1

Version Date Changes Pages Writer

Final 31.01.2007 Final 74 FDT
FDT
Rrdalsvej 201
Postboks 8412
DK-9220 Aalborg
Tlf. +45 99 30 00 08
Fax+45 99 30 00 07
fdt@ntu.dk




FEASIBILITY STUDY ON THE NETWORK
OPERATION OF HINTERLAND HUBS (DRY PORT
CONCEPT) TO IMPROVE AND MODERNISE PORTS'
CONNECTIONS TO THE HINTERLAND AND TO
IMPROVE NETWORKING


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Contents

1. Executive Summary ............................................................................................................ 5

2. Introduction ......................................................................................................................... 6

3. Background, Definitions and Method ............................................................................... 7
3.1 Background..................................................................................................................... 7
3.2 Definitions........................................................................................................................ 8
3.3 Method of working......................................................................................................... 11

4. Concept outline for a Dry Port ......................................................................................... 16
4.1 Introduction.................................................................................................................... 16
4.2 Dry Port functions.......................................................................................................... 18
4.3 Dry Port advantages and disadvantages ...................................................................... 24

5. Dry Port Examples ............................................................................................................ 27
5.1 Overview........................................................................................................................ 27
5.2 Differences between Inland port and dry port............................................................... 29
5.3 Existing Dry ports .......................................................................................................... 33
5.3.1 Europe................................................................................................................... 33
5.3.1.1 Dry Port Muizen and Dry Port Mouscron/Lille, Belgium................................. 33
5.3.1.2 Venlo Trade Port............................................................................................ 35
5.3.1.3 Dry Port of Coslada........................................................................................ 36
5.3.1.4 Dry Port Hoeje-Taastrup................................................................................ 38
5.3.1.5 Port of Lyon douard Herriot ......................................................................... 39
5.3.1.6 Metrans ......................................................................................................... 40
5.3.1.7 Dry Port Dunkerque........................................................................................ 42
5.3.1.8 Port of Bilbao.................................................................................................. 43
5.3.2 South America...................................................................................................... 45
5.3.2.1 The Dry Port So Paulo................................................................................. 45
5.3.2.2 The Santo Andr Dry Port (EADI).................................................................. 46
5.3.3 North America....................................................................................................... 47
5.3.3.1 Virginia Inland port......................................................................................... 47
5.3.3.2 Inland Port San Antonio................................................................................. 50


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5.3.4 Asia........................................................................................................................ 51
5.3.4.1 Cambodia Cwt Dry Port ................................................................................. 51
5.3.4.2 Moghalpura Dry Port Lahore.......................................................................... 51
5.3.5 Africa ..................................................................................................................... 53
5.3.5.1 Isaka Dry Port................................................................................................. 53
5.3.5.2 The Tiger Dry Port.......................................................................................... 55

6. Testing Baltic Sea Region Dry Ports............................................................................... 56
6.1 Introduction.................................................................................................................... 56
6.2 Sustainable Balanced Scorecard for dry ports.............................................................. 58
6.3 Examples of the Dry port balanced scorecard.............................................................. 61

7. Pre-feasibility study of Dry Port Functions in the BSR................................................. 64
7.1 Introduction.................................................................................................................... 64
7.2 Content of the feasibility study...................................................................................... 65
7.3 Analysis of the possibility of introducing the dry port concept....................................... 70

8. Recommendations ............................................................................................................ 72









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Preface

PROJECT TITLE: InLoC

The InLoC project has been initiated in order to achieve more integrated and
sustainable transport and communication links to be able to cope with the significant
increase in trade and freight transport volumes in the Baltic Sea Region at the time
when the region is facing a major economic restructuring and the recent EU
enlargement. Logistics Centre (LC) development will continue to have a major impact
on improving transport chains and promoting sustainable transport modes as well as
integrating and linking national transport systems and cargo flows. Integration of LC
networks is needed because the full potential of LC networks in regional development
is not utilised in the BSR. The development of new and existing LCs needs to be
supported by integrating various sectors having importance for the development of the
operational environments of LCs. The InLoC work package 1 aims at improving the
integration of ports, logistics centres and other operators by examining the practical
networking possibilities.

TITLE OF THE PUBLICATION:
Feasibility Study on the Network Operation of Hinterland Hubs (Dry Port Concept)
to Improve and Modernise Ports Connections to the Hinterland and to Improve
Networking

AUTHORS OF THE REPORT:
FDT with inputs from Port of Kemi, Port of Turku, Ports of Stockholm, CESEF,
Valga County Government, Valka Town Council.

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1. Executive Summary
The content of this report focuses on dry ports and the possibilities, which comes
along with the dry port concept. After defining the dry port concept and relevant terms
for the understanding of this report in chapter 3, the report turns its focus to the
advantages and disadvantages that are connected to the dry port. Some of these pros
and cons are shown by a number of examples in the chapter regarding dry port
examples. The reports last themes show two methods of investigating the possibilities
of the dry port concept in a specific region or area. Both of these methods would be
good to use as a preliminary investigation of the possible development in a case
region. Finally the report encompasses a recommendation chapter, where the
experiences are gathered and recommendations for dry port development in the Baltic
Sea Region are put forth.




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2. Introduction

The dry port concept is based on a seaport directly connected with inland intermodal
terminals, where goods in intermodal loading units can be turned in as if directly to
the seaport. Between the seaport and the inland terminals, here denoted dry ports,
relatively large goods in intermodal loading units can be turned in as if the terminal
was positioned directly to the seaport. In such dry ports large goods flows can shift
freight volumes from road to more energy efficient traffic modes that are less harmful
to the environment. In addition a dry port can relieve seaport cities from some of the
congestion, make goods handling more efficient and facilitate improved logistics
solutions for shippers in the ports hinterland.

Physically expanding existing ports or establishing new ports can increase port
capacity, but this is in the long run and at considerable costs and endeavours. Other
options include adding conventional equipment or improving the productivity by new
forms of technology or by information systems. Also the transport services to the
ports hinterland, defined as the interior region served by the port are strained by the
increasing flows. According to the European Commission the volume of European
hinterland transport related to trans-ocean maritime transport will increase by 140%
up until 2010.






7
3. Background, Definitions and Method

The general increase in freight traffic all over Europe creates considerable problems
and challenges for the European freight transport sector. Handling this problem
demands both traditional solutions i.e. increasing investments in roads, rail network
etc. and new types of solutions aiming at a more efficient use of the existing
infrastructure. This development needs a support from the transport operators
behaviour.

The present chapter will outline the case study background, some central definitions
and the structure and method used to demarcate. Firstly some words on the
background and relevance for this case study.


3.1 Background
This case study was planned in regards to the need for facilitating transport operators
in their practical international networks and multilateral cooperation.

Close co-operation between transport and logistics companies within an organized
network creates opportunity to plan international transport and optimise the use of
transport equipment and resources. An important feature is the networks facilitation
of cooperation nationally and internationally, which hereby creates efficient transport
chains and network solutions for optimal cargo flow and distribution.

Another motivation for investigating networks is, that experience shows, that the
networks can offer the local/regional productive system the best solutions in terms of

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logistics, transport and warehousing activities. This implies to control both the
transport cost increase and the industrial productivity competitiveness.

3.2 Definitions
To emphasize the important concepts and to ensure the coherence and transferability
of the concepts in the report, the following concepts will be defined.





