ey: evaluating greece as a logistics hub

EY: Evaluating Greece as a Logistics Hub

Thanos Mavros

EY Partner / CSE Head Supply

Chain & Operations

2

A. DemographicsIn less than 3 weeks, 122 responses from all important sectors participated.

4-23 April

2018

22%

10%

68%

10-19 years

>20

0-9 years

1. How many years does your company

operate?Total respondents:

122

3

A. DemographicsIn less than 3 weeks, 122 responses from all important sectors participated.

2. Which sector do you operate in?

3%

11%

2% 1%

18%

5%

25% 24%

4%2% 2% 2%

Shipping, Port Operations

Mining & Metals

Consumer Products

Other services

Agricultural ProductsPower & Utilities, Oil & Gas Retail

Chemicals

Life Sciences/ Healthcare/ Pharma

Diversified Industrial Products

Telecommunications, Technology

Transport & 3rd Party Logistics

B. Ports’ Infrastructures & Operations

5

B. Ports’ Infrastructures & OperationsThe Piraeus port has set the foundation for the Greek Logistics Hub to achieve excellence.

1. How do you evaluate the Piraeus port’s freight infrastructure & operations in terms of:

35%

8%7%

25%

37%

8%

24%

Availability / Capacity

1%

32%

1%

Quality of

infrastructures

42%

4%

18%

1%

15%

21%

Intermodal connectivity

with other transport

modes

22%

Efficient / effective

collaboration

24%

1%

16%

40%

1%

Quality & reliability

of services

18%

23%

43%

15%14%

3%

Low Achieve ExcellenceExceed standards N/AVery Low Meet standards

6

B. Ports’ Infrastructures & OperationsThe Thessaloniki port faces many challenges in meeting standards.

2. How do you evaluate the Thessaloniki port's freight infrastructure & operations in terms of:


collaboration

51%49%

7%


of services

25%25%

0%1%1%

8%

0%

20%


0%

26%

47%

0%0%

24%

19%

5%

31%



modes

46%

0% 0%

16%

4%

Quality of

infrastructures

47%

1% 0%

24%

21%

Very Low Low Achieve ExcellenceExceed standardsMeet standards N/A

7

B. Ports’ Infrastructures & OperationsThe regional ports have a long way to go.

3. How do you evaluate the regional ports'* freight infrastructure & operations in terms of:


collaboration

45%46%

8%


of services

34%

14%

0%1%7%

11%

0%

9%


1%

36%

44%

0%2%

10%

35%

8%

37%



modes

43%

0% 0%

12%

11%

Quality of

infrastructures

43%

1% 0%

13%

29%

Very Low Low Achieve ExcellenceExceed standardsMeet standards N/A

* Patras, Igoumenitsa, Volos, Astakos, Heraklion, Alexandroupoli, Kavala

8

B. Ports’ Infrastructures & OperationsPrivatization, hinterland logistics development, connectivity and operational synchronization are required.

4. Following the previous questions, would you like to make any suggestions, regarding further

development of the ports’ infrastructures & services?

Better cooperation between the ports, in order to share best practices.

Single window implementation.

1Privatization of regional ports, like the case of the Piraeus’ port.

2Need for port depots.

3Sync all operations in a 24/7 mode (including customs), so as to avoid port WH fees and minimize lead time.

4

C. Rail Infrastructures & Operations

10

C. Rail Infrastructures & OperationsThe rail infrastructure is facing many challenges.

1. How do you evaluate the current rail infrastructures in terms of:

24%

24%

29%

51%

54%

47%

10%

8%

8%

15%

14%

16%

Accessibility

Intermodal connectivity with other transport modes

Quality of infrastructures

LowVery Low Exceed standards Achieve ExcellenceMeet standards N/A

11

C. Rail Infrastructures & OperationsRail freight operations appears to be the weak link of the logistics hub.

25%

39%

15%

1%

20%


30%

40%

9%

1%

20%


29%

36%

15%

1%

19%

29%

35%

18%

18%

Quality & reliability of service

Efficient / effective collaboration

2. How do you evaluate the current rail freight operations in terms of: Very Low

Low

Achieve Excellence

Exceed standards

Meet standards

N/A

12

C. Rail Infrastructures & OperationsPrivate investments should proceed at a faster pace.

3. Following the previous questions, would you like to make any suggestions, regarding further

development of the rail infrastructures & services?

Better connection of the Greek railroad with the central European network.

Private investments in rail operations need to proceed with faster pace.

Rail freight services should cover major cities.

D. Air Freight Infrastructures & Operations

14

D. Air Freight Infrastructures & OperationsAir freight infrastructures and operations appear to be a strong link of the logistics hub.

1. How do you evaluate the air freight infrastructure & operations of Athens in terms of:

6%

5%

46%

21%

43%

45%

23%

36%

30%

25%

15%

23%

23%

23%

25%2%

2%

2%Availability / Capacity

Intermodal connectivity with other transport

modes




2%

2%

15

D. Air Freight Infrastructures & OperationsBetter connectivity and a higher intermodal concept are required.

2. Following the previous question, would you like to make any suggestions, regarding further

development of the air freight infrastructures & services of Athens?

