virus will result in a sig-
package that facilitates the decision- nificant decrease of the pandemic.
making process by the airlines. The On the other hand, we have seen that
RDC created in Barcelona is a good when mobility restrictions are lifted,
example and a reference of this kind demand for travel recovers extraordi-
of approach. narily fast. It is human nature. We all
want to be close to our beloved ones,
Aviation events like Routes, or Tour- and to enjoy a few days under the sun
ism ones like the World Travel Market and close to the sea. And we all want
or Fitur, are the right ones for these to know more of our ancient culture,
RDCs to meet with airlines and offer the pyramids, the amphitheatres, the
the products of their harvest. They do music, the architecture, the gastron-
not differentiate too much from the omy… We have plenty of this in the
ancient markets in which bread, wine Mediterranean. Therefore, travel and
or olive oil were sold in the different tourism will recover; there is no doubt
cities of the Mediterranean shore. about it.
Market intelligence with personalized
and detailed business cases, incen- In any case, it is true that COVID-19
tives and promotion proposals are ex- will change the world, even once the
plained in detailed and exchanged pandemic is controlled. We have to
with the network developers of the be aware of the challenges and learn
airlines, to finally be able to celebrate the lessons that it has brought. Sus-
the opening of a new route. Patience tainability is already, but it will be
and consistency are also essential el- even more in the future, the back-
ements of this marketplace, as the bone of any strategy in the air trans-
decision-making process in the air port industry. This is especially true in
transport sector can take long the Mediterranean, a sea that is suf-
periods. Not too different from the fering the consequences of climate
wise strategy of the farmers in our change and CO2 emissions, with its
countries. coral and posidonia disappearing, or
the invading tropical species colon-
Nevertheless, the plan, as explained izing our coasts. Therefore, the use of
before, is easy to draft, but difficult to Sustainable Aviation Fuels and
222 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

hydrogen, and a more efficient air adapting them to new challenges.


navigation design are key elements to Safety, with all its different perspec-
achieve the commitment towards net tives, and now especially the health
zero CO2 emissions in European avi- related one, is a prerequisite for any
ation in 2050. Aviation, in the future, trip. The same happens with security.
will be sustainable or it will not be. We are aware of how fragile demand
to a destination can be if security is
Another relevant challenge in the not guaranteed. Therefore, to allo-
roadmap to develop the region is the cate the adequate resources to safety
digitalization process. Certainly, the and security is an investment that can-
world is already digital. Our smart- not be underestimated to achieve the
phones can every day do more and expected return by means of travel
more things, and the decision to buy demand. And after COVID-19 health
a plane ticket or to make a hotel res- protection related measures during
ervation after having searched for the flights and at airports, or later in
things to do, or the quality of the hotel, resorts, theatres or museums,
beaches at a particular destination, is have become a priority to ensure a
not an exception. Hotels, natural safe travel experience. It is not dif-
parks, historic sites, scuba diving re- ficult to foresee that they will con-
sorts, museums, they all form part of tinue to be in the future.
the potential experience of a tourist.
To make this potential experience in Let me finish these lines by saying
a real one, paradoxically, they have to that long haul traffic will be more
be digital. challenging in the years to come. Pas-
sengers will be looking for shorter
On the other hand, in the market- trips to places in which it may be eas-
place that the aviation industry is, it is ier to get back home if there was the
essential to prepare the business need to. In this environment, the
cases with the most accurate and per- Mediterranean area has an opportun-
sonalized information possible, to ity to offer within the region, and in
allow the airlines make the right deci- the whole of Europe, all its potential.
sions. Internet travel searching tools,
credit cards utilization, mobile phones The Common Aviation Area the EU
roaming are only a few examples of promotes, with its common skies
the kind of information the airlines agreements, and its regulatory har-
need to finally be in a position to de- monization that brings certainty for
cide the opening of a new route. passengers and airlines, can be the
Another example of how important it path towards a sustainable devel-
is to count with state-of-the-art digital opment of the Mediterranean, and
tools. one of the tools to strengthen the
links between the countries that share
Finally, safety and security are aspects such a privileged region. Following
without which travel and tourism this path, I am convinced that sooner
simply do not exist. Unfortunately, we than later, we will see those 130 Mil-
are experiencing it these days. The lion seats offered again for travellers
travel industry has already very de- to visit their beloved ones, or to en-
manding safety and security stan- rich themselves by discovering a dif-
dards in place and is continuously ferent culture. Moreover, I am

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

The Need to Redefine countries worldwide with the main


objectives to evaluate the speed at
the Passenger Journey which travellers are likely to return to
Experience airports, to identify the main factors
influencing the speed of recovery, to
It cannot be over-emphasised enough assess the evolution of their habits as
that the air travel industry is facing well as to specify passengers’ percep-
one of the most challenging times of tions and expectations towards the
its existence. In addition to the cata- passenger journey (ACI, 2020). The
strophic financial consequences of good news is that 97% of respon-
the COVID-19 pandemic on the in- dents, who travelled in 2019, intend
dustry, the confidence enjoyed by to travel again in the future, with 61%
travellers before the crisis has eroded of respondents from the Africa region
substantially since airports and air- confirming, at the time of the survey,
lines have been regarded as one of their willingness to travel by the end
the vectors of transmission of the of this year itself (ACI, 2020). How-
virus across borders. ever, the study also revealed that 20%
of respondents were not confident
Since the outbreak of the pandemic and that airports and airlines were provid-
in a bid to maintaining the continuity of ing a safe environment, and those
air services during border closures in that were planning to travel were ex-
order to carry out vital humanitarian, pecting specific measures to be im-
evacuation and cargo operations, air- plemented by airports (ACI, 2020).
ports all over the world, including in Af- The most expected measure was the
rica, have had no choice but to rapidly mandatory use of masks for all pas-
rethink their normal processes to keep sengers and airport staff, as con-
passengers, crew and staff safe, and this firmed by 48% of all respondents,
included the continuous disinfection of followed by a 28% of respondents for
all touchpoints, wearing of suitable face COVID-19 test prior to their journey,
coverings, physical distancing, COVID- hand sanitizing stations (28% of re-
19 testing and the reinforcement of spondents), and interestingly, 27% of
touchless technologies where available. respondents looking forward for a
These new protocols introduced grad- contactless experience (ACI, 2020).
ually have slowly been reshaping the
normality we were all used to in the air Therefore, notwithstanding the recent
travel industry. Indeed, in addition to encouraging news of the implemen-
safety and security, a healthy air travel tation of a number of potentially suc-
experience has now become a top pri- cessful vaccines against the
ority for passengers. Whether they are COVID-19 virus, the latter has unfor-
travelling for business or leisure, domes- tunately left an indelible print in the
tically or internationally, passengers now minds and habits of most passengers,
prefer to choose airports that prioritize and to such an extent, that their nor-
their well-being over other travel con- mal travel expectations may have
siderations. been permanently redefined.

In August/September 2020, Airports As the airport industry now begins to


Council International (ACI) conducted plan for a sustainable recovery after a
a study among 4,100 travellers in 30 gradual restart over the past few
226 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

the greater use of data, including These approaches will eliminate or


health information, to enable seam- greatly reduce the need for physical
less and safe air travel. exchange of travel documents be-
tween staff and passengers. It may
Digital transformation will play a more also speed the overall passenger pro-
prominent role in ensuring that effi- cess, with the benefit of enhanced
ciency, safety and customer experi- health protection, and resulting in re-
ence are all addressed at passenger duced queuing and other process ef-
touchpoints such as: check-in, self- ficiencies which is much needed at a
service bag drops, security check- time when revenues are severely im-
point, border control and boarding pacted.
gates, and retail and duty-free out-
lets, amongst others. Touchless pro- The Situation
cesses will undoubtedly be an integral
part of the future of air travel. Whilst at African Airports
this is not a new concept, having be
around for some years now and form- Africa, the second-largest and sec-
ing the backbone of ACI’s vision for ond-most populous continent, is un-
the future of travel, this pandemic has fortunately still lagging behind when
certainly accelerated its adoption. it comes to the introduction and use
Many airports and airlines have al- of technology in delivering new and
ready turned to touchless kiosks or innovative passenger processing and
virtual/mobile processing to replace improved customer experience at air-
traditional check-in and bag drop ports.
functions.
This current state is mainly due to bar-
The accelerated use of digital ident- riers posed by the current complexity
ity, and potentially coupled with of introducing digitalisation in airport
some health information, to provide processes, data ownership issues, lack
clearance for passengers to travel, is of stakeholders’ collaboration, regu-
likely to gain much momentum. In the latory obstacles to enable fully online
short term, this may be proof of or mobile processes and funding prio-
COVID-19 test results, and in the rities not necessarily geared towards
longer term evidence of vaccination technology and innovation. For in-
against COVID-19. stance, most African countries currently
do not have biometric passports or na-
Some passenger processes will also tional identification cards which enable
take place off-airport before the start the chips in those documents to store
of the journey so that less face-to- the biometric data passengers, which
face contact is required. For instance, is the first main requirement to posi-
check-in and bag drop processes may tively identifying a passenger in the
move largely off-airport, to hotels and travel process and thus allow for con-
conference centres, and services will tactless experience. Data ownership
more commonly include bag pick-up is also a huge challenge in Africa with
and delivery. A greater and smarter governments claiming the sole
integration with other transit systems ownership and not allowing third
is also expected in order to enable a parties to access, verify or use bio-
more seamless and touchless journey. metric data.
228 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

