LOGISTCS IS BRIDGING GLOBAL TRADE Ing Frantiek KOMORA

LOGISTCS IS BRIDGING GLOBAL TRADE Ing. František KOMORA PKZ Logistics

POSITION OF THE FF & LOGISTICS OPERATOR Transport and warehousing is historically inseparable part of the international trade. Numerous historical sources indicate, that just traders was discoverers of new geografical locations, transported gooods to the customers and back the sales. In the modern trade, traders are oriented mainly on long distance negotiation rather than goods handling. Globalisation and international cooperation have caused that international logistic services are now the not only part of the trade, but also part of production.

DUAL CARRIAGEWAY BRIDGE Money transfer ( Banking system ) The same value, BUYER SELLER DIFFERENT Conditions, Complexity, Rights, Responsibility and RISKS Supply of the goods ( logistic, forwarding, transport companies and customs agents )

POSITION OF THE F. F. & LOGISTICS OPERATOR WE CAN USE TERM BRIDGE FOR LOGISTICS AS A BRIDGE BETWEEN BUYER AND SELLER. BUT THE BRIDGE NEEDS STABILITY.

WHY EUROPE NEEDS STABILE „BRIDGE“?

EU BALLANCE OF TRADE EU Trade ballance Saudi Arabia Europe has to be Thailand competitive to pay 36, 64 for Oil, Gas, Steel, Iraq 20, 82 Kazakhstan Raw materials and various vital goods 19, 36 Japan 16, 77 purchased on the Malaysia GLOBAL MARKETBangladesh 14, 915 Mexico 14, 128 Norway -14, 564 13, 95 Vietnam -23, 732 USA UAE Switzerland Australia Hong Kong Egypt 115, 269 -6, 745 -6, 808 -7, 572 -8, 247 -8, 945 -13, 602 Singapore 11, 987 Russia -46, 233 Turkey 11, 378 China -174, 506

HISTORICAL MEMORY CIRCLE Some existing PROBLEM requires regulatory RULESs Politicians with no experience with PROBLEM are „simplifying“ or „improving“ the RULE is succesful and PROBLEM no longer exists Because of real experience and necessity to solve the problem the RULE is created After few developments the RULE it serves for many years

EU LEGISLATION CIRCLE The problem is BIGGER Existence of the PROBLEM that requires regulation Some countries craete NEW RULE within their jurisdiction PROBLEM still exists (is modified ) Because of compromises between politics of the member countries the RULE is created but not perfect The RULE is not puted into force in all countries.

EU LEGISLATION CIRCLE SAMPLE ü creation of the UCC - the final stage possessed weaker communication with business profesionals, ü inconsistent interpretation and application of the provisions of the new legislation which are adding additional burdens ü the same process took place in case of Directive 96/71/EC of the European Parliament and excluding of the moving staff – in final stage losted the text provision about excluding the moving staff from the scope of this Directive. ü REPARATION IS TOO COMPLICATED AND TAKES LONG

SECURITY and SAFETY ü Some of EU governments have not comply with REGULATION (EC) No 1071/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL regarding National electronic registers and verifying of good repute of RTO ü DB ERRU till now not in full scope - phantom hauliers. ü Not sharp and explicit provisions regarding effective and stable establishment of RTO in a Member State = weak inspection, existence letterbox companies, exploitation truck drivers. ü New burdens and bureacracy for RTO and risk for the FF and industry

SECURITY and SAFETY § At the same time, when : § there were problems in Calais, some trucking companies changed routes in Europe, and CT operator stopped route the Turkey because of numerous dammages caused by the immigrants , § we are talking and talking about the secure parking, as prevention of road robbery, § to leave unattended loaded truck on the parking place is according some EU courts wilful misconduct, § Some politics are pressing the truck drivers to spend the breaks out of the cars ?

NATIONAL and INTERNATIONAL ROAD TRANSPORT in EU Biggest players on Countries with this markets are lower labour costs companies from have higher % of countries with the international route higher labour from their market costs

Logistic markets in EU In many East European counties the international logistic market leaders are forwarding companies from Germany, Austria, and France.

„SOCIAL DUMPING“ ON THE COMMON MARKET Growth of the EU transport rates (selected routes) growth of the average monthly wages (Slovakia) 600. 00% 510. 78% 500. 00% 400. 00% 300. 00% 200. 00% 100. 00% 153. 46% 145. 09% 126. 70% 122. 77% 118. 75% 112. 22% 103. 91% 1993 2016 0. 00% Lippstadt Amsterdam Rotterdam Haguenau Hannover imp Dortmund Hamburg Salaries

Zlyhávania „SOCIAL DUMPING“ ON administratívy THE COMMON MARKET 30% 50% Average monthly wages in SK in comparison with EU

Zlyhávania „SOCIAL DUMPING“ ON administratívy THE COMMON MARKET

„SOCIAL DUMPING“ ON THE COMMON MARKET Do we need Milog and other administrative measures, this burden, if market is naturaly solving inequality between countries ?

MARKET AS A PRICE REGULATOR üStrong competition in a seafreight - typical sample üSimilar situation in the road transport (strong influence on costs of EU products) üIn railway sector exists a set of barriers, but exist a competition of other transport modes, üIn container transport and airfreight the competition exists with good results üThe logistic costs contributed the competition ability of EU products on world market

Modal split of the land transport in EU countries Especially regional politics are blocking the optimalisation of the rail infrastructure RESULT : PROBLEM WITH THE RAIL TRANSPORT COMPETITIVENESS In some EU countries politics are considering the building new 1520 mm broad gauge railroad Some politics in many European countries started anti truck propaganda. On the other hand, many national politics prevent integration of the rail transport on EU market, what is necessary for higher competitiveness of the rail transport.

ECOLOGICAL CHALLENGES Occupacy rate of different transport modes can be more significant factor in emission of the greenhouse gases compared to the specific efficiency of the modes. Also the real distance travelled must be taken into account ( density of the infrastructure networks ) European Envitomental Agency

RAILWAY TRANSPORT 2009 – 2014 ONLY 1, 5 % PLUS

NEW MARKET FOR RAIL TRANSPORT Who did more for growth of the market share of EU rail transport, EU or China ?

CONTAINER TRANSPORT

CUSTOMER AND COMMUNITY REQUIREMENTS FOR A „BRIDGE“ üCheap transport of goods, üShort transit times üSecurity and Safety Best guarantee is üCredibility a competencethe workable market economy üCommunication, Information and clear unified applicable rules. üEcological sustainability

Tacoma Narrows Bridge has fallen down. Europe needs to protect own „bridge“. Europe needs to protect COMMON MARKET.

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