Figure 3.1: Definition of a dry port

As such a dry port does not necessarily need to be built from scratch. An inland
terminal can easily be developed to also encompass dry port facilities. If an inland
terminal fulfils the following three conditions it can in theory obtain status as a dry
port:
The terminal should have direct connection to a seaport either by rail or by road
The terminal should have a high capacity traffic mode
The terminal should offer the same types of facilities as can be found in a
seaport.

In order to obtain these conditions it should for instance be possible to make the
customs clearance in the dry port. In this way the goods for overseas travel can be
made ready already in the dry port and in this way save time and money, because the
ITU can be loaded directly onto the ship. When the capacity of a seaport is increased
because of the extra available areas at the dry port, it can also have the positive
consequence that larger ships can call the port and in this way increase the
productivity.
A Dry Port is a port situated in the hinterland servicing an industrial/ commercial region
connected with one or several ports with rail- or road transport and is offering specialized
services between the dry port and the overseas destinations. Normally the dry port is
container and multimodal oriented and has all logistics services and facilities, which is
needed for shipping and forwarding agents in a port.


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Logistics Centres as a concept has diverse names and meanings throughout Europe.
Some of the used names are: transport centre, freight village, intermodal hub, logistic
platform, GterVerkehrsZentren (GVZ), logistic node, intermodal terminal, interporto
etc. This report will describe the concept using the term Logistics Centre.





















Figure 3.2: Definition of Logistics Centres. It should be noted that the above definition of Logistic
Centres is of a physical centre. Logistic Centres can also be virtual.








Figure 3.3: Definition of intermodal transport




A Logistics Centre is a centre in a defined area within which all activities relating to
transport, logistics and the distribution of goods both for national and international
transit, are carried out by various operators on a commercial basis.

The operators can either be owners or tenants of buildings and facilities (warehouses,
distribution centres, storage areas, offices, truck services etc.), which have been built
there. In order to comply with free competition rules, a Logistics Centre must be open to
allow access to all companies involved in the activities set out above.

A Logistics Centre must also be equipped with all the public facilities to carry out the
above-mentioned operations. If possible, it should include public services for the staff and
equipment of the users. In order to encourage intermodal transport for the handling of
goods, a Logistics Centre should preferably be served by a multiplicity of transport modes
(road, rail, deep sea, inland waterway, air).

To ensure synergy and commercial cooperation, it is important that a Logistics Centre is
managed in a single and neutral legal body (preferably by a Public-Private-Partnership).
Finally, a Logistics Centre must comply with European standards and quality performance
to provide the framework for commercial and sustainable transport solutions.

Intermodal Transport is the use of a several transport modes in the transport of
cargo. The different types of transport modes that can be used in intermodal
transport are:
Boat-Airplane-Train- Truck-Car

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To illustrate an example of the concept of intermodal transport of cargo in the most
simple view:

Figure 3.4: Intermodal transport chain combining boat, railway, truck and van.
Port
Boat transport
Railway
station
Logistic
Centre
Railway transport
Truck transport
Vantransport


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3.3 Method of working
This report is part of the project InLoC. The objectives of this report are to clarify the
aspects of strategic networks. The report will follow the structure of figure 3.5 below:

































Figure 3.5: The structure of the report

The first section of the report gives a short summary of all the feasibility study. In the
second section of the report the introduction is given. The third chapter contains the
1. Executive Summary
2. Introduction
3. Background Definitions,
Method
3.3 Method of working 3.2 Definitions 3.1 Background
4. Concept outline for a dry
port
5. Dry port examples
6. Testing Baltic Sea Region
Dry Ports
7. Pre-feasibility study of
dry port functions in BSR
8. Recommendations

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background information and definitions of the central concepts to build an
understanding of the concepts. In the fourth chapter Concept outline for a dry port
the functions and advantages of the dry port are described.

In the fifth chapter Dry Port examples existing examples of dry ports, which are
located in Europe, Asia, Africa, North America and South America are analysed. In
this section the main differences between dry port and inland port are also explained.
In the sixth chapter an analysis of a Baltic Sea Region dry port will be undertaken,
based on the balanced scorecard approach.

Thereafter the seventh chapter will introduce the framework for a feasibility of dry
port functions in BSR. Finally conclusion and recommendations based on the analysis
follows. In the following the data collection methods used for the analysis will be
investigated.

Data Collection Methods
The different methods of data collection may vary in terms of their cost, the quality
and depth of information they supply and the level of response they are likely to
secure. The first consideration when selecting methods is the kind of information,
which is needed. There are two basic approaches: quantitative and qualitative.

Quantitative methods are centred on the quantity of certain responses, for example,
the number of people, who answer yes to a particular question. They are most
appropriate when the potential range of answers you can expect to each question is
known in advance, and typical questions involve ticking boxes or filling in numbers.

Quantitative data is also particularly useful for measuring change, as it is relatively
easily to ask the same questions again at a later date and to compare the results.

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For quantitative information to be reliable (and especially when measuring change), it
needs to be based on relatively large number of responses.
Qualitative methods are less focused on numbers and offer the opportunity to explore
issues and gain more in-depth information, particularly where the range of possible
answers is not known beforehand.
Being less dependent on numbers, qualitative approaches so not require such large
numbers of responses for their results to be useful, provided you can be sure that the
respondents are sufficiently typical or insightful. On the other hand, they are more
demanding in terms of the analysis required to extract the required information. It is
possible to combine both approaches in a single data collection exercise.
Questionnaire
The data is either based on general information gathering written contact to the
respondent or by interviews with the selected actors.

The questionnaire was send to the Port of Turku, Port of Kemi, Ports of Stockholm,
Valka Town Council, Valga City County and several chief executives for Danish
Transport Centres and Transport and Logistics companies. The purpose of the
questionnaire was to investigate the advantages and/or disadvantages of dry ports,
seen from their perspectives, plus to find out which of the dry port functions that are
deemed most relevant. The questionnaire was structured upon the quantitative
method, as such quantitative data often are easier to analyse, seen from a statistical
point of view. In table 3.1 it is possible to see the characteristics of both the
quantitative and the qualitative approaches to research.




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Table 3.1: Comparison of features of Quantitative and Qualitative approaches to research
Quantitative Qualitative
Both are systematic in their approach
Objective Subjective
Deductive Inductive
Generalisable Not generalisable
Numbers Words

The received data from the questionnaire has been analysed in the statistics
programme SPSS. The investigation of the attitude towards the dry port concept
among the respondents, has given a good insight in the feasibility of dry ports in the
Baltic Sea Region.

Telephone Interviews
The telephone interviews with selected partners have worked as an inspiration to the
making of the questionnaire. By taking contact to different transport and logistics
companies along with ship operators and other companies within the transport sector,
it has been possible to design a questionnaire, which was up to date with the
contemporary development within the transport sector. In this way unnecessary
questions were sorted out of the questionnaire analysis and the questions were
delimited to focus only on aspects, which could be regarded as relevant in the context
of investigating the dry port concept.







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Dry Port investigation
Academic aspects and contents of the case studies concerning the dry ports were
discussed and developed with consideration to the following aspects:

Themes
Background/history of networking and changes in process of
time
Benefits and possibilities of networking
Risks and restrictions of networking
General examples of networking (co-operation between firms
from same/different lines of business, firms from same/different
regions)
Data collection: literature, (current) articles from journals,
newspapers and customer magazines, web-sites etc.
Representation includes pictures and/or graphs

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4. Concept outline for a Dry Port

This chapter will present a concept outline for a dry port. The relevance of the dry
port will be explained and an example of the functions that can grow from the
establishment of a dry port will be drawn. The dry port functions as well as
advantages and disadvantages of a dry port will be described. In this chapter the
results from the questionnaires, which were sent to the transport operators in the
entire Baltic Sea Region, will be investigated.