pandemic, the scenario is altogether create a seamless, secure and har-


different and the adoption of these monised process for passengers and
concepts has become extremely rel- baggage handling at various auto-
evant today and will certainly consti- mated touchpoints at airports, viz.
tute the most relevant framework for document check at entry, check-in,
airports willing to instil efficiency in self-service bag drops, access to se-
their processes whilst at the same curity checkpoints, border control
time complying with the needs of and boarding.
passengers for a safe, secure and
healthy air travel experience. In the post-pandemic world, the need
for contactless processing will be-
Pre-COVID-19, NEXTT’s vision of off- come an even stronger recommenda-
airport activities was that passengers tion, if not a norm in the long term, as
would have full control of their jour- evidenced by the ICAO Council Avi-
ney in the comfort of their home prior ation Recovery Taskforce (CART) Re-
to reaching the airport by providing port and Recovery Guidelines
them with a number options regard- released during the crisis, which now
ing online or mobile check-in proce- recommends the increased use of
dures, off-airport baggage or cargo technology to facilitate contactless
drop-off, travel authorisations and processing of passengers at various
customs procedures to be managed stages of their journey (ICAO, 2020).
digitally, and online shopping and Thus, the passenger experience at
booking of ancillary airport services, the airport will involve the biometric
amongst others. verification of identity and health
status at walking pace for a com-
These off-airport options, as envis- pletely uninterrupted and touchless
aged by NEXTT, are extremely rel- journey. Passenger touchpoints, such
evant now during this ongoing crisis as kiosks and other process points,
to reduce contact and crowding at will be touchless, activated by bio-
airports, to help physical distancing metric recognition, including voice or
and to alleviate on-site capacity air- motion, and will the offer the possibil-
port constraints, and will certainly be- ity to seamlessly interact with mobile
come even more relevant in the technologies.
post-pandemic world. In addition,
with health declaration being part Similarly, electronic bag tags will pro-
and parcel of the mandatory border vide luggage with a digital identity
control formalities, the concept of a and will help in reducing passenger
passenger’s digital wallet, that will in- and staff touchpoints to tag luggage,
clude all health-related information which is in line with the contactless
including COVID-19 test and vaccina- journey experience envisaged during
tion, is bound to form an integral part and post-COVID-19 crisis.
of the off-airport passenger process-
ing process in the future. The third concept of NEXTT, i.e. inter-
active decision-making, is quite for-
Pre-COVID-19, NEXTT’s vision of ad- ward looking in terms of control and
vanced processing related to the use personalisation of the travel experi-
of technology for identification pur- ence of passengers through a better
poses, automation and robotics to communication and coordination of
230 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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/

NEXTT (2020, October). The NEXTT Vision in a post-COVID-19 World. ACI.


Retrieved from https://store.aci.aero/product/the-nextt-vision-in-a-post-
covid-19-world/

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

If we want to guarantee sustainable re- and security; moreover, it provides op-


covery and the development of air erators with a level playing field, in terms
transport in the Western Mediterra- of competition, and cost-effective ser-
nean, the mere liberalization of traffic vices such as those relating to air navi-
rights is not sufficient: to benefit all air gation.
transport stakeholders and users, the
creation of a single aviation market in This gradual, comprehensive approach
the Western Mediterranean must be was adopted by the European Union in
underpinned by harmonization of the the 1990s and, more recently, by the As-
regulations applicable to air transport. sociation of Southeast Asian Nations
(ASEAN), whose single aviation market
Liberalization is not an end in itself, but made its first appearance some 15 years
rather serves as a tool to support con- ago. The creation of some form of single
nectivity and the economy and develop air transport market for the Western
closer ties between nations. The official Mediterranean could be the outcome of
launch of the Single African Air Trans- a similar integrative approach involving
port Market (SAATM) by the African the 10 countries concerned. However,
Union (AU) in January 2018 was not the immediate challenge is to support
merely a step to revive the African air an air transport sector that has been
transport liberalization process initiated devastated by the health crisis.
in 1999 with the Yamoussoukro Deci-
sion; it represented a key tool to deliver
on Agenda 2063, along with the other The Devastating Effects
Agenda 2063 flagship projects, es-
pecially the African Continental Free of the COVID-19
Trade Area (which was signed by 44 Af- Pandemic on the Air
rican countries in March 2018), the Afri-
can Union Passport or the free
Transport Sector
movement of people (the Protocol to
the Treaty Establishing the African Econ- The air transport sector, which has
omic Community Relating to Free undergone constant growth for years
Movement of Persons, Right of Resi- and had an untroubled outlook over the
dence and Right of Establishment was coming decades according to fore-
adopted in January 2018). casters, is facing an unprecedented
shock as a result of the COVID-19 pan-
However, to ensure that the benefits of demic and is not expected to return to
air transport liberalization are optimal the 2019 level of activity until 2024 at
and sustainable, liberalization must form the very earliest.
part of a gradual, comprehensive ap-
proach; the opening of aviation markets At its 76th General Meeting held on 24
between countries in the Western Medi- November 2020, the International Air
terranean should be carried out in Transport Association (IATA), which rep-
stages and be supported in parallel by resented 290 airlines, updated its fore-
the harmonization of the rules appli- casts regarding the impact of the crisis.
cable to air transport. The latter ensures The figures for 2020 are staggering: pas-
uniform travel conditions for passengers sengers numbers are down by 66%
and shippers (freight transport) and compared to 2019, airlines are esti-
guarantees high levels of aviation safety mated to generate just 328 billion US
234 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

dollars, down by 60.9% compared to air transport market and implement


the previous year (838 billion), airline common air spaces with the neighbour-
losses are now estimated at 118.5 bil- ing countries of the European Union cre-
lion US dollars, downgraded from ated through specific European air
June’s estimate of a “mere” 84.3 bil- agreements.
lion, airline debts have increased from
430 billion US dollars in 2019 to 651
billion in 2020, and so on.
A Gradual,
Comprehensive Approach:
The outlook for airports is equally grim. The Example of the
According to the Airports Council In-
ternational Europe (ACI Europe), which Construction of the Single
represents nearly 500 airports in 46 European Air Transport
European countries, traffic on 15 No-
vember was already down by 1.5 bil-
Market
lion passengers compared to 2019
levels. Under these conditions, ACI Eu- The internal market of the European
rope estimates that more than 190 air- Union, which comprises the 27 member
ports run the risk of insolvency. In states and also fully extends to Iceland,
terms of recovery arrangements, it is Liechtenstein and Norway through the
exercising extreme caution out of fear Agreement on the Economic European
of lasting changes in travel habits. Area (EEA), allows airlines with an air
carrier licence issued by one of these 30
Despite the fact that the prospect of an states to freely operate services be-
effective vaccine has revived airline tween all the airports in this region, in-
stock prices, IATA is predicting a dif- cluding in cabotage, without any
ficult 2021, with losses estimated at restrictions in terms of routes, frequency
38.7 billion US dollars. It does not ex- and capacity, and with complete free-
pect air traffic to return to 2019 levels dom to set fares.
until 2024 and, even then, only if cer-
tain conditions are fulfilled, especially The construction of this single aviation
with respect to the vaccine’s effective- market, which concluded in 1997 with
ness. respect to liberalization when cabotage
was included, has been accompanied by
Against this backdrop, the opening up full harmonization of the rules applicable
of markets between the countries of to air transport in terms of safety, secur-
the Western Mediterranean could rep- ity, air traffic management, slot alloca-
resent a facilitator for relaunching air tion, insurance, competition, the
transport for passengers and goods in environment, consumer protection,
this region. In the longer term, the cre- flight crew working hours, etc. All stake-
ation of a single aviation market should holders in the air transport chain must
involve an additional dimension: regu- therefore apply the same rules; these
latory convergence is the only way to benefits not only passengers and
guarantee the harmonious, sustain- shippers, who are guaranteed high-
able, and safe development of air quality air transport through some of the
transport. This requires a gradual, com- strictest standards around, but also air-
prehensive approach, similar to that lines and airports, which are able to op-
used to construct the single European erate in an environment where the

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.

