Greece : A sea & land logistical hub through the centuries turns to be the gateway of South Eastern Europe. Presentation at ICE ELAC Conference May 2014 by Antonis S. Antoniadis

ICE ELAC 2014 – Athens / Technical Conference By Antonis S. Antoniadis
1Introduction to logistics
Greece : A sea & land logistical hub through the centuries turns to be the
gateway of South Eastern Europe
By Antonis S. Antoniadis

2
Definition of logistics
Logistics is regional, national and global .
Logistics is defined as the time-related positioning of resource. It is also described as the “five rights”. Essentially, it is
the process of ensuring that goods or a service is:
•In the right place
•At the right time
•In the right quantity
•At the right quality
•At the right price
Origins and definition
The prevalent view is that the term logistics comes from the late 19th century: from
French logistique (loger means to lodge).
Others attribute a Greek origin to the word: λόγος, meaning reason or speech;
λογιστικός, meaning accountant or responsible for counting.

3
Two extreme examples of “logistics”
ASSOCIATED PRESS / 01-10-2010
Sweden ups terror threat alert to 'elevated‘
“A Pakistani intelligence official, who spoke on the condition of anonymity because he
was not authorized to speak with the media, said eight Germans and two British
brothers were at the heart of the al-Qaida-linked terror plot against European cities
and had been calling acquaintances in Europe to plan logistics.”
Logistics : the depth
ITJ MAR 2011

4
And since we are engineers…
Engineering & logistics
The logistician is quite often described as Logistics Engineer
He or she , is responsible to
Design or analyze operational solutions for projects such as transportation
optimization, network modeling, process and methods analysis, cost
containment, capacity enhancement, routing and shipment optimization, or
information management.

5
The history of logistics
Logistics’ history is as old as human civilization since it is the means for
development of any kind
A simple example for us engineers would be at around 2700 B.C.:
Material handling technology in pyramid construction. Blocks of stone
weighing several tons were transported and assembled at the construction
site.
To build the Great Pyramid of Giza, which is 146 meters high and weighs 6
million tons, the Egyptians needed sophisticated material transport
equipment capable of moving the massive building blocks and putting
them into place. Even today, we still cannot fully explain how this level of
precision was achieved using the hoisting equipment and means of
transport available around 2700 B.C
www.dhl.com

6
Alexander the Great was considered from many scientists as the first
logistician.
Timothy Van Mieghem writes in his “Logistics lessons from Alexander the Great”
•“He marched along rivers to provide easy access to sea transport which
could deliver tons of supplies, compared to 200 pounds per beast”
•“Alexander’ s 35.000 man army could carry no more than a 10 day
supply of food when remote from sea transport”
•“He timed his departure so the 30 day supply of rations, carried by sea
transport, would last until 10 days after harvest at the first destination
city. This provided a seamless food and water supply for his army until
he conquered the next city.”
•“He setup bases to provide shelter and supplies prior to army’ s arrival”
Alexander the Great as a logistician

7
Sea has always been the best means of transport
http://www.ancient.eu.com
Greece in the ancient Mediterranean

8
Logistics as a scheme
supplier production transportation warehouse customer
Production
Supplier
Port
Warehouse
Inbound
warehouse
Logistics
Outbound
warehouse
Logistics
Airport
Shop
Home

The history and importance of
containers in international trade
The idea of shipping products in containers is a very old one.
•The ancient Greeks used sealed vases – or amphorae – to transport oil
or wine.
•Later cultures used large trunks to ship valuables aboard their sailing
vessels. But containerisation is a modern phenomenon just over 50 years
old.
•McLean, boss of his own trucking business in North Carolina, was
frustrated by the laborious methods of handling goods in the early part of
the 20th century. On 26 April 1956 McLean’s prototype - the refitted
Second World War tanker, the Ideal-X - sailed from Newark to Houston
carrying 58 truck bodies with the wheels removed.
•By 1957, he had already introduced the first of a series of vessels
converted into specialised container ships that were able to carry boxes
below decks as well as on deck. They were more efficient container
carriers. Soon enough, his company was re-branded Sea-Land
Service, a name that summed up the ‘multi-modal’ union of
overland and seaborne transportation.
http://www.costamare.com