4.1 Introduction

For historical reasons, most dry ports in Europe are located in city centres, which
demands an effective and safe goods transport with a minimum of environmental
strain. Simultaneously the ports of Europe demands space and facilities for loading,
unloading, storage, terminals, etc. in order to ensure the keeping of high quality and
growth with the growing traffic and amount of cargo in question. Traditionally
extending the port areas with filling docks and dam new sea areas solves the space
problem.

The increasing problem with transporting goods to and from the port through the city
has together with the expensive costs of establishing new docks etc. created conditions
to establish hinterland terminals or dry ports, which almost can handle all of the port
related activities (including customs clearance, track and trace, storage, maintenance,
registration etc). According to a research report
1
made by the UN, the potential
development of an inland intermodal facility into a dry port can additionally lead to an
increased development in the nearby area. By expanding the services available at an

1
United Nations Economic and Social Council for Asia and the Pacific. Report published the 17
th
of
August 2006. ESCAP

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inland multimodal terminal, other services could grow from the dry port and in this
way create an added value in the area, which is beneficiary for the region where the
dry port is located. Figure 4.1 shows an example of some of the functions that can
grow from the establishment of a dry port.

Figure 4.1: Potential expansion of function as a result of the development of an inland multimodal
terminal into a dry port or of the establishment of a dry port from scratch. The two inner circles indicate
the minimum level of services, which should be available in a dry port. The drawing is based on data
made by ESCAP.

Furthermore the development of dry ports is an essential possibility to promote
sustainability and effectiveness of goods transport in sea related transport chains. This
topic will among others be the focus of the next section.

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4.2 Dry Port functions

To ensure an effective Dry Port there are two general objectives:
Consolidation of maritime goods in intermodal short- and long distance
transport flows;
Collecting and distribution of local, regional and international transports.

To achieve these two objectives it is necessary for the terminal to carry out the
following functions:
Hinterland warehousing;
Management of container flows to different ports;
Consolidation of individual container flows;
Reduction of pre- and end haulage with road transport and expansion of rail
transport;
Offering special- and extra services;
Reduction of transport costs;
Increase the firms of ship owners and the port influence to ensure an
intensification of the Transport Chains effectiveness.

To achieve these functions it is required to consider the following measures:
To offer centrally placed areas;
Offer the choice: Reloading or shunting;
Offer co-ordination between different operators;
Organisation of pre- and end haulage;
Using advanced or existing technology;
Offer an integrated flow of information on railway-, Dry Port-, road- and
Maritime related data.


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The figure 4.2 shows the results according to the questionnaire survey which was send
to 69 participants, where they have evaluated the importance of the dry port functions
according to the scale 1 =not important, 5 =very important.



Figure 4.2: Functions of the dry port. The grading 3 should be regarded as the neutral grading.

As it can be seen form the figure above the respondents gave the average grading to
the function of offering special services and to customs clearance. By all of these
statements it can be concluded that the dry port should offer the same functions as the
seaport, in order to have a competitive advantage. In general almost all of the services
received a positive response in the investigation.
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In general the streams of information are vital for the transport flow in relation to dry
ports. There are several solutions to ensure a high flow of information: EDIFACT or
Internet based solution. The last mentioned technology will minimize the investment
costs and be beneficiary because of the great flexibility and the endless possibilities
expansion.

Most dry ports in Europe are located close to city centres. A great effort has been
made to ensure effective and safe transport to and from ports with minimal
environmental impact, it is not always possible to create optimal conditions for port
operations and the city environment as well.

The vision for the dry port is to strengthen and enhance the efficiency of sustainable
and environmentally transport of all cargo, by land and by sea. It has the same
administrative, customs, and cargo receipt functions as a seaport, and is designed to
receive containers, etc., and then to distribute cargo using various means of transport.
Containers and combi-units are sent from the port on to the dry port at the transport
centre. Standard procedures can be optimised so environmental impact is minimized.

The actual cargo reception takes place in the transport centre with administrative
functions, customs handling, etc. Cargos for foreign destinations are collected as they
are transferred from the ship and then send directly from the multimodal transport
centre. Other cargo is handled and distributed by rail, road or air (depending on which
is most appropriate). Cargo to be shipped out can be consolidated in the dry port,
registered, handled by customs, etc., and then shipped out directly as maritime cargo.
The overall goal for the dry port is to help to improve efficiency and sustainability in
complete door-to-door transport chains. The dry port could function as a common
multi-modal junction for several ports and transport companies in general.

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Collaboration between several ports together with companies handling land transport
(road and rail) will help to strengthen collective transport chains and reduce impact of
transport on the environment.

The main function of the Dry Port is obviously the transhipment of units between
different transportation means, but several others services can be provided at the dry
port.

Storage of units is frequently offered. It can for instance be storage of empty
containers as well as storage of waiting units. This service is indeed very important for
the transport system as some regions naturally receive more containers than they send
and vice versa. Dry Ports can thus be connected and used to regulate the imbalance
phenomenon. Maintenance of units is also a well-developed service that can be done
by sub contractors.
Dry ports offer a customs station destined to handle imports and exports. Therefore,
they can become an important storage and distribution centre of goods to the whole
country and to the international market as well. They represent a good option for
companies that need both promptness and low cost in their commercial transactions.
Several manufacturers and technology companies established in Brazil, rely on
imported components, and are therefore increasingly using dry ports (inland customs
clearance posts) to cut import costs and better manage the time of delivery and
production.
Dry ports imported components are dispatched with greater efficiency. This
guarantees deliveries on time and avoids the interruption of production caused by lack
of components.

22
One advantage of the dry ports is that the goods can be warehoused in their facilities
and cleared as needed, thus postponing the payment of import duties and local taxes
by the importer until the products are needed. The Dry Port has some benefits, such
as: the reduction of operating costs and more flexibility in commercial transactions;
the financing of ICMS (value-added Tax on Sales and Services), through a longer
term for the payment of generated tax.
Talking about the concrete dry ports which are analysed in this project e.g. in Isaka
Dry Port in Tanzania, it is almost compulsory and logical to provide the service at the
Dry Port.

If the custom clearance is done in the dry port instead of in the seaport, plenty of time
can be saved. In connection with this certificate for customs clearance it is important
that the dry port receive the authority to supply the T5 permission. In this way the ITU
does not have to be re-opened and controlled at the seaport, but can be transshipped to
the ship right away.

The Dry Port of So Paulo offers storage, cargo handling through modern equipment
and skilled workmanship, cargo consolidation/deconsolidation, yards for storage of up
to 5000 vehicles, parking lot for trucks arriving out of Customs working hours, full
infrastructure for clients and users, etc.

The Santo Andr Dry Port offers services ranging from goods collection to cargo
clearance, involving highly specialized equipment and staff, for handling any type of
dry cargo in accordance with the importer/exporter's specifications.
Virginia Inland port operated as an intermodal container transfer facility, the Virginia
Inland Port (VIP) provides an interface between truck and rail for the transport of
ocean-going containers to and from the Port of Virginia. Containers are transported by

23
truck to the VIP for immediate loading upon a rail car or for short-term storage prior
to loading. Containers arriving from Hampton Roads terminals are unloaded from the
train and dispatched by truck to inland destinations. Land is available to steamship
lines for container storage and ancillary services companies.