However, regulatory harmonization be- Thus, the 2006 “Euro-Mediterranean


tween the European and Maghreb aviation agreement between the Euro-
236 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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):

2014 2015 2016 2017 2018 2019


Algeria 4,767,772 5,036,314 5,337,257 5,538,734 5,394,335 5,213,326z
Morocco 7,902,589 7,800,398 7,864,422 8,825,896 9,779,788 11,048,632
Tunisia 3,652,440 2,938,734 2,907,029 3,341,045 3,827,976 4,152,709

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.

Passengers 2019 Algeria Libya Mauritania Morocco Tunisia


Spain 693,796 : 1,242 2,355,411 119,807
France 4,352,669 : 38,883 6,706,645 3,444,762
Italy 149,009 : : 1,412,533 504,398
Malta : 4,180 : 18,788 36,322
Portugal 17,852 : 61 555,255 47,420
Total: 5,213,326 4,180 40,186 11,048,632 4,152,709

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

tries, North-South cooperation, the nificance, this move also underlined


gradual implementation of the Single the commitment of African states to
African Air Transport Market) are paving forge ahead with the initiative.
the way for the orderly opening of the
air transport market between the coun- Moreover, the health crisis has rein-
tries of the Western Mediterranean. The forced this need to open up the African
next steps could potentially relate to market, as stressed at the Assembly by
new agreements between the European Ali Tounsi, the Secretary General of Air-
Union and the Maghreb countries but, ports Council International Africa. He
more importantly, real progress in the made a passionate plea in favour of the
implementation of the SAATM would Single African Air Transport Market, the
mark a decisive turning point in the pro- African Continental Free Trade Area and
cess to liberalize air transport services. the Free Movement of Persons Protocol
(FMPP), elements he considers essential
A symbolic step was taken on 13 No- to ensure the recovery of the air trans-
vember, when the Assembly of Heads port industry in the post-Covid era but,
of State and Government of the Afri- even more importantly, for the future of
can Union designated 14 November as the African continent (Institutional
the anniversary of the Yamoussoukro Message delivered by the Secretary
Decision and named it Yamoussoukro General of ACI Africa on the occasion
Decision Day. Beyond its symbolic sig- of Yamoussoukro Decision Day 2020).
Chapter 7

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.

The post-lockdown period is an opportunity to plan and test a series of


measures that should contribute to a city model (and its transport system)
committed to the UN Sustainable Development Goals (SDGs) and the Paris
Climate Agreement. There is talk of tactical urban planning, smart and
sustainable mobility, public transport as the backbone of urban mobility and
digitalisation as a tool to facilitate transport, among other ideas.
Urban Transport
in the Post-COVID Era:
The Same Solutions for the
Same Problems
Frederico Francisco
Advisor to the Minister of Infrastructure
and Housing, Government of Portugal
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 243

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

APPLE (2020). Apple Mobility Trends Reports (2020), Retrieved from


https://covid19.apple.com/mobility.

EUROPEAN COMMISSION (2020). Communication from the commission to the


European parliament, the council, the European Economic and Social Committee
and the Committee of the regions: Sustainable and Smart Mobility Strategy –
putting European transport on track for the future, COM/2020/789.
Google (2020). Google Community Mobility Report (2020), Retrieved from
https://www.google.com/covid19/mobility/.

MTH (2020). Moynihan Train Hall (2020), Retrieved from https://www.moynihan-


trainhall.nyc.

STATIONORD (2021). StatioNord: Le projet, Le Metamorphose (2021), Retrieved


from https://www.stationord.fr/fr/.
The Key Role of
Sustainable Urban Mobility
to Build Back Better in
Mediterranean Cities
Pere Calvet
CEO, Ferrocarrils de la Generalitat de
Cataluña (FGC). President, International
Association of Public Transport (UITP)
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 251

Introduction The Undisputed Benefits


of Public Transport
The crisis generated by COVID-19 has
had a major impact on public transport to Our Societies
systems across many Mediterranean
countries. Public and private sector In the response, repair and recovery
stakeholders have adopted all the nec- phases of this crisis, citizens and policy-
essary measures to guarantee service makers have reacted differently across
continuity, ensuring the mobility of es- regions. This time, we need to build back
sential front-line workers. better. A key part of doing so will entail
shoring up the role of public transport,
Existing services have been kept running the backbone of urban mobility, as an
or new ones put in place so that people enabler to other economic, social and
who cannot stay home and must travel environmental city objectives.
have an adequate mobility alternative.
Supply has been adapted to the newly The economic benefits of public trans-
required distancing measures, face port are five times higher than the
masks have been mandated across most money invested in it. Public transport un-
cities, and station and vehicle cleaning locks positive effects in the wider econ-
has been scaled up with no regard to the omy by connecting people to their jobs,
extra costs. All this has been done while studies and leisure occupations, allowing
protecting workers and customers. for clustering of activities and business
development, improving quality of life,
However, the health situation has po- supporting tourism, reducing traffic con-
wered a widespread and unsustainable gestion, stabilizing property values and
fall in public transport ridership and as- helping to regenerate cities or deprived
sociated fare box revenues of close to areas through transport connections.
90% in some cities, despite supply far Studies report a significant increase in
outstripping demand since the crisis the value of property developments
began. With a progressive resumption of close to transport projects designed with
activities after lockdown, it is imperative a transit-oriented approach, reflected by
to step in with exceptional measures or nearby retail stores, quality pedestrian
the system will collapse. areas and open spaces.

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

enabling progress to reduce inequalities enabling CAPEX and OPEX planning in


in urban areas. the context of rigorous SUMPs, is criti-
cal to supporting city strategies and
Some regulators might view the crisis as achieving targeted mobility results.
an inflection point to accelerate the tran- Dedicated legislation and funding
sition toward sustainable mobility, while should be ring-fenced. The govern-
others could loosen regulatory man- ance model has to be enhanced to
dates. By framing how our urban ecosys- better include the various beneficiaries
tems operate, regulations can have a of public transport infrastructures and
major impact on the success or failure services, including businesses.
of an urban mobility strategy. Indeed,
a flexible and conducive regulatory ap- The coronavirus crisis is also hitting
proach, adapted to an increasingly public transport finances and urgent
complex and competitive environment, extraordinary measures in the form of
supporting innovation and innovative clear conditions for using recovery
itself, enables cities to thrive and reach funds in favor of a modal shift are
their full potential. needed. This timing might be perfect
to implement alternative funding
Innovation, including the development schemes, such as congestion charging
of new technology solutions, has a or road pricing, leading to a virtuous
major role to play to build a more resil- cycle in which private cars fund public
ient urban mobility system, with actors transport.
able to show greater agility and offer-
ing more flexibility in the provision of Policy Recommendations
services than they have been able to
do until now. Mediterranean cities and countries
should invest in recovery and resilience
Some of the trends that appeared dur- for a systemic socioeconomic transfor-
ing the COVID-19 crisis might only be mation, where public transport and ac-
temporary but some shifts will be per- tive mobility play a key role to build
manent. The more pervasive use of back better. For that purpose:
digital technologies, including the in-
crease of virtual interactions (telework- 1.Strengthening public transport should
ing, etc.), is likely to impact the be a priority for decision-makers in all
structure of the demand and the shape countries across the Region. Govern-
of cities. To ensure the continued rel- ments, currently deciding how to allo-
evance of public transport and its as- cate some of the biggest public funds
sociated benefits in this future in history, should include the sector in
environment, the sector should adapt the financial recovery measures and
and embrace goal driven innovation maintain and even step up planned in-
and digitalization to build and deliver vestments in public transport infras-
better quality, upgrading the level of tructures and services, due to their
personalized services and standards for various positive multiplier factors.
public transport customers.
2.The public sector must step in to
Public transport is a lucrative invest- guarantee a certain level of stability
ment and important driver of wealth. through dedicated mobility funds,
Ensuring long-term funding stability, acting as a driver. The EU Recovery

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.

