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Transport and Logistics

Stimulating railways and pipelines

Located at the very crossroads of Europe, Belgium has a duty to develop its transport and logistic activities to add the most value. But, through time, transit problems on our road network have increased day after day. With the European Union, Belgian authorities have put into place initiatives to promote the crossover from road travel towards the other transportation methods. Thus, it is imperative that transport by rail and pipeline be encouraged as an alternatives to roadways.

Context

Transport by rail

At the beginning of the Nineties, the European Union took measures to open the rail transport market to competition. Several directives were adopted to guarantee the separation and transparency of rail business activities and to guarantee conditions that allow equal access to an efficient European network.

In 2001, the White Paper on "European Transport Policy for 2010: time to decide" proposed a series of concrete measures to balance and revitalise different modes of transport, including the railways. In addition, three "rail packages" were adopted. Their objective is to complete the process of liberalisation in national and international rail transport.

The first of these rail packages (2001) foresees the opening to competition of 80% of the European network for the international transport of goods and the restructuring of national rail businesses to divide infrastructure management from service provision. In Belgium, the implementation of this first package in 2005 resulted in the separation of the NMBS/SNCB into three distinct public companies: the NMBS/SNCB Holding Company, the NMBS/SNCB (the network operator) and Infrabel (the network administrator).

The second rail package (2004) foresaw the extension of the opening of the rail freight market. Since 2006, a directive has completely opened the market to international freight throughout entire European network.

The third rail package contains a proposal of a directive on certifying locomotive conductors.

Transport by pipelines

Pipelines offer solutions to transport problems and constitute a durable, reliable means of transport that causes little pollution. One big benefit of pipelines is that they generate practically no negative external impact. When all means of transport are considered, pipelines are least likely to cause waste, noise, traffic congestion, overuse of space and, as a result, visual pollution. Furthermore, transport by pipelines can be considered to be more reliable when compared to road and rail transport. This constitutes a major advantage in transporting dangerous goods.

A more extensive network of pipelines can therefore offer valuable solutions in terms of transport, respect for the environment and safety. Despite all the benefits they offer, pipelines are however not recognized by authorities as a means of transport in their full right.

Importance for chemistry and life sciences industries

In a more and more globalised market, competitiveness is an essential factor for the future of the chemical industry. At the moment, traffic congestion imposes a rising burden, taking a toll on the competitiveness of our business. Transport is an essential element in the logistics chain with transport expenses accounting for an estimated 8% to10% of turnover in the chemical business, and indeed more for certain basic chemical products.

Our sector produces a substantial volume of highly diversified products that are currently transported for the most part by road to customers. The chemical and life sciences industry contributes to traffic congestion – but also experiences increased costs due to delays in deliveries. The solution to this problem lies in alternative possibilities for transporting goods: pipelines, rail and internal navigation.

Sector’s position

essenscia desires speedy and effective liberalisation of the rail freight market and, with this in mind, asks that European directives on this matter be transposed in an effective and correct manner by all Member States. An open market will mean lower costs, better quality and increased demand.

By contrast to road, sea and rail transport, pipelines are more respectful of the environment than traditional methods of transportation. Pipelines must be integrated as a practical alternative in transport policy.

A good pipeline network would have the advantage of stimulating investment and consolidating the « anchoring » of businesses in our country. Additionally, a well-developed network of pipelines guarantees the energy supply of businesses linked to it – as well as the country itself – and allows these businesses to optimise capacity utilisation.

Recommendations

Transport by rail

To meet the demands of the chemical industry regarding costs and service, rail transport of goods must be revitalised. This revitalisation should happen through:

Competitive and unfettered access to the rail network for all rail operators;
Homogenisation of European networks according to technical and organisational models;
Greater priority placed on transport of goods by rail, which is marginalised today in relationship to passenger transport;
Improvement in the quality of service offered by rail operators;
Supplementary investment in infrastructure for multi-modal transport (transport that borrows from various different methods of transport) as well as investment in additional rail infrastructure, notably the creation of a second rail link from the Antwerp harbour, the “Iron Rhine” (a freight railway connecting the port of Antwerp in Belgium to Mönchengladbach in Germany) and the "Liefkenshoekspoortunnel";
More effective organisation of the transport of goods through the Antwerp port, if needed under direct management by the harbour.

Transport by pipeline

essenscia requests authorities’ integration of pipeline transport as well as all « underground » transport in general in transport policies. In practical terms, this involves:

A zoning plan that includes dedicated areas, adequate technical and security provisions, proper legislation for the installation and registration of conduits, knowledge management as well as administrative and financial support, and a framework for cooperation and coordination between the private and public sectors.
More efficient authorisation procedures, the creation of one department including a technical proficiency centre that brings together all decision-making bodies involved in construction at the federal level, in cooperation with the Regions ;
New regulations regarding the cost of displacing pipelines;
Effective support by authorities for pertinent, innovative projects. A public-private partnership could offer a solution for projects involving high costs and high risks.

Meanwhile, we need an integrated and coherent policy at the European level. A harmonisation of regulations concerning pipelines should make interoperability and standardisation a reality. An integrated European network of pipelines must be established for the transport of the most common raw material in the petrochemical industry.

Contact :
Laurence Baudesson, lbaudesson@essenscia.be , tel. 02 238 97 53.

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