The Santo Andr Dry Port offers services ranging from goods collection to cargo
clearance, involving highly specialized equipment and staff, for handling any type of
dry cargo in accordance with the importer/exporter's specifications.

24
4.3 Dry Port advantages and disadvantages

Consequently Dry Ports advantages and disadvantages are those actual inland
terminals advantages and disadvantages.
In the report the following dry port advantages are taken into consideration:
Reducing total transport expenses;
Shift from road to rail transport, which is more environmental friendly.
2

Connecting cargo handling from the port with other types of cargo at one
common transport centre;
Strengthening the ports in transport chains;
Strengthening multi-modal solutions;
Reducing the use of expensive, centrally located areas in the port;
The seaport get a larger hinterland and can therefore obtain a competitive
advantage, because the seaport now can store a larger amount of ITUs
Possibly avoiding traffic bottlenecks, which give less congestion on the roads
near the harbour area, due to the fact that a modal change has happened.
Reducing local environmental problems in the cities;
Integrating port areas with the cities.
Especially in Less Developed Countries (LDCs) the development of the
hinterland can be beneficiary for an area in form of creation of jobs in the
affected area.
The possibility of speeding up the customs clearance process for goods
transferred overseas can be gained by establishing dry ports with the right to
conduct customs clearance.


2
One train can carry the same amount of goods as approximately 40 trucks

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The figure 4.3 shows the results from the questionnaire, where the respondents had to
estimate the importance of the dry port advantages according to the scale 1- not
relevant and 5- very relevant.
Figure 4.3: Dry port advantages. The grading 3 should be regarded as the neutral grading.

As it can be seen in the figure 4.3 it is the categories of strengthening multi-modal
solutions and avoiding traffic bottlenecks that are the most important dry port
advantages. This is furthermore emphasised by the fact that the share of road transport
is increasing, and therefore will cause increased problems in the future. Developing
the concept of dry ports can be a possible solution to minimize the congestion
problem caused by heavy vehicles. Also here it can be concluded that the respondents
in general have a positive attitude to the possibility of obtaining advantages from
developing dry ports.

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26
Normally dry ports are categorised into three different kinds of dry ports according to
the distance to the seaport. The following scheme shows the advantages and
disadvantages of these three kinds of dry ports.

Table 4.1. Dry Port advantages and disadvantages are defined in the following table.
Close Dry port Middle range dry port Distant dry port
Conditions Transit activity dominant
in the seaport;
There is a need due to the
lack of space at the seaport.
High volume customers;
Rail link between
seaport and market.

Rail link between
seaport and market;

Location level Decongestion of the city
access;
Reduction of pollution;
Increased intermodal
transportation.
Region attracts
industries;
Reduction of pollution;
Increased intermodal
transportation.
Acquiring new
hinterland for the seaport in
consideration;
Reduction of pollution;
Increased intermodal
transportation.
Infrastructure
level
Reduction of road
maintenance cost;
Increase of rail
maintenance cost;
Reduction of cost for road
infrastructure development;
Increase of cost for rail
infrastructure development.


Reduction of road
maintenance cost (in case
of pay roads, reduction of
profits);
Increase of rail
maintenance cost.
Reduction of road
maintenance cost (in case
of pay roads, reduction of
profits);
Increase of rail
maintenance cost.
Transport level Light reduction activity
for road carriers from/to
seaport;
Reduction of congestion
and waiting time for transport
operators;
Increase of transit time;
Increase of handlings.

Reduction activity for
road carriers from/to
seaport;
Reduction of waiting
time for units;
Decrease of transport
cost;
Coordination with rail
passenger traffic.
Light reduction activity
for road carriers from/to
seaport;
Reduction of waiting
time for units;
Decrease of transport
cost;
Coordination with rail
passenger traffic.
Logistical level Increased inland access
and city distribution;
Invitation for the use of
intermodal solutions.
Increased inland access;
Decrease of costs.

Increased inland access;
Possibility to choose
between seaports;
Decrease of costs.
Customers
viewpoint
Raise of costs at the
beginning;
Decrease of cost in long
term?
Reception of units closer
to their own geographical
location.
Easy access to seaport;
Decrease of costs;
Slight increase of transit
time.
Easy access to seaport;
Decrease of costs;
Increase of transit time
(or decrease depending on
the country of interest, on
its road infrastructure
quality level, and on
distance to cover).


27
5. Dry Port Examples

The objective of the chapter is to give practical examples of dry ports situated all over the
world- Europe, Asia, Africa, South America and North America. The elements which will
be analysed and categorised in the practical examples are as following:
a. Background information
b. Services of the dry port.

At the beginning of this chapter an overview of the dry port and its position in the
transport chain will be explained. The differences between dry ports and inland ports will
be discussed, which will give a better understanding of the presented practical examples.


5.1 Overview
A dry port is a port located in the country in a transport centre (transport junction). It has
the same administrative, customs and cargo receipt functions as a seaport, and is designed
to receive containers, etc., and then to distribute cargo using various means of transport.

The processing problem with transporting goods to and from the port through the city has
together with the expensive costs of establishing new docks etc. created conditions to
establish hinterland terminals or dry ports, which almost can handle the port related
activities (including customs clearance and registration). The development of dry ports is
therefore an essential possibility to promote sustainability and effectiveness of goods
transport in sea related transport chains. An example on the change in a traditional door-
to-door transport chain can be seen on figure 5.1:


28

Figure 5.1: Dry Ports in the Transport Chain.

Besides the actual transportation, the transport chain will establish possibilities to value
added services, presumed the dry port is integrated in a logistics centre. To add up the
value added service there are e.g. customs clearance, store functions, packaging and
assembly, process data, exchange of information, etc.

The conception of dry port is used in several connections and with multiple meaning. Dry
port integrates value added activities, port related routines and the multimodal transport
chain through IT solutions and innovative integrated transport techniques.

29
5.2 Differences between Inland port and dry port

An Inland Port is located inland, generally far from seaport terminals. They supply
regions with an intermodal terminal or a merging point for transportation modes of rail,
air and truck routes involved in distributing merchandise that comes from water ports.
Containers are transported by truck to the Inland Port for immediate loading upon a rail
car or for short-term storage prior to loading. Containers arriving from sea port terminals
are unloaded from the train and dispatched by truck/rail/air to inland destinations. Inland
port provides international logistics and distribution services, including freight
forwarding, customs brokerages, integrated logistics and information systems.

A dry port is a port situated in the hinterland servicing an industrial/commercial region
connected with one or several ports with rail- or road transport and is offering specialized
services between the dry port and the transmarine destinations. Normally the dry port is
container and multimodal oriented and has all logistics and facilities, which is needed for
shipping and forwarding agents in the port.

Different kinds of dry port development
The following five figures will show different kinds of development in regard to harbours
and dry ports:
Classical view
Hinterland terminal
Dry port
Alternative dry port I
Alternative dry port II






30

Figure 5.2 : Classical view

The classical port normally provides all the services that should be present in order to
make the port function.

Figure 5.3: The hinterland terminal:

Hinterland terminal functions:
Extra space;
SEA
Port
Land
SEA
Port
Land
Hinterland
Terminal


31
Shunting area;
Long term storage;
Low land costs;

SEA
Port
Land
Dry Port



Figure 5.4: The dry port concept

Dry port functions:
Hinterland terminal functions +Added value services;
Custom clearance;
Logistic services.