Planning a metro freight transferring goods from the port to the airport and vice versa.

Lack of a freight intermodal concept.

16

D. Air Freight Infrastructures & OperationsNew investors should look into improving freight infrastructure and operations.

5%

26%

26%

43%


8%

30%

17%

1%

44%


4%

29%

21%

2%

43%

5%

24%

26%

43%



3. How do you evaluate the air freight infrastructure & operations of Thessaloniki and other

regional airports in terms of: Very Low

Low

Achieve Excellence

Exceed standards

Meet standards

N/A

2%

1%

0%

17

D. Air Freight Infrastructures & OperationsConnectivity to the railway infrastructure is required.

4. Following the previous question, would you like to make any suggestions,

regarding further development of the air freight infrastructures & services

of Thessaloniki and other regional airports?

E. Road Infrastructures

19

E. Road InfrastructuresRoad infrastructures have been developed substantially.

1. How do you evaluate the current rail infrastructures in terms of:

22%

4%

58%

41%

30%

30%

14%

37%

47%

43%

2%

12%

16%

17%

4%

1%

1%

7%

4%

5%

1%

2%

1%



modes




20

E. Road InfrastructuresBetter pricing and incentives for road freight are required.


development of the road infrastructures & the road freight services?

Slow pace concerning the process of the

roads' construction.

All other pending road developments should proceed at

a faster pace.

Expensive toll pricing.

Need for financial incentives, in order

to use the highways.

F. Road Transport

22

F. Road TransportRoad freight transport has room for improvement in becoming a strong link of the logistics hub.

1. How do you evaluate the road transport infrastructures & operations in terms of:


2%

40%

41%

7%

10%


2% 28%

49%

15%

5%

3% 30%

48%

13%

1

5%



24%

53%

17%1

5%

Very Low

Low

Achieve Excellence

Exceed standards

Meet standards

N/A

1%

G. Sea Transport

24

G. Sea TransportSea freight transport appears to be a strong link of the logistics hub.

1. How do you evaluate the sea transport infrastructures & operations in terms of:

17%

16%

18%

42%

33%

48%

52%

24%

34%

17%

11%

4%

11%

4%

4%

13%

5%

16%

16%

17%1%



modes




H. Warehousing: Infrastructures, Services, 3PL/4PL

26

H. Warehousing: Infrastructures, Services, 3PL/4PL3PL/4PL continue a “just ok” concept.

1. How do you evaluate the 3PL/4PL infrastructures & operations in terms of:


5%

23%

46%

18%

2%

6%


1%

25%

40%

23%

9%

2%

27%

43%

17%

5%6%

Range & quality of services


4%

17%

55%

17%

7%

Very Low

Low

Achieve Excellence

Exceed standards

Meet standards

N/A

2%

27

H. Warehousing: Infrastructures, Services, 3PL/4PLDevelopment of logistics parks, immediate applicability of all pending regulations are required.


development of the 3PL/4PL infrastructures & services?

Incentives for creation of new and high standard warehouses, with low environmental impact.

Creation of 3-5 Logistics Parks.

Give incentives for changing the old truck fleet with tax breaks, in order to compete with trucks with BG plates.

Flexibility in regulations.

28

I. Customs Infrastructures & Services

29

I. Customs Infrastructures & ServicesCustoms have many challenges to overcome.

1. How do you evaluate the customs infrastructures & operations in terms of:

11%

14%

18%

33%

34%

31%

43%

42%

39%

7%

4%

6%

6%

5%

5%

1%

1%





30

I. Customs Infrastructures & ServicesDigitalization is required to decrease bureaucracy.


development of the customs infrastructures & services?

!

31

J. In your opinion, have the following knots been improved / deteriorated in terms of infrastructures

& services over the past 3 years?The knots of the logistics hub have been improved with the Piraeus port being the high outlier and rail and customs being the

low outliers.

6%

6%

1%

5%

3%

3%

13%

15%

23%

15%

4%

37%

4%

8%

49%

50%

56%

50%

31%

37%

32%

56%

27%

18%

9%

29%

46%

13%

44%

21%

5%

10%

15%

8%

13%

9%

9%

5%

4%

1%

1%

3% 3%

3%

Slightly improved N/AHighly improvedSlightly deterioratedHighly deteriorated Remain at the same level

Ports' Infrastructures & Operations

Rail Infrastructures & Operations

Air Freight Infrastructures & Operations

Road Infrastructures

Road Transport

Sea Transport

Warehousing: Infrastructures, Services, 3PL/4PL

Customs Infrastructures & Services

32

K. In your opinion, how does Greece’s Logistics competiveness rank overall

as regional European Freight / Transshipment Hub?The Greek Logistics Hub, besides the improvements in Piraeus port and road infrastructures, have a long way to go.

5%

47%

41%

0%

5%

1%


33

Thank you

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