Positioning Greece as an international logistics gateway has been a strategic objective of the Greek State, for several years now.
The geographical location of Greece gives the country a significant advantage as a trade route between Asia and Europe. As maritime transport remains the backbone of international trade, Greece’s role, as a major interface for Europe, is becoming more visible to prominent stakeholders. The port of Piraeus, following its privatization over the last decade, has been transformed, through massive investments, in a highly competitive end-to-end alternative connection to Asian ports for major global business players when compared to North European ports, in terms of transport duration, reliability, frequency of service, and cost.
Moreover, the local presence of the largest ship owning community in the world, Greece’s extensive new road network, part of the TEN-T road network, connecting southeast Europe to major industrial centers in Central Europe, and the existence of modernized logistics facilities, gathered in regional logistics clusters, offers a window of opportunity for Greece to become a competitive international freight and logistics center.
There is data evidence for this, since Greece has been gradually improving its international ranking with regards to trade competitiveness and logistics performance. However, in most of these indices, Greece continues to lag behind its principal trading competitors. More work will be needed with regard to rail freight transport, hinterland logistics, and the interconnectivity of the Greek transport and logistics industry. To our understanding in the Ministry of Infrastructure and Transport, in order to increase its attractiveness as a leading regional logistics hub, Greece will need to focus on at least 2 key issues.
One of our first priorities is of course the completion of an efficient railway freight market. We are aware of that, in terms of accessibility, quality of infrastructure and intermodal connectivity with other transport modes,
major stakeholders take a rather negative view, suggesting therefore, that these should be the next big steps in order to meet international standards.
In this respect, I am contented to announce that significant investments in the electrification and signage of the railway network are nearing completion, such as the adoption of the European Train Control System which will allow further production increase and cost reduction.
Regarding interconnectivity, new projects are being planned for connecting rail network with all main freight ports, namely Thessaloniki, Volos and Kavala, as well as, with important freight and industrial areas in hinterland.
In addition, we are working to find solutions on at least three significant structural distortions in the railway freight market that need to be addressed in the foreseeable future, particularly, the lack of available locomotives that will permit rail freight companies to increase significantly their workload a shortage of train drivers, a result mostly of a slow paced and discontinued practical training which in turn derives from the scarcity of functional rolling stock and finally, the rationalization of charges for the use of train infrastructure.
Starting from the latter, we firmly believe that user charges based on marginal costs ensure the optimum effective use of available infrastructure capacity. Given that railway undertakings need predictable charging systems I am pleased to announce that very soon we will present to our stakeholders and the investment community a ten year growth - friendly charging plan based on the costs directly incurred by the train service.
Furthermore, it is our explicit intention to invest via GAIAOSE S.A. in new rolling stock, considering in particular appropriate technologies, complementary to e-mobility, such as hybrid and hydrogen technology, as well as in the revamping of the existing one to be used exclusively for the development of the rail freight market.
For this latter purpose we are investigating, along with major international stakeholders, new investments in rolling stock maintenance facilities too.
A second key priority for the Ministry of Infrastructure and Transport is the development of complete freight transit centers. So far, no such logistics hubs have been established in Greece. In Attica Region, the Thriasio Logistics Center (TLC), is about to take off, pending final approvals from DG Comp and is expected to be the core of intermodal transport in Greece in the near future, given its vicinity to the Piraeus port, as well as the fact that multiple modes of freight transport (railway, vehicles) can be employed. Upon completion, it will become one of the most important modern intermodal freight and logistics parks in Southeast Europe.
Moreover, a new bidding process for a second PPP in the same location, Thriasio II, an intermodal terminal station to be developed adjacent to TLC is expected to be initiated by June 2021. With regards to the Central Macedonia region, the process for the development of the Gonos logistics center in Thessaloniki has been initiated.
We consider the establishment of Gonos camp to be of geostrategic importance, as it concerns not only the Greek market, but also the broader Balkan one. As in the TLC case, this project is enjoying unique advantages, such as closeness to the Thessaloniki port (8 km), and multiple transport, railway, and truck capabilities.
Finally, I am glad to announce that we are ready to conduct a pre feasibility study for the establishment of a third logistic hub in central Greece, in the region of Thessaly, near Larissa, to be deployed in the existing facilities of the former Sugar Refinery.
To sum up, we are convinced that without fulfilling those two main conditions, the whole discussion about transforming Greece into an international logistics gateway will remain theoretical.
In view of the years to come, we are determined to capitalize Greece’s prospects, entering the top 30 countries in the LPI index in the next five years and the top 20 countries at the end of the current decade.
To accomplish this, we should aim, both government and stakeholders, at solid targets which should be translated into concrete and measurable results. Concerning government, further privatization of ports, the deployment of hinterland logistics in carefully selected areas, the improvement of connection with the existing and new road and rail infrastructure and the digitalization of customs services will offer clear and measurable benefits to the country’s economy.
We do expect that all major players of the logistics market will support critical business size, invest in digital transformation and automation of their operation, create synergies and joint ventures, particularly between 3PL/4PL companies and establish even further their presence in south-eastern Europe.
I believe that this is the only way for our country to achieve outstanding ratings and become an even more competitive regional European freight and logistics hub.
Thank you.
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