32
SEA
Port
Land
Dry Port

Port Port

Figure 5.5: Alternative dry port solution where the dry port services three different ports

SEA
Port
Land
Dry Port

Dry Port

Dry Port


Figure 5.6: Alternative dry port solution where different dry ports are servicing the same port


33
5.3 Existing Dry ports
5.3.1 Europe

In order to give an insight on the developed network of dry ports from all over the world,
the following section will contain some examples of well functioning dry ports, from
which back ground knowledge and experience may be gained and may be transferred to
the Baltic Sea Region.

5.3.1.1 Dry Port Muizen and Dry Port Mouscron/Lille, Belgium

Background
In Belgium there are two dry ports: Dry port Muizen next to Brussels and dry port
Mouscron/Lille next to the French border. Dry Port Muizen has direct connection to
Antwerp, Rotterdam, and Dunkerque to quote only seaports that deal with standardized
units. Dry port Mouscron/Lille is connected by rail to the same seaports.


Figure 5.7. Dry Port Muizen plan


34
Services
Dry port Muizen offers the following services:
Loading/Unloading railway wagons on and from trucks;
Loading/Unloading railway wagons on and from railway wagons.

Dry port MOUSCRON/LILLE INTERNATIONAL

















Figure 5.8. Dry port MOUSCRON/LILLE INTERNATIONAL Plan

Services:
Dry Port MOUSCRON/LILLE INTERNATIONAL offers such kind of services:
Loading/Unloading of containers on railway wagons on/from trucks.

35

5.3.1.2 Venlo Trade Port



Figure 5.9 Venlo trade port

Background
The Venlo area has emerged as one of the primary logistics centres for the European
market of the 21
st
century. With its central location, its direct infrastructure connections
to major European economic centres and its terminal facilities for nearly any type of
combined traffic, Venlo presents clear strategic advantages for companies hoping to
capitalize on opportunities of the changing European market. A key element of that
strategic advantage is Venlos highly successful Trade Port concept.
Venlo Trade Port has a total area of 800 hectares. The location is of a high flexibility and
high- profile. It is combining fully integrated road and rail transhipment facilities with a
state-of-theart telecommunication infrastructure. It is also a high flexibility business
park. Venlo Trade Port is located in the southeast Netherlands.



36
Services
Since development began in the late 1980s, Venlo Trade Port has proven to be both a
successful concept and an extremely favourable location for commercial enterprises. One
of the first developers was ECT of Rotterdam, a leading global handler of maritime and
continental containers.

At the moment plans are being finalized for the development of a Venlo barge terminal
on the Maas (Meuse) River, one of Northern Europes primary waterways. Direct, latest
technology connections will soon offer combination road/rail transport from the Venlo
harbour to the Venlo Trade Port, initially for bulk goods as well as containers on the long
term.

The multi-modal transport facilities at Venlo Trade Port complement those of Rotterdam
and Schiphol. Both facilities have a vested interest in further strengthening Venlo's
position in the European goods traffic. In fact, to an ever-increasing degree, activities in
goods handling are being relocated from Rotterdam to the interior due to growing traffic
congestion in the densely populated agglomerations of western Holland. That's one
reason why a High-speed Container Shuttle Service now offers direct, daily rail
connections between Venlo Trade Port and the Rail Service Centre at the Port of
Rotterdam.


5.3.1.3 Dry Port of Coslada

Background
The Puerto Seco, which was finalised in February 2000, is conceived as an extension of a
port inland to ensure a fast and efficient transportation of freight containers, taking
advantage of the possibilities offered by the transport by train and the direct connection
of two logistic centres. The Puerto Seco has been shared proportionally by the main
seaports of Spain.

37
In the central nucleus of Puerto Madrid, Logistic Platform Barajas- Coslada, constituting
along with the Centre of Air freight of Barajas, the dry port of Coslada and the railway
station of Vicalvaro, the greater logistic complex of the South of Europe. It is the best
space for reception, storage and distribution of merchandise, because it concentrates these
activities in a specialized zone, most strategic of Spain by location, infrastructure and
services. PUERTO Seco de Madrid, the inland intermodal terminal on the outskirts of the
Spanish capital, handled 36,953 TEU last year and plans to expand capacity by 16,000 sq
m. The terminal is linked by rail to Spain's four leading ports Algeciras, Bilbao,
Barcelona and Valencia all of which hold stakes in the facility. Its role is to handle cargo
from regular rail services to the capital and help shift freight traffic of increasingly
congested roads.

Services
Dry Port of Coslada has a million m equipped with best infrastructures, architecture and
services to give answer to any necessity of the logistic companies, whichever it is its
dimension and services and are prepared already to welcome all the activities related to
the transport:
Storage and distribution;
Management of stock;
Division and consolidation of loads;
Customs management;
Modal interchange;
Services to the transport.

In the dry port the merchandise coming from the four Spanish marine ports will come
together (by highway, railroad and airplane, given the proximity of Barajas) for their
distribution. One is an inner port, intersection of the four Spanish ports (Algeciras,
Barcelona, Bilbao and Valencia) that is going to harness the railroad to unload the rolled
traffic and to reduce the environmental impacts.

38
Centro Transporte de Coslada is strategically placed for the reception, storage and
distribution of goods. It is connected with the railway network (Viclvaro Station) and it
is the axis of the road traffic in the peninsula. Being the common vertex of the Atlantic
arc and the Mediterranean triangle (Madrid-Barcelona-Valencia), moreover is inter-
connected with Barajas Airport, with access to the Northern Barcelona roadway and it is
also adjacent to the Dry Port of Madrid.

Coslada consolidates like one of the main centres of distribution of merchandise of the
south of Europe with the entrance in operation of the dry port, fundamental element of
the Logistic Platform Madrid Port.

5.3.1.4 Dry Port Hoeje-Taastrup



Figure 5.10. Hoeje-Taastrup dry port

Background
Hoeje-Taastrup dry port is located on the outskirts of the Greater Copenhagen area in a
traffic junction for railway and road transport with direct access to motorways and a main
railway line. The vision for the first Danish dry port project is to strengthen and enhance
the efficiency of sustainable and environmentally correct transport of all cargo, by land
and by sea.




39
Services
Containers and combi-units from ships are sent from the port into the dry port at the
transport centre. Standard procedures can be optimised so environmental impact is
minimized. The actual cargo reception takes place in the transport centre with
administrative functions, customs handling, etc. Cargos for foreign destinations are
collected as it is transferred from the ship, and then send directly from the multimodal
transport centre. Three of the goods sidings at Hoeje-Taastrup are presently only 300
meters long and one siding is 490 meter. But extension up to the length of 600 meters
should be possible within the forthcoming years.

Other cargo is handled and distributed by rail, road or air. Cargo to be shipped out can be
consolidated in the dry port, registered, handled by customs, etc., and then shipped out
directly as maritime cargo.

The overall goal is that a dry port should help to improve efficiency and sustainability in
complete door-to-door transport chains. The dry port could function and a common multi-
modal junction for several ports and transport companies in general. Collaboration
between several ports together with companies handling land transport (road and rail)
will help to strengthen collective transport chains and reduce the impact of transport on
the environment.


