Opinion of the European Economic and Social Committee on the Communication from the Commission — Freight Transport Logistics Action Plan COM(2007) 607 final
Date: 2008-05-29
Institutions: European Economic and Social Committee
Subjects: action programme, carriage of goods, competitiveness, environmental protection, freight rate, logistics, transport policy

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Official Journal of the European Union

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Opinion of the European Economic and Social Committee on the Communication from the
Commission — Freight Transport Logistics Action Plan

COM(2007) 607 final

(2008/C 224/10)

On 18 October 2007, the European Commission decided to consult the European Economic and Social
Committee, under Article 262 of the Treaty establishing the European Community, on the

Communication from the Commission — Freight Transport Logistics Action Plan.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for
preparing the Committee's work on the subject, adopted its opinion on 8 May 2007. The rapporteur was
Mr Retureau.

At its 445th plenary session, held on 28 and 29 May 2008 (meeting of 29 May), the European Economic
and Social Committee adopted the following opinion by 99 votes with 1 abstention.

1. Conclusions and recommendations

1.1
The Committee welcomes the Action Plan proposed by
the Commission and would like to be consulted on the interim
report planned for 2010 to evaluate progress made and any
outstanding problems.

1.2
The EESC agrees that it is worth making separate efforts
to set benchmarks for intermodal terminals, including ports and
airports,
in close cooperation with the sector. With a set of
generic European benchmarks that leave scope for further speci-
fication at local level, it should be possible to differentiate the
benchmarks sufficiently to allow for the very different character-
istics of land terminals, seaports, airports and inland waterway
ports.

1.3
Price-setting according to transport mode generally does
not reflect the real impact of modes on infrastructure, the envir-
onment and energy efficiency, or their social, territorial and
societal costs.

1.4
The comparative and evaluative tools envisaged for
benchmarking should thus compare usable transport chains on
the basis of their sustainability, in order to facilitate the intro-
duction of a price-setting mechanism and develop a regulatory
system which ensures that the most efficient and sustainable
mode is chosen, depending on the type of goods transported
and modes available.

1.5 More efficient transport logistics geared to the needs of
users and society as a whole inevitably call for significantly
more rapid application of existing new technologies and new
research, as well as an ongoing effort to train and qualify staff
and improve working conditions. At the same time it is neces-
sary to optimise the use of existing infrastructure and develop
the human, material and financial resources invested in trans-
port and logistics. It is also necessary to upgrade these profes-
sions and make them more attractive. New investment is also
essential to accelerate the integration of new Member States and

strengthen the Euro-Mediterranean and neighbourhood policies.
Long-term demand trends must still be evaluated in order to
initiate investment spending that can be recouped over a very
long timeframe.

It is necessary to strengthen road security and safety,

1.6
especially near borders with third countries.

1.7
The EU's coastline has grown: it now includes the Baltic
Sea and the Black Sea, connected by the major axis of the
Danube, which must be revitalised. 90 % of trade with third
countries and 40 % of intra-EU trade transits through Europe's
port hubs, where logistics activities are growing substantially.
However, many improvements are needed.
is particularly
important to modernise port-hinterland connections to encou-
rage a wider range of modes and more intermodality. Tranship-
ment methods and organisation must also be improved. Simi-
larly, a better balance must be achieved between different ports
and more complementarity between these and land-based hubs.

It

improvable aspects of

The Committee supports the use of new technologies,
1.8
applied research on all
the different
modes (infrastructure, transport and handling equipment, work
organisation and conditions, etc.), voluntary participation in
drawing up technical standards and communicating and messa-
ging standards to improve co-modality and traffic flows, and
better articulation between production and trade growth on the
one hand and the inevitable growth in transport on the other. It
is essential here that logistics chains become more efficient.

Research must continue on engines and their energy effi-
fuels, both for private and public

1.9
ciency, and on non-fossil
passenger vehicles, as well as goods vehicles.

