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IEMed.

7
Policy Study

TOWARDS ENHANCED CONNECTIVITY


AND SUSTAINABILITY IN THE
MEDITERRANEAN TRANSPORT
AND LOGISTICS SECTOR
Trends in Trade, Maritime Transport,
and Sustainability
Centre for Transportation Studies for the Western
Mediterranean (CETMO)
Coordinator

European Institute of the Mediterranean (IEMed)


Coordinator
IEMed. 7
Policy Study

TOWARDS ENHANCED
CONNECTIVITY AND
SUSTAINABILITY IN THE
MEDITERRANEAN
TRANSPORT
AND LOGISTICS SECTOR
Trends in Trade,
Maritime Transport,
and Sustainability
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, Pau Magrinyà, Enric Pons

Design layout Maurin.studio


Layout Núria Esparza
Cover photo Copyright (c) 2020 CANARAN/Shutterstock
Print ISSN 2604-2487
Digital ISSN 2604-2495

February 2023
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,
established in 1988 under the auspices of the United Nations, with the objective of supporting
socio-economic development through progress in transport and logistics, especially in the
Western Mediterranean.

The CETMO aims at developing regional cooperation at both institutional and technical levels
in order to facilitate international transport conditions throughout the Mediterranean and
the Western Mediterranean in particular, due to its belonging, participation, and collaborates
with an extensive network of over 215 organisations facilitating Mediterranean cooperation.
The CETMO also provides policy makers, transport infrastructure managers and logistics
operators with practical and innovative analysis and knowledge.

The Group of Transport Ministers for the Western Mediterranean (GTMO) is an informal
cooperation group composed by the Transport Ministers of the region to promote dialogue
and cooperation for the development of transport and to contribute to the Euro-
Mediterranean partnership. It was created in 1995 with the support of the ministries of
transport of Algeria, Spain, France, Italy, Morocco and Tunisia and it joined the cooperation
framework of the 5+5 Dialogue in 2007 with the full participation of all its member countries:
Algeria, France, Italy, Libya, Malta, Mauritania, Morocco, Portugal, Spain, and Tunisia.

The group has a rotating presidency and holds a transport ministerial conference
approximately every two years to define the strategic lines of the group's next presidency.
In addition, the group organises two expert meetings per year, with the participation of senior
officials from the respective ministries and observer institutions, to cooperate in the
development of the work plan of the rotating presidency.
IEMed.
Policy Study
Content

FOREWORD 8
IEMed

A New Opportunity for the Mediterranean Sea.


Measures for Improving Intra-Mediterranean Trade 12
Enric Ticó

The African Continental Free Trade Area: A New


Blueprint for North Africa’s Regional Integration 18
Ghazi Ben Ahmed

Development, Exchanges and Connectivity,


a Mediterranean Maritime Trio 28
Paul Tourret

The Evolution of Mediterranean Shipping


in an Era of Disruptions 36
Jordi Torrent & Maite Roman

Meeting the Challenges of Mediterranean Maritime


Traffic: Supporting and Implementing a Collective and
Sustainable Vision/Strategy by 2031 46
Gabino González

Recent Developments and Human Resource Needs in


Transport and Logistics in the Western Mediterranean 56
Mustapha El Khayat

CONCLUSIONS 64
CETMO
FOREWORD
Roger Albinyana
Managing Director, European Institute of
the Mediterranean (IEMed)
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 9

In the Western Mediterranean area, as debate and knowledge-sharing on the


well as in other regions of the world, we issue, building upon support and ex-
are witnessing an era of structural trans- pertise of the CETMO as Technical Sec-
formations that appear as an inflection retariat of the Group of Transport
point in which the decisions and strat- Ministers for the Western Mediterra-
egies that are being adopted nowadays nean (GTMO 5+5). As an example of
will certainly define both the organisa- this commitment, the MedThink 5+5
tion of transport and logistics in the re- network, in collaboration with the
gion in the medium and long term. This CETMO and the Maltese Ministry for
policy study entitled Towards enhanced Transport, Infrastructure and Capital
connectivity and sustainability in the Projects, convened on 5 October 2021
Mediterranean transport and logistics in Valletta (Malta) a seminar entitled
sector offers a unique collection of con- “The Western Mediterranean Transport
tributions that aim at taking advantage and Logistics Sector in the post-Covid
of existing opportunities as a con- 19 Era: Seizing New Opportunities, Ac-
sequence of multiple disruptions striking celerating Transitions”, contributing to
up in the region triggered by the the discussions undertaken by the Min-
COVID-19 pandemic and the Russian isters during the tenth Conference of
aggression in Ukraine, among others. Transport ministers of the countries of
the Western Mediterranean, held on the
The European Institute of the Mediter- same location on 6 October 2021. In
ranean (IEMed) and the Centre for this context, this Policy Study aims at
Transportation Studies for the Western giving response to the challenges arising
Mediterranean (CETMO) have taken on from major geopolitical tensions, trans-
this stimulating task by continuing for formations in global transport, produc-
the second year the preparation of a tion, and consumption systems, along
joint policy study that involves various with the climate crisis.
authors who are experts in the field,
while also unveiling some recommenda- This publication comprises six articles
tions of public policy addressed to the that were commissioned within the
Maltese Presidency of the Group of framework of this joint endeavour by the
Transport Ministers for the Western MedThink 5+5 network and coor-
Mediterranean (GTMO 5+5). Indeed, dinated by the IEMed and CETMO. In
this publication released as a policy particular, Enric Ticó argues that the
study comes within the framework of pandemic has led to a change in pro-
the MedThink 5+5 network of Western duction patterns, bringing them closer
Mediterranean think tanks, a multidis- to the areas of consumption and, there-
ciplinary platform of exchange associ- fore, to the Mediterranean Sea itself. In-
ated to the 5+5 Dialogue, which brings deed, certain supply chains will shift
together policymakers, practitioners and from global to regional, so the improve-
academics from the Western Mediterra- ment of the area’s supply chain is key.
nean area. Against this backdrop, even if a Medi-
terranean customs union seems almost
Considering transport and logistics as impossible to envisage, there are alter-
one of the most relevant sectors to natives that would improve the current
foster socio-economic development and situation. Success regarding the devel-
regional integration in the Western opment of intra-Mediterranean com-
Mediterranean, the MedThink 5+5 net- merce could be achieved by firmly
work has been committed to promoting committing to digitalisation in the area,
10 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

with technologies that provide legal cer- as the Euro-Mediterranean regions and
tainty in customs and trade procedures some countries of the basin are econ-
with third parties, enlarging the coun- omically integrated, maritime transport
tries party to the Convention on a com- will be fostered through the devel-
mon transit regime, to allow the entry of opment of the other countries on the
countries on the shores of the Mediter- Southern and Eastern shores. Against
ranean Sea, as well as by harmonising this backdrop, a dense network of
customs legislation and promotion of maritime lines, especially ro-ro (Roll-on,
multilateral conventions. Roll-off), interconnects the regions of
the Mediterranean basin. The Motor-
Moreover, Ghazi Ben Ahmed reasserts ways of the Sea networks have already
that in Africa regional integration is per- been developed in response to market
ceived by policymakers and academics demands and geographical consist-
as an important strategy to enhance in- ency. To have a new impulse, maritime
traregional trade, boost economic transport must be effective and eco-
growth and ensure the integration of Af- logically efficient; this is the role of
rican countries into the global economic shipping companies and, increasingly,
system. It can also lead to the structural of complementary rail transport. The
transformation of African countries ro-ro mode is better suited to the
through economies of scale, improved speed requirements of European logis-
competitiveness, more efficient resource tics and to the integrated peripheries
mobilisation and the promotion of re- of the Maghreb and Turkey.
gional value chains. Nonetheless, North
African countries should emphasise re- Other authors, Jordi Torrent and Maite
gional integration’s goal towards ensur- Roman, warn against a combination of
ing the provision of critical infrastructure, factors external to logistics chains,
improving the quality of institutions, and coupled with internal tension in logis-
building human capacities and stock of tics and shipping, that have given rise
physical capital. The donors and other to the perfect storm. As a result, the
multilateral international financial insti- transport and logistics sector is now
tutions, as well as the private sector, can struggling more than ever to deliver an
significantly positively impact regional efficient and predictable service. At the
integration in the North African sub- global level, the surge in post-pan-
region to develop an adequate strategy demic demand and the rise of e-com-
for supporting more directly all regional merce have changed the quantities of
sub-groupings in Africa. Furthermore, products ordered and the character-
the potential benefits of regional inte- istics of this demand. Consequently, in
gration can also help override the cur- a short run, fluctuating demand com-
rent tensions between Morocco and bined with shipping supply similar to
Algeria. pre-pandemic levels put a strain on lo-
gistics chains and the transport sector
For Paul Tourret, the growth of trade struggled to adapt. Competition for
will need efficient maritime transport shipping, especially container ship-
offering a speed that requires adapted ping, has increased, thus triggering
logistics in the Euro-Mediterranean shipowners to raise freight rates to un-
economic bloc. For the past twenty precedented levels throughout 2021
years, the main question has referred and 2022. In addition, the low level of
to the reduction of road flows through diversification in the maritime sector, es-
alternative maritime solutions. As soon pecially container shipping, as well as

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 11

the important degree of concentration ranean actors, this regulation will also
of actors within the maritime transport encourage the maritime transport sector
sector particularly is challenging the sur- to make its green transition by adopting
vival of small players in the sector, con- cleaner energy sources.
sidering the investments required to
increase economies of scale. Finally, Mustapha El Khayat describes
the current environment of vulnerabil-
As maritime traffic increases in the Medi- ity in various professions in the trans-
terranean, its negative externalities have port logistics value chain after the
a growing impact on the environment lockdowns triggered by the global
and human health. Gabino González’s pandemic. Against this backdrop, the
article reminds us that when Mediterra- solution to the current human re-
nean actors sit around the table to co- sources crisis in logistics transport must
operate, it is possible to effectively naturally respect environmental
tackle the environmental challenges requirements, while at the same time
posed by maritime traffic. Through the mastering new technologies such as
Mediterranean Strategy for the preven- automation, digitalisation, and artificial
tion, preparedness, and response to intelligence. The challenge involves
marine pollution from ships, the Con- striking a balance between the necess-
tracting Parties of the Barcelona Con- ary competitiveness and the need to
vention have adopted a common vision create more skilled and highly skilled
to address the challenge. This strategy jobs for European seafarers. At the
does not remain a dead letter and is same time, the needs in terms of
translated into concrete measures that human resource of the northern shore
will be applied in the years to come. This of the Mediterranean logistics chain
is the case of the designation of the can potentially be met by the countries
Mediterranean as an Emission Control on the southern shore. Mobilising them
Area for Sulphur Oxides, which will con- calls for a smart, circular migration pol-
tribute to a significant improvement in icy based on innovative training that in-
air quality in ports and at sea. The result cludes digitalisation, automation, and
of coordinated work between Mediter- artificial intelligence.
A New Opportunity for the
Mediterranean Sea.
Measures for Improving
Intra-Mediterranean Trade
Enric Ticó
President, Federación Española de Transitarios Expedidores
Internacionales y Asimilados (FETEIA, Spanish Federation of
International Freight Forwarders and Similar) - Organización para la
Logística, el Transporte y la Representación Aduanera (OLTRA,
Organisation for Logistics, Transport and Customs Representation)
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 13

Introduction to the fact that the majority of the


northern front countries are members
The Mediterranean Sea has currently of the European Union (EU) and, con-
become one of the main centres of in- sequently, of the Customs Territory of
ternational transport through which the Union (CTU), while the remaining
large quantities of goods are moved are sovereign and independent coun-
every year. Its position as a strategic tries with a very heterogeneous profile,
transit area for a large amount of including political or cultural issues.
goods, especially transported by sea, This makes difficult the establishment
makes it a logistical node of capital im- of stable and long-lasting relations
portance. According to the report of among the parties.
the Spanish Short Sea Shipping Statis-
tical Observatory (SSS) for the year We are therefore far from being able
2021, overall SSS traffic on the Medi- to consider that there is a trade regime
terranean coast increased by 26.9%, specific to the Mediterranean Sea, or
exceeding the pre-pandemic figures. to companies in such area, apt for the
facilitation of international transactions.
The Mediterranean geographical area The current situation represents a his-
is characterised, among other things, toric opportunity for this commercial
by the great heterogeneity of countries development: the pandemic has led to
and actors that are present in the insti- a change in production patterns, bring-
tutional, political, economic, and even ing them closer to the areas of con-
social spheres, as it is the meeting point sumption and, therefore, to the Medi-
of three continents. This means that, terranean Sea itself. Certain supply
although the movement of goods is a chains will shift from global to regional,
very active sector, there is still much so the improvement of the area’s
room for improvement in the devel- supply chain is key.
opment of trade among actors of such
an area (it has more strength as a lo- North-South Comparison.
gistic node than as a commerce centre
itself). The Key Factor of EU
Membership and the
The strengthening of trade relations
between all countries of the Mediter-
Application of Customs
ranean area should have a positive im- Regulations
pact on a global level, facilitating the
joint development of all those coun- The fact that many of the countries on
tries. However, the aforementioned the northern shore of the Mediterra-
existing heterogeneity at the political nean Sea are part of the EU and the
and economic level sometimes acts as CTU has an important impact on trade
a brake or blocking factor in the devel- transactions, particularly as a result of
opment and commercial collaboration their customs and taxation regimes, as
among the parties. well as the EU’s own trading power.
These countries belong to a common
The first, or simplest, analysis of the market and to the Customs Union, hav-
applicable regimes or the nature of ing ceded their sovereignty over ex-
transactions would be that of a North- ternal trade and the protection of their
South division. This makes sense due borders at the trade level.
14 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