The history and importance of
containers in international trade
•Sea-Land’s regular peacetime services went international in
1966 when the vessel Fairland departed New Jersey for a
first cross-Atlantic voyage to Rotterdam with 236 containers
on board.
TEU = Twenty feet equivalent Unit = unit of counting
containers
The equivalent of about 124 million TEUs are being moved
around the world by ship in a year (estimated loaded
containers carried in 2009).
http://www.costamare.com

International trends
 Bigger markets  Bigger needs lead
to bigger distribution centers
 Warehousing function changes from
storage to flow
 Flexible warehouse space required
 Multi-user facilities are growing in
popularity
 Outsourcing of logistics activities is
increasing
 Infrastructure availability and distance
to market are crucial
 Proximity to alternative transport
modes is growing in importance
 Satellite DCs
11

12
This cost is increasing due to:
 Heavier traffic conditions
 Environmental specs
 Reduction of permitted drive
hours
 Consumer needs
 More goods coming from Asia
International logistics industry is estimated in:
5,4 trillion € or 13,8 % of global GDP
Source: COMMISSION OF THE EUROPEAN COMMUNITIES 336 final 28.6.2006
Logistics cost
USA : 8,3% of GDP, 2010
In 1980 it was 17.9% . Logistics costs in Europe are lower because of the
combination of older infra (train, roads, rivers) 7.15% of European GDP
Source Council of Supply Chain Management Professionals (CSCMP). 2009
Germany : 7,5% of GDP, 2008 (BVL)
Source: Prof Lauri Ojala, World Bank, May 2010
China : 17,8% of GDP, 2009 (CFLP)
Source: Prof Lauri Ojala, Intl Transport Forum 20120-4

13
Logistics cost breakdown
Infrastructure
Infrastructure
Civil Engineers are interested in infrastructure

14
Source Eye For Transport
Logistics cost in some EU countries
14,8% 6,3% 8,5% 10,5%

15
Multimodal logistics
Logistics of more than one modes
Air - Rail
Rail - Road
Germany: truck mileage reaches 27.2 billion km
Heavy goods vehicles that are subject to road charging in
Germany covered around 27.2 billion km on that country’s toll
roads in 2013, a rise of 2.4% compared to the previous year. The
performance of trucks registered in Germany rose by 1.3 %, whilst
that of vehicles from all the other EU 15 member states shrank.

16
Sea – Sea
River – Rail - Road
Mother vessel
Feeders
Sea – Rail -
Road

17
The river port of Vienna / Austria
302.000 TEUs / 2009
530.000 TEUs / 2013
1960

18
HAMBURG

19
Introduction to logistics
Greece : A sea & land logistical hub through the
centuries turns to be the
Greece
http://people.hofstra.edu/geotrans

20
Strategic point
Infrastructure needs to be better

The prospect of Greece
Gateway to S.E.E.
 Greece is the crossroad between Asia
– Africa and South Eastern Europe
(S.E.E.)
 China is trying to reduce its inventory
costs. This means that better transit
times will reduce money cost,
especially for expensive products
 Greece can be the exclusive hub for
the Balkans and S.E.E.
 Huge companies have seen the
challenge and already are using
Piraeus as a hub (ZTE, HP, HUAWEI)
 New container ships are travelling in
lower speeds in order to save cost and
reduce CO2 emissions  longer transit
times
21

The 20 biggest container ports of the world
22
Singapore (a non industrial country as China) was the top port until 2009 due
to its geographical position and knowhow
Dubai also is in a very good spot and increases its numbers every year
Rotterdam is the biggest European port

Top 10 European container ports
23
Greek port handles 3.16 million in 2013 to climb box rankings.
2.52 million TEU at COSCO’ s terminals II and III 644 K PIER 1
PORT TECHNOLOGY COM.
685.000 TEUs at Cosco Piraeus Q1 2014. Increase of 28%
www.metaforespress.gr
PORT MONITOR