5.3.1.5 Port of Lyon douard Herriot

Background
The Port of Lyon douard Herriot is located at the south entrance of Lyon, the port
covers approximately 184 hectares and offers 109 hectares of private and public land for
industrial and logistical uses.
The terminal is connected to seaport of Marseille to where there are around 300
kilometres to cover, depending on whether rail or inland waterway is used. The terminal

40
is connected to the seaport with a barge service that is run by the state owned company
Compagnie Nationale du Rhone. Marseille has an office at Lyon terminal that provides
seaport services. For that reasons, Lyon terminal seams to be a dry port for Marseille.


Figure 5.11 Port of Lyon

Services
There is the only site in Lyon that accommodates all modes of transport: water, rail, road,
oil pipeline and river/sea, the Port of Lyon is a conveniently located multimodal hub for
all types of goods. Lyon Terminal, the manager of the container and heavy-parcel
terminal, has made it the relay port of Marseilles/Fos, thanks to the use of frequent
railway and river shuttles.
The development of river/sea traffic now offers direct connections without transhipment
from Lyon to the Mediterranean basin. Special customs procedures have been set up for
containerised goods.


5.3.1.6 Metrans

Background
METRANS, the German-Czech company for hinterland transport, is the market leader for
container transport by rail between the German seaports and the Czech Republic. From
the traffic junction in Prague, containerised goods are transported to the major economic

41
centres in the Czech Republic, Slovakia and Hungary. METRANS runs four railway
terminals situated in Prague, Zlin (Czech Republic), Dunajska Streda (Slovakia) and
Gyor (Hungary). METRANS own distribution station network ensures reliable and
smooth running transport by rail.

Services
METRANS offers a complete intermodal service from Hamburg and Bremerhaven. The
block trains cover the distance between the North German ports and Prague in less than
twenty hours. Ranges of additional services are available at all domestic and foreign
METRANS terminals. These include terminal services, truck transportation, customs
clearance, storage for empty containers, repair facilities and maintenance.




42

5.3.1.7 Dry Port Dunkerque


Figure 5.12 Dunkerque dry port.

Background
Ranked third largest European port for dry bulk, Dunkerque has consolidated its position
with the extension of the western bulk terminal managed by Sea- Bulk. This operator is
60% owned by the Belgian group Sea Invest, one of the major worldwide port operators
specialized in the dry bulk and fruit sectors, the remaining share is owned by the
Dunkerque Port Authority. Dry Port Dunkerque (DPD) is the new on-dock intermodal
terminal in the Port of Dunkirk.

43
Services
Dry Port Dunkerque boasts 300 m tracks and two 40 tonnes wide span RMGs, which
have been relocated from Belgium. The tracks are due to be extended in due course,
allowing DPD to hold or (un)-load four 90 TEU trains simultaneously.
Sea Bulk delivers mineral ores and coal to the steel industry and power stations using
coal in the North of France, the Lorraine area in the East of France and to the United
Kingdom via transhipment. The prospects of future growth in the Lorraine area of France
and on the British, German and Belgian markets are huge, and could generate to further
extensions.


5.3.1.8 Port of Bilbao
Figure 5.13: Port of Bilbao

Background
During the last years a logistics platform to channel 65% of the load has been
implemented at the Port of Bilbao. The operation of this platform, which will prevent
lorries from having to return to the Port of Bilbao and will thus reduce their cost, arises
from the agreement between the haulage companies.

Services
The Port of Bilbao is equipped with a major logistics platform located in the terminal
owned by Renfe in the town of J ndiz in Alava and which will be used to channel 65% of

44
the containers arriving at the port, thus lowering the cost of their shipment. This logistics
platform, the fruits of an agreement among all the haulage companies operating at the
port except for Cecotrans, will be partners with Renfe by way of a percentage, which has
yet to be defined, with an investment of around 3 million euros. The company Vitoria
Container Depot has been set up to run it, the shareholding of which is still open and may
incorporate Cecotrans if it is required. Shareholding will not close until Renfe, the
landowner and who has never previously allowed its premises to be used for loads which
are not transported exclusively by rail, establishes with what percentage the
aforementioned company wishes to enter. The operation of this platform, which prevents
lorries from having to return to the Port of Bilbao and thus reduces their cost, arises from
the agreement between the haulage companies, who for several months now have been
involved in finding a solution via dialogue to ensure the stability and functional nature of
the port.



45
5.3.2 South America

5.3.2.1 The Dry Port So Paulo












Figure 5.14: Sao Paulo dry port

Background
The dry Port Sao Paulo has a convenient entrance and outlet gate for United States,
Europe, Africa and Mercosul markets. The dry port is placed inside the Metropolitan area
of Sao Paulo and covers an area of 160 hectares. The location makes it the best link for
this largest consumer and producer market of the country, due to the short distances to the
airports of Guarulhos and Viracopos and the port of Santos.

Services
The main services which the Sao Paulo dry port is offering are as following:
Storage;
Cargo handling through modern equipment and skilled workmanship;
Cargo consolidation/deconsolidation;
Closed and open warehouses, cold storage and safe for valuable cargo;
Computerized control of cargo and electronic weighing;
Yards and gantry cranes for handling containers (full, empty and reefer);
Parking lot of trucks arriving out of Customs working hours;
Assistance on customs procedures and law;

46
Assistance on constructing national and international freights as well as logistics
projects;
Full infrastructure for clients and users.


5.3.2.2 The Santo Andr Dry Port (EADI)

Background
The Santo Andr Dry Port (EADI) is regarded as one of the best bonded warehouses in
Brazil. Located in the so-called ABC district of greater So Paulo, with easy access to the
main routes out of So Paulo, it has a total area of 92,000m and two enclosed
warehouses comprising a total covered area of 32,000 m with 13m head-room.

Services
The Santo Andr Dry Port offers services ranging from goods collection to cargo
clearance, involving highly specialised equipment and staff, for handling any type of dry
cargo in accordance with the importer/exporter's specifications.
The Santo Andr Dry Port (EADI) began operations in 1998 and is dedicated to import /
export cargo logistics for various customs regimes.

47
5.3.3 North America

5.3.3.1 Virginia Inland port



Figure 5.15: Virginia Inland port

Background
The Virginia Inland Port (VIP), just west of Washington, D.C. in Warren County,
Virginia, is 220 miles inland and effectively brings the benefits of the Port of Virginia
220 miles closer to U.S. markets. Five-day-a-week rail service between the VIP and the
marine terminals in Hampton Roads allows direct access to the trade routes of 75
international shipping lines.
The facility contains 17,820 feet of on-site rail serviced by one of the largest railroads in
the U.S., Norfolk Southern. Its ideal location provides excellent roads to and from
markets in Pennsylvania, Northern Virginia, West Virginia, Maryland, Washington, D.C.
and Eastern Ohio.




48
Services
Virginia Inland port operated as an intermodal container transfer facility, the Virginia
Inland Port (VIP) provides an interface between truck and rail for the transport of ocean-
going containers to and from the Port of Virginia. Containers are transported by truck to
the VIP for immediate loading upon a rail car or for short-term storage prior to loading.
Containers arriving from Hampton Roads terminals are unloaded from the train and
dispatched by truck to inland destinations. Land is available to steamship lines for
container storage and ancillary services companies.

