Short Cut in Trade for Eastern Europe

 

Preface: I had the opportunity last month to observe the various logistics facilities around Port of Trieste, invited by FVG: Friuli-Venezia-Guila, Italy. With visiting several Ports, intermodal systems, Logistics centers & Transportation carriers, the Chamber of Commerce have also organized joint seminar for topics about newly introduced Trieste Port and merits of short cut way on logistics route to Europe.  I will look into the details and find somewhat this new route has been raised up to logistic issue, for 2 times through this special column.  

( reported by M. S. Chung, senior correspondent, KLN)

 

 

 

       As conducted historical trace on European logistics, when Austrian Hapsburg dominated southern part of Europe in 14th century, there was logistics route to Mediterranean Sea.  Now, it will bring back the dream of renaissance on logistics at same manner. Because of current European environment, the scope of Europe rapidly has transformed to the no longer mere continent of English/French/German (so called Western Europe). While it has tremendously expended to the direction of East, around 20 new countries has been joined and composed new European territory. Furthermore, newly joined countries have been encouraged in economic trend under EU community. The capitalism penetrated to those new countries induces abundant of buying desire for overseas products and thus will be good markets in global trade. Even for Korea, it is obvious those are good partners in importing Korean goods, too.  

 Outstanding Geographical Location of Trieste Port

  So far we believed the Italian peninsula looks like the long boot and was known, in common sense, Rome located in the middle of the peninsula and Milano at northern of Italy. But we have to go further up and turn right, passing Venetia, to the end of Adrian coast where the rich European used to spend the summer vacation. There is Trieste Port at the corner of the coast met Slovenia. When we look at the current Euro map we will acknowledge Trieste Port curiously placed at center of new European territory. 

 As mentioned above, Trieste Port was main port and 4th in size for Austria- Hungary regime ruled during the period of 1382 through 1918. After 1st world war, Trieste became to Italian. Supposing that Italy tried to capture port of Trieste, it might be referred to foreseeing capability of Italian insight whether Europe would be expanded and adequate logistics route could be essential factor in future. In 21st century, shall Italian forecast realize again newly booming logistics way through Trieste Port for global trade? 

 

 

 Port Trieste innovating base of historic port sphere  

Trieste Port developed by Hapsburg Regime since 1719, focusing on functional convenience in trade revolutionary introduced of Tax Free port system. Even Italian government took over her heritage by law and proceeded continuous investment to the port. In past history, Trieste actively transacted in-out trading by port facility laid on 600 thousand square meter space for loading/unloading, warehousing & material handling. Recent Trieste Port has being innovated for the modernized facility to handle big sized international container ship as well as Ro-Ro shipping system, especially aimed for Turkey, Greece & Albania. Apart from this port facility, Trieste has also pipeline for carrying fuel between Germany, Austria & Czech, along with separate terminal for Cruise Vessel. 

 In traditional way, Trieste is doing the specific role for “Logistics Route for supplying commodity to be used in routine life”, for instance, fruit, vegetable, grain, coffees and etc that moved from neighbor countries in central European area. In order to facilitate handling process which landed huge amount of freights by container ships, FVG is planning to establish “Distripark Project”, and asking governmental support in financing. If this project completed, total capacity will be double than present level within coming 50 years, enabling to cover 2,000,000 TEU.  

 Seamless cooperation in promotion between Government and Civilian  

It is a challenge for Trieste Port how to compete with Rotterdam, Antwerp & Hamburg port in terms of capacity, facility and updated system of Freight handling procedure. In advance, related Associations (Ocean, Freight forwarders, Truckers and Transportation company) and civilian companies (leading by T.O. Delta) took initiatives on promotion and advertising how Trieste Port granted the merit in logistics for eastern EU countries. They believe Trieste port is only Gateway port to provide fastest short cut in logistics route for Central/Eastern EU area. This integrated power is enough to convince overseas shippers and logistics providers. On occasion that the chamber of commerce organized seminar, all participants demonstrated how Trieste port and affiliated intermodal transportation provide smooth logistic flow for trading goods. They insist Trieste port is ready to handle any volume of Incoming goods and any transferring shipments to 3rd party countries. At the Seminar, all affiliated companies gave the speech overseas reporters by addressing of various merits on Trieste route. After seminar, all participants started to see facilities, systems and had Q/A session. The speech contained not only the core competence of Trieste but also intermodal capability to move goods into EU continental after freight landed at Trieste Port. Their united passion to promote a new route through Trieste Port will certainly achieve the goal in global trading world.  