Top European light vehicle ports 2013
Ra
nk
Port Units
1 Bremenhaven /
Germany
2.180.000
2 Zeebrugge / Belgium 1.942.998
3 Emden / Germany 1.228.542
4 Grimsby, Immingham&
Killingholme / UK
950.000
5 Antwerp / Belgium 760.633
6 Southampton / UK 744.390
7 Tyne / UK 644.000
8 London / UK 543.436
9 Vigo / Spain 495.700
10 Barcelona / Spain 488.462
http://www.automotivelogisticsmagazine.com March 2014
Piraeus is also one of the top Mediterranean
light vehicle ports

25
Hub and spoke theory

26
Transshipment
Transhipment is the transfer of containers from one vessel to
another vessel bound for its final destination, whereas in
transit. This is essentially the business PSA is in.
Singapore’s strategic location in the heart of Southeast Asia and
at the nexus of major shipping routes has made it an important
logistic hub and conduit for world trade. Being the world’s top
transhipment hub, Singapore is connected to 600 ports in 123
countries, with daily sailings to every major port of call in the
world.
With its unrivalled connectivity, many small feeder vessels bring
containers to Singapore. At the Port of Singapore, these
containers get loaded onto large vessels which will then carry
the shipment to their final destination.
Singapore the No1 transshipment port in the world

27
Transshipment
 Why tranship? The value of transhipment lies in that it is more cost efficient
and time saving than the vessel making a single direct voyage.
 If each vessel sails direct to every port, the number of journeys made will
look like the above.
 If the vessels tranship via Singapore, the number of journeys is significantly
reduced.
 About 85 per cent of the containers that arrive in Singapore are transhipped
to another port of call. Shipping lines use PSA for these modes of
transhipment:
 Hub & Spoke (Main Line Operator to Feeder)
 Cross Strings (Main Line Operator to Main Line Operator)
 The concept of transhipment truly connects the world and one is able to
ship a container from anywhere to everywhere in the world.
Singapore the No1 transshipment port in the world

28
Typical routes from Asia to Europe
(Evergreen lines)
Shanghai to Piraeus: 24days
Ports of call: 6
Shanghai to Rotterdam via
Piraeus 31 days.
Ports of call : 7
Piraeus  Rotterdam
7 days
If the ports of call are less it can
reach Rotterdam in 27 days

29
Transit times
“Our deep-sea carriers are calling fewer ports, which is decreasing our
total transit time,” he explains. “With lower volumes, our deep-sea carriers
had also been calling ports in North Africa. These ports were congested,
which increased transit times. Now, the volumes for our North African
destinations tranship to short-sea vessels at Piraeus.”
This change means that although the deep-sea leg is now slightly longer,
the inland leg is much shorter for Mitsubishi.
http://www.automotivelogisticsmagazine.com/
Piraeus is also one of the top Mediterranean
light vehicle ports

30
The importance of Suez Canal
Another engineering masterpiece

31
A new waterway between
Greece – Fyrom – Serbia
is on stage of research
ITJ magazine
BACEVIC (Minister of Natural Resources, Mining
and Spatial Planning): FEASIBILITY STUDY FOR
MORAVA CHANNEL IS POSITIVE
BELGRADE, 10/10/2013 (Tanjug) - The feasibility study
for the Morava channel is positive, Minister of Natural
Resources, Mining and Spatial Planning Milan Bacevic
stated on Thursday and expressed the expectation that
the government will launch the talks on the project very
soon.
Bacevic presented the feasibility study drawn up by the
Chinese company China Gezuba Corporation which shows
that the project can be realised. The Chinese partners
showed keen interest in joining the project
implementation, the minister said and announced that he
will meet with Chinese representatives on Saturday to
discuss the major project.
Ministry of foreign affairs of republic of Serbia http://msp.gov.rs/en/

32
A new waterway between
Greece – Fyrom – Serbia
is on stage of research
ITJ magazine
BACEVIC (Minister of Natural Resources, Mining
and Spatial Planning): FEASIBILITY STUDY FOR
MORAVA CHANNEL IS POSITIVE
Bacevic expects the talks on the project to be launched in
the government soon, and underscored that the project
should be realised through concession.
The Morava channel project should be implemented on
the regional level and it should connect the Danube with
the Aegean Sea. The project should contribute to the
development of agriculture, energy and tourism, Bacevic
said.
He noted that several smaller projects could be realised
from the major project. adding that the feasibility study
for the Morava channel should be completed now and the
Serbian government should grant funds for this.
Ministry of foreign affairs of republic of Serbia http://msp.gov.rs/en/