All EU countries are subject to the free- The protection of financial interests is
market regime and internal transactions implemented mainly through the col-
carried out among private operators in lection of import and, to a lesser ex-
these countries are not considered as tent, export duties.
exports and/or imports, but as intra-
community transactions. For example, The remaining measures are imple-
beyond internal operational issues, as mented through customs controls on
far as the legal regime is concerned, the import and export of goods to and
there is almost no difference between a from the CTU. As part of these con-
German company that manages the im- trols, customs authorities have to carry
port of a product through the port of out the relevant security checks, which
Hamburg or through a Mediterranean are currently carried out through the
port such as Valencia. Entry Summary Declaration (ENS) and
checks on issues such as the origin of
Moreover, the European Union consists the goods and the nature of the goods,
of a market of approximately 447 million to see whether such goods are allowed
of natural persons or potential consumers, to be imported and whether they meet
according to the Spanish National Statis- all the requirements to be distributed
tical Institute, which acts as a lever for the among consumers.
development of trade with third parties
as well. In essence, an internal market has With regards to the security declar-
been created with strong internal demand ation, some changes in the system are
capacity, and with the capacity to negoti- taking place seeking to provide
ate externally with major strength. In ad- greater guarantees to prevent the
dition, this market creates institutional, entry of prohibited goods and the
commercial, and regulatory stability, which execution of possible terrorist attacks.
is key for the economic development of The new system is the ICS2, under
its member countries. which carriers or freight forwarders
have to make two types of declar-
In accordance with the Union Customs ations to the customs authorities: the
Code (Art. 3), EU customs authorities PLACI, prior to loading the goods
shall take measures aimed at: onto the arriving means of transport,
and the full ENS, prior to the arrival
a) protecting the financial interests of the goods at the first Customs of-
of the Union and its Member fice of arrival at the CTU.
States;
b) protecting the Union from unfair As for controls on the goods them-
and illegal trade while supporting selves, and avoiding being excessively
legitimate business activity; specific in this respect, the following
c) ensuring the security and safety controls are currently carried out in
of the Union and its residents, and every country of the EU by the different
the protection of the environ- competent authorities:
ment, where appropriate in close
cooperation with other auth- • Health Inspection: on products of
orities; and animal or plant origin intended for
d) maintaining a proper balance be- human consumption, medicines,
tween customs controls and facili- cosmetic products, medical de-
tation of legitimate trade. vices, and insecticides.

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 15

• Veterinary Inspection: on live ani- Customs more competitive, such as the


mals, products of animal or plant creation of a Customs Single Window,
origin not intended for human use which will enable the exchange of in-
or consumption, and veterinary formation in real time between the dif-
medicinal products. ferent customs offices and will serve to
• Phytosanitary Inspection: on or- make processes more efficient. It
ganisms harmful to plants, on cer- should be borne in mind that carrying
tain plants that may contain them out customs controls involves a cost,
and fertilisers of plant origin. not only derived from the payment of
• Commercial Quality Inspection: on the corresponding fees, but also from
certain agricultural products in- the payment of fees to the service pro-
cluding poultry meat, fishery prod- vider: the stay of the goods in the cus-
ucts, eggs, cut flowers, fruit and toms facilities -which, in the case of
vegetables and canned fish, and blockade of the goods due to discrep-
on certain electronic products. ancies in the valuation of the documen-
• CITES inspection: on the import tation, raises the cost to thousands of
and export of certain endangered euros-, payment of fees to the port ter-
species of flora and fauna, in order minal, port taxes... not to mention the
to obtain a CITES Certificate. possible destruction of the goods in
• Product safety: new control the case of perishable goods. More-
measures on the import of cer- over, EU membership generates a
tain goods regarding the appli- regulatory stability that allows invest-
cable product safety standards. ments in subjects like training, both
Goods subject to conformity from the Administration and the econ-
checks include textiles, footwear, omic operators’ side.
electrical equipment and toys.
• Pharmaceutical controls: controls In consequence, the main conclusion
on the import of medicines for that can easily be drawn is that trade
human use, medical devices, per- transactions among actors on the
sonal hygiene products, cosmetics northern Mediterranean coast (more
and biocides for personal use. specifically, among CTU actors) are free
• Controls on imports of timber and and agile, as opposed to operations
timber products from countries where one of the participants (or none
with a Voluntary Partnership of them) is not part of the EU, in which,
Agreement in force (currently In- although many facilities are approved
donesia): The FLEGT competent in free trade treaties, are subject to
authority will verify the validity of controls and red tape.
the FLEGT licence in accordance
with the applicable legal require- Clearly, each territory has the obliga-
ments. tion to defend its sovereignty and pro-
tect its citizens, so a Mediterranean
Carrying out these controls entails ad- customs union seems almost imposs-
ministrative tasks and costs. This is also ible to envisage, but there are alter-
a very important differentiating factor, natives that would improve the current
since the countries of the northern situation. One of these possibilities
shore are subject to the same regime. would be the setting up of a forum
On the other hand, initiatives are being aimed at harmonising existing regula-
taken within the EU that will make EU tions and procedures, since regulatory
16 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

convergence would generate legal cer- sent a milestone for the streamlining of
tainty throughout the area and would customs procedures among operators
allow the reinforcement of internal lo- in the countries of the area.
gistical processes.
Last but not least, there is one figure
Another of the existing barriers to the that would allow the establishment of
fluid movement of goods is the require- alliances at the customs level, and that
ment for economic operators, or their would also allow for an increase in trade
customs representatives, to work with exchanges, such as the promotion of the
transport and customs printed docu- transit regime between all the countries
mentation, which triggers costs, risks of of the Mediterranean area, so that
loss and consequent blockades of goods goods could transit freely within them.
at border control posts, and problems
in the analysis of documentation by the Promotion of Intra-
official at the border post, due to the
multitude of formats and regulations for Mediterranean Trade:
filling in the existing documents. the Free Trade
It also seems clear that it is necessary to
Agreements
work on the promotion of digitalisation
in two areas: firstly, to put an end to the The EU (and its member States) have
need to hand over printed documenta- entered into several free trade agree-
tion to counterparts and authorities and, ments with a lot of the countries on the
secondly, to implement computer tools southern shores of the Mediterranean,
that permit the possibility to work with whereby free trade areas are gradually
authentic documentation at any time being established. Progress is also being
and, to permanently control the status achieved in this regard between non-EU
of the goods. A successful example countries. The great benefit derived
would be the use of blockchain technol- from the signing and entry into force of
ogy, for example, by the Egyptian auth- these free trade agreements is usually
orities. In a market with different the elimination of duties on trade (or the
counterparts, tools that provide security establishment of zero tariffs) among op-
and immediacy are necessary. erators in the relevant countries. As it is
well known, duties are one of the most
The customs regulations already offer a important elements of a country’s fiscal
solution to problems such as the block- and taxation policy, as well as an impor-
ade of goods -although it is necessary tant element of protection for the na-
to develop it from a practical point of tional productive sector. Another impor-
view-, with the figure of the Authorised tant milestone is the entering into force
Economic Operator (AEO), which is an of the Pan-Euro-Mediterranean Regional
operator trusted by the customs admin- Convention on Preferential Origin Rules
istration. As it has been designed, this (Pan-Euro-Mediterranean Convention),
figure allows for favourable treatment which establishes uniform rules of origin
by the customs authorities to AEO op- and cumulation and is currently under
erators, such as fewer controls and pri- review. The establishment of common
ority in queues. For the time being, only rules of origin is key, as it is the basis for
the EU has recognised this figure in the the application of all kinds of trade
Mediterranean area, but it could repre- measures.

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 17

with enough staff both from private


The conclusion of the aforementioned companies and officials from the vari-
could be that trade facilitation through ous administrations in charge of cus-
the setting up of a free trade area is the toms and special controls.
right track, although there is still much
room for action. There are many oppor- In addition, an improvement in cus-
tunities for developing collaboration be- toms facilities should be implemented
tween countries and economic oper- in terms of the construction of unique
ators in the region, that would also have Border Control Posts that allow all
the effect of strengthening the area itself controls to be carried out at the same
as a global economic hub and gener- time, in order to comply with the Cus-
ating exponential growth. toms Single Window regulated in the
Union Customs Code (UCC). Another
Particular Issues in measure to put in place would be the
construction of adequate terminals
Maritime Transport - and multimodal facilities for goods to
Short Sea Shipping follow their route, whether by train or
truck, to their destinations.
In order to achieve the consolidation
of the Mediterranean Sea as a leading Conclusions
global trade area (apart from its stra-
tegic position as a transit and connec- The following conclusions can be
tion area for global routes), it is essen- drawn from the thoughts and ideas
tial to promote shortsea shipping foreseen in the previous sections:
between countries on the Mediterra-
nean coast. This concept is defined by • Although progress has been
the Spanish Association of Short Sea achieved in trade integration in
Shipping as “the movement of goods the area, more multilateral agree-
and passengers by sea between ports ments should still be encouraged.
located in the territory of the European This would ensure (i) the stability
Union or between those ports and and continuity of trade operations
ports located in non-European coun- among companies in the geo-
tries with a coastline on the seas sur- graphical area of reference, re-
rounding Europe”. It seems clear that gardless of geopolitical issues, and
this is an ideal means of transport for (ii) the consolidation of common
trade among Mediterranean countries. multimodal policies.
• It is necessary to work on the har-
That said, although the price factor is monisation of customs regulations
always very important, the key element and customs procedures to provide
when choosing a ship as a means of legal and operational security for
transport is time. In addition to the economic operators, as well as to
necessary availability of routes with invest in the training of civil servants
enough departures and arrivals, it is and operators’ staff, in order to in-
essential to ensure that goods do not crease operations in the area.
remain blocked at border posts for • Shortsea shipping is essential for
longer than strictly necessary. This the development of the area. In
requires the promotion of “24/7” order to boost it, it is necessary
ports fully operational and provided to execute the setting up of new
18 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

routes and corridors, to stream- • A firm commitment to digitalisa-


line the actions to be carried out tion in the area, with tech-
at border control posts and to re- nologies that provide legal cer-
inforce multimodal actions. tainty in customs and trade
• Digitalisation is key to the com- procedures with third parties.
mercial integration of the area. • Possible enlargement of the
To this end, the promotion of countries party to the Convention
compatible and open platforms on a common transit regime, to
and programmes should be allow the entry of countries on
achieved. the shores of the Mediterranean
Sea.
Recommendations • Harmonisation of customs legis-
lation and promotion of multilat-
The success regarding the development eral conventions.
of intra-Mediterranean commerce, could • Strengthening of the Authorised
be achieved implementing the following Economic Operator (AEO) fig-
recommendations: ure.

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 19

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cil of 9 October 2013 laying down the Union Customs Code. Retrieved from
https://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:02013R0952-20200101&from=EN

SHORTSEA PROMOTION CENTER – Asociación Española de Promoción del


Transporte Marítimo de Corta Distancia. Definition of SSS. Shortsea. Retrieved
from http://www.shortsea.es/index.php/iquienes-somos/definicion-sss
The African Continental Free
Trade Area: A New Blueprint
for North Africa’s Regional
Integration
Ghazi Ben Ahmed
President and Founder, Mediterranean
Development Initiative
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 21