COVID-19 impacted logistics chains by affecting the distribution of goods in


certain sectors of activity. In Europe, despite the closure of borders, the
importance of transport corridors as a priority route for the supply of
essential products was demonstrated. In this context, and in order to improve
the current multimodal logistics system, there was talk of increasing the
robustness of supply chains, accelerating digitalisation processes, and
committing to more sustainable logistics chains, among other issues.
Logistic Platforms
Post-COVID: Prospects and
Opportunities
Isabel Velasco Ortiz
President. EUROPLATFORMS EEIG (The
European Logistics Platforms Association)
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 261

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.

Uncertainty prevails and it is difficult to


homogenize the varying situations in Challenges of the
each country since the measures taken
by the respective governments have a Future…That Are Already
major impact on both the mobility of at Our Door
people and goods and the economic
situation. Vendor diversification
From Europlatforms, a federation of
national associations of European-wide • Local industry development: The cri-
logistic platforms across Europe, pro- sis has highlighted the dependence
viding services for over 25 years, we of European industries on Asian mar-
are convinced that the configuration of kets. As a result, various profes-
supply chains cannot be conceived sionals in the sector have taken a
nowadays without  logistic platforms, shift in logistic flows for granted, to
which already play a key role once reduce dependence on third coun-
these logistic chains have evolved into tries - especially on the Asian conti-
intermodal logistic chains. nent - and on a return to local
manufacturing, with a knock-on ef-
Our function is to raise the profile and fect on the local economy, employ-
significance of logistic centers across ment, and changes in modes of
European institutions to be seen as a transport.
primary hub of activities related to
transport and logistics. It is a no- • Alternative sourcing, localized pro-
brainer: no supply chain, no economic duction systems based on 3D print-
development. Yes, it is that simple. Lo- ing are emerging, which may lead to
gistic platforms  add value and offer a drop in dependence on Asian sup-
services; they are also spread through- pliers.
out the European corridors. The Euro-
pean Commission is always talking • A review of the role of stocks that
about European cohesion and Logistic could lead to re-evaluating Just in
Centers are a good example of this. time policies.

With regard to the European Transport • It still appears to be a little early to


Network (TEN-T), logistic platforms are identify the countries benefiting from
configured as freight generators for this diversification in the supply
European freight corridors, freight in- chain, but what we can say is that
tegrators across Europe and a point of those already investing in new infra-
joining the different European freight structure and offering greater facil-
corridors. ities to the installation of the industry
262 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

Urban distribution of goods in big-city environments and the typo-


logies of logistic ships and all types of
The rise of e-commerce and the incor- warehouses: low-rotation, regional,
poration of shopping online by new, high-rotation, capillary, and urban dis-
significant segments of the population tribution. 
has advanced development by up to 5
years.  And this is here to stay. That is why the logistic parks linked to
traditional consumption, those linked
Consumption in urban centres is rising. to e-commerce and now also those
Logistic operators will have to find the linked to this new urban distribution in
right balance to be efficient in so- big cities, will have to change. Ware-
called “last mile” to satisfy cus- houses will tend to be multi-valent for
tomers with competitive delivery costs. low rotation and high rotation, avoid-
Reverse logistics, intelligent and robot- ing intermediate processes that in-
ized warehouses, and segregation of crease costs and times by producing a
proximity and half-rotation warehouses flow between department stores away
tied to large, hyperconnected logistic from city centres because of their low
hubs are all coming back. costs, their greater accessibility, etc.,
and over large surfaces, with urban dis-
This growth of e-commerce will boost tribution platforms in the centre of
the demand for new logistic spaces, in cities.
two ways: on the one hand, the need for
large logistic spaces and storage plat- The introduction of new measures to
forms in locations far from major cities improve the urban distribution of
will increase, and on the other, there will goods is complex, mainly because of
be an increased need for high-rotation the multiplicity of agents and sectors
cross docking last mile vessels located 5, involved beyond e-commerce. As a re-
10, or 15 kilometres away from major sult, private public collaboration is re-
cities. vealed as key to develop potential
solutions. 
This type of shipping is essential for the
development of urban distribution due Transport and logistic centres, public
to its operativity, agility and contribution or private, play an important role in de-
to the management of cities. In the same fining this new ecosystem, and we
vein, we cannot forget the needs arising must collaborate to implement these
from reverse logistics. The management new distribution and transport models.
of returns is also a challenge arising from Public administrations should establish
the growth of e-commerce and will also new regulations to ensure mobility and
require an expansion of logistic surfaces. sustainability, and promoters of logis-
tics centres should provide the necess-
The development of urban platforms for ary infrastructure. For best results, the
distribution, perceived as a network of e- work must be done from an integrative
systems to manage the delivery of goods perspective.
on these urban distribution platforms in
city centres, seems unstoppable. Logistic centres play a dual role in this
context: they are incorporated into
And this will totally transform the scen- urban-metropolitan territorial planning
ario of the three types of logistic areas plans and programs because of the
264 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

positive externalities generated by the The logistics professional should be


following: by facilitating centralized characterized as:
distribution, reducing the number of
vehicles on fleets, and shortening the • Multidisciplinary: Logistics has been
vehicle route, which eases congestion divided into compact, highly special-
on urban road networks, and thus miti- ized areas of knowledge with very
gates the emission of pollutants and specific technology, but the future will
greenhouse gases and also incorpor- be marked by a more multi-purpose
ates the real estate industry. professional with a knowledge of all
areas of the supply chain, able to
Digital transformation adapt to different situations that may
of logistics (BIG DATA)  arise and make the right decisions in
complicated times by having a more
global view of all the processes.
Digitization involves data exchange be-
tween different players in the transport • Digital: He must be able to use differ-
sector to adjust supply and demand in ent tools, especially management
real time, leading to a more efficient use software and process simulators to an-
of resources. Digitization can help create ticipate various situations that markets
a truly multimodal transport system that bring to the table. Another interesting
combines all modes of transport into aspect of the logistic professional will
one well-functioning mobility service. be to discern whether a technology
offered to the company is necessary
A prerequisite of BIG DATA is further for the organization operationally and
training that incorporates new skills also be economically profitable.
such as the automation of storage,
technique to optimize stock, etc. Train- • Flexible: Able to adapt quickly to the
ing will be the key and across both lo- radical changes that supply chains can
gistics and transport in the coming undergo, and with a strong capacity to
years, positions linked to customer sat- make real-time decisions to adjust
isfaction and customization will be in working procedures in different oper-
demand. ating processes under his command.

Digital transformation will create the This Highlights the Need


need to further professionalize human
resources working in logistic business for More Efficient
processes, where today there are still a Platforms
large number of professionals who will
have to adapt to this digital environ- Therefore, today more than ever, the
ment. developers of these infrastructures
must be able to develop platforms that
Any company will require professionals respond to these new demands, to
with a mixture of skills and knowledge keep ahead of the game.
not so easy to find in today’s work-
force.  Logistics and technology are The infrastructure determines mobility.
certainly sectors that generate employ- No fundamental change in transport
ment, and we must also be prepared will be possible if it is not supported by
for that. an adequate network, more efficient

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 265

and intelligent. Globally, investments goods in general and of medical


in transport infrastructure have a posi- products and foodstuffs in particular,
tive impact on economic growth, cre- who have guaranteed supply during
ate wealth and jobs, and increase this terrible situation caused by the
trade, geographical accessibility, and pandemic.
mobility.
This is a crisis that for sure has both an
The change must be planned in a way expiry date and a solution and will un-
that maximizes the positive impact on doubtedly not leave us without valu-
economic growth and minimizes the able personal and professional life
negative impact on the environment. lessons. I would like to highlight one of
If there is one positive thing we can those: the perspective of collaborative
highlight about this pandemic, it is the work.
visibility given to the transport sector
and the awareness of what this sector Logistic platforms are a proactive el-
means for the economy. ement of the transport system, work-
ing to enable companies to increase
Which is why I do not wish to end their competitiveness.
without expressing my appreciation
and thanks to all the professionals in Logistic platforms are set up and ready
the logistic and transport sectors, to make the most of all evolution and
who have secured the supply of change in the sector on a global level.
Sustainable Supply Chains
in Mediterranean:
a Concrete Roadmap
for the Post-COVID-19 Era
Salvatore D’Alfonso
Senior Programme Manager of Ferrovie
dello Stato Italiane. Representative of
Italian Ministry of Infrastructure and
Transport at the Union for the
Mediterranean
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 267