33
European Transport Network / TENT
Same philosophy to
a city transport
network

34
European Transport Network / TEN-T
Infrastructure - TEN-T - Connecting Europe
Corridors
"Core network corridors" were introduced to facilitate the coordinated implementation of the
core network. They bring together public and private resources and concentrate EU support
from the CEF, particularly to:
remove bottlenecks, build missing cross-border connections and promote modal integration
and interoperability.
Greece has 1 Core Network Corridor crossing its country:
The Orient/East-Med Corridor connects the German ports Bremen,
Hamburg and Rostock via Czech Republic and Slovakia, with a branch
through Austria, further via Hungary to the Romanian port of Constanta,
the Bulgarian port of Burgas, with a link to Turkey, to Greek ports
Thessaloniki and Piraeus and a "Motorway of the Sea" link to Cyprus. It
comprises rail, road, airports, ports, RRT's and the Elbe river inland
waterway. The main bottleneck is the railway section Timisoara – Sofia

35
SOURCE : CAP GEMINI for PROLOGIS
From local DCs to Centralized European
DCs (ELC) to regional DCs (RDC)

36
Why not here?

37
Prologis is the leading owner, operator and
developer of industrial logistics real estate across
the Americas, Europe and Asia. We create value
by developing and managing a world-class
portfolio of high-quality logistics and distribution
facilities, serving customers and investors as an
integral part of the global supply chain.
The model of Prologis, Gazeley and other similar companies
does not exist in Greece. Is it a problem or a challenge?
Logistics plots development

38
The model of Prologis, Gazeley and other similar companies
does not exist in Greece. Is it a problem or a challenge?
Logistics plots development
www.gazeley.com.
Total Assets Under Management*
$27.3 billion
Funds
15 funds across a broad risk/return
spectrum
Divisions
Americas, Europe, Asia
Countries
21
Co-Investment
15-50%
* As of 31 March 2014
www.prologis.com.
OUR BUILD TO SUIT
APPROACH
We have industry leading
experience in the development
of quality, cost effective and
environmentally sensible
buildings. Our key strengths
include listening and
responding to our customers'
needs, and developing
economically viable buildings
on time and to budget, every
time

Distances to S.E.E. cities from Athens
ATHENS ROTTERDAM
ATHENS - 2824km
SOFIA 776km 2114km
BUCAREST 1120km 2173km
INSTANBUL 1111km 2657km
BUDAPEST 1486km 1403km
Piraeus vs Rotterdam
for South Eastern
Europe locations
39

40
ROA D TO
NORTH
ROAD TO
SOUTH
Thriasio Logistical area Athens
MODAL SPLIT % IN EUROPE
ROAD TRAIN WATERWA
YS
GREECE 97,10% 2,90%
AUSTRIA 60,90% 34,80% 4,20%
BULGARIA 70% 25,10% 4,80%
CYPRUS 100%
GERMANY 65,70% 21,90% 12,40%
SPAIN 96,10% 3,90%
ESTONIA 43,20% 56,80%
Source : sustainablelogistics.org total inland freight
tonne-km in 2007
ATHENS
PERIPHERAL
HIGHWAY
AIRPORT
(MILITARY)
RAILWAY
TO THE
NORTH
THRIASIO
MULTIMODAL
CENTER
(NOT
FUNCTIONAL)
CONTAINER
PORT
COSCO