Urgent measures and more sustained efforts are called
1.10
for in urban transport logistics so as to prevent progressive
weakening of the economy in large cities and substantial effi-
jams,
ciency

resulting from time

in traffic

losses

lost

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which is unproductive and causes pollution for residents and
businesses. A comprehensive approach that takes into account
the needs of private and public passenger and goods transport
is required for urban environments, in order to achieve a more
balanced use of the road network and reverse the trend towards
residents and many activities moving to the outskirts of cities
and remote locations.

1.11
Sustainability and energy efficiency, and intermodality,
are at the heart of this plan. The proposed timetable underlines
the urgency of the policy to be pursued. The Commission's
than
proposals prioritise cooperation and dialogue rather
compulsory measures. It is necessary to demonstrate that this
approach will work. Its success will depend on operators in the
transport
to the urgent
demands of civil society.

sector and their ability to adapt

2. Commission proposals

2.1 Introduction

On 28 June 2006,

2.1.1
the Commission published a
communication entitled ‘Freight Transport Logistics in Europe
— the key to sustainable mobility’ (1). That communication set
out the role of
logistics in enhancing sustainable transport,
reducing transport emissions and making transport truly envir-
onment-friendly. It was supposed to be followed by consulta-
tions leading to a European Freight Transport Logistics Plan (2),
which was published on 18 October 2007.

2.1.2
The Commission wanted to bring the logistics dimen-
sion into EU transport policy in order to decrease the persistent
bottlenecks, reduce energy consumption, make better use of co-
infrastructure and transport
modality and multimodality of
modes, protect the environment and limit damage to it, and
promote continuing staff training.

The Committee has been asked to give its opinion on
2.1.3
this Action Plan, which sets out the objectives to be achieved
and an implementation timetable, and promotes use of new
information technologies intended to improve the efficiency of
transport logistics with respect to objects (individual objects,
parcels, containers). A system of voluntary training certificates
for logistics staff is also envisaged, and the essential qualifica-
tions and training for practising their profession and to facilitate
their mobility.

2.1.4
Since 2006 the Commission has been emphasising that
it is difficult to get an impression of the European freight logis-
tics market in the absence of adequate statistics. Logistics are
the cost of
generally thought
products transported.

for 10-15 % of

to account

2.1.5
The idea was to propose the development of a Euro-
pean framework for freight transport logistics, taking action in

(1) COM(2006) 336 final.
(2) COM(2007) 607 final.

various areas. The Action Plan gives details and fixes very short
implementation deadlines, falling between 2008 and 2012:

— identification and elimination of bottlenecks;

— use of advanced information and communication technolo-
gies — TIC (tracking and tracing) systems with Galileo, LRIT
(Long-range Identification and Tracking), RIS, AIS (Auto-
matic Identification System), the SafeSeaNet system, and tele-
matic applications for rail freight (TAF) with its integrated
logistics (ERTMS); introduction of ‘intelligent’ technologies,
e.g. developing and standardising RFID tags (3);

— universal messaging and communications standards;

— research (7th Framework Programme);

— interoperability and interconnectivity;

— training of qualified logistics staff;

— benchmarking of Europe against other continents, with indi-

cators and methodology still to be developed;

— infrastructure policy: maintenance and optimum use of
existing infrastructure, and potential new investment, espe-
cially in state-of-the-art technologies and co-modal links;

— quality of performance through adequate social dialogue,

cooperation and regulation;

— promotion and simplification of multimodal chains, and

related loading standards.

The Action Plan published in 2007 sets out

the
2.1.6
measures previously envisaged in a more detailed programme of
objectives, together with a timetable for implementing each of
the measures.

In its communication (4) Keep Europe moving — Sustain-
2.1.7
able mobility for our continent, a mid-term review and revision of
the 2001 Transport White Paper (5), the Commission empha-
sised the concept of ‘intelligent mobility’, consisting of transport
logistics and intelligent transport systems (ITS), and in its Action
Plan it also prioritises this dimension.

2.2 e-Freight and Intelligent Transport Systems

2.2.1
Broad use of current and future ITC could significantly
improve freight transport, but there are still problems to be
resolved, such as standardisation, user skills, regulatory or other
obstacles to dematerialisation of documents, data security and
protection of privacy.