Introduction port infrastructure and port compo-


nents on the delicate balances of the
Recent studies on Maritime Space marine environment.
Planning and Blue Economy reveal the
importance of shipping to the region’s So, it is time to implement an inno-
economy, society and environment. vative model of sustainable mobility for
These studies, carried out integrating Mediterranean, aimed at harmonizing,
technical, socio-economic and environ- on the one hand, the establishment of
mental aspects, reveal that maritime effective, high-quality maritime con-
transport is the second most important nections, and so reducing the  socio-
factor of change in the Mediterranean, economic imbalances between the
after coastal and maritime tourism. Southern and Northern Countries bor-
dering the Sea, which are among some
The Mediterranean is today considered of the causes of migration movements,
the iconic place of sustainable mobility and, on the other hand, at limiting
in the region, where concrete transport pollution damages to the sea, taking
and logistics projects are developed action on climate change and
with the aim of connecting Trans-Medi- enhancing cultural exchanges.
terranean and Trans-European Trans-
port Networks. The latest trends in this To do that, we think that the concept
maritime framework show the move- of sustainability should be applied in a
ment towards a model in which the more comprehensive, holistic perspec-
shipping services in the Mediterranean tive, protecting life below water, navi-
assume a decisive role in the Ro-Ro, gating to zero emissions, promoting
Ro-Pax services connecting the Medi- sustainable development of ports in
terranean maritime terminals, in the line with the United Nations Sustain-
service of social and economic struc- ability Agenda. Because ports are crit-
ture of the countries. ical points of connection where cargo
is passed between ships, railroads and
However, Mediterranean Sea is cur- trucks, improving their sustainability
rently affected by different pressures. will trickle down to every element of
Due to its geographic position, the global supply chain. Likewise, by
wedged between the temperate cli- assessing port sustainability, we can
mate of central Europe and the arid cli- identify which parts of the chain need
mate of northern Africa, the fixing.
Mediterranean area seems to be one
of the most susceptible to global cli- The World Ports Sustainability Program
mate change. Moreover, the increased (WPSP), launched in Antwerp on 22nd
rates of introduction and spread of and 23rd March 2018 by the Inter-
marine alien species, due to the Suez national Association of Ports and Har-
Canal sheer magnitude of shipping bours (IAPH) in partnership with some
traffic, represent a supplementary of the world’s major port industry-re-
stress factor to Mediterranean marine lated organizations, aims to contribute
native biota already challenged by cli- to the sustainable development of
matic abnormalities. We also highlight world ports in line with the United Na-
a lack of a joint or regional environ- tions (UN) Sustainability Agenda and
mental impact assessment process to its 17 Sustainable Development Goals
evaluate the potential effects of ports, (SDGs). The WPSP Portfolio counts 120
268 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

tions to turn them into a competitive The above-mentioned freight Regula-


differentiator. Port-rail connectivity is a tion provides also for the establishment
strategic element of port devel- of two Advisory Groups, namely Ter-
opment, both in economic and compe- minals and Ports Advisory Group and
titive terms and to reduce negative Railway Undertakings and MTOs Advis-
externalities on people and the environ- ory Group. They are meant to act as a
ment. Rail connectivity expands the port sounding board giving the Management
hinterland, increasing the capture of Board of the Rail Freight Corridor advice
new value-added freight and services for on what actions to take to improve the
the port and also promotes growth in offer to the customers. Terminal Inte-
capacity, without affecting the port-city grated Capacity Offer is a concrete
relationship, by linking “spatially” frag- example of an innovative commercial
mented processes without congesting service that was enabled thanks to a co-
the urban environment surrounding the operation between Ports and RFCs. It
port. consists in offering a pre-arranged inter-
national path including the internal time-
The European Regulation (EU) No. slot in the Terminal or Port Terminal, so
913/2010, concerning a European rail that the applicant can book a service
network for competitive freight, from ramp to ramp similarly to what is
required Member States to establish in- done in road transport European and
ternational market-oriented Rail Freight Mediterranean Ports joined the product,
Corridors (RFCs) in order to strengthen which is available in RFCs capacity cata-
co-operation between Rail Infrastructure logue.
Managers on key aspects such as the al-
location of paths, deployment of inter-
operable systems and infrastructure Sustainability KPIs
development, and to promote inter-
modality between rail and other trans- When we have multiple indicators that
port modes by integrating terminals and collectively represent sustainability, we
ports into the corridor management can see how well ports do with regards
process. to each sustainability goal. Then we can
statistically combine these results into a
To this aim, a common European web composite index to rank their sustain-
portal was designed to provide a plat- ability holistically. This way, we can use
form for service facility operators such as data to accurately compare ports for
freight terminals, ports, marshalling many different, but concrete, sustain-
yards, etc. to publish information about ability targets. However, we cannot ac-
their facilities complying with the rel- curately define, defend, and evaluate
evant EU regulations and to promote sustainability goals without the help of
their facilities and services. At the same data, and we cannot progress toward
time, it is meant for shippers, rail under- goals without making that data public.
takings, container terminal operators With a balance between data, metrics,
and other logistics service providers and stakeholders in mind, the path to-
using rail to be a single source of in- ward sustainability for ports and for
formation allowing them to identify rel- other areas becomes a lot clearer.
evant facilities for the planning of their
services and the optimization of their Among the current tools to evaluate
transport and supply chains.  the project sustainability, the Envision

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 271

rating system, developed by the Insti- review project documentation pro-


tute for Sustainable Infrastructure (ISI) vided by the project team, and confirm
and the Zofnass Program for Sustain- it meets the Envision sustainability crit-
able Infrastructure at the Harvard Uni- eria. In this regard, credibility of a third-
versity Graduate School of Design, party rating system as Envision will
proves to be the most appropriate increase public confidence and involve-
guidance tool to make informed deci- ment in decision-making.
sions and provide sustainability metrics
that can be applied to all types of in- Projects that complete the verification
frastructure. The framework provides a process and achieve sufficient points
flexible system of criteria and perform- earn an Envision award. Award levels
ance objectives to aid stakeholders are based on the number of applicable
and decision makers and help project Envision points achieved: Verified,
teams identify sustainable approaches Silver, Gold, Platinum. To qualify for an
during planning, design and construc- award, a project must achieve a mini-
tion that will continue throughout the mum of the total applicable Envision
project’s operations and maintenance points.
and end-of-life phases.
A new Supply Chains
Envision includes 64 sustainability and
resilience indicators organized around Mediterranean Model
five categories: Quality of Life, Leader-
ship, Resource Allocation, Natural The implementation of a new initiative
World, Climate and Resilience. Envi- to implement the Mediterranean
sion verification is available to all types supply chains could be based on the
and sizes of physical infrastructure in- following concrete actions:
cluding airports, bridges, dams, land-
fills, levees, parks, power generating • Carry out an in deep analysis of the
stations, pipelines, railways, streetcars, Mediterranean context, assessing the
stormwater management systems, conditions conducive to increase inter-
wastewater treatment plants and other modal connectivity of the Mediterra-
components that make up civil works. nean region, introducing a  “Inter-
The majority of projects that have been Mediterranean” network, in which the
verified under Envision have been supply chains play a relevant role in ar-
transportation or water focused, and ticulating relations between the dif-
this specificity encourages to adopt the ferent ports and countries. 
tool in supply chains assessment, also
to provide a common language for col- • Create an  innovative maritime ser-
laboration and clear communication vice model with a clear definition of
between the several involved actors. the characteristics and quality of the
The interdependency between the services to be provided, in order to
credits allows the project team to increase the connectivity between
maximize project benefits and evaluate the Mediterranean rims not as the
competing ideas on how to achieve sum of individual port connections,
those goals. It also forces the issues of but  through a system of coherent
a holistic approach to maximize project and synergic maritime services. The
sustainability.  A qualified, ISI-trained choice of the characteristics of the
verification team is assigned by ISI to new maritime services and the selec-
272 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