At all three waterfront Marine Terminals and Virginia Inland Port, the following services
are available.
The Cargo Division is responsible for loading and unloading of trucks and railcars of
breakbulk cargo and the stuffing and stripping of containers at the Container Freight
Station. Additionally, the division coordinates warehouse storage and cargo fumigation.
The Container Division is responsible for the documentation on containers entering and
exiting the terminal via ship, truck or rail. The Yard Division is responsible for planning,
coordinating and accomplishing the Container Yard activities. The Division allocates
yard stowage space, mounts and stacks containers, and coordinates the vessel load and
discharge with the ship line and/or stevedore. The Rail Division is responsible for the
loading and unloading of intermodal containers at the on dock rail facility. The Vessel
Operations Division is responsible for the assignment of vessel berth and cranes. This
Division is the initial point of contact with the ship line and/or the stevedore during vessel
operations. The M.I.S. Coordinator-Cargo is responsible for the coordination of break
bulk operational requirements with the Information Systems Division Programmers. The
M.I.S. Coordinator-Container is responsible for the coordination of container operational
requirements with the Information Systems Division Programmers. The equipment
training assistant is responsible for the training of equipment operators of dock side
cranes, rubber tire gantry cranes, straddle carriers and other heavy equipment.

49
Additional Port Services:
- Ship Lines Providing Regular Service From Hampton Roads;
- Inducement;
- Ship Offices & Agents;
- Feeder Service;
- Freight Forwarders & Customs Brokers;
- Bagging & Transfer;
- Stevedores;
- Ship & Cargo Brokers;
- Shipbuilding, Ship Repair, and Dry-docks;
- Export Management & Packing;
- Warehousing;
- International Divisions, Banks & Financial Institutions;
- Consular Offices in Virginia;
- Terminal Designations.

The Port of Virginia consists of four general cargo terminals and a cruise terminal-
Newport News Marine Terminal, Norfolk International Terminals, Portsmouth Marine
Terminal and the Virginia Inland Port in Warren County, Virginia as well as the Newport
News Cruise Terminal. All facilities are operated by Virginia International Terminals,
Inc., a non-stock, non-profit operating affiliate of the Virginia Port Authority.

50
5.3.3.2 Inland Port San Antonio

Background
Inland port San Antonio promotes all of the transportation, distribution, logistics
facilities, and services that make up this community's unique capacity to serve
international trade. San Antonios unique position midway between the East and West
coasts of the United States and its close proximity to Mexico makes it a strategic location
for transhipment, distribution, logistics and international trade processing activities.

Services
Among the key physical resources which make up the Inland port San Antonio include
intermodal facilities at Kelly USA, the air cargo capabilities at San Antonio International
Airport, and two major transcontinental railroads, Union Pacific and BNSF, together with
their yards and intermodal assets.
San Antonio is at the crossroads of major railroads and interstate highways directly
connected to the Mexican transportation system. Because of this combination of ideal
location and excellent infrastructure, more than 50 percent of the total goods flowing
between the U.S. and Mexico travel through San Antonio before reaching their final
destination.

51
5.3.4 Asia

5.3.4.1 Cambodia Cwt Dry Port

Background
Cambodia-CWT Dry Port is a joint venture between CWT, its subsidiary Camsin
Corporation Pte Ltd ("Camsin") and PAS.

Services
PAS has many other services for serving its customers besides navigation sector,
handling, transport and cargo storage. PAS has established another branch, namely
Cambodia CWT Dry Port, which is located next to the capital city of Phnom Penh and
close to highway N 4 and the railroad, which is an ideal advantage in transporting
cargoes from PAS to Cambodia CWT Dry Port and vice versa as well as to produce
convenient conditions to customers in storage, transport, handling and cargoes
distribution in market places throughout the Kingdom of Cambodia. Cambodia CWT Dry
Port has 19 hectares of land area including yard, warehouses, administrative building and
a number of machineries to meet its customers' requirements. Located near Phnom Penh
City, the Cambodia-CWT Dry Port provides inland dry port services including container
freight station and transportation services.

5.3.4.2 Moghalpura Dry Port Lahore

Background
Lahore Dry Port was the first dry port established in Pakistan, constructed and managed
by Pakistan Railways since 1973. At present, there are six dry ports running under the
management of Pakistan Railways:
Lahore dry port;
Karachi dry port;
Quetta dry port;
Peshawar dry port;

52
Multan dry port;
Rawalpindi dry port.

Lahore dry port was established in 1973. Originally, dry port Moghalpura Lahore was
declared as land customs station and the goods imported into and exported from this port
were mainly for India and Pakistan. In other words it was land customs station for
commercial goods imported from India and exported to India. Subsequently with
development of trade and industry and as a result of closure of trade with India after 1965
war and in view of difficulties faced by the local traders of Punjab, the Land Customs
Station of Moghalpura Lahore was designated as dry-dock i.e. inland port for importation
and exportation of goods brought through the sea routes and it was a port created with
transhipment facilities. Initially transhipment was carried out only by railway but
subsequently this facility was extended to National Logistic cell of Pakistan Army and
further to private bonded carriers. The custodian of the imported and exported goods is
Pakistan Railways.

Services
Goods are imported into the country and transported from Karachi to Lahore through
Railway Wagons or by road. Garments, woollen carpets, leather products, sports goods
are major export items of dry port. As per Governments policy to encourage the exports,
the Customs Export Station also process the rebate claims. The rebate claims are
sanctioned after verification and the files are sent to Chief Accounts Officer for issuance
of cheques of rebate amounts in favour of the exporters.

53
5.3.5 Africa

5.3.5.1 Isaka Dry Port
3









Figure 5.16: Isaka dry port

Background
Isaka Dry Port is an inland container terminal, which acquired the dry Port status in 1999.
The conversion of Isaka into a Dry Port means that all the customs documentation may be
done at Isaka instead of Dar es Salaam Port. Isaka was a Railway station until the late
1980s when it started to grow into an active commercial centre due to increased traffic on
the highway to Rwanda. Since 1999 Isaka is directly handling import and export traffic.
The main features at Isaka are as following:
An inland dry port facility;
Isaka Railway station including passenger and goods terminals.

3
http://www.trctz.com/isaka.htm

54

Figure 5.17: Isaka dry port

Isaka dry port provides a convenient interface for traffic to Rwanda and North Eastern
Democratic Republic of Congo. Isaka is one of the key transport link to/from Rwanda
located on the TRC line between Mwanza and Tabora. The Isaka container terminal is
managed and operated by TRC. TRC has a capacity to handle 1.8 million metric tons per
annum. Isaka dry port which is located in Shinyanga region, handles cargo destined for
Rwanda, Burundi and the Democratic Republic of Congo.

Services
Isaka Dry Port ensures assured security and safety of cargo, faster and convenient
customs clearance, preferential wagon allocation, faster transit time, low transport costs,
reduced demurrage charges and overall efficiency and cost effectiveness.
Isaka Dry Port handles both containerised and general dry cargo. They also have two
transit sheds with storage capacity of 7,000 mt each and can handle 42583 mt of loose
cargo per annum. Two railway sidings with a capacity for 22 wagons at a time serve the
yards.


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5.3.5.2 The Tiger Dry Port

Background
The Tiger dry port is situated at the Smith Co. Industrial Business Centre in the heart of
Matsapha, Swazilands major industrial estate.

Services
With a railway siding on the premises a customs bonded warehouse and a soon to be
operational customs office the dry port is an asset to local and international business men
by providing first class import and export facilities, with abundant storage space that is
kept under 24 hour constant security.
Incorporating the help of a state of the art super stacker the only one of its kind in
Switzerland, loading and off loading of containers from trucks and railway trucks has
never been easier or quicker.