The African Continental Free Trade Area transport infrastructure, costly logistic
(AfCFTA) comes at a time of great insta- (except for Morocco) energy and tele-
bility in the North African region, com- communications networks, together
pounded by a pandemic with severe with institutional arrangements for
economic and social impacts. As the their management and maintenance,
subregion’s economic growth falters, structured and regulated cross-border
current account and fiscal balances are markets, and persistent tariff and non-
deteriorating (drop in oil revenues, re- tariff barriers to trade, including re-
mittances, FDIs, and tourism) and public strictive rules of origin, weak legal
debt is projected to rise significantly. environments, and stifling procedures,
account for enormous losses in re-
The crisis that began with the Tunisian gional trade and economic growth.
revolution resulted in a near-universal
failure to implement the long-term North African countries will have to
structural reforms required to transform simplify and harmonize complex and
the rent-seeking and state-dominated lengthy trade and customs procedures,
economies into modern ones that em- do away with restrictive rules of origin,
brace both digital and ecological trans- and tackle corruption and other infor-
formation and recognize the healthy mal trade barriers. They will also have
impact of competition and private en- to harmonize essential policies and in-
terprise. There has been much talk stitutions among trading partners.
about structural reforms, but a rather li- These impediments call for action and
mited cohesive commitment to action, require investments at several levels
as the need to confront short-term prob- with a focus on the regional dimension
lems over long-term problems pre- of infrastructure.
vailed.
Development partners, from donors to
However, the AfCFTA offers a unique IFIs and Development Banks, will have
opportunity for the North African region to take a regionally integrated ap-
– as a subregion of the African conti- proach to infrastructure development
nent, as well as individual countries – to and seek new and innovative ways to
rethink its supply chain, strengthen trade finance African infrastructure. These
and regional integration, and become a will include the development of infra-
more integrated subregion in the Global structure bonds for the continent.
Supply Chains (GVCs). Trade and inte-
gration – within North Africa and with Regional Integration Can
Africa – can provide an opportunity to
enhance regional trade relations by es- Be Elusive
tablishing safe and resilient regional
supply chains of goods and services in The Abuja Treaty and the African
the post-COVID era, unleash private Union’s 2063 programme enshrine re-
sector forces for North African dyna- gional integration as key to stimulating
mism, and position the subregion as a economic growth in participating
hub in Africa and a global player. countries through increased trade,
economies of scale, knowledge, and
However, the main constraints on re- technology transfer. The objective is to
gional trade development in North Af- establish a single market for goods and
rica, such as inadequate and poor services across the continent, allow the
22 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

free movement of business travellers African partners. It also analyses the


and investments, and create a conti- impact of the agreement on the well-
nental customs union to streamline being of households, on the use and
trade and attract investment. The remuneration of factors, employment
continental agreement raises hope (skilled, medium-skilled, and unskilled
for the success of this integration and, labour) and the variation of relative
ultimately, a means to eradicate pov- prices. At the sectoral level, the as-
erty, create jobs and achieve the sessments focus on the industrial sec-
SDGs promoted by the UN. tor by trying to know if the AfCFTA
agreement will promote the integra-
In Africa, regional integration is seen tion of North African countries in Glo-
by policymakers and academics as an bal Value Chains, in this case in the
important strategy to enhance intra- industrial sector, and what will be the
regional trade, boost economic effects and channels of transmission
growth and ensure the integration of of this liberalisation in this sector.
African countries into the global
economic system. It can also lead to For instance, Tunisia and Morocco’s
the structural transformation of Afri- ambition is to integrate further into
can countries through economies of GVCs and improve their integration
scale, improved competitiveness, rate to reap the benefits of AfCFTA
more efficient resource mobilisation and avoid problems related to rules
and the promotion of regional value of origin. The implementation of the
chains. With this in mind, several re- AfCFTA agreement would allow, a
gional economic communities have priori, both the Tunisian and Moroc-
been formed in Africa since the years can industries to benefit from the
of independence, such as the Arab entry of inputs at lower costs from the
Maghreb Union (UMA). African continent and enhance their
competitiveness to gain access to a
The AfCFTA begins with the elimin- large market. This intuition is backed
ation of tariffs for 90% of the products by statistical data on intra-African
traded and the rest will be done grad- trade which shows an increasingly im-
ually. In this context, impact studies portant dynamic in terms of trade in
on trade and on economies are very manufactured goods.
useful in giving an idea of the extent
of the changes that such an agree- “Whereas the AfCFTA could signifi-
ment could bring about at the econ- cantly boost intra-regional trade in
omic level, as well as a means of Africa and promote economic
informing public decision-makers. growth, it can also entail costs, and its
benefits may not be necessarily uni-
Ex-ante assessments of trade liberal- formly distributed between and
isation between North African coun- within countries. Therefore, leaders
tries and the rest of the continent, often have legitimate concerns that
within the framework of the AfCFTA, further trade integration of their
analyse production and value added economies with those of other coun-
by industry and by foreign trade. tries may benefit some industries and
Therefore, these assessments address penalise others, may have negative
the effects of the creation and /or di- effects on profits and employment
version of trade with African and non- prospects in some sectors and skill

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 23

levels, and may reduce fiscal rev- Regional Integration


enues” (IMF, 2019). This highlights the
need to carefully assess the potential in North Africa:
effects of the AfCFTA on growth and A Call to Action
income convergence or divergence
and the policies that should be put in The North African region is the least
place to maximize regional integra- economically integrated in the world.
tion benefits and mitigate its negative As they strive to create more jobs, at-
effects on some countries. tract more investment, boost growth,
and recover from the pandemic, coun-
Studies and impact assessments may tries of the North African region have
have overstated the benefits of re- today a strong economic incentive to
gional integration. Most have focused accelerate their efforts at regional inte-
on trade integration – the benefits for gration. What is lacking is not a ration-
countries in Africa from trading with ale or capacity to integrate, but a sense
each other, removing tariffs and using of urgency to prioritize and move for-
proxies for non-trade-barriers. ward with integration.

Regional – as opposed to global – It is critical to strengthen and enable


trade integration has an upside and a the strong historical and socio-econ-
downside. The upside is trade cre- omic linkages that exist between coun-
ation – the fact that the countries tries of the Maghreb and those of
trade more – and the downside is Sub-Saharan Africa. In anticipation of
trade diversion – countries trade the African Continental Free Trade
within the trading bloc whereas it Agreement (AfCFTA), now is the time
would be more efficient to trade with to expand and deepen existing plat-
the rest of the world. More plainly, forms for regional cooperation, includ-
these commodity-dependent, low-in- ing in agriculture and digital sectors
come countries have little to gain where progress is most needed, and to
from trading with each other because explore additional opportunities for re-
they produce nearly the same things. gional integration between North Af-
rica and Sub-Saharan Africa.
Although there is no reliable method
for the quantitative assessment of the While the challenges of establishing –
dynamic effects of trade integration, and sustaining – regional trade, infra-
dynamic effects appear to have a structure and institutions are signifi-
greater impact on economic pro- cant, African countries are on the cusp
cesses than static effects because of of important regional integration initi-
their deeper scope. Moreover, in the atives that will provide much-needed
African context where countries are at efficiency gains, diversification, trust
different levels of development, the building and green growth – all of
appropriation of the dynamic gains which will play a catalytic role in econ-
resulting from regional integration is omic growth and poverty reduction in
likely to be long in the relatively less the wider region.
advanced countries in view of the
weakness of the institutions and the It needs to be understood that free
shortcomings present in the educa- trade agreements are not a zero-sum
tion systems. game. These agreements are of little
24 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

use unless they serve their purposes sub-system suppliers, and component
well. A classic example would be Tuni- suppliers will source, assemble, and
sia’s Deep and Comprehensive Free deliver from their own backyards i.e.,
Trade Area (DCFTA) with the Euro- the North African subregion. More
pean Union, where the proposed specifically, in places where their intel-
agreement does not reflect the objec- lectual property can be protected,
tives pursued in the renewed partner- their talent can come together, and
ship between the EU and Tunisia and they can perform product design and
puts too much emphasis on free services. The challenge will then be for
trade, which has had the effect of cre- the North African countries to adapt
ating a climate of suspicion. Since 13 their offer and be able to respond to
October 2015, the date of the launch any European dynamic geared toward
of negotiations, progress has been li- the regional reorganisation of the pro-
mited due to apprehension about duction and supply model and become
Tunisia’s ability to face competition a hub between the EU and the rest of
from European companies, or its abil- the African continent.
ity to take advantage of “unrestricted
access” to the European market, in The EU cooperation should go
particular in services, in the absence beyond merely providing technical
of an agreement on mobility. This expertise in formulating agricultural
strongly influenced public opinion, and blue economy-related policies,
which felt, rightfully, a lot of scep- supporting agroecological practices,
ticism with the Tunisian and European and promoting smart agriculture and
efforts to reach a fair agreement, aquaculture concepts... It should be
compounded by failure in communi- participative also for its own interest.
cation and pedagogy on the one
hand, and demonisation of the Trade liberalisation per se is not the
DCFTA for political purposes, on the issue, the focus should be on capacity
other. Therefore, a careful and cali- building and a better overall business
brated approach is required for hav- and economic environment with effi-
ing a fruitful free trade agreement. In cient trade facilitation focusing on
that sense, transition measures are transport costs, custom clearance ef-
necessary to build capacities and ficiency, and trade finances. This aims
meet the increasingly complex chal- to increase sustainable trade and will
lenges and new opportunities at re- attract foreign investors and enhance
gional and global levels. North African countries’ participation
in international value chains.
In other words, any free trade agree-
ment needs to sharpen economic The linchpin of a successful AfCFTA is
focus and spur recovery. The health a long-term vision which is crucial to
crisis offers new opportunities for the make the notion of partnership
North African subregion to serve as a credible, to give the necessary incen-
regional backup for greater resilience tives to its 54 members to carry out a
of EU logistic hubs called upon to re- consistent set of reforms, and to en-
locate to the region. To eliminate sure that these reforms are under-
single-source dependencies and to pinned by the strong approbation of
establish a flexible and adaptable the broader citizenry, especially the
supply chain, product integrators, youth and the private sector.

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 25

Conclusion subregion and the rest of the continent


and Recommendations to the European area with a long-term,
explicit, and ambitious concerted vi-
Regional integration can ultimately sion, and to put in place new financial
help to reorganise the productive instruments that accompany the imple-
structure within the North African sub- mentation of this vision.
region according to the natural and
factor endowments of the member This should prompt North African
economies, as well as the quality of re- countries to resume (or start) negoti-
gional infrastructure. Such an efficient ations with the EU. A shrewd agree-
allocation could be beneficial to the ment encompassing a new
economic growth of the region as a contract/project and focusing on
whole. hubs in sub-regions and variable ge-
ometry could promote economic
The crucial role assigned to trade in modernisation and growth, to
economic integration generally over- strengthen and stabilise the region.
looks other fundamentals of econ-
omic growth. Regional integration But the fate of the AfCFTA does not
dominated by trade plays a less cru- only rest in the hands of the public
cial role in spurring economic growth sector. For free trade to truly reach its
and income convergence. Therefore, full potential, it must be coupled with
North African countries should place private sector investments that
more emphasis on the goal of re- bridge the infrastructure and connec-
gional integration towards ensuring tivity gap and give African businesses
the provision of critical infrastructure, the tools and resources they need to
improving the quality of institutions, compete in African markets. By pro-
and building human capacities and moting competition and attracting
stock of physical capital. private capital, states will be able to
develop transportation networks,
The donors and other multilateral in- bolster internet connectivity, and surf
ternational financial institutions can on the wave of digitalisation sweep-
have a significant positive impact on ing across Africa.
regional integration in the North Afri-
can subregion to develop an adequate The private sector also has a pivotal
strategy for supporting more directly role to play in building reform mo-
all regional sub-groupings in Africa. mentum for trade and accelerating the
implementation of AfCFTA. Private
It is undeniable that the European sector alliances between businesses
Union and its member states have from different countries are uniquely
contributed substantially to helping positioned to convince and demon-
North African countries since 2011 strate that facilitating cross-border
and have kept these economies trade, addressing non-tariff barriers,
afloat. But today, this subregion and harmonising policies and regula-
needs to get out of the water, take a tions will transform the continent. Fur-
qualitative leap, and get out of the thermore, the potential benefits of
trap of middle-income countries. And regional integration may override the
this is the moment for Europe. The current tensions between Morocco and
moment to anchor the North African Algeria.
26 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

Bibliography
IMF, (2019), Recovery amid elevated uncertainty. Regional Economic Outlook:
Sub-Saharan Africa. Washington, DC, April. Retrieved from https://www.imf.org/-
/media/Files/Publications/REO/AFR/2019/April/English/sreo0419.ashx

Policy Study n. 7
Development, Exchanges
and Connectivity,
a Mediterranean
Maritime Trio
Paul Tourret
Director of the Institute of Maritime Economics
(ISEMAR)
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 29

The history of post-war Europe is become very frequented regions with


largely that of the economic integration the development of tourism and require
that made political cohesion possible. intense links for their economic devel-
The Europe of the original group of six opment. Of course, the European policy
founding countries has expanded west- of regional aid is also important.
wards (UK, Ireland), southwards
(Greece, Spain, Portugal) and north- Even today, the dynamics of Mediterra-
wards (Sweden, Finland) before inte- nean companies are based on the in-
grating eastern Europe and the two tensity of passenger and freight flows
Mediterranean islands of Cyprus and with the islands. Naturally, there are na-
Malta. Non-political, but just as stra- tional differences in the level of demog-
tegic, is the economic partnership to raphy, development, and tourism of the
be built with non-European Mediterra- various islands, but all feed the need for
nean countries. Economic integration, strong connectivity. Several maritime
whether it be community or partner- lines also benefit from public aid (del-
ship-based, has allowed the multipli- egation of public services). The Medi-
cation of investments, productive pro- terranean islands, with their greater
cesses, and exchanges. As soon as the economic integration, have gained a
Euro-Mediterranean regions and some very high coverage of maritime lines
countries of the basin are economically over the last 40 years.
integrated, maritime transport will de-
velop with the development of the The island connections are at the basis
other countries of the Southern and of the historical maritime activity of com-
Eastern shores. A dense network of panies in the Western Mediterranean
maritime lines, especially ro-ro, inter- basin. There used to be large public
connects the regions of the Mediterra- companies, but they have experienced
nean basin. Can maritime transport do the same fate of privatisation. The
more? Can it do better? It is as much a SNCM became Corsica Linea controlled
question of the service offered as of by Corsican economic interests. In Italy,
the environmental performance and Tirreno was sold to a private competitor,
the modal complementarity. Moby Line (Onorato family). In Spain,
Trasmediterranea has had different
Insular Bases and owners, with the last sale of the Balearic
Islands’ connections to Grimaldi group
Motorways of the Sea dating back to 20211. For these com-
panies, connectivity with the islands is a
Maritime transport in the Mediterra- source of structural activity and links with
nean Basin has gone through several the islands of other countries are tourist
phases. The first corresponds to the markets.
connectivity with the islands of each
country (Balearic Islands, Corsica, Sardi- Grimaldi, based in Naples, is one of a
nia, Sicily) facilitated using ferries and few private companies that dominate
ro-ro ships since the 1970s. For a long the basin. The others are GNV in the
time, weakly developed and reservoir of wake of the Italian-Swiss group MSC
internal migrations, these islands have (Aponte family) and two outsiders who