(3) See exploratory opinion on Radio frequency identification (RFID)
(rapporteur: Mr Morgan), OJ C 256 of 27.10.2007, pp. 66-72, as well
as work done at the Lisbon conference of 15-16 November 2007 (see
Portuguese presidency website).
(4) COM(2006) 314 final, 22.6.2006.
(5) See Committee opinions on the White Paper (COM(2001) 370 of
12.9.2001: European transport policy for 2010: time to decide) and the
mid-term review (COM(2006) 314 of 22.6.2006: Keep Europe moving
— Sustainable mobility for our continent — Mid-term review of the European
Commission's 2001 Transport Paper).

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things’

(cargo:

In the long-term, the concept of ‘e-freight’ will lead to
2.2.2
an ‘internet of
single objects, parcels and
packages, containers, with the possibility of personalising,
naming and identifying each component using active or passive
‘smart labelling’, activated by radio frequency identification, or
RFID). This new ‘internet of things’ will allow the transfer of
cargo data (geographical location, information about the nature
and volume of cargo, and customs or other messages) to be
automated and simplified. Existing systems must be deployed
with the aim of realising this new dimension of the internet
based on identifying things.

2.2.3
The Commission is preparing a major research project
for 2008 based on a roadmap for deployment of ITS and trans-
port logistics technologies.

2.3 Looking ahead

2.3.1
By enhancing efficiency, the Plan is intended to help
resolve problems such as congestion, pollution and noise, CO2
emissions and dependence on fossil fuels. These actions need to
be accompanied by work on a long-term perspective, under-
taken jointly with the Member States, in order to establish a
common basis for investment in tomorrow's freight transport
systems.

2.3.2
The European Commission will report
progress made in the implementation of the Action Plan.

in 2010 on

3. General comments

EU enlargement,

increasing globalisation of

3.1
trade, the
emergence of new economic powers (not only China) and relo-
cation are important
factors affecting trade trends. Trade is
increasing faster than production. In its 2001 White Paper, the
Commission envisaged a ‘decoupling’ of transport growth from
GDP growth. It is urgently necessary to revisit this issue, if only
to re-introduce a ‘parallelism’, a ‘coupling’. By combining
different modes and different operators (transport flow organi-
sers, carriers, consumers, and EU, national and international
authorities) and by using new information, packaging and hand-
ling technologies, within the framework of the mid-term review
of the White Paper of 2006 (6) logistics can be a key factor in
streamlining trade and freight transport and making them more
efficient.

combination of modes is used and logistics are improved by
setting three concurrent efficiency objectives: economic, social
and environmental (including reduction of energy spending).

in transport

In most cases transport planning involves long deadlines
3.3
and collaboration with a large number of stakeholders. Invest-
ment
infrastructure and logistics platforms is
committed for very long periods and is very high, especially in
the case of sea and inland ports or airports, but also of ‘dry
ports’ or combined transport facilities. It is these platforms that
are most problematic and for which reliable and permanent
solutions must be found without delay. The Committee there-
fore believes that the first priority should be to optimise the use
of existing infrastructure, where sharing experience and infor-
mation can be very valuable. But it is not enough to develop
existing infrastructure and use new, state-of-the-art technologies.
Medium- and long-term planning is essential for new invest-
ment.

New,

long-lasting infrastructure should be developed
3.4
only on the basis of needs calculated for the very long term and
if there is no co-modal alternative solution, e.g. using other,
existing infrastructure. Road-rail transport, for example, could
be an alternative to extending an existing road network or
building new roads. The planning required must involve all
operators
chains: Community authorities,
national and regional authorities, manufacturers and distributors
and other shippers, logistics experts and carriers, and the social
partners. The industries and people affected must be able to
take part in the various prior debates and consultations on
these issues, and their views must be seriously taken into
account.