Introduction tion has declared COVID-19 a global


pandemic, and countries must con-
The Chinese government announced front it strictly by means of: Take
the first case of COVID-19 until the measures to limit its spread and take
epidemic swept through the world in caution (World Bank, 2020b).
a short period not exceeding days,
and most of the countries of the Therefore, this article aims at deter-
world have successively announced mining two main approaches: First,
the discovery of cases among its to highlight the impact of COVID-19
citizens (WTO, 2020b). The majority on global supply chains by revealing
of countries in the world initially the circumstances on the global econ-
adopted prudential policies at inter- omic growth and the international
national airports arriving from China. trade of goods and services. Second,
However, precautionary measures at to focus on how digital supply chains
these airports became applied not can be the most adaptive tool for
only to all air travelers but also by all dealing with several disruptions. Fi-
the means of transport to apply a nally, the article concludes with several
mandatory thermal detection proce- recommendations and actions to be
dure for travelers (World Economic taken for better risks and disruption
Forum, 2020). Hence prevailed Intra- mitigation.
world movements are a kind of reser-
vation regarding the European Union
countries, which also closed their The Impact of COVID-19
borders Geography among them.
on Global Supply Chain
COVID-19 differs from the rest of the Spectrum
epidemics and diseases that have
stricken the world throughout history, Global economic growth
which are confined spread in a limited
geographical range around the world
or a specific country, such as the Although the Chinese economy has
SARS epidemic in China, and the faced a decline by 2% growth rate
Ebola epidemic in West Africa, Spa- during the previous two years but it is
nish flu, and swine flu, where these still playing a pivotal role in the global
diseases and epidemics did not leave economy, as the second largest econ-
the same effect (World Bank, 2020a). omy after the US economy, and as the
Which was caused by the COVID-19 largest exporter economy for manu-
in a short period. China’s response facturing goods and a major trading
came with the authorities imposing a partner for world countries (World
state of high alert to control the epi- Bank, 2020b). The growth of the glo-
demic by quarantining the infected bal economy witnessed a slowdown
and isolate them healthily away from even before the emergence of the
populated areas, and imposed a cur- COVID-19 pandemic due to the chal-
few in Chinese cities and the city lenges it faces and represented in
Ohan is the source of the epidemic, trade tensions between China and
with a population of about 11 million the United States of America, and
people. With the gradual spread of political and political risks, as well
the virus, The World Health Organiza- about the fluctuating conditions in
276 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

Figure 1. Coronavirus scenarios highlight the adverse impact on growth

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

is expected that the ranking of the Additionally, COVID-19 has brought


world’s countries will change in the back an emphasis on boosting local
travel and tourism competitiveness manufacturing for critical industries,
index (UNWTO, 2020). China, which compounded by growing unemploy-
ranks No. 13, is estimated at 26.7 ment and consumer desire to support
points in the index to decline in 2020, local business (Carnevale & Hatak,
as is the case for countries that wit- 2020). The pandemic disruption to
ness high rates of HIV infection Es- trade caught many off-guard, causing
pecially the countries of the EU and disruption in the supply chain. Global
the US as a result of the controls and lockdowns brought fragile domestic,
restrictions, they imposed Countries regional, and global supply chains to
that prohibit entry and exit as well as a grinding halt. The initial outbreak
to closing tourist and entertainment underscored how much of the global
areas until notice else (World Econ- economy relies on China. Along with
omic Forum, 2020). According to the increased international trade and in-
measure of trade in services issued by terconnected supply chains came
the WTO (2020b), it is expected the hyper-efficient, just-in-time supply
growth rate of global services trade models. As COVID-19 hit, few com-
due to the virus continues to be weak, panies had redundancy in their supply
as it is likely to decline further in the chains to weather a disruption of
coming months. more than a few weeks (KPMG, 2020).
There are trade-offs with any business
strategy such as: there are embedded
The Impact of COVID-19 costs to carry extra inventory, to invest
on Digital Supply Chains in back-up supply chains, or to manu-
facture closer to the customer base.
Deployment
Many supply chain strategies have
Even in the middle of a pandemic, the been changed from efficiency and
good news is that a push to acceler- low-cost country sourcing, to focus
ate digital transformation will be re- more on supply chain resilience and
warded by newfound agility (KPMG, visibility that can reduce complexity
2020). COVID-19 allowed the rare and uncertainty across the supply
opportunity for resetting global chain network. The supply chain resil-
supply chains. Now is the time to put ience against unpredictable, dramatic
a relentless focus on the customer events require strong business
centric, data enabled, digital technol- models enabled by a robust digital
ogy that many companies had good backbone and processes that can
intentions to implement prior to pivot rapidly (Flynn, 2020). Thus, its is
COVID-19, but deferred due to frag- mandatory now to highlights the
mented efforts, legacy systems, or broad steps that can help businesses
other factors (Flynn, 2020). Fur- enhance their supply chains, regard-
thermore, manufacturers have experi- less of their digital maturity and trans-
enced competitive challenges in local formation journey.
markets due to relatively higher labor
costs. That has been partly mitigated Consumers expect a personalized ex-
by investment in automation, digital perience such as product recommen-
enablers and advanced technologies. dations and communications are

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 279

willing. Global companies are moving tegration allows real-time visibility to


away from traditional sales reps going make better decisions and can reduce
door-to-door and using digital sales- operational cost. The broad emerg-
force automation (Flynn, 2020). A sur- ence of stay-at-home orders further
vey by Carnevale & Hatak (2020) pushed the digital trend as millions
found that almost 40% of respon- suddenly found themselves working
dents in EU increased online shop- remotely, using digital systems to col-
ping in early April, higher than during laborate and support their work,
the worst days of the crisis, and three- while millions of others were home-
quarters of them said they planned to schooled using online learning tech-
keep up the habit in the future. This nologies. Figure 2 presents how
aligns all functional areas within the digital transformation in Supply chain
supply chain to be integrated. This in- can be implemented.

Figure 2. Implementation of Digital transformation in Supply chain

Conclusions model for how digital supply chain in


Post-COVID-19 Era. Thus, companies
Every company is at a different stage should focus on value. They have to
in its digital evolution. Some are suc- use a variety of tools and methodol-
cessfully executing pilots or launching ogies to target and realize benefits
new business models and an equal or and opportunities for ROI that can off-
greater number perplexed as to set the costs incurred in transforming
where to even begin. The digital supply chains. Companies can create
transformation journey objective is: to a transformation roadmap by map-
improve performance, create value, ping critical activities and determining
and enhance the customer experi- potential areas for failure /disruption,
ence. Therefore, some supply chains and conduct scenario analysis to de-
of many companies the EU had trans- velop future contingency plans that
formation efforts toward the new nor- build resilience. Many companies have
mal sets in and businesses turn their developed a sophisticated, purpose-
attention to the mid-and long-term built digital analytics platform that can
priorities to drive sustained growth leverage to pinpoint opportunities
and prepare for future challenges. Fig- and cost-drivers faster and more ef-
ure 3 presents the recommended fectively than before.
280 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

Figure 3. Digital Supply chain Model in Post COVID-19 Era

COVID-19 has forced us to accelerate 3. Lead with performance, not tech-


and re-assess our digital transforma- nology. Forget the hype surround-
tion plans. By leverage new tech- ing the latest technological trends
nologies and the power of the Cloud and focus on their present capabil-
to ensure our systems are agile, secure, ities and the needs of the customers
robust and scalable. Therefore, the are they serve.
six stages are recommended to be 4. Upskill the workforce. Whatever the
applies for effective digital supply technological maturity of the busi-
chains as stated by KPMG (2020): ness, the success of the future
supply chain strategy depends on
1. Understand the cost of complexity the people.
versus the value of variety. While there 5. Embrace new partnerships. In the
is value in meeting growing customer future, no single organization is
demand for choice, offering too wide likely to have the full suite of digital
a range of the wrong products and capabilities under one roof.
services is often not profitable. 6. Without the specific focus of these
2. Leverage data to improve core com- steps, the supply chain digital road-
petencies. The business intelligence map risks becoming just a collation
is served by dozens of different data of good ideas – a bottom-up brain-
streams, but are you able to leverage storm churned into a project plan
the data in a meaningful way to im- with little thought given to overall
prove existing capabilities? return on investment.

Policy Study n. 5
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 281

References

CARNEVALE, J. AND HATAK, I. (2020). Employee adjustment and well-being in


the era of COVID-19: Implications for human resource management. Journal of
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EUROPEAN CENTRAL BANK (2020). Our response to the coronavirus emerg-


ency. Retrieved from https://www.ecb.europa.eu/home/html/index.en.html

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/

ICMA (2020). COVID-19 Market Updates. International Capital Market Association.


March 2020.

INTERNATIONAL MONETARY FUND (2020). World Economic Outlook: Tentative


Stabilization, Sluggish Recovery?. IMF

KPMG (2020). Building supply chain resilience through digital transformation.


KPMG International.

OECD (2020). Coronavirus: The world economy at risk. OECD Interim Economic
Assessment. Paris: OECD.

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UNWTO (2020). “UNWTO Statement on The Novel Coronavirus Outbreak”,


World Tourism Organization, Jan 2020.

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.

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port. Geneva: WEF.

WTO (2020a). WTO DG welcomes G7 leaders’ statement on COVID-19. March 2020.


Retrieved from https://www.wto.org/english/news_e/news20_e/dgra_17mar20_e.htm.

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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

This article is the result of an interview It is one of the most interconnected


conducted by CETMO with Ms. Iveta Corridors in Europe, crossed by 7 other
Radicova in early December 2020. Ms. Core Network Corridors. It features in
Radicova is the Coordinator of the total 70 core nodes, including 12 highly
Mediterranean Corridor, one of the competitive and global sea ports, situ-
nine core network corridors that make ated along the Mediterranean coast-
up the Trans-European Transport Net- line.
work (TEN-T). The objective is to know
the role of transport corridors, and In pre-Covid times, it was a Corridor
more specifically the Mediterranean characterized by strong cross-border
Corridor, during disruptions such as exchange flows, especially between
that experienced during COVID-19, Spain and France (48 million tons) and
the key elements for their effective op- France and Italy (44 million tons) with
eration and the challenges they will the average annual projection of
face in the medium and long term. further growth at levels above 2%.

The Mediterranean The ports of the Mediterranean Core


Network Corridor (CNC) handled 490
Corridor: Main Figures million tonnes of cargo in 2018 (around
and Coordination Tasks 12% of all cargo transiting through EU
ports), of which roughly 80 million
tonnes are transhipment traffic. Hence,
First of all, Ms Radicova describes the around 80%, or 400 million tonnes of
Mediterranean Corridor and its impor- cargo are actually moving between the
tance for the territory. ports and the corridor, making it the
third-most important CNC in terms of
“The Mediterranean Corridor is the maritime traffic.
main east-west axis in the TEN-T net-
work south of the Alps. In  political Port traffic is dynamic, especially for
terms, it constitutes basis for an inter- containers. The growth observed be-
operable transport link between coun- tween 2010 and 2017 in the ports of
tries of Western Europe and countries the Mediterranean Corridor is higher
of Central Europe. It also equips the than the average growth in the North
Iberian Peninsula with a better trans- Sea ports over the same period.
port connectivity in the wider Mediter-
ranean basin. It is also a Corridor with significant po-
tential for further boosting of inter-
The Corridor runs between the most national passenger traffic. It carried 81
south-west regions of Spain, following million passengers on international rail
the Mediterranean coastlines of Spain routes crossing six countries of the
and France, crossing the Alps towards Corridor in 2015 with the main flows
the east through Italy, Slovenia and between major urban nodes of Spain
Croatia, continuing through Hungary and France and France and Italy.
up to its eastern border with Ukraine.
With 18% of the EU’s population, the Finally, large parts of the Corridor tra-
Mediterranean Corridor regions gener- verse environmentally sensitive areas
ates around 17% of the EU’s GDP. It is (the Alps) and touristic zones (the
a tremendous contribution. coastline). This Corridor has a high po-
284 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

three sections come to mind – Lyon The introduction of interoperable rail-


Turin Base Tunnel, high-speed line link- way standards represents the main el-
ing Barcelona with Montpellier, con- ement to be solved in the
nections between Trieste-Ljubljana- Mediterranean corridor to improve the
Zagreb-Budapest up to the border connection of both sides of the Pyre-
with Ukraine. nees.

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.

In addition to cross-border sections, In this context notable progress can be


surroundings of large cities can also observed in sections between Barce-
pose a problem to be solved, due to lona-Valencia-Alicante.
the concentration of flows.
• The second platform between Cas-
“The Corridor features dynamic urban tellón and Valencia is under planning
nodes – they suffer from lack of capa- to increase the line capacity. The two
city and have congested ring roads. future UIC tracks, currently under in-
For example, regional rail passenger formative studies, will cover high-
traffic has grown by 23% in Lyon be- speed services, releasing additional
tween 2012 and 2017. High growth of capacity for freight traffic on the
such traffic is also observed around existing tracks.
Barcelona, Milan, Budapest and other
main cities. This particular phenom- • The Vandellos rail bypass, which
enon creates an increasing pressure on solved the bottleneck caused by the
infrastructure in urban nodes, creating single-track section between Vandel-
conflicts between freight, passenger los and Tarragona, is in operation
long-distance and regional trains.” since the beginning of 2020. It re-

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.

• Finally, the new infrastructure is almost “A serious commitment to EU’s climate


finished for the connection of Murcia neutrality means achieving 90% reduc-
with the high- speed network.” tion in transport emissions by 2050. I
strongly believe that the TEN-T policy is
Different actions planned in the Medi- a beneficial instrument allowing for a
terranean Corridor and supported by gradual achievement of the climate
CEF aim at having competitive travel goal.
options available to users.
The European Green Deal and resulting
“The Mediterranean Corridor has been from it and soon to be adopted the EU
successful in securing CEF funds, es- strategy for sustainable and smart mo-
pecially if we take into consideration bility (9 December 2020) pave the way
quite significant oversubscription rate. for future orientations of EU transport
investment policy. Greater focus on
Between 2014 and 2018, 147 actions transport decarbonisation, digitalisation,
were co-financed by the Connecting innovation, multimodality and the
Europe Facility (CEF), which translates necessary shift from roads to other more
to €2.9 billion in CEF funding for a total environmentally modes of transport is
investment of €6.3 billion. The largest emphasised.
share of funding remains allocated to
rail (54 Actions, €2.4 billion, i.e. 83%) Unavoidably, the Corridor Work Plan will
followed by projects aiming at making follow the strategic objectives of the
road transport cleaner and safer (49 European Commission. They are numer-
Actions, €163 million) and maritime ous:
projects (33 Actions, 248 million).
• We need to decarbonise transport.
By implementing the TEN-T policy, our • We have to increase rail’s share in
aim is to create a viable and competi- transporting people and goods.
288 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

• We need to invest in transport sol- ing issues that should be addressed in


utions that are innovative, energy ef- the future.”
ficient and safe.”
Finally, Ms. Radicova reflected on the
Ms. Radicova also indicated other chal- importance of incorporating tech-
lenges that should be faced in the near nological advances into the operation
future, such as the confluence of traffic of the corridor, as shown by some pro-
in urban areas and administrative and jects already funded by CEF.
operational barriers.
“Beyond the realisation of the geo-
“In addition, it became quite apparent graphical components of the Mediter-
that the rail in main urban areas faces ranean Corridor by 2030, I believe
serious bottlenecks, which hampers that we must also make sure that we
development and efficient co-exist- “go with the time” and leverage the
ence of local, regional and inter- technical and technological advances
national traffic. Particular attention that are within reach today. Alter-
needs to be paid to urban nodes which native fuels, intelligent transport sys-
form the crossing points with other tems, single windows, better
core network Corridors, in order to multimodal connections should be-
allow a seamless flow of high-speed come a trademark of the Mediterra-
passengers and freight flows. This con- nean Corridor. Many projects going
cerns first the major nodes like Val- into these directions are already
encia, Madrid, Barcelona Lyon, Milan, being financed by the Connecting Eu-
Verona, Venice and Budapest. rope Facility, a EU transport budget
dedicated to a full implementation of
A separate issue is the existence of the core and comprehensive transport
operational and administrative barriers network.
that can have a negative impact on the
profitability of the investment and on CEF features many projects that de-
the efficiency of the whole Corridor. ploy alternative fuels’ infrastructure,
The existing limitations to train length, implement digital solutions across
the limited loading gauge, various four modes of transport, and innovate
speed standards, ERTMS deployment, on ITS in urban nodes. We can be
standardised length of the tracks in sure this focus will not be lost in the
rail-road terminals are the most press- next EU financial perspective.”