1
Canarias and family group Armas have kept the lines with the Maghreb and the Spanish territories
of Ceuta and Melilla.
30 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

have become leaders, Balearia on the Another limitation is the competition


Balearic Islands and Corsica Ferries on from the road. The idea of a cabotage
Corsica. To this panorama, we must line between southern Spain and a
add the Danish giant DFDS, which has French port is old. The traffic could be
taken positions in the freight business based on fruit and vegetables from An-
in France and Turkey, thanks to acquisi- dalusia and Murcia, but the conditions
tions. Finally, the French company of competition are not favourable. The
CMA CGM also has a ro-ro activity in logistics of fresh products require fast
the Mediterranean. transit times, and the cost of road
transport is more advantageous than
For a long time, the connections be- sea transport. For the time being, only
tween the shores of the Euro-Mediter- a strong increase in the cost of road
ranean countries seemed useless. The transport will allow a transfer to the
economies of the Mediterranean regions maritime mode. European cabotage,
were linked to their national space or to initiated to reduce pollution from road
Northern Europe. The development of transport, must henceforth be included
the automotive industry in the Iberian in the objectives of reducing green-
Peninsula was the ferment of an indus- house gas emissions by showing envi-
trial integration between Spain and Italy. ronmental performance.
The Grimaldi company based its devel-
opment on the needs of the automotive Environmental Challenges
industry to launch services between
Spanish and Italian ports. The Italian One of the challenges of tomorrow’s
shipping company launched the Motor- maritime industry in the Western Medi-
way of the Sea concept with high-inten- terranean is the modal shift transfer from
sity ro-ro freight services in the late road transport. It is therefore still the
1990s. GNV has focused its positioning question, as it was twenty years ago, of
between Italy and Spain on passenger reducing road flows through alternative
services. maritime solutions. The Motorways of
the Sea networks have already been de-
For twenty years, the links between veloped in response to market demands
Spain and Italy have demonstrated and geographical consistency. To have
their interest, especially since the coas- a new impulse, it must be even more
tal route is long, expensive, and con- economical and clean.
gested at each border crossing and
metropolis. The East-West maritime The green impulsion is double. On one
route is faster and more economical. hand, it comes from the European
Another experience was tried between Union with the “Fit for 55” roadmap
the French port of Toulon and the Ita- initiated by the European Commission.
lian port of Civitavecchia in the 2000s It is a part of its “Green Deal”, which
with a small automobile base, but the has a maritime component. The second
weakness of the other freights led to impulsion is given by the requirements
failure. In the absence of massive trade of the International Maritime Organ-
between central Italy and France, mari- isation (IMO) with rules on the effi-
time connectivity was not useful. It is ciency of ships in 2023 and a low sul-
therefore necessary to have an econ- phur emission zone for the
omically proven reality to carry an intra- Mediterranean Basin in 2025 (which has
Mediterranean market. an operational cost for shipowners). In

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 31

addition, the price of energy weighs The rail link is a new feature for ro-ro
heavily and reinforces the issue of trans- transport in the Medit+erranean Sea.
port efficiency. The competition be- The objective is to ensure the comple-
tween road and maritime modes in the mentarity of the Ro-Ro maritime and rail
Mediterranean will be based on the prin- solutions. The integration of rail and
ciples of a green and resource-efficient maritime solutions has a Mediterranean
consumption. origin but is linked to a specific market.
In 1992, the war in Yugoslavia disrupted
For the maritime sector, innovation is a the logistics between Turkey and Eu-
major and imperative action. LNG fuel rope. The Turkish road transport sector
solutions, electric batteries, or fuel cells developed a maritime solution via the
(hydrogen) will multiply for the ferry and Aegean Sea and the Adriatic Sea2. The
ro-ro fleets in the Mediterranean Sea. Italian port of Trieste thus became the
Ports will also be equipped with shore gateway for Turkish cargo to Europe.
power for ships. Thus, the need for econ-
omic integration will be met by the need In the 2000s, the integration of the Euro-
for maritime connectivity, but also in- pean and Turkish economies become in-
creasingly by energy efficiency and the creasingly strong, and the density of
reduction of operational pollution (CO2, trade increased. Connectivity has there-
fine particles). fore developed. France has been inte-
grated with first the port of Toulon and
Thus, maritime and port modernisation then the port of Sete. Since 2021, a line
is imperative for all Mediterranean also connects the Spanish port of Tarra-
players. On the shipping side, the groups gona with the needs of the Spanish tex-
are large enough to maintain a high level tile giant Inditex.
of innovation. The other trend towards
gigantism with the super ro-ro ships of Initially, the Turkish process involved
Grimaldi and DFDS goes in the direction moving full trucks, with the drivers using
of efficiency of maritime transport. air services. Now, most trailers travel
alone, so European rail solutions are
For ports, the investments are also needed. First in Trieste and now in Sete,
needed to organise the calls of larger Turkish trailers use rolling motorways.
ships and important flows. Ro-ro ports The challenge for the Western Mediter-
need more space. In March 2022, the ranean maritime sector in the future is
Barcelona Port Authority approved the to develop rail solutions for roll-on/roll-
transfer of the ro-ro cargo activity to Port off trailers. The port of Sete, which bene-
Nou over 19 hectares. This will also help fits from a Turkish line, already operates
reduce pollution in the centre of Barce- 10,000 trailers and has a target of doubl-
lona. In the case of Marseille, the port ing or tripling this number with six hec-
community is asking the port authority tares to be developed by 2022. For Val-
(GPM) to launch an ambitious modern- encia, Barcelona, and Marseille, the
isation project for the ro-ro port in the Ro-Ro mode must be linked to rail
Eastern basins. through terminals for rail highways3.

2
Initiated by Turkish players (UN RORO Ekol Logistics), the maritime activity passed in 2018 into the
hand of the massive Danish company DFDS.
3
There are different technical solutions with horizontal loading (CargoBeamer, Modalohr) or vertical
loading (intermodal trailers type P400 but also 45’ pallet wide containers).
32 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

North – South Trade tivity of the ro-ro mode required for


Euro-Tunisian trade.
The colonial era in North Africa, in par-
ticular under France, had created a Morocco’s situation is different, with a
high density of North-South trade in larger population and a larger econ-
the Western Mediterranean. Following omy, especially for exported agricul-
the independences, the situation has tural products. There too, relocations
naturally changed, especially since each have been important, with automobile
North African country has its own econ- production (Stellantis, Renault Nissan).
omic identity. Morocco and Tunisia are Here too the sea must be crossed, but
countries that have chosen a market through the 14 km of the Strait of Gi-
economy with production exported to braltar. The port of Tangier Med allows
Europe. The liberty of investment4 has the processing of a very high volume
allowed industrial relocation, which of trailers with 407,500 M units in 2021
feeds important maritime flows of of trucks crossing the short sea passage
trailers in both directions. to Spain.

The integration of Tunisia into the Euro- With Morocco, shipowners offer longer
pean economy is no longer based on shipping solutions. GNV and Grimaldi
the textiles industry but related to have services for trailers from Italy. In
value-added sectors such as aero- France, La Méridionale has been offer-
nautics and electrical. The connectivity ing a service from Marseille for some
of Tunisia is based on the ro-ro which time but has yet to find a trailer market.
allows rapid exchanges with Europe. However, at some point, there will have
The maritime traffic is done with Mar- to be longer and denser maritime con-
seille and Genoa and more modestly nectivity between Morocco and the
with Barcelona. There are about ports on the northern shore (Barcelona,
140,000 trailers per year, half of which Sete, Marseille, Savona, Genoa). The
are related to France. The motorway main European companies will develop
of the sea between Marseille and Tunis Euro-Moroccan motorways of the sea
is provided by the alliance of CMA when the conditions of competition
CGM and DFDS and the Tunisian na- with the road mode through Spain will
tional shipping company CTN. On the be less unfavourable.
Italian side, Grimaldi and GNV are also
present in Tunisia. Algeria does not have the same char-
acteristics of integration with Europe
It should be added that the ro-ro mode as its neighbour countries. The socialist
also benefits from the malfunction of economic model and energy rents (oil
the container terminal of Rades. The & gas) have distanced it from a free
construction of a new container port is and open economy model. Ro-ro flows
being considered by Tunisia 100 km do not exist, notably for reasons of
south of Tunis. The port of Enfidha will cargo security. Containers are more
offer containerised capacities adapted suitable. The supply flows from Europe
to international trade but will un- are made by small container ships from
doubtedly preserve the rapid connec- Spanish, Italian, and French ports,

4
For a long time, the European presence was mainly French, but today it is Spain and Italy that
dominate foreign investments in Morocco and Tunisia.

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 33

which are nevertheless subject to ex- ket to do so, with competition from
pectations that make logistics complex road transport being formidable. Italy
in Algeria. has a national policy of “Ecobonus”
that aims to make financial discounts
It is not clear whether Algeria will be for users of long-distance maritime so-
able to develop in the next decade in lutions with Sicily. The commitment to
a way that will encourage European in- longer distances (Southern Spain, Mo-
vestments. The country’s only source rocco) will also depend on the market
of income is the sale of its energies; and economic needs, particularly the
however, the oil and gas rent cannot logistics of fresh agricultural products.
be sufficient in the long term to trans- Maritime transport must be effective
form the country’s economy and its so- and ecologically efficient; this is the
cial stability. The economic integration role of shipping companies and, in-
of Algeria could be one of the chal- creasingly, of complementary rail trans-
lenges of the North-South partnership port. The ro-ro mode is better suited
in the Mediterranean with the growth to the speed requirements of European
of maritime trade. logistics and to the integrated pe-
ripheries of the Maghreb and Turkey.
Connectivity will follow the logistical
needs of a more diversified economy. The economic development of the
It will be able to do so with the new Mediterranean basin is an economic,
port that Algeria wants to build in El social, and political imperative. It must
Hamdania in the Cherchell region west be one of the objectives of the EU’s
of Algiers. The deep-water port will partnership policies. The growth of
have Chinese financing and construc- trade will therefore need efficient mari-
tor, and will be dedicated to container- time transport offering a speed that
isation, while being able to accom- requires adapted logistics in the Euro-
modate ro-ro as in the case of Tangier Mediterranean economic bloc. Ro-ro
Med. and railroads will be there for this pur-
pose. The container remains a more
Should we finally promote better mari- economical solution with less efficient
time connectivity in the Western Medi- navigation time. But in either case, it
terranean? This was the ambition of will be necessary to enhance the con-
the Motorways of the Sea in the 2000s. nectivity of the sea that is common to
Today we know that it is up to the mar- the three continents.
The Evolution of
Mediterranean Shipping
in an Era of Disruptions
Jordi Torrent
Head of Strategy, Port of Barcelona

Maite Roman
Head of International Organisations, Port of Barcelona
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 35

The Perfect Storm However, the picture changed dramati-


cally some months ago. A combination
In 2021-2022, international maritime- of factors external to logistics chains,
based logistics chains experienced a cri- coupled with internal tension in logistics
sis that was probably unprecedented. and shipping, gave rise to the perfect
Was this a paradigm shift or a temporary storm. As a result, the transport and lo-
situation? Historically, the international gistics sector is now struggling more
logistics sector had been able to cope than ever to deliver an efficient and pre-
with the regular crises and challenges it dictable service.
had faced since the sector became one
of the drivers of the globalisation of Post-Pandemic Disruptions
countries, industries, and companies in
the second half of the 20th century. Until Today’s disruptions are wide-ranging
now. The challenges of the post-COVID and affect different economic actors.
era stopped this trend and major dis- At the global level, the surge in post-
ruptions were blamed on shipping as pandemic demand and the rise of e-
one of the factors that had helped upset commerce changed the quantities of
the global economy. products ordered and the character-
istics of this demand. In a short time,
In a globalised and increasingly inte- fluctuating demand combined with
grated world, in which logistics chains shipping supply similar to pre-pan-
are long and complex, a catastrophic demic levels put a strain on logistics
event anywhere in the world can have chains and the transport sector
serious effects on the entire inter- struggled to adapt. Competition for
national trading system and can affect shipping, especially container ship-
the supply of goods in far-flung areas. ping, increased, thus allowing ship-
The wars in Iraq and Afghanistan, the owners to increase freight rates to
2004 tsunami, the 2008 financial crisis unprecedented levels throughout
and the 2017 cyberattacks in the ship- 2021 and 2022.
ping industry are just a few examples of
21st-century events that could have had In addition to rising freight prices,
a serious impact on world trade. How- energy, and raw material prices also
ever, global supply chains responded to increased substantially, ultimately
these disruptions swiftly and efficiently. leading to widespread inflation ex-
The resilience, adaptability and flexibility acerbated by the outbreak of the war
of logistics chains ensured that there in Ukraine. This coincided with severe
were no adverse impacts on industry or shortages of certain economically im-
consumers. Even at the height of the portant products, such as semicon-
COVID-19 pandemic, logistics chains re- ductors for the automotive industry,
sponded effectively and prevented metals and grain, mainly because
major supply problems. Goods con- supply is concentrated in a few hands.
tinued to arrive at ports and were dis- This also led to a sharp price rise. The
tributed to final consumers without most striking example is the manufac-
obstructions. The world population was ture of semiconductors used in the
even supplied with millions of masks electronics and automotive industries,
within a matter of weeks. When vaccines which is carried out on a massive
arrived, they were also relatively easy to scale, mainly in Taiwan (with minor ex-
deliver, even under extreme conditions. ceptions, notably South Korea).
36 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