logistics

in the

investment

3.5
The aim of this planning must be to establish long-term
partnerships that can ensure permanent viability of infrastruc-
ture (economic, ecological and social).
It must be consistent
with the European Spatial Development Perspective and help to
put
footing and
improve its structure and coordination with industrial and
commercial activities and land-use and urban space planning (so
as to avoid a proliferation of logistics platforms and hasty and
costly relocation), bottlenecks affecting certain axes and areas,
and the decline and cutting-off of other areas owing to absent
or poor services.

in transport on a permanent

3.2 Worldwide logistics chains require links — both physical
and electronic — between global systems, which in the long run
must be fully integrated so that the most effective mode or

(6) Keep Europe moving — Sustainable mobility for our continent — Mid-
term review of the European Commission's 2001 Transport White
Paper, COM(2006) 314 final, 22.6.2006.

3.6
As regards the new standards planned for loading units,
these must obviously make any transhipments easier in terms of
maximum manoeuvrable weight and dimensions. However,
given the problems created by the fact that freight transport is
almost exclusively limited to roads, these standards should not
result in extra costs that might degrade infrastructure and even
impair road transport safety. The standards must promote co-
modality.

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3.7 With regard to the proposal from 2003 on a new volun-
tary intermodal loading unit, the Committee would reiterate its
view that the combination of loading units of different dimen-
sions is a logistical nightmare. The two obstacles mentioned in
the opinion (dimensions of fixed cell guides and uncertainty as
to who will pay for the new system) are in themselves grounds
for concern that the system will not be used.

4. Specific comments

4.1
The Committee strongly wishes to be consulted on the
report that the Commission will be drawing up in 2010 on
progress made with the Action Plan and any problems encoun-
tered in implementing it.

The internet of things will certainly provide a means of
4.2
making transport
logistics, and services provided to clients,
more effective. However, on the basis of experience with the
internet of names, the Committee believes there are issues to
discuss concerning the verification procedures and instruments
to be established for ‘naming’. For historical reasons, ultimate
control of the internet of names lies with US DoC, the Depart-
the United States. The Committee
ment of Commerce of
supports the option of European governance with respect to
naming and managing databases, as well as formulating tech-
nical standards.

The Committee is pleased that the Commission relates
4.2.1
the development of logistics to the renewed Lisbon agenda on
growth and jobs. However, in the light of experience it asks the
Commission to make up the delays in implementing new tech-
nologies, especially with respect to Galileo, as soon as possible.

The Committee believes that,

in view of its economic
4.3
importance and the fact that most exchanges are intra-regional,
the internet of objects should be based on a multi-polar system
(regional or sub-regional naming bodies, for example) rather
than placed under the ultimate control of a single additional
authority outside the EU.

Brussels, 29 May 2008.

4.4
It is also necessary to elucidate privacy and business
confidentiality issues relating to diversification of information
instruments introduced for identifying the content of cargo, e.g.
to avoid leaking information to criminals, especially in third
countries,
into
account),
consignors,
intermediaries and recipients, in the context of promoting infor-
mation technologies and services (ITS) and related information
technologies.

(taking customs
and monitoring

and insurance questions

cargo

and

its

This is particularly relevant to detailed logistics relating

4.5
to e-commerce.

4.6
The Committee welcomes the Commission's intention to
modernise logistics professionals through a system of definitions
and certification for operators, and would like these to produce
high added value.

also welcomes

The Committee

4.7
the Commission's
proposal to work with the social partners on drawing up qualifi-
cation and training requirements.
the
Committee hopes that the qualifications and training required
will be lifelong, with advances in knowledge and technology
being taken into account as appropriate. It also welcomes the
fact that the Commission will provide for mutual recognition of
these voluntary certificates.

In this connection,

It is essential to improve logistics performance through
4.8
greater use of new technologies, reducing red tape, pooling
experience, developing qualifications and training, and co-
modality. However, the Committee would point out that the
positive impact of progress in these areas cannot be fully
realised unless the transport logistics sector is subject to re-
balancing of intramodal and intermodal transport and ‘regulated
competition’, as advocated by the Commission in its 2001
White Paper, which means re-assessing the relative prices of
transport, and properly harmonising intramodal and intermodal
competition conditions within the EU.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS