Mediterranean and China meet : From Beijing to Piraeus, Barcelona and Alger: Building bridges and partnerships

1. Mediterranean and China
meet
9th MEDA PORTS SUMMIT 2016:
Mediterranean bridges
Barcelona, 8th June
Jordi Torrent
Strategy Director

2. Contents
1
Global logistics trends and the new role of Mediterranean
ports
What does Barcelona offer as an Euro- Mediterranean
distribution center?
Port of Barcelona, main logistics hub in the Mediterranean
2
3

3. Logistics costs include all costs of maritime transport (port passage, sea freight), land transport and inventory costs
1. Global logistics trends & new role of Mediterranean ports
The impact of logistics costs on the price of products

4. Slow steaming
Environmental
restrictions
Freight & connectivity volatility
Bigger vesselsConcentration
and bigger
alliances
Less bunker costs,
less carbon
footprint, longer
shipping times &
more ships on
service
Notteboom and Carriou 2009
Inland
transport :
carrier vs.
merchant
haulage
Fuel price
volatility
1. Global logistics trends & new role of Mediterranean ports
Trends 1: unstable market in the shipping business
Rotation and
calls constantly
changing
Overcapacity in
vessels and
ports
Source: http://en.sse.net.cn/indices/scfinew.jsp
Unit: USD/TEU
2014 2015 2016

5. EDC: European
Distribution Center
RDC: Regional
Distribution Center
NDC: National
Distribution Center
DD: Direct Delivery LDC: Local
Distribution Center
Which is the best? Which is the market trend?
1. Global logistics trends & new role of Mediterranean ports
New distribution models in the supply chain

6.  Artic route (North East path & North West path)
 Tran Siberian
 Landbridges (Nicaragua, México, Panamá,…)
 Bigger capacity in Panama & Suez Canal
 Cape of Good Hope route
Imagen: J.P. Rodrigue, C. Comtois, B. Slack , The Geography of Transport Systems (2009)
Year 2012 Suez Panama Artic (PNE)
Nº ships 19.000 15.000 46
1. Global logistics trends & new role of Mediterranean ports
Possible new future routes
The Suez canal will still be the
main Europe/ MED – Asia trade
route for decades

7. Transpacific
Europe-Asia
Intra Asia
59.3* MTEU
* Drewry Maritime Research 2014
(data 2013 )
source: UNCTAD, Review of maritime transport 2015
6.6 MTEU
22.4 MTEU
22.4 MTEU 14.7 MTEU7.5 MTEU
7 MTEU
15.4MTEU
2.7 MTEU
3.9
MTEU
Transpacific
Europe-Asia
Transatlantic
Containerized cargo flows on major East-West trade routes 2014 (full TEUs)
Evolution major East-West routes . 1997-2014
0.0
5.0
10.0
15.0
20.0
25.0
MillionTEU
1. Global logistics trends & new role of Mediterranean ports
The present European logistics system
Transatlantic

8. Land distribution
Maritime distribution
Europe
Africa
Asia
America
To /
From
America To /
From
Europe
Europe
Barcelona
1. Global logistics trends & new role of Mediterranean ports
The role of Mediterranean ports in a sustainable and more efficient logistics
 Relevance of the Mediterranean in international trade, specially in
Asia-Europe trade and in Europe-American trade
 Advantage of MED ports as distribution center in the Mediterranean
and as interlining ports for east-west routes
 Reduction of navigation days, CO2&NOx emissions. Reduction of
emissions up to 15% aprox in the Far East-Europe route
 Slowsteming: better transit time through the Mediterranean
 Reduction of congestion in Northern European infrastructures
 Take advantage of the Mediterranean and North and West African
potential
 Reduction of logistics costs

9. • Shorter maritime route: -3.434 km
• Better transit time: up to 5 days
• Less fuel consumption and CO2
emissions (-16%)
• No SECA regulation
• Excellent maritime weather
• Savings in CO2 emissions even the
farther European destinations
Barcelona
Benelux Port
Total CO2
Distance
Time
Savings trough Port of
Barcelona in comparison with
Benelux port
From Shanghai
- 3.434 km through
Barcelona
Shanghai – Europe & Mediterranean through
Port of Barcelona or a Benelux Port
Calculations made with the Port of
Barcelona Ecocalculator. Hypothesis :
7,000TEU Container vessel
Land transport by truck: EUROV of 2TEU
KgCO2eq/TEU Km Days
Madrid
-24% -19% -6
Milano
-13% -15% -5
Munich
-5% -13% -4
Toulouse
-23% -18% -6
Lyon
-14% -16% -5Bordeaux
-18% -17% -6
Paris
-4% -13% -4
Geneva
-12% -15% -5
Lisbon
-22% -18% -6
1. Global logistics trends & new role of Mediterranean ports
Savings in distance, CO2 emissions and time

10. Schneider Electric has built an integrated
logistics centre in Sant Boi del Llobregat
(greater area of Barcelona).
The company has other logistics centres in
Cornellà and Pallejà.
Ikea has recently located its
Southern European logistics
centre in Valls (Tarragona) with
an investment of 46 €M. The
centre counts on 72.000sqm.
New logistics centre in Barcelona
with 330.000 m2 of warehouses
handling 80% of the company’s
internationals flows. “The proximity
to the port was a decisive factor in
choosing the location of our new
logistics park”.
“Our terminal in Barcelona, BEST, is the Hutchison ‘s
strategic investment in the West Mediterranean region…
The number of maritime services, rail connections and
the labor skills have been other important strength that
allows BEST to become one of the most efficient
Terminal in the World.”
Mr. Guillermo Belcastro
BEST General Manager
Bayer,Novartis and Boehringer, have built a joint logistics and distribution centre for
their products in Rubí. The new company, Disalfarm, handles 170 millions units a year
and distributes pharmaceutical products to 62 countries.
MANGO IKEA
Schneider
Electric,
BAYERNOVARTISBoehringer
Ingelheim
1. Global logistics trends & new role of Mediterranean ports
International companies are already chosen Barcelona as their logistics hub

11. In Barcelona since 2011
In Barcelona
since 2010
1. Global logistics trends & new role of Mediterranean ports
Chinese companies are already chosen Barcelona as their logistics hub
China Construction Bank opens
office in Spain at Barcelona
Opens a
technological
center in
Barcelona for
its European
clients
Bright Food buys Miquel
Alimentació to become a platform
for international distribution (2015)
Huayi Compressor buys Cubigel
in Barcelona.
Opens in Barcelona one of
the 7 office & labs they
operate in Europe to
provide their services to
industries across Europe

12.  The goal of BARCELOC is to support Chinese
enterprises to use Barcelona as a hub for their
logistics and commercial operations in Europe
and/or the Mediterranean area.
 BARCELOC is a business-oriented public service,
offering customized and tailor-made orientation on
your potential investments in Barcelona/Catalonia.
 The service is free-of-charge and rendered
neutrally and confidentially.
BARCELOC is a platform at your service completely free,
that can help you through the whole process of developing your distribution
network in Europe and the Mediterranean/Africa.
1. Global logistics trends & new role of Mediterranean ports
About BARCELOC program

13. Chinese testimonials
1. Global logistics trends & new role of Mediterranean ports
About BARCELOC program

14. Contents
1
Global logistics trends and the new role of Mediterranean
ports
What does Barcelona offer as an Euro- Mediterranean
distribution center?
Port of Barcelona, main logistics hub in the Mediterranean
2
3

15. A) Biggest industrial & consumption
in the MED & Southern Europe
B) Logistics specialization
D) An integrated
logistics hub with
port, airport and
logistics facilities
C) Distribution
capacity to
Europe/
MED/Africa
2. What does BARCELONA offer as an Euro- Mediterranean distribution center?