Figure 1. Changes in Freight Prices (2014-2022)

Source: Alphaliner, May 2022

There were other disruptions in the pandemic, delays in the expected time
transport sector. The COVID-19 led se- of arrival (ETA) were an exception. With
veral Chinese ports, among the world’s the pandemic, the situation was turned
most important, to close for weeks in on its head. Being on time became the
2021 and 2022. This resulted in exception. Ships on east-west routes
hundreds of ships waiting for weeks off needed an average of 101 days to
the coast of China. These same vessels complete a round-trip voyage. This
then set sail for Europe and the United meant that they were now arriving in
States, where they all arrived at the China to start a new voyage an aver-
same time with a delay of several age of 20 days late, compared to the
weeks. pre-pandemic situation. This delay in-
creased over the course of 2022, from
In the aftermath of the pandemic, ship- 17 days in February to 20 days in May.
owners took a number of measures to One example was the case of the con-
adapt to the sharp decline in demand tainer ship MOL Triumph, with a capac-
caused by mass lockdowns and cur- ity of 20,170 TEU (twenty-foot
fews. The most important of these is a equivalent unit), which set sail from the
policy known as “blank sailing”, when Port of Qingdao on 16 February and
a ship does not call at one or more of was expected to arrive in Algeciras on
its scheduled port stops. This practice 25 March and Antwerp on 7 April, be-
continued and led to a significant de- fore continuing on to the Port of Ham-
cline in schedule reliability. Before the burg. In actual fact, it arrived in

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 37

Algeciras on 2 April, in Antwerp on 26 Central China to Northern Europe. How-


April and in Hamburg on 18 May. The ever, shipping companies could not
ship completed its journey with a 41-day feasibly organise such a large fleet, so
delay (Port Congestion in North Europe, they were forced to cancel scheduled
2022). port calls, which is known as blank sail-
ings. For example, in the first half of May
These delays forced shipping companies 2022, a total of 27 ships called at Chi-
to systematically add three ships to each nese ports from Northern Europe, com-
route to maintain the weekly service. On pared to the 34 that would have arrived
the east-west route, this meant adding under normal circumstances (Port Con-
51 ships to 17 direct routes connecting gestion in North Europe, 2022).

Figure 2. Overall Reliability of Port Calls (2018-2022)

Source: SeaIntelligence

Other Factors shipping companies fell into three


major groups (2M, THE and Ocean) in
No analysis can be complete without a clearly oligopolistic market.
factoring in the low level of diversifica-
tion in the maritime sector, especially Concentration in the maritime trans-
container shipping. In recent decades, port sector is driven by the investment
many shipping companies have dis- and operating costs involved in in-
appeared as a result of mergers and creasing the size of ships, whose di-
takeovers by larger companies. This mensions have grown considerably in
market concentration began in the the 21st century. Not all market
1990s and has become more pro- players can survive this trend and af-
nounced in recent years. In 2012, the ford the investments required to in-
top 10 shipping companies accounted crease economies of scale. A vessel
for 62% of the market. By 2022, this with a larger capacity can carry more
market share had increased to 85% (Al- containers and reduce the unit trans-
phaliner Monthly Monitor, February port cost per container, but this in-
2022). The concentration process was volves a greater investment in
especially strong in 2017 and 2018, building and operating the vessel,
when the number of shipping com- which results in considerably higher
panies decreased, until 2020 when costs for shipping companies.
38 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

Figure 3. Evolution of Mergers and Acquisitions in the Shipping Company Market


(2015-2020)

Source: Alphaliner

The average capacity of container ships problems on the land side, thereby cre-
increased from 1,749 TEU in 2000 to ating a perfect storm.
4,556 TEU in 2022. What appeared to
be the maximum capacity in the 1990s Firstly, there was a chronic shortage of
was repeatedly surpassed in subsequent road transport drivers, which recently
decades. The construction of large con- began to include train drivers. The logis-
tainer ships began in 2006, with the tics and transport sector had lost some
launch of the 11,000  TEU capacity of its appeal and generational renewal
Emma Mærsk. January 2022 saw the was far from guaranteed. This could be
completion of the largest container ship considered a mere anecdote, but it af-
to date, the Ever Alot, with a capacity of fected the day-to-day operations of
24,004 TEU, a length of 400 metres transport companies, which could see
(equivalent to three football fields) and no short-term solution and were forced
a beam of 61.5 metres. The Ever Alot to cancel services, thus contributing to
needs a minimum draught of 17 metres a build-up of containers in ports. Ports
to enter port. suffered from congestion that was
chronic in some cases. Some regions in
Container ships are expected to reach a the West, especially the west coast of
capacity 30,000 TEU in a relatively short the United States, had entered a dy-
period of time. However, any disruptive namic of chronic congestion. Unlike in
technology could accelerate this process Europe, there was a limited number of
significantly (Garrido, 2019). ports there (the west coast has just two
major port hubs, Long Beach - Los An-
Problems that occurred on the ocean geles and Vancouver - Seattle - Tacoma)
side of logistics chains coincided with and operating hours were short.

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 39

Figure 4. Evolution of Average Container Ship Capacity (2000-2023)

Source: Alphaliner, September 2021

How Exporters and companies from many disruptions, in-


cluding unreliable port calls and exor-
Importers Adapted bitant freight rates. The new
destinations could not offer the same
Changes in Production and Logistics advantages as manufacturing in East-
ern Asia, but shipping times and trans-
How did exporters and importers and port complexity were reduced and, as
their logistics agents react to this situ- a result, reliability was enhanced.
ation? How did they adapt to the dis-
ruptions in maritime transport and the In other cases, companies chose to re-
impact they had on production and gain control over their logistics chains.
supply chains? They opted for different Large international companies, such as
solutions, depending on the character- Lidl, Coca-Cola, Amazon, and Walmart,
istics of their logistics chains and the opted to manage their logistics chains
products they manufactured. themselves by buying or chartering
ships and/or planes to transport their
Some companies diversified their sup- products from production sites to con-
pliers and looked for them in areas sumption areas. This involved major in-
closer to the company’s headquarters. vestments and was indicative of
Many even moved production from producers’ lack of confidence in the ac-
China and other Asian countries to tors managing logistics chains.
Eastern Europe, Morocco, and Turkey.
In other cases, they repatriated pro- This situation also forced companies to
duction to the company’s country of change their stock management strat-
origin, as in the case of Ikea and Buff. egies. There was a shift from a just-in-
Shortening logistics chains protected time to a just-in-case approach, in
40 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

which inventories were increased to the longest rail transport service in


deal with irregular deliveries and the the world; it covers 13,052 km in 16
unreliability of logistics chains. Stock- days. This cross-border train has of-
piling was cheaper than stockouts, fered a reliable alternative for value-
which were much more common in this added products that require
context. immediate shipping. However, the
war between Ukraine and Russia has
Finally, it is worth noting that some affected operations of this form of
companies, especially in the chemical transport. Although trains passing
sector, decided to give up shipping through Ukraine accounted for just 2-
their goods by container. Although 3% of the total volume, the sanctions
they were accustomed to transporting against Russia have created uncer-
their products by container, they aban- tainty on the main routes through
doned this practice and went back to Ukraine. The uncertainty of the war
transporting them by conventional has caused some customers to seek
ship, which they often chartered them- alternative services to rail transport
selves, thus avoiding the difficulties as- and has reduced demand for the first
sociated with container logistics chains. time since its implementation (Garcia;
Gu, 2022).
The Search for Alternatives to
Maritime Transport Paradigm Shift or
Some companies had to search for al- Temporary Situation?
ternatives to maritime transport. In
some cases, air transport replaced sea These are all still isolated reactions and
transport, especially for high-value and constitute a small volume of trade
time-sensitive goods. Thus, even flows in the world, especially between
though air transport was much more Asia and Europe. Do they represent a
expensive than maritime transport, air trend reversal or are they one-off solu-
freight closed the 2021 financial year tions adopted at a time of crisis? It is
with its best result since 1990. Accord- difficult to predict. Only time will tell.
ing to data from the International Air Looking back over the last 70 years,
Transport Association (IATA), demand the trends that have driven the growth
in 2021 recorded year-on-year growth of container shipping in Europe, es-
of 6.9% compared to pre-pandemic pecially with Asia and China, do not
levels and 18.7% compared to 2020 seem to have been completely re-
(Blanco, 2022). versed.

Rail freight traffic between China and For a start, it is highly unlikely that
Europe also increased until the out- Eastern Asia will cease to be the
break of the war in Ukraine. Rail ser- world’s factory. It is difficult to com-
vices between China and Europe have pete globally with more populous
undergone rapid development. By the countries that are just as or more
end of January 2022, more than 50,000 technologically advanced and have
trains between China and Europe had less stringent labour conditions.
transported more than 4.55 million There are clearly sectors where this is
TEU worth USD 240 billion. The Yiwu possible, especially if the European
– Madrid line, inaugurated in 2014, is Union aims to become an alternative

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 41

for the production of certain goods any other means of transport currently
(such as semiconductors and solar pa- being tested (hyperloop, zeppelin,
nels). However, there is every indica- etc.) are unable to compete with it on
tion that Eastern Asia will continue to a massive scale.
manufacture most of the products con-
sumed in Western countries, and it will As for companies, they have had to
therefore continue to be necessary to adapt to increasingly more frequent glo-
transport these goods from production bal disruptions and have had to do so by
sites to consumption areas. finding imaginative solutions and, above
all, by being flexible in terms of diver-
Maritime transport is the most efficient sifying suppliers, production sites and
means of transport for inter-ocean means of transport. They must accept
freight and will be used on a massive the fact that shipping disruptions are
scale for some time. At present, there here to stay and will soon become the
is no alternative. Trains, planes, and new paradigm of logistics chains.
42 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

Bibliography
EDITOR (May 2022). Port congestion in Europe continues to worsen. Global
Maritime Hub | Shipping, Trade and Ports Market Analysis. Retrieved from:
https://globalmaritimehub.com/port-congestion-in-europe-continues-to-
worsen.html

MONTHLY MONITOR (February 2022). Alphaliner. Retrieved from: https://pub-


lic.axsmarine.com/wp-content/uploads/2022/05/Alphaliner-Monthly-Monitor-
Feb-2022.pdf

GARCIA, GEMMA; GU, YAN (19 May 2022). A brake on the China-Europe train:
how the war in Ukraine impacts on the new silk route. PierNext. Retrieved from:
https://piernext.portdebarcelona.cat/en/logistics/a-brake-on-the-china-europe-
train/

GARRIDO, J. (November 2019) Container-ship size: What dimensions can we ex-


pect to see? PierNext. Retrieved from: https://piernext.portdebarcelona.cat/
en/mobility/container-ship-size/

BLANCO, P. (January 2022). La carga aérea mundial cierra 2021 con su segundo
mejor resultado de la serie histórica. El Mercantil. Retrieved from: https://elmer-
cantil.com/2022/01/25/la-carga-aerea-mundial-cierra-2021-con-su-segundo-
mejor-resultado-de-la-serie-historica/

Policy Study n. 7
Meeting the Challenges of
Mediterranean Maritime Traffic:
Supporting and Implementing
a Collective and Sustainable
Vision/Strategy by 2031
Gabino González
Head of Office, Regional Marine Pollution
Emergency Response Centre for the
Mediterranean Sea (REMPEC)
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 45
T

In
S
o
c
Introduction tors. This regional strategy is to be under- tr
stood within the framework of the Sus- b
Although it only covers 2.5 million km2, tainable Development Goals developed th
the Mediterranean Sea is nevertheless by the United Nations. In particular, in the
significantly affected by the growth of Mediterranean, action should be taken in F
maritime flows crossing it. Indeed, lo- the framework of the Goal 13 in order to c
cated at a strategic crossroads between combat climate change and its reper- st
the Strait of Gibraltar, opening onto the cussions, and Goal 14 in order to conserve a
Pacific Ocean and the Suez Canal, it is and sustainably exploit the oceans, seas d
home to an area of intense transit and and marine resources for the purposes of in
activity. This space now faces many chal- sustainable development. p
lenges. During the period 2010-2019, a
maritime trade to and from the Medi- If this strategy (2022-2031) responds to e
terranean countries increased by 284 a coordinated vision necessary at the o
million tonnes. present time in order to address current C
and future challenges rapidly, this paper tr
As maritime traffic and offshore oil and is also an opportunity to question its in
gas (O&G) exploration and production practical deployment over the long term in
have reached significant levels, their pol- - the 2031 horizon -, thanks to its action
lution generates different pressures on plan and the key response elements pro- In
the marine environment: loss or dis- posed in technical sessions with experts. p
charge of solid waste contributing to pol- A more specific example is that of the R
lution by marine litter, emissions of gas- decision in 2022 by the International in
eous pollutants and particles into the Maritime Organisation to designate the e
atmosphere, emission of continuous and Mediterranean Sea, as a whole, as an in
impulsive underwater noise and vibra- Emission Control Area for Sulphur e
tions, discharge of oil and other contami- Oxides (Med SOX ECA) to reduce air
nants, introduction of invasive species pollution causing many negative exter- V
through ballast water and hull fouling. In nalities on health and the environment. to
the context of climate change, it is now w
more important than ever to provide an From the Recognition of sa
effective and coordinated response to
these key issues for present and future the Environmental “
generations., the different transport ac- Challenges in the w
tors in the Mediterranean have decided In
to adopt a common vision: the Mediter-
Mediterranean to a Vision
ranean Strategy for the prevention, pre- for the Mediterranean:
paredness, and response to marine pol- the Strategy (2022-2031)
lution from ships (2022-2031)1.

This strategy, in line with the theoretical


Building a sustainable vision
and practical contributions of the last bien- for the Mediterranean
niums, enables progress to be made but
with a new level of and effective imple- The effective implementation of the
mentation thanks to action that is in- preservation of the Mediterranean en-
tended to be strengthened with the ac- vironment in the face of anthropogenic

1
Mentioned next as “the Strategy (2022-2031)”
46 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

actions resulting from maritime naviga- works between all stakeholders, build
tion responds to a vision for the Medi- capacity, help Contracting Parties en-
terranean by 2031. Adopted by the Con- sure that they have the knowledge, ex-
tracting Parties to the Barcelona pertise and experience to implement
Convention in 2021 (Decision IG.25/16)2 the Strategy (2022-2031). Alternatively,
at the 22nd meeting of the Contracting it is necessary to ensure that the sur-
Parties to the Convention for the Pro- veillance and monitoring facilities
tection of the Marine Environment and needed to prevent and detect illegal
the Coastal Region of the Mediterra- discharges and emissions from ships,
nean, the Strategy (2022-2031) offers a to exchange monitoring information
common thread in the active approach and to assist in combating marine pol-
to the preservation of this space backed lution incidents, are available and stra-
by a concrete Action Plan. tegically located throughout the Medi-
terranean region.
Aiming to produce clear guidelines, this
Strategy (2022-2031) is broken down From the study of trends in
into a series of common objectives the Mediterranean to a need
(CSOs) to be achieved by 2031. This
Strategy (2022-2031) aims to align the
for a response
work of the Contracting Parties to the
Barcelona Convention with the direction The need to implement an operational
given by the United Nations 2030 vision in the Mediterranean area is ex-
Agenda for the sustainable development plained by the fact that maritime traffic
and the ecological health of the Medi- in the Mediterranean is not without sig-
terranean Sea and its coastline. nificant and harmful effects on health
and the environment, which must be
In order to prevent, reduce and control curbed.
pollution of the marine environment, the
Strategy (2022-2031) applies to a set of Indeed, according to the “Study on
key operational players in the region: trends and outlook for marine pollution
ships, port reception facilities, terminals, from ships and activities as well as mari-
offshore facilities, handling facilities and time traffic and offshore activities in the
seaports. Mediterranean” (REMPEC, 2021a),
maritime traffic constitutes a real vector
Backed by the Strategy (2022-2031), an of marine pollution in the Mediterra-
Action Plan defines a series of specific nean basin (discharge of solid waste
actions necessary to achieve the seven and hydrocarbons, emission of particles
CSOs of the Strategy (2022-2031). These into the atmosphere, emission of
are broken down into actions on people, underwater noise, invasive species).
infrastructure and in the context of shar- This study defines five axes cor-
ing information and knowledge. responding to frameworks affecting
more particularly the Mediterranean
In particular, these actions support and correlated to the main subjects men-
encourage open and collaborative net- tioned.

2
Decision IG.25/16 Mediterranean Strategy for Pollution Prevention, Preparedness and Response
Marine from Ships (2022-2031) September 27, 2022, https://wedocs.unep.org/bitstream/handle/
20.500.11822/37138/21ig25_27_2516_eng.pdf?sequence=1

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 47

The increase in maritime traffic means kilometres in the atmosphere, contribu-


that there is a greater risk of pollution ting to the deterioration of air quality
caused by shipping. Although environ- on land, even if they are emitted at sea.
mental regulations are strict, notably They come mainly from ship exhaust.
under the MARPOL Convention (Inter-
national Convention for the Prevention With the increased mobility of people
of Pollution from Ships), polluting sub- and goods worldwide, the spread of in-
stances continue to be discharged into vasive species (NIS) has accelerated over
the sea. Shipping activities generate vari- the last decade with a growth rate of
ous chemical pollution pressures through 200% over ten years. The Mediterranean
the discharge of oil and other chemicals. Sea is one of the seas most affected by
Spills can occur in accidents, during rou- NIS, in terms of high rate of introduction,
tine operations, in ports, as well as at number of taxa recorded and duration
sea. They may be deliberate or acciden- of permanence (macrophytes, fish, mol-
tal, resulting from human decision mak- luscs, polychaetes, bryozoans and crus-
ing, human error or technical failure. taceans).

Marine litter is a regional issue, from its Changes in Mediterranean marine biodi-
origin to its spread in the marine en- versity linked to the introduction of NIS
vironment. It is estimated that more than have been reported in recent years,
90 million tonnes of plastics have ac- mainly linked to maritime transport, the
cumulated in the world’s oceans, with main route of introduction, mainly in bal-
an estimated 5 to 13 million tonnes last water or as fouling on ship hulls. NIS
added each year. In fact, marine debris impact both the environment, human
enters the seas from both land and mar- health and activities. For example, the
ine sources and about 60-80% of it is jellyfish Rhopilema nomadica has been
plastic. It has various potentially harmful reported to negatively affect coastal
implications for marine ecosystems and power generation facilities, as well as
human activities at sea. Every year, mil- impacting fisheries, human health, and
lions of species that live in the oceans tourism.
are weakened, maimed and killed by
marine litter. Marine litter also poses a Noise from human activities at sea
risk to human health and has significant travels long distances underwater, caus-
implications for human well-being, ing increases and changes in ocean noise
negatively impacting vital economic sec- levels. Increased noise levels can have a
tors such as tourism, fisheries, or aqua- negative impact on marine species and
culture. ecosystems that can reduce the ability
of species to hear environmental signals
Maritime transport is highly dependent that are vital to their survival, ranging
on fossil fuels. Approximately 3.5 million from temporary reductions in hearing
barrels of high-sulphur residual fuel oil sensitivity and behavioural effects to
(bunker fuel) per day were consumed by more dramatic effects such as death.
the sector in 2017, accounting for about
50% of global fuel oil demand. Most of Thus, the response to the environmental
these fuels have a high sulphur content, challenges in the Mediterranean physical
resulting in the emission of sulphur space with regard to transport is embo-
oxides into the atmosphere. Emissions died in the Strategy (2022-2031) and is
from ships are spread over hundreds of put into practice through an Action Plan
48 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

that is regularly revised and adapted to This specific issue has many health and
the contextual and environmental evol- environmental effects that need to be
ution of this space. addressed in a sustainable way. In the
vicinity of densely populated coasts, pol-
An Example of lutants from ships and particulate matter
(PM) from fuel combustion, including sul-
Implementation in Line phur oxides (SOx), cause serious dangers
with this Vision: the to human health and marine ecosystems.
Emissions from ships are transported di-
Designation of the rectly into the atmosphere over
Mediterranean as an hundreds of kilometres, causing deterio-
Emission Control Area for ration of air quality on land and at sea.
Sulphur Oxides (Med One of the effects of this pollution gen-
SOX ECA) erated during the combustion of marine
engines is the formation of SO4 aerosols
This vision for the Mediterranean makes interacting with other particulate matter
it possible to theorise and propose ap- (PM), which can penetrate deep into our
propriate measures to meet current chal- lungs as well as those of other living or-
lenges. This coordinated approach to ganisms leading to risks such as lung
propose a common approach is re- cancer, cardiovascular diseases or
flected in multiple decisions such as the asthma. In terms of the environment,
decision by the International Maritime this pollution contributes through wet
Organisation (IMO) in June 2022 to set and dry sulphate deposits to the acidifi-
up an emission control area for the Medi- cation of aquatic systems and general
terranean Sea for sulphur oxides and visibility through the appearance of fogs.
particles. This decision, which is part of World Health Organisation (WHO) re-
the strategy (2022-2031), represents a ports also indicate that air pollution
significant step towards a more sustain- levels in the Mediterranean are among
able maritime sector in terms of trans- the highest in the world, leading to an
port-related pollution and opens the way increased level of risk.
to new and more sustained environ-
mental prospects. Designate the Mediterranean
Sea as an Emission Control
From tangible health and Area (Med SOx ECA), within
environmental effects to a which specific requirements
coordinated air quality transition will be imposed (Dec. 2022)
in the transport sector
A solution being implemented to reduce
Among the issues previously identified the level of pollution and the effects men-
by the study on trends, air pollution has tioned above, within the framework of
been a major part of this year’s Medi- the general sustainable development ob-
terranean-related decisions and the jectives of the Strategy (2022-2031), is the
2025 agenda, due to the decision to dis- designation of an extended control area
cuss the adoption of a SOx reduction for the level of SOx, CAE and PM emitted,
zone at the next MEPC 79 in December where effective establishment and moni-
2022. toring measures can be implemented.

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 49

The Med SOx ECA, from its creation tent higher than 0.1% m/m and moni-
to effective practice toring will be applied on compliance
with this rule. The reduction in
The Med SOx ECA is the result of se- emissions is correlated with the need
veral years of coordinated work with for countries to implement this deci-
all relevant Mediterranean stake- sion, assisted by REMPEC, and for
holders. To understand its practical shipping companies and other key
implications, it is important to look at players in the Mediterranean industry
the construction of this specific re- to move towards sustainability with
gime. technological upgrades and cleaner
energy sources.
In February 2022, a joint and coor-
dinated proposal on the designation In terms of understanding its effective
of the Med SOx ECA was proposed implementation, as ship exhaust con-
to the IMO, followed by the approval tributes to global air and sea pollu-
of this proposal and a draft amend- tion, ships are facing an increasing
ment to MARPOL Annex IV on the number of rules and regulations, as
designation of the Med SOx ECA pro- well as voluntary remedies from inter-
posed at MEPC 78. This decision to national, national and local legislators.
bring into force the amendment to Some solutions have been proposed
regulation 14 of MARPOL Annex VI to improve air quality in coastal areas
was considered for approval in De- and ports. These include the estab-
cember 2022 at MEPC 79, with a lishment of reduced speed zones,
planned date of application of 1 Ja- emission control zones and the adap-
nuary 2023. tation of shore-side electrification
technologies for ships while at berth.
These developments follow several
years of progress and capacity build- The effects of these measures
ing to coordinate a collective deci-
sion. In particular, 2020 saw the entry In addition to the impact that this
into force of a new global regulation measure will have in terms of practical
limiting the sulphur content in fuel oil implementation of regulations and
used on board ships to 0.5%, which is adaptations required for ships, the
the IMO sulphur limit. It has resulted Med SOx ECA fits in with the objec-
in tangible global benefits, notably tives for the Strategy (2022-2031) in
the annual reduction of about 8.5 mil- a broader framework. Indeed, this im-
lion metric tonnes of sulphur oxides plementation allows a general im-
released into the atmosphere. Further provement of air quality and the pre-
results are now expected from the im- vention of several health and
plementation of the new limit. The environmental conditions.
idea is to reduce emissions by 79%
for sulphur oxides and 24% for par- In the technical and feasibility study
ticulate matter. conducted by REMPEC (REMPEC,
2021b), the conclusions highlighted
With a proposed entry into force of that the Med SOx ECA would improve
the Med SOx ECA on 1 January 2025, air quality with an annual reduction of
no ship entering the Mediterranean about 8.5 million tonnes of SOx dis-
Sea would use fuel with a sulphur con- charged into the atmosphere
50 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

(emissions 78.7% lower for SOx and duction of SOx and PM which we have
23.7% lower for PM2.5, compared to had the opportunity to develop in this
the IMO sulphur cap (0.5%)). In this paper. The reduction of emissions
sense it would prevent 1100 pre- from ships is correlated with the need
mature deaths related to air pollution for countries to implement the Med
and 2300 cases of childhood asthma SOx ECA regulation in a coordinated
each year. manner, including ship operations and
industry more broadly, to emphasise
It would also prevent acidification and a coordinated and practical collective
its impacts on aquatic systems transport transition with technological
through wet and dry sulphate deposi- upgrades and cleaner energy sources,
tion which would be reduced by leading to cleaner air and better
1.16% and 1.95% respectively. In human and natural health.
terms of identified risks to navigation,
it would allow a reduction in haze with Taking this sustainability approach to
improved visibility thus avoiding mari- cleaner shipping in the Mediterranean
time incidents and improving tourist further means considering the imple-
attractiveness. mentation of this vision for the Medi-
terranean and its follow-up. This is
Thus, the implementation of the Med made possible by the Action Plan at-
SOx ECA provides an effective tached to the strategy (2022-2031).
example of the implementation of the This Action Plan defines the specific
Strategy (2022-2031) by putting into measures to be implemented within
practice CSO 3: Reduce and monitor each CSO according to “zones of in-
atmospheric emissions from ships to fluence” (People, Institutions, Infra-
a level that is not harmful to the mar- structure; and Information and Knowl-
ine environment or the health of the edge Sharing) which are informed by
coastal population of the Mediterra- support objectives for each of the
nean. zones. These CSOs are progressively
oriented according to the results
Conclusion linked to the objective at the biennial
meeting in the first year of each bien-
In recent years, several coordinated nium. This allows for reporting and
initiatives have been launched in the evaluation of the progress made in
Mediterranean, which, thanks to the the implementation of the Strategy
collective mobilisation of key actors, (2022-2031). This is complemented by
will allow several theoretical advances a mid-term review and evaluation
to be implemented by 2031. These through regular monitoring in a con-
measures are contained in the devel- sultative process with the Contracting
opment of the Strategy (2022-2031) Parties to the Barcelona Convention
for the Mediterranean, which high- and relevant regional and inter-
lights the priorities for reducing pol- national organisations. At the end of
lution and its consequences in terms each five year period, the Strategy
of oil pollution, marine waste, invasive (2022-2031) and its Action Plan will
species, particularly from ballast be revised on the basis of an analysis
water, underwater noise and air pol- of the progress of its implementation
lution. This last point has also seen and the results of discussions on
progress this year concerning the re- emerging issues. In this sense, the cur-

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 51

rent vision for 2031 will be evaluated wards the common goal for present
in 2026 with a view to possibly adopt- and future generations of “a clean
ing a revised strategy in 2027. and healthy Mediterranean marine
and coastal environment with a sus-
The key to this transition towards a tainable and pollution-free maritime
more human and ecosystem friendly sector, supported by a strong enforce-
Mediterranean transport is thus em- ment system and enhanced multi-sec-
bodied in a strengthened inter- toral cooperation, for the benefit of pres-
partner action, in order to move to- ent and future generations”.
52 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

Bibliography
REMPEC (2021a). Study on trends and outlook of marine pollution from ships
and activities and of maritime traffic and offshore activities in the Mediterra-
nean. Mediterranean Action Plan – Regional Marine Pollution Emergency Re-
sponse Centre for the Mediterranean Sea (REMPEC). Floriana, Malta. Re-
trieved from https://www.rempec.org/en/knowledge-centre/online-catalogue
/studyontrends2022.pdf/@@download/file/StudyOnTrends2022.pdf

REMPEC (2021b). The technical and feasibility study for the designation of
Med SOx ECA. Note by the Secretariat. Mediterranean Action Plan – Regional
Marine Pollution Emergency Response Centre for the Mediterranean Sea
(REMPEC). Floriana, Malta. Retrieved from https://www.rempec.org/en/
knowledge-centre/online-catalogue/2019/rempec-wg-45-inf-9-technical-and-
feasibility-study-to-examine-the-possibility-of-designating-the-mediterranean-
sea-or-parts-thereof-as-sox-eca-s-under-marpol-annex-vi-english-only

REMPEC (2021c). Mediterranean Strategy for the Prevention, Preparedness


and Response to Marine Pollution from Ships (2022-2031). Decision IG.25/16
adopted by the Contracting Parties to the Barcelona Convention. Retrieved
from https://www.rempec.org/en/knowledge-centre/online-catalogue/
med-strategy-2022-2031-1.pdf

REMPEC (2021d). Draft joint and coordinated proposal on the designation of


the Med SOx ECA to the IMO. E-Med SOx ECA 2021 WG 50-5. Note by the
Secretariat. Mediterranean Action Plan – Regional Marine Pollution Emergency
Response Centre for the Mediterranean Sea (REMPEC). Floriana, Malta.
Retrieved from https://www.rempec.org/en/knowledge-centre/online-
catalogue/e-med-sox-eca-2021-wg-50-5-draft-joint-and-coordinated-proposal-
on-the-designation-of-the-med-sox-eca-to-the-imo.pdf

REMPEC (2019). Road Map for a Proposal for the Possible Designation of the
Mediterranean Sea, as a whole, as an Emission Control Area for Sulfur Oxides
Pursuant to MARPOL Annex VI, within the Framework of the Barcelona Con-
vention. Decision IG.24/8 adopted by the Contracting Parties to the Barcelona
Convention. Retrieved from https://www.rempec.org/en/knowledge-centre/
online-catalogue/decision-ig-24-8-road-map-for-the-med-sox-eca.pdf

Policy Study n. 7
Recent Developments and
Human Resource Needs in
Transport and Logistics in the
Western Mediterranean
Mustapha El Khayat
President of the Moroccan Association for
Logistics (AMLOG)
Mediterranean Transport and Logistics in a Post-COVID-19 Era: Prospects and Opportunities 55

Professions in the logistics chain in and friends. Every month, 200,000 sea-
Western Mediterranean countries went farers are rotated to ensure safe and
through very difficult times during the sustainable working standards. How-
COVID-19 crisis. The consequences of ever, 400,000 seafarers were blocked
the COVID-19 were the shutdown of on board ships for bureaucratic rea-
global value chains, reduced traffic and sons, thus threatening the collapse of
the closure of several global produc- vital supply chains. Other seafarers
tion plants, ports and airports. How- could not be employed because they
ever, essential flows by sea and road were unable to embark. The Inter-
were maintained in an uncertain and national Maritime Organisation (IMO),
risk-ridden environment. the International Labour Organisation
(ILO), the Federation of National As-
And yet, right after the lockdowns sociations of Ship Brokers and Agents
were lifted, the structural vulnerability (FONASBA) and other entities tried to
of various professions in the logistics persuade member states to find solu-
value chain became evident: bank- tions for these thousands of seafarers
ruptcy of small road hauliers, changes of various nationalities (e.g. Philippine,
in attitudes towards the professions of Chinese, nationals of Central and East-
lorry driver, seafarer and logistics oper- ern European countries).
ator, and structural shortages of lorry
drivers, logistics operators and sea- Social situation of seafarers in Europe
farers in the countries on the northern Despite the crisis, the weight of the
shore of the Mediterranean. Can these maritime sector continues to be impor-
structural problems be solved with la- tant in the EU. The ILO Maritime Labour
bour from the southern shore of the Convention of 2006 (MLC 2006) mainly
Mediterranean? If so, how? It must be sets the standards at international level.
emphasized that the solution to the It complements the regulatory frame-
current human resources crisis in logis- work on maritime safety adopted by the
tics transport must naturally respect IMO through the International Conven-
environmental requirements, while at tion for the Safety of Life at Sea
the same time mastering new tech- (SOLAS), the International Convention
nologies such as automation, digitalisa- on Standards of Training, Certification
tion, and artificial intelligence. and Watch Keeping for Seafarers
(STCW) and the International Conven-
The Situation of tion for the Prevention of Pollution from
Ships (MARPOL). The MLC was trans-
Professions in the posed into European legislation, in par-
Logistics Chain on both ticular by Council Directive 2009/13/EC,
and entered in force on 20 August 2013.
Shores of the Western It establishes a minimum set of stan-
Mediterranean dards that paves the way to better pro-
tection for seafarers in terms of living
Maritime transport and working conditions, fair employ-
ment and social protection (e.g. social
Social conditions of seafarers during security, pensions).
the COVID-19
Seafarers were trapped aboard iso- However, current maritime transport
lated boats and separated from family policy favours economic agents, es-
56 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

pecially at social level. We should re- cioeconomic reasons, including the de-
member that 40% of the world fleet is cline of fleets in the Maghreb coun-
owned by European shipowners. How- tries. Indeed, the number of seafarers
ever, only 40% of their employees is limited due to the discontinuation or
come from member states. Shipowners decline of national fleets. Traditional
rely mostly on seafarers from outside training institutes are blocked by the
the European Union. lack of training ships to recruit young
cadets on board national fleets. Cadets
It is common for seafarers to be em- entering the labour market are forced
ployed by third countries at a lower to embark on ships under flags of con-
rate, even on board ships flying the venience.
flag of an EU member state. The Euro-
pean maritime labour market is also Road cargo transport
characterized by the aging of its na-
tional professionals. Nevertheless, the Situation in the countries on the north-
countries on the northern shore of the ern shore of the Mediterranean
Mediterranean continue to offer high- In terms of road transport, despite the
level training in a number of maritime European Commission’s regulations
training institutes and schools. In addi- and intervention, the COVID-19 has
tion, the EU member states remain had a major impact on a vulnerable
committed to the concept of a “stra- sector and highlighted the shortcom-
tegic fleet”. ings of the European road transport
policy. Social dumping destabilises the
The challenge involves striking a bal- road transport market: European com-
ance between the necessary competi- panies use loopholes in European
tiveness and the need to create more regulations to set up subsidiaries in
skilled and highly skilled jobs for Euro- Central European countries and em-
pean seafarers. The European Com- ploy drivers from these countries for
mission announced in 2018 the launch European traffic outside their countries
of the Skillsea Project, which started in of origin under working conditions that
2019 and will run for a period of four do not even respect minimum legal
years, as part of a consortium of 27 or- requirements. The 2020 Mobility Pack-
ganisations from 16 European coun- age certainly aims to bring some order
tries. The aim of this project is to unify to this socially unregulated European
the various stakeholders of the Euro- area. It remains to be seen where the
pean maritime industry in order to human resources will come from to en-
monitor the structural changes the in- force this new regulation against social
dustry is going through. This project dumping. This social inconsistency in
consists of six work packages (WP), the the European road transport and the
first of which are on identifying qualifi- recent attempt at regulation conceal a
cation needs (WP 1) and preparing structural element: the shortage of
education and training for the future drivers (ageing population).
(WP 2).
Road cargo transport is a sector that
Seafarers on the southern shore of the has difficulty recruiting staff. The pro-
Mediterranean fession now has a bad image, is no
In the countries on the southern shore, longer attractive in terms of wages,
the problems are different for many so- working conditions or job security. In

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 57

addition, many professionals have left Logistics professions


the sector due to the COVID-19. Ac-
cording to the International Road It should be noted that a large propor-
Transport Union (IRU), “400,000 new tion of the resources and means in the
drivers are needed to ensure oper- supply chain is concentrated on time-
ations of the transport system and consuming tasks with little added value.
goods supply in the European area” Warehouse and retail jobs are often very
(Perrodou, 2021). The road transport physical (carrying loads, long distances)
sector is therefore suffering from a and particularly prone to musculoskel-
structural recruitment crisis that is ex- etal disorders. These positions have in-
pected to worsen in the future due to creased considerably with digitalisation
an unfavourable age pyramid. (e-commerce) and the steady rise in the
number of references, distribution chan-
Situation in the countries on the south- nels and formats. The application of
ern shore of the Mediterranean technology (mainly automation) can
The Maghreb countries suffer from a compensate for staff shortages. There-
shortage of qualified and experienced fore, those involved in heavy and repeti-
professional drivers. A transition phase tive logistical tasks are partially or fully
is currently under way, designed to exempted from these tasks and can be
possibly cover these needs, but there reassigned to development, mainten-
is still the issue of training (insufficient ance or even piloting activities. Technol-
number of training hours and lack of ogy enables migration from a
practical classes). There is definitely a traditional, manual organisation to a
lack of well-trained drivers. Many avail- mechanized, robotic one. This makes it
able drivers are not hired because of necessary to recruit new profiles on a
their inability to perform the tasks of par with these innovations. Employees
professional drivers (e.g. vehicle man- should also receive regular training in
agement, safeguarding goods, cus- these rapidly evolving technologies. As
tomer relations). Transport companies is often the case, the hard part is not the
hesitate to hire them for fear of en- technology. It is ensuring that the organ-
trusting an expensive truck to incom- isation is able to adapt to change. De-
petent drivers, not to mention the spite these innovations, there are still
issue of road safety. At present, a ca- labour shortages on the northern shore
reer as a professional driver does not of the Mediterranean.
seem very attractive and the only pro-
fessionals on the market demand very Generational Change and
high salaries. Most qualified drivers do
not have a stable contract and move the Search for Skilled,
from one haulier to another, which Mobile Personnel
leads to uncontrolled increases in wage
costs. Despite this, thousands of young The generational change in the labour
people looking for employment are market and transport-logistics com-
tempted by this profession. Many of panies is evident and irreversible. In an
them have received theoretical training ageing society like Europe, which wants
to pass the test to obtain a licence to to stay dynamic, the focus is on the
drive a heavy goods vehicle (HGV) but problems of hiring young workers, as
have not been trained on the ground well as employee retention and the pro-
by the profession or training institutes. duction skills of relatively older workers.
58 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