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

Background to $250 billion loss of gross operating


revenues of airlines. Domestic passen-
The World Health Organisation (WHO) ger traffic, dropped by 50% (a reduc-
declared the COVID-19 a pandemic on tion of 1,323 million passengers) in
11 March 2020. Its impact on economic 2020, representing a $120 billion loss
and social activity was evident from the of gross operating revenues of airlines.
beginning. The COVID-19 caused a
global contraction of 3.5% of real GDP Although the quantification of the im-
by 2020 according to World Bank data. pact of the pandemic is clearly reflected
The drop of real GDP in the Middle by statistics, home confinements of
East and North Africa (MENA) and the population, closure of borders, inter-
European Union (EU) regions was esti- ruption of value chains, definition of pri-
mated at 3.9% and 6.6% respectively, ority freight corridors for essential goods
marked by the decline in the second and cancellation of flights and cruises
quarter of 2020, with 6.6% and 14.6% showed the magnitude of the impact
respectively. during the early stages of the COVID-19
crisis. With this perspective, CETMO
Affected by mobility restrictions, the and IEMed decided to contact experts
transport and logistics sector has been on transport and logistics to open a re-
deeply hit by the impact of the health flection through short articles on how
crisis. Despite the contribution of dif- the pandemic could affect the future of
ferent modes of transport to ensure the sector. It resulted in the present in-
the distribution of essential goods, itiative “Mediterranean transport and
such as food and medical supplies, the logistics in a post-COVID 19 era: pros-
decline in activity was a fact. More spe- pects and opportunities”.
cifically, the International Road Trans-
port Union (IRU) estimates that, Articles drafted by experts from differ-
compared to 2019, 2020 has witnessed ent parts of the Mediterranean and in-
a 18% drop (USD 679 billion) in the ternational institutions have served to
global road freight transport. Regard- exchange views on sector trends and
ing rail transport, the UIC estimated the future of different modes of trans-
passenger volumes decreased approxi- port in the region, achieving a socialisa-
mately 80% for all national rail services tion of knowledge and challenges
and almost 100% for international rail focused on the Mediterranean reality.
passenger services during lockdowns.
However, for freight operations, the COVID-19, a trend
volumes were hit with an average esti-
mated loss of between 10 -15% for accelerator
most operators. With regard to mari-
time transport, UNCTAD estimated The COVID-19 has accelerated the de-
global merchandise trade to drop of velopment of regional and global trends
20% in 2020, influenced by the con- that were already manifesting before the
traction of 27% in the second quarter. onset of the pandemic, allowing us to
Finally, referring to global air transport, frame the conclusions of the initiative. It
ICA and ICAO estimated that inter- mainly concerns the increase in reshor-
national passenger traffic fell by 74% (a ing and nearshoring processes, the
reduction of 1,376 million passengers) fourth industrial revolution and increas-
in 2020 compared to 2019, equivalent ing resilience in value chains.
294 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

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

commerce and inventory-building in eration of trends such as the fourth in-


anticipation of new waves of the pan- dustrial revolution and sustainability. It is
demic contributed to increase trade necessary to believe in its potential
flows. But this unexpected growth has and, first and foremost, invest in its
also involved changes in the operation transport infrastructure to eliminate
of value chains with respect to the pre- bottlenecks, especially on the southern
pandemic period such as the increase of shore, which hinder Mediterranean
container freight prices. This disruption connectivity, and to foster the devel-
due to the COVID-19 and subsequent opment of Africa-Europe value chains.
alterations have made the concept of re- It will be of great help in consolidating
silience gain prominence. nearshoring processes and increasing
the resilience of value chains. Follow-
This resilience is linked to sustainability. ing the example of the Trans-European
Climate change and its effects will have Transport Network (TEN-T) of the
a major impact on the resilience of value European Union and its priority cor-
chains. Sustainability was the main chal- ridors, the exercise of planning and
lenge for transport and logistics sector identification of infrastructures on the
before the health crisis, in line with the southern shore is already done, either
Sustainable Development Goals and the by the GTMO 5+5 Multimodal Net-
Paris Climate Agreement. The COVID- work of Transport Infrastructure (ap-
19 crisis is a wake-up call to redouble in- proved and focused on the Maghreb
stitutions’ efforts and commitment. In countries) with its trans-Maghreb cor-
this sense, the European Commission, in ridor at the forefront or by the Trans-
the framework of the European Green Mediterranean Transport Network
Deal and in accordance with the EU Cli- (TMN-T) (pending approval and fo-
mate Law of 14 July 2021, aims to re- cused on the southern shore of the
duce its net emissions of greenhouse Mediterranean). What remains to be
gases by at least by 55% compared to done is a firm commitment to its imple-
1990 levels. Transport plays a relevant mentation and funding.
role in this reduction.
A second conclusion is the visualisation
Commitment to an of ports as key elements of this re-
gional network. They are the main
optimised transport gateway for goods in and out of the re-
connectivity gion, but they are also the main mode
of connection between the territories of
The above trends offer a framework the region. Therefore, it is necessary to
that, crossed with the reflections of the encourage the development of efficient
different experts participating in this intraregional maritime connections that
initiative, allows us to visualize some contribute to strengthening intrare-
key ideas for the transport and logistics gional trade flows, fostering motorways
sector in a medium and long term scen- of the sea. But in addition, it is necess-
ario. ary to look inland and ensure good
connection with their port community,
It's about taking advantage of the mo- promoting multimodality. They are key
mentum and betting on the region. The points to encourage nearshoring. Ports
impact of the COVID-19 has led to en- are the meeting point of land transport
visage a scenario of change and accel- and maritime transport.
296 Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities

In addition to the physical connectivity, network. Despite the negative impact of


digital connectivity and tools related COVID-19, the pandemic offered the
to the fourth industrial revolution have opportunity to visualise what it would be
gained prominence. They have come like to live in a more peaceful environ-
to stay. The health crisis and the cor- ment, with fewer GHG emissions and
responding protection measures less noise pollution. This image repre-
adopted have highlighted how the ap- sents an additional motivation for the
plication of certain technologies can sector's commitment to the future of the
contribute to the safety, reliability, ro- planet. In this sense, sustainability is one
bustness, transparency and sustainabil- of the requirements in the post-COVID-
ity of value chains and transport 19 economic recovery and in the case of
networks. So, their resilience will also transport, it translates into the commit-
improve. This includes the use of tech- ment to less polluting means of trans-
nologies such as IoT or AI, the dema- port such as rail, support for
terialisation of transport documents, multimodality to optimise transport
cooperation, and trust between actors, routes and encourage collaboration be-
among others. Applicable to different tween modes, the promotion of urban
modes of transport, the adoption of in- transport as the backbone of a more
teroperable technological solutions sustainable urban mobility... But sustain-
throughout the territory is an added ability in transport should also be associ-
value for the integration and efficient ated with the transition to more
operation of transport networks. sustainable and low-carbon energy sys-
tems, working to obtain a green energy
The harmonisation of regulations also network that supports the transport net-
applies to all modes of transport, both work.
for the transport of passengers and
goods. It is the main tool for facilitating Concluding thoughts
transport, guaranteeing a smooth oper-
ation of the transport network and In short, the vision of the transport and
benefiting resilience of value chains, but logistics sector in the Western Mediter-
also a tool for upgrading transport sys- ranean in a post-COVID-19 era refers to
tems. Harmonization has been a recur- an optimised transport connectivity,
ring theme since the beginning of with ports as the backbone of the multi-
regional transport cooperation, led by modal transport network, thanks to its
UNECE and subsequently reinforced contribution to the economic devel-
with technical assistance projects opment. A network that reinforces links
launched by the EC. The adoption of in- between different modes of transport
ternational conventions in the field of and connectivity among territories of
transport represents the first step to- the region, especially between the two
wards a homogeneous operation based shores of the Mediterranean. In addi-
on the use of specific standards. Without tion, thanks to this connectivity and the
harmonisation, one could not speak of processes of harmonisation, it favours
liberalisation of air transport or efficient regional integration. Finally, the use of
road cross-border transport. digital tools and technologies con-
tributes to optimisation and sustainabil-
The last of the conclusions to highlight ity of the network and to the
is the role of decarbonisation of trans- coordination and cooperation between
port to achieve a sustainable transport their actors.

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

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Policy Study

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