16. Industrial specialization, sectorial clusters & powerful partnership opportunities
Headquarters of Global Companies
SEAT, MANGO, Desigual, E-dreams, TOUS...
Global clusters
Automotive, chemical, pharmacy, fashion….
2 Business schools among the 10 best in
Europe and in the top 25 worldwide
5th biggest metropolitan area in
Europe with more than 5 million
inhabitants. (source:Eurostat)
3rd city in Europe and 10th in the
world as tourist destination
BARCELONA
1,5% Spanish area and 10% Spanish
population, account for:
15 % Spanish GDP
Spanish industry
Spanish exporting companies
Spanish foreign trade
Spanish tourists
±20%
2. What does BARCELONA offer as an Euro- Mediterranean distribution center?
A) Biggest industrial & consumption in the MED & Southern Europe

17. ELECTRONIC PRODUCTS:
FUJITSU / HAIER / HUAWEI
/ IBM / SIEMENS / SUNFOR
FASHION AND
FOOTWEAR:
ZARA / MANGO /
DESIGUAL
CHEMICAL
PRODUCTS: BASF /
BAYER / DOW
/ HENKEL / SOLVAY
INDUSTRIAL
PRODUCTS
AND
CONSUMER
DURABLES:
HAIER /
SUNFOR
AUTOMOBILES:
CONTINENTAL /
HONDA / KEEWAY /
NISSAN /
VOLKSWAGEN
BARCELONA
OTHER SECTORS:
PHARMA
STEEL PRODUCTS
PERISHABLES
E-COMMERCE:
EDREAMS
LETS BONUS
PRIVALIA
PARABEBÉS
2. What does BARCELONA offer as an Euro- Mediterranean distribution center?
A) Biggest industrial & consumption in the MED & Southern Europe

18. Lower logistics costs allow an easy access to markets
Stock costs Warehousing &
labor costs
Transportation &
distribution costs
Short maritime transit
times and high
frequency of ships
reduce stock costs.
Low warehousing
cost (2,5 to 6 €/ m2)
and low labour
costs for preparing
orders (picking).
Competitive road
costs (1 €/km) and
connectivity with Short
Sea Shipping
services with Italy and
north Africa
2. What does BARCELONA offer as an Euro- Mediterranean distribution center?
B) Reduced & competitive logistics costs

19. From Barcelona, you can reach a market of
400 millions consumers in less than 24/ 48 hours.
Latin
America
Western
Africa
By all modes
of transport:
2. What does BARCELONA offer as an Euro- Mediterranean distribution center?
C) Distribution capacity to Europe/MED/Africa

20. • Only location in Southern Europe hosting all together a port, airport, free and logistics zones
with warehousing capacity.
• Strong synergies among all transport modes for inbound and outbound flows and global
distribution.
• In Barcelona, Chinese’s companies can find a unique integration of world-class infrastructures,
services and top commercial and logistics partners.
• The Port of Barcelona is Spain’s main transport and services infrastructure.
• In the last 10 years, the port has received more than 1 billion $ of foreign investment, among which
a 400 million € investment by Hutchison in its new semi-automated container terminal.
• Barcelona has a good connectivity in the Mediterranean with Asia and has been recently awarded as
the third most productive port in Europe.
Freight Airport
Logistics & Free zone areas &
warehousing capacity next to port
& airport
Port
2. What does BARCELONA offer as an Euro- Mediterranean distribution center?
D) An integrated logistics hub with port, airport and logistics facilities

21. Contents
1
Global logistics trends and the new role of Mediterranean
ports
What does Barcelona offer as an Euro- Mediterranean
distribution center?
Port of Barcelona, main logistics hub in the Mediterranean
2
3

22. European &
Mediterranean
logistics hub
serving our clients
located in Spain,
France, Italy,
Portugal and
North Africa
Location of the Port’s customers
Bordeaux
Paris
Basel
Milano
Expansion of the Port and
Logistics areas
Improved connectivity with
hinterland and foreland
Excellence in the
provision of services+
Largest part completed Hinterland strategy Port services
New investments: Hutchison & Carnival,
Grimaldi, Salamanca group
Direct services with Far East with excellent
transit time
3rd most productive port in Europe
JOC's Port Productivity Report 2014
+
EXAMPLES
GENERAL
MOTORS
Import of spare parts from
Korea for MOKKA production
in Zaragoza and distribution
in Europe.
INDITEX
(ZARA)
Import from Shanghai to
Zaragoza & Madrid to be
distributed all over the
world.
MANGO
Distribution hub in Barcelona
for the whole world. Inbound
flows by vessel, air and truck
for distribution.
Export of animal fooder to China.
Madrid
Lyon
3. Port of Barcelona, main logistics hub in the Mediterranean
Port strategy

23. www.portdebarcelona.cat
Thank you.