This requirement is naturally reinforced form of migration in which people re-


by the demographic ageing of the work- peatedly move back and forth be-
ing population (workers over 50). tween two or more countries” (IOM,
2019). However, implementation of
The professions of driver, logistics oper- this circular migration approach is cur-
ator, and seafarer must therefore be rently severely limited by the devel-
able to attract as many young people as opment of a discourse that places the
possible, despite their limitations. How- struggle against irregular migration at
ever, for true generational change to the heart of EU migration policies.
take place in these professions, struc- However, there are a number of pro-
tural measures must be adopted that grammes and initiatives to encourage
lead to better working conditions and a both regional and national labour mi-
better quality of life for the parties in- gration. Firstly, at regional level, the
volved. New technologies could cer- European Blue Card scheme is a har-
tainly encourage some young monized, fast-track procedure for ob-
Europeans to choose these professions, taining a residence permit valid
provided that the social environment is throughout the European Union by
favourable. However, Europe’s demo- any non-European professional who
graphic structure will make it necessary accepts a highly qualified post in an
to rely on young people from the south- EU member state (except Denmark
ern shore of the Mediterranean. and Ireland). At the same time, some
EU countries have set up national
The transport-logistics sector requires mechanisms to encourage labour mi-
relatively young profiles physically pre- gration from the Balkans and South-
pared for these demanding professions ern Mediterranean countries. In this
and able to quickly assimilate new tech- context, the concept of circular mi-
nologies. Unfortunately, ageing is struc- gration is of interest, as it reconciles
tural in the countries on the northern economic imperatives and public con-
shore of the Mediterranean. The demo- cerns about migration policy.
graphic structure of the two shores of the
Mediterranean clearly shows that ageing This Euro-Mediterranean movement
on the northern shore will be offset by is not defined in terms of time and
the youth of the southern shore. Using can take the form of seasonal migra-
these human resources in the South tions (of less than one year) or longer
could make it unnecessary to hire drivers stays in a country. However, circular
from countries as far away as India. migration is by definition temporary
migration and involves migrants re-
Towards a Smart Circular turning to their country of origin.
Migration Policy A number of improvements could be
Supported by Innovative made to circular migration schemes
to make them more attractive to all
Vocational Training stakeholders. Longer periods of resi-
dence and/or repeated migration of
For smart circular migration the same person should be permitted
so that road hauliers, maritime car-
The International Organisation for Mi- riers and logistics service providers
gration defines circular migration as “a can retain their temporary workers for

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 59

an extended period of time. This taken into account in order to create


would help these employers recoup innovative training that corresponds
the cost of recruiting and training for- to highly evolving areas.
eign workers, while providing greater
security and stability for migrants. It would be necessary to define the
circular migration policy specific to
Cooperation in the area of skills vali- the logistics transport sector in order
dation will need to be strengthened. to identify training needs. This train-
Mobility in the Mediterranean basin ing policy should be consistent with
is, in fact, currently held back by the all EU projects, such as Skillsea, Log-
lack of regional frameworks for skills isMed-TA, and the ILO Guiding Prin-
recognition, which would allow ciples (guidelines) on promoting
workers in the logistics transport sec- decent work and road safety in the
tor to join different labour markets road transport sector. Finally, the cre-
and employers to benefit from a ation of an institution to manage
larger pool of potential candidates. these formations appears to be es-
Bilateral agreements on mutual rec- sential.
ognition of qualifications could there-
fore be another starting point for For example, a good idea would be
further harmonization of national the creation of a Euro-Mediterranean
qualification frameworks in the supply training centre for transport and lo-
chain. Interconnected migration and gistics in a country that is advanced in
training policies will encourage young this field and has a variety of voca-
people from the southern shore of tional training centres and institutes
the Mediterranean to participate in specialising in all logistics and trans-
mobility initiatives between the coun- port activities. The need for profes-
tries on both sides of the Mediterra- sional trainers could be considered in
nean and, in general, more effective light of the needs identified on the
mobility of workers within the entire northern shore of the Mediterranean.
area. Validation of diplomas, certificates,
etc., would be similar to the method
Innovative training: project used in Europe. This centre could
for the creation of a Euro- work as a network. Although the issue
of networks is complex, it could be
Mediterranean training clarified by specifying the role of the
network in logistics transport centre.

Circular migration in transport and lo- There are many anticipated network
gistics requires a carefully selected, effects on training. The creation of a
well-trained labour pool. A common Euro-Mediterranean transport and lo-
training policy would be thus indis- gistics training centre, around which
pensable. The studies and work car- other specialised training units would
ried out by the Centre for Transport be set up, would require a suitable or-
Studies for the Western Mediterra- ganisation with a light, flexible struc-
nean (CETMO), the Union for the ture. This structure could benefit from
Mediterranean (UfM), the European Europe’s irrefutable contribution in
Commission (EC), and the European terms of teaching methods, equip-
Investment Bank (EIB) should be ment, and trainers.
60 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

Conclusion shore of the Mediterranean logistics


chain can potentially be met by the
This project may seem utopian to some, countries on the southern shore. Mobi-
but it forms part of the desire to build a lising them calls for a smart, circular mi-
Euro-Mediterranean area of peace with gration policy based on innovative
human capital at its basis. The needs in training that includes digitalisation,
terms of human resource of the northern automation, and artificial intelligence.

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 61

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Policy Study n. 7
CONCLUSIONS
Centre for Transportation Studies for the
Western Mediterranean (CETMO)
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 65

In
The collection of contributions pres- opportunities and the shared effort
ented above shows the state and to confront them. S
trends of transport and logistics in c
the Mediterranean at a time of
multiple changes and offers interest- A Time of Disruption e
ing proposals to take advantage of and Change
the existing opportunities. As a con- A
sequence of multiple disruptions and Considering intra-Mediterranean mari-
e
transformations since the COVID-19 time connections, these are currently
pandemic, important processes of immersed in a process of transforma- d
change have been initiated or inten- tion towards a more ecologically and
sified in global transport, produc- economically efficient model that d
tion, and consumption systems. allows for greater competition with
Moreover, new challenges arising road transport and, therefore, greater
o
from major geopolitical tensions sustainability of the transport system o
have emerged, not to mention the as a whole. This transformation refers
increasingly urgent need to act on both to the reduction of polluting fo
climate change. It can be asserted emissions, the transition towards new
that the current moment appears as energies, and greater multimodal in- fe
a point of no return of a structural tegration. These transformations ap- A
transformation in which the decisions pear to be the premises on which a
and strategies that are adopted will new model of maritime relations in d
mark and define both the organisa- the Mediterranean should be based,
tion of transport and logistics in the allowing for greater integration of in
Mediterranean in the medium and trade and production systems on
a
long term and the capacity of the re- both shores.
gion to emerge strengthened and in- fe
tegrated in the face of this disruptive This transformation in maritime con-
moment that is being experienced. nectivity in the Mediterranean cannot
be separated from other disruptive
A comprehensive reading of the ar- processes that have occurred and are
ticles in this volume corroborates the occurring in the field of maritime o
idea that we are at an important transport on a global scale. While the fo
turning point and exposes possible global transport system was able to b
strategies, measures or lines of ac- provide an exemplary service at the
bu
tion for the Mediterranean countries height of the COVID-19 pandemic, in
an
to successfully face the current chal- the recovery process that followed, a
lenges. From the joint consideration number of factors disrupted the logis-
of these measures, a strong idea tics chains that had underpinned the
emerges: the need for cooperation globalisation process until then. The
and collaboration between the many increase in freight costs to unpreced-
different actors in the Mediterra- ented levels and a decrease in the re-
nean, which is fundamental for the liability of maritime services are the
development and exploitation of the most notable consequences of this al-
opportunities that arise. Therefore, it teration, which have forced a process
is necessary to highlight the inte- of adaptation on the part of the ac-
grated vision at the Mediterranean tors involved in them. This adaptation
level of the different challenges and includes changes in production and
66 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

supply patterns in the sense of relo- covery process have only accentuated.
cating and diversifying the origin of the This crisis refers both to the problems
components of the production chains, of the working conditions of seafarers,
the internalisation of the control of lo- the shortage of trained professionals
gistics services or the change in the and the lack of generational renewal of
management of stocks. These trans- the workforce and, therefore, its
formations are fundamentally aimed at ageing.
increasing the resilience of supply
chains in the face of foreseeable dis- The challenges posed undoubtedly
ruptions in the logistics chain. It is pre- require sectoral solutions, but the high
cisely this restructuring of supply degree of interrelation between them
chains that should be considered a his- cannot be overlooked, especially the
toric opportunity for the Mediterra- proposed adaptation actions.
nean.
Shared Proposals for
This transformation of global supply
chains and maritime connectivity pat- Dealing with Change
terns finds a new element of change
when the environmental variable is While the current situation un-
taken into consideration. The logistics doubtedly involves profound trans-
sector is already immersed in a set of formations in the field of transport and
actions aimed at limiting its harmful ef- logistics, the challenges arising from
fects on the environment. Their full im- these transformations also present op-
plementation together with the portunities. Overcoming these chal-
adoption of future measures already lenges requires determined and
envisaged will have a considerable im- ambitious action by a wide range of ac-
pact on current operational patterns. tors, but also, and above all, coordina-
tion and collaboration between them.
Another historic decision is the imple-
mentation of the African Continental The opportunity outlined for diversifi-
Free Trade Area, which is an opportun- cation and regionalisation of supply
ity for North Africa, and thus for the chains to make them more resilient
Mediterranean region as a whole. The would imply increasing productive in-
effective implementation and devel- tegration between the European Union
opment of this free trade space should and the countries of North Africa,
help North African countries to extend which in turn would need to improve
their supply chains, strengthen their hi- the efficiency of intra-Mediterranean
therto weak regional integration, posi- exchanges by improving the economic
tion themselves in global value chains and environmental efficiency of mari-
for goods and services, and ultimately time and land transport. This improve-
promote private sector modernisation. ment in economic and environmental
efficiency must result from measures
Finally, another potentially disruptive such as the promotion of motorways of
factor is the situation of the transport the sea or the effective consideration
and logistics labour market in the of the external costs of road transport.
Mediterranean. This sector is affected These activities require public action,
by a structural crisis that the effects of but also the collaboration of private ac-
COVID-19 and the subsequent re- tors and especially the involvement of

Policy Study n. 7
Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector 67

maritime and rail actors in the creation tics labour market in both the southern
of new chains that are more economi- and northern shore countries.
cally and environmentally efficient.
Integrated Rather than
Along the same lines of promoting
trade integration, especially that of the Isolated Proposals
North African countries, the creation of
the African Continental Free Trade This variety of proposals should not be
Area appears to be a noteworthy op- seen as a set of isolated and individual
portunity. However, taking advantage measures, but rather they should be
of this potential opportunity requires viewed together and the multiple inter-
the modernisation of North African sections between them should be
countries’ economic structures, which pointed out.
in turn will require not only the involve-
ment of the productive sectors of these Perhaps the clearest example is how the
countries, but also coordination be- environmental element is integral to
tween different international actors in- various areas of transport and logistics
volved in regional development. improvement. If the sustainability of the
transport system can be considered as
It becomes evident that collaboration, an objective in itself, with the improve-
in this case, between customs offices is ments brought to the environment,
once again the basis for facilitating health and the mitigation of climate
intra-Mediterranean trade. Such col- change, it is no less true that it is config-
laboration must serve to harmonise ured as a central element in the effi-
and reduce procedures linked to the ciency and modernisation of both future
import/export of goods and enable the supply chains and production systems.
opportunities offered by the digital Moreover, the possibilities that the cur-
transformation to be fully exploited. rent scenario offers for true trade inte-
gration in the Mediterranean rest on
Similarly, the definition of joint strat- these two elements, supply chains and
egies in the maritime field is an essen- production systems.
tial element for progress towards the
sustainability of maritime transport in Digital transformation is other measure
the Mediterranean Sea and, therefore, that should be noted for its cross-cutting
coordination between countries to im- nature. It is not only a question of digi-
prove the environmental aspects of tising the data exchange processes
shipping. linked to flows, but this transformation
also encompasses aspects as diverse as
Finally, the creation of a common train- the content of training for transport pro-
ing structure for transport and logistics, fessionals, improving the energy effi-
as well as the facilitation of the con- ciency, and therefore the environmental
ditions of movement of workers be- efficiency, of land and maritime vehicle
tween the EU and the countries on the fleets or the productivity base of econ-
southern shore of the Mediterranean omic sectors aimed at sustaining greater
also requires collaboration and agree- regional and global integration of the
ment between countries. These actions Mediterranean. And in the case of such
are proposed to overcome the different integration, beyond trade facilitation
crises affecting the transport and logis- measures, efficient transport and logis-
68 Towards Enhanced Connectivity and Sustainability in the Mediterranean Transport and Logistics Sector

tics systems, modernisation of economic an integrated, efficient and sustainable


sectors and training and mobility of pro- Mediterranean entails a wide range of
fessionals appropriate to the multiple decisions that require the shared as-
challenges that arise are necessary. sumption of challenges and opportun-
ities. In other words, dialogue,
Conclusion coordination, cooperation and multilat-
eralism between different actors,
The different contributions in this vol- whether state, regional or international,
ume highlight the uniqueness of the mo- public or private, on both shores of the
ment, in which different crises or Mediterranean are necessary if the pres-
disruptions pose multiple challenges ent disruptive moment is to be success-
and diverse opportunities. The vision of fully faced.

Policy Study n. 7
IEMed.
Policy Study

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