41
Prime net rent:
The top open-market tier of rent that could be
expected for a unit of standard size, and of the highest quality
and specification (Grade A), in the best location in the market at
the survey date. The figure excludes service charges and taxes,
and does not reflect tenant incentives.
Warehouse space:
500 square metres/5,000 square feet or more with up to 15 per
cent office space, the balance being general
industrial/logistics/distribution space with 6 to 10 metre/18 to 30
feet ceiling heights.
Bulk space:
10,000 square metres/100,000 square feet or more with up to
10 per cent office space, the balance being general
industrial/logistics/distribution space with 6 to 12 metre/18 to 36
feet ceiling heights. All loading is dock-height.
Prime yield:
The yield an investor is prepared to pay to buy a Grade A
building, fully-let to high quality tenants at an open market
rental value in a prime location. Lease terms should be
commensurate with the market e.g. typically 5 yrs +. Net initial
yield = First years' net income/purchase price (prior to
deducting fees and taxes)
Colliers Intl / Industrial rents map
Prices in Athens for land or rental
were very high before the recession.
Now they are at last normalized but
not significantly lower than top
logistics locations

The prospect of Thessaloniki
Thessaloniki is 500km closer (than
Piraeus) to northern destinations
Its port is connected to road and
rail
It is the only location in Greece
with transmodal terminals (rail to
road) for more than 10 years
It is closer to the Balkans .
Bosporus strait is a very busy
pass for ships and therefore more
loads could be forwarded to the
Balkans through Thessaloniki
instead of Constanta
95.177 ships passed through the
Bosporus in 2010
42

43
Turnover of huge logistics companies
2011 Rank Company 2011 Revenue in $ millions Base Country Coverage Notes
1 DHL Logistics $37,780 Germany Global
Excludes Williams Lea
(Corporate Information
Solutions) division.
2 Kuehne & Nagel* $22,104 Switzerland Global
3 DB Schenker Logistics $19,865 Germany Global
Excludes asset-based portion of
Land Transport .
4 CEVA Logistics $9,593 Netherlands Global
5 C.H. Robinson Worldwide $8,741 USA Global Total Transportation Segment.
6 DSV $8,162 Denmark Global
Acquired Finland-based Wasa
Logistics OY in May 2011.
7 Panalpina* $7,331 Switzerland Global
Acquired Australia-based Apollo
Forwarding in February 2011
and Norway-based Grieg
Logistics AS in April 2011.
8 SNCF Geodis $6,335 France Global
Estimated Forwarding, Supply
Chain and Contract Logistics
revenue only. Growth primarily
from 2010 acquisitions.
Acquired U.S.-based One Source
Logistics in June 2011, and
acquired France-based
Pharmalog and the night
delivery business of GLS France
in Sept. 2011.
9 Expeditors International $6,150 USA Global
10 UPS Supply Chain Solutions $6,058 USA Global
Forwarding and Logistics
segment only.
April 2012-- SJ Consulting Group Inc

Sustainability
33% of the
Rotterdam loads, are
transported via
rivers!!
Another 11% is
transported by train
Total : 44%
44
The new Gothard
cargo tunnel has a
length of 57 km 

45
Thank you for your attentionhttp://gr.linkedin.com/pub/antonis-antoniadis/2/97a/b7/
Sources for this presentation:
www.ciltuk.org.uk
ITJ MAGAZINE
www.dhl.com
Timothy Van Mieghem : Logistics lessons from Alexander the Great
www.ancient .eu.com
www.costamare.com
www.worldbank.org
www.porttechnology.com
www.metaforespress.gr
www.eft.com
www.automotivelogisticsmagazine.com
www.portofrotterdam.com/
http://msp.gov.rs/en/
www.capgemini.com
www.prologis.com
www.gazeley.com
Greece : A sea & land logistical hub through the
centuries turns to be the

Greece : A sea & land logistical hub through the centuries turns to be the gateway of South Eastern Europe. Presentation at ICE ELAC Conference May 2014 by Antonis S. Antoniadis

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (9)

En vedette

En vedette (20)

Similaire à Greece : A sea & land logistical hub through the centuries turns to be the gateway of South Eastern Europe. Presentation at ICE ELAC Conference May 2014 by Antonis S. Antoniadis

Similaire à Greece : A sea & land logistical hub through the centuries turns to be the gateway of South Eastern Europe. Presentation at ICE ELAC Conference May 2014 by Antonis S. Antoniadis (20)

Dernier

Dernier (20)

Greece : A sea & land logistical hub through the centuries turns to be the gateway of South Eastern Europe. Presentation at ICE ELAC Conference May 2014 by Antonis S. Antoniadis