Political advisor Alfred Bjørlo, Ministry of Transport and Communications
Marco Polo seminar,
GardermoenBusinessCenter, 24 June 2004

"The Marco Polo programme in the perspectives of national transport policies and programmes"

Ladies and Gentlemen

First of all, I am very pleased – finally – to be able to address this information seminar on the EU`s Marco Polo-programme, one of several measures announced in the Commission Transport White paper of September 2001 to achieve a more efficient and sustainable transport system in Europe. I am also pleased to see so many of you gathered here to day to attend this seminar. However, in the light of the great interest a large number of companies have shown into the Marco Polo-programme, I am not surprised.

Due to various reasons, the EEA countries definitive approval to the programme has been delayed. Now all the formalities are settled, and the Norwegian Parliament gave its approval to the programme last Tuesday. Through Norwegian participation, it will be possible to make funds available for measures that can assist in reducing market barriers to intermodal transport. Today’s principal speaker, Mr. Helmut Morsi from the European Commission and Programme Manager of the Marco Polo-programme, will later give you all details of the programme.

The EU`s objective to reduce road congestion, to improve the environmental performance of the freight transport system and to enhance intermodality, is in accordance with the transport policy adopted by the Norwegian government. This is clearly expressed in

the Government’s white paper to the Parliament this spring – the National Transport Plan 2006 – 2015- where the Governments overall strategy for the long term transport policy is presented.

Coordination of transport and infrastructure

A main goal in our transport policy is to provide a rational and efficient transport system within the financial resources made available to the sector, also taking into account effects on environment and safety. The users of transport services have differentiated needs; freight transport of different types of goods, passenger transport including business travels, private trips to work and school, as well as leisure. Our task is to contribute to the provision of services to meet all these transport needs.

More freight transport by sea and rail

Particularly in the most heavy trafficated parts of the transport network both in Norway and on the primary road network in Europe, the continuous increase in road traffic gives rise to capacity problems. This results in delays and higher costs for transporters, and thus also for commerce, industry and for customers. Increased road traffic results in environmental challenges, particularly in urban areas, and also contribute to global and regional pollution.

The Government wishes to make provisions to enable more freight transport to be carried out by sea and rail, and more people to travel by means of public transport. These are challenges we share with the rest of Europe. However, there are considerable differences between Norway and the EU as regards both environmental and traffic flow problems. The solutions in Norway must therefore be adapted to Norwegian conditions.

Achievement of such modal shift in the transport sector, involves a considerable challenge. Heavy trends in industrial and social development are pulling in the opposite direction.

It is therefore important to increase the effectiveness of road transport and to make provisions for shift to short sea shipping and rail transport. The share of the total transport volume represented by sea transport is larger in Norway than in most other European countries, but there is still room for growth. A precondition for this is that intermodal solutions provide adequate transport quality at a competitive price.

Modern logistics demand door-to-door transports and just-in-time deliveries. This makes sea and rail transport even more dependent on ports as efficient terminals. Terminals are of vital importance for the total efficiency in an intermodal transport chain. In order to be an efficient link, the localisation of transfer points is significant. In this respect it is important that larger terminals are sited in or in connection with ports. If ports are to fill their function as efficient links between sea and land based transport modes, they must have good links to the road and rail network.

Achieving this demands that ports an rail terminals are integrated in the overall transport network. This is of importance for sea transport and land based transport to function together and in order to promote the competitiveness of trade and industry.

Investments in railway capacity and quality of infrastructure and development of efficient terminals are important measures for improving the competitiveness of the railways. In the road sector, this must be followed up by provisions to enable satisfactory access to the terminals.

Another measure initiated by the European Union with the main objective to achieve a modal shift from road, is the establishing of Short Sea Promotion Centres (SPC). I am very pleased to say that a Short Sea Promotion Centre now is established in Norway (SPC Norway), and came into active operation by the second quarter of 2003, with financial aid from Norwegian authorities. SPC Norway is supposed to contribute to increased market share for sea transport nationally and in Europe. This requires a close and active contact with shippers and transport providers.