 

Interview with Capt. Fabrizio Zerbini

Managing Director, Trieste Marine Terminal SpA  

 

“ I am confident Trieste Port will be central gateway for Europe in future.”

  

  He was full of passion on his face to generate the growth of Trieste Port. I had interviewed him during port observation tour and later continued some talks at invited dinner table. (M.S.Chung)

Question: What is the typical merit of Trieste port ?  

 

 Answer: In brief, the location is geographically placed at center of expanded Europe. It is important cross road between Western Europe and Eastern Europe. Trieste route can save voyage time less 5 days at minimum from Asia to Europe.  

 Q: However, what about beyond geographical merit?  

 A: The Trieste Port has divided functionally with container loading port and common bulky freights loading port. We have also container yard for CFS. For carrying containers to be connected inland, we prepared well made railway intermodal system, as well as trucking system connected road networks. Necessary facility and procedure for international trade has been perfectly prepared, and with offering Tax free system.  

 Q: What is specific advantage of operation on freight handling?  

 A: First of all, Port accessibility is superior. Because Port depth is almost 18 meter, any big vessel can approach to the pier and landed without using any barge ship. At wharf side 6 gantry cranes are working and in plan additional 4 cranes will be set up soon.  

 Q: How often regular ship operated from Asian origin?  

 A: The volume is not much at present. Once a week operated regularly, but Maersk, Evergreen , Hanjin are coming irregularly. For enhancing lines operation, sooner or later, ZIM line, Maersk, Evergreen will operate regularly from China to Trieste.  

 Q: Which cities in Europe does your Trieste handling get the comparative advantage than others? 

 A: Within 700km around Trieste port, all cities such as Prague, Budapest, Stuttgart and Zagreb will get advantage. To connect any cities in middle of Europe, railway system is in action by 100 trains weekly base leaving from the pier 7, Trieste port.  

 Q: Does Railroad connect with Russia?  

 A: The railway has been connected to Kiev, Ukraine. To send the freight for Russia by railway, it is required to transfer at intermediate station due to different width of rail track. It is not easy to simplify rail width. Not only changing rail width, but related system and facility involved.  

 Q: Which transportation mode is recommended to forward freights for Russia?  

 A: .At first, the Russia bound freight should be stayed at ware house located at the border and forwarded by 6 Italian trucking companies. In connection, the warehouse fee is very cheap by governmental support.  

 Q: Do you expect any difficulty on trucking transportation?  

 A: No difficulty. Transferring and Forwarding are always available by trucking transportation, except Saturday afternoon and Sunday.  

 Q: I heard that labor Union of Trieste port is very strong..?  

 A: It is really true. However, since I joined this Port for 5 years, no strike happened at all. I am positively talking with Union leaders to solve any problem. We reach conclusion mutually that helping volume growth and fast moving is essential at first for improving employee’s welfare and salary up, eventually concluded keeping peaceful working condition & no dispute.  

 Q: Would you explain working environment of Trieste port ?  

 A: Working standard of Port has been changed on 2005. We are working 24 hours, whole year, Exceptional only 3 holidays (Christmas, Labor and Ending war memorial day). Fundamentally, No holiday and rest on working. In Trieste port, 150 full time and 80 part time employees are working.  

 Q: How is current freight volume?  

 A: Quarterly base, we are handling 10 million tonnages. Due to economic slump worldwide total volume has been reduced 15% than last year. However the performance this year shows higher than that of 2007. Since 2002, the volume has been increased every year with more than 20% increase. Especially on 2007, the performance increased 26% than 2006. By monthly basis, 20~25 thousand TEU handled on our hand.  

 Q: What is main reason for the growth of volume?  

 A: By mouth to mouth and marketing effort, our qualified service level has become widely spread out. We are offering customized service by one to one base.  

 Q: .What are successful elements on your career?  

 A:  Since I was young, I have been grown with experiences on ocean and ship and overseas education. While I was the captain for big ship, I have interested at innovation of shipping work. I am always positively to challenge and confront it when any problem happened on my way.  

 Q: How do you expect next year business plan?  

 A: I forecast to increase volume plan with more than 10%.

 

 

 

 

 

 

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