A closer look at the Governments measures to promote intermodality

Let me for a while return to the National Transport Plan, and be a bit more specific about certain actions to be taken to promote shifts from road to sea and railways.

Increased capacity in the railway system

During the period 2006 – 2015, the capacity of the railway system will be increased to adapt higher freight volumes. The investments in the Oslo region will be of special value to improve the terms of competition in the railway sector. Also on various long distance sections enhanced infrastructure will strengthen the effectiveness of the rail freight.

During the period 2006 – 2009, the Alnabru rail freight and combined transport terminal in Oslo will be reconstructed. This is expected to give an increase in the reloading capacity by 70 per cent. A new intermodal truck/rail freight terminal is to be built in Ganddal in Rogaland. This will increase the capacity considerably, and improve the flexibility of handling increased freight volumes in the future.

The port structure

The Government wishes to provide for developments of ports to strengthen sea transport and stimulate commercial and industrial development and establishment of robust regions. If sea transport is to gain ground in the competition with land transport as regards both price and quality, the ports must have a volume of general cargo and containers that provides a basis for frequent and regular calls by ships. A precondition for success in this, is that the handling of general cargo and containers is mainly concentrated in a limited numbers of ports. At the same time, a long-term approach coupled with predictability is important both for the transport and logistical planning of commerce and industry, and for state infrastructure development. Therefore, the Government will continue to build on the existing port structure. However, this structure will be adjusted to two levels, and will consist of national ports and other ports.

The national ports will be developed in such a way that they have a standard and are able to handle a volume of freight permitting regular and frequent calls by ships for purposes of general cargo and containers. Other ports will primarily serve local communities and local commerce and industry.

Increased use of competition

We will also implement new measures in order to ensure better return on our investments. The Government anticipates that increased use of competition will promote efficient use of resources, because it encourages producers and providers of transport services to operate efficiently; thereby producing at the lowest possible costs. This benefits the users.

However, it must be emphasized that increased use of competition, does not mean that the authorities disclaim responsibility for ensuring that the services is provided. When markets fail to provide socially desirable results, the public authorities are responsible for providing transport services from the producers to the users, as in the state purchase of transport services. Using competition when purchasing such services may in practice mean that the authorities specify more clearly quality requirements concerning how the services is carried out, and receive a better return on the total use of resources.

Taxation and fee policy – equal framework conditions

It is necessary to maintain a balance between the desire to provide transport services to commerce and industry and the general public, and the costs to society brought about by transport use. The Government views taxation and fee policy as an important instrument in maintaining such balance. We wish to ensure equal framework conditions for the various transport sectors. Socio-economically appropriate tax and fee structures are an important element of such a policy. This will ensure better correspondence between prices and social transport costs.

Development of the infrastructure of the transport sector is partly financed directly via the fiscal budget, and partly via user fees. In this area too, the Government wishes to make provisions for the most efficient arrangements.

Firm costs constitute the largest cost component in the transport system, whereas, in many cases, use-dependent costs are small. Once investments are made, it is important that the capacity is exploited well. Too high a price for use of infrastructure, for example to ensure full cost absorption, may be inexpedient.

The financing models may have major effects on the competitiveness of the various means of transport. Financing should be viewed in connection with tax policy in relation to the various transport sectors. Thus, the Government plans to prepare better analyses with a view to the consequences of the choice of financing structure for infrastructure and services in the transport sector. The work will form part of an overall strategy for meeting various objectives in the transport area.

Concluding remarks

Ladies and Gentlemen,

In the light of my presentation of the Norwegian policy to promote modal shift and also the European Union`s policy in this area, it is my firm belief that we are on the right track to reduce road congestion and to improve the environmental performance of the freight transport by enhancing intermodality, and thereby contribute to an efficient and sustainable transport system. To achieve this objective, the Marco Polo Programme is of great value.

I hope this seminar will meet your expectations and wish you good luck.

Thank you for your attention!