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6. Testing Baltic Sea Region Dry Ports

In this chapter a discussion on Testing Baltic Sea Region Dry Ports will be executed. The
aim of this chapter is to present the sustainable balanced scorecard for dry ports which
was published in 1996 by Kaplan and Norton. In this chapter an example of how a
balanced scorecard could look like will be showed also the examples for each of the
evaluation criteria, integrated into the sustainable balanced scorecard of a dry port, will
be investigated.


6.1 Introduction

Using a balanced scorecard approach, the dry ports vision and strategy is translated into
actions. These are related to the four perspectives:
Dry ports productivity:
The dry ports productivity is related to performance results.
Dry ports attractiveness:
The dry ports attractiveness is related to the stakeholders perception.
Dry ports efficiency:
The dry ports efficiency is related to the operation of business processes.
Dry ports potential:
The dry ports potential is related to the know how of individuals and
organisations.

Therewith, further performance orientated development measures are compiled and a
balancing between various perspectives is obtained.


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During the study the following questions are discussed having in mind the selected
evaluation criteria:
Which indicator(s) related to the specified dry ports perspective can be used for
visualisation and measurement?
Which measure(s) also beyond dry ports realisation can further improve the
indicator level?
Which indicator level is obtained before and after realizing these measures (in
relation to the situation before dry ports)?
Which implications result for the other dry ports perspectives?

By this, the multi-criteria analysis covers amongst others the following key
characteristics.

The motivation for a multi criteria analysis based on a sustainable balanced scorecard
approach multi-criteria can be summarised as follows:
Quality of transport infrastructure is responsible for regional and national welfare,
EU focus on sustainability of dry ports networks and transport systems, from
feasibility to viability,
Due to increased competition development and qualification options are essential,
Increased view on sustainability impact assessment,

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6.2 Sustainable Balanced Scorecard for dry ports

A sustainable balanced scorecard approach is developed and used as strategic planning
tool for dry ports. This approach is described in this chapter. The Balanced Scorecard,
published in 1996 by Kaplan and Norton (see Kaplan, R.S.; Norton, D.P.: the Balanced
Scorecard: Translating Strategy in Action, Boston, 1996) helps to translate strategy into
action. The scorecard is therefore regarded as a possible way to implement a strategy of
developing the dry port concept in the Baltic Sea Region. For this approach the tool
requirements are:
Company oriented approach,
Performance driven tool,
Focus on innovative and value added development,
Balancing between perspectives,
Causality implies results.

Besides these tool requirements it is important, that the sustainable balanced scorecard
translates the dry ports vision and strategy into sustainability orientated factors
concerning ports productivity, ports attractiveness, ports efficiency and ports potential.

By this, it goes beyond a benefit analysis for optional locations, evaluating offer of land,
positioning, traffic connections and security of planning. Additional measures are
identified, ensuring not only feasibility but also viability. An example of a general
balanced scorecard is shown on Figure 6.1.

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Figure 6.1: An example of how a balanced scorecard could look like.

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For the sustainable balanced scorecard the following vision and strategy is assumed.
Strengthening regional and national development and welfare by dry ports, by this, the
following objectives are taken into account:
improving transport-related infrastructure,
improving economic infrastructure and services,
increasing foreign direct investment,
improving financial and economic situation,
improving sustainable development.


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6.3 Examples of the Dry port balanced scorecard

On the following pages examples are given for each evaluation criteria, integrated into
the sustainable balanced scorecard of a dry port. The defined indicators and measures
should be regarded as examples of how the dry port can develop its status within each of
the four perspectives of productivity, attractiveness, efficiency and potential.

Competitive strength

Dry port productivity Indicators Returns profit to the companies at
the dry port.
Measures: Infrastructure, subsidies, services
Dry port attractiveness Indicators Number of customers, investors
Measures: Infrastructure, marketing,
European platforms
Dry port efficiency Indicators Cooperation level
Measures: Development agency, eLogistics
Dry port potential Indicators Capacity loading, all relevant
harbour facilities available
Measures: Area management, training
programs, dry port development
groups

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Economic environment

Dry port productivity:

Indicators Tax receipts
Measures: Establishment policy, creation of
corridors, intermodal supply
chains
Dry port attractiveness Indicators Number of business and
commercial relations
Measures: Creation of business relations,
marketing, communication of
capabilities, cooperation with other
institutions and companies.
Dry port efficiency: Indicators Number of decision levels
Measures: Creation of business processes and
administrative processes,
eGovernment
Dry port potential: Indicators Working group activities
Measures: Implementation of working
groups, public private partnership,
logistics council

Labour market effects

Dry port productivity Indicators J obs, development of the region in
general
Measures: J ob exchange, spin offs,
multipliers
Dry port attractiveness: Indicators Wage levels
Measures: Organisational development, staff
development
Dry port efficiency: Indicators Hits jobs exchange
Measures: J ob firms, exchange of employees
Dry port potential: Indicators Training jobs, courses
Measures: Create cooperation business
education, dry port development
groups

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Ecological impacts

Dry port productivity Indicators Emission reduction levels
Measures: Strategic environmental program,
waste management concepts
Dry port attractiveness: Indicators Intensity of communication
activities
Measures: Ecological reporting, green
sponsoring, less congestion in
inner city areas
Dry port efficiency: Indicators Number of information points
Measures: Environmental information
systems
Dry port potential: Indicators Annual improvement rate
Measures: Environmental management and
audit scheme, green training
courses.

Social and human resources development

Dry port productivity Indicators Number of sick persons, expenses
for social sponsoring
Measures: Strategic social program
Dry port attractiveness: Indicators Intensity of social activities
Measures: Social reporting, participating in
Agenda 21 activities
Dry port efficiency: Indicators Number of contact persons,
existence of a supporting business
process
Measures: Social information systems
Dry port potential: Indicators Training jobs, courses
Measures: Qualification programs,
participating in dry port
development groups
Figure 6.2: A dry port score card in its fully version
The scheme on figure 6.2 is one approach to how the possibilities of the dry port can be
analysed. Another approach how to investigate the possibilities of the dry port concept in
the Baltic Sea Region is a feasibility study. The preliminary investigation for such is
shown in the next chapter.

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7. Pre-feasibility study of Dry Port Functions in the BSR

This chapter is based on the pre-feasibility study of dry port functions in the Baltic Sea
Region. Here the focus points, on which the dry port concept feasibility study would be
focused, are discovered. The important steps in the feasibility study are extracted and
shortly explained. In the second section of this chapter the analysis of the possibility of
introducing the dry port concept is made, based on the results of the questionnaire which
was sent to the transport operators in the Baltic Sea Region.

7.1 Introduction

In 1990 the British professor Anthony Beresford and the Indian professors RD Dubey
published a handbook with the title Management and Operation of Dry Ports". In this
they stated some different aspects, which should be considered before initiating the dry
port concept in an area. These aspects concerning the area to develop into a dry port
encompasses:
The type of facilities that costumers will require
The initial volume of goods
Estimated volumes for a ten year horizon

Regarding the first mentioned point, the questionnaire analysis send out in connection
with WP1, has shown that the customers especially focuses their demand on the
availability of special services at the dry port and the possibility to perform the customs
clearance already at the dry port area. But in general it can also be concluded that the dry
port should supply almost all the services, which are available at the seaport areas in
order to fulfil the needs of the customers.


65
Regarding the second and the third point, such analysis can be conducted by analysing
the present structure and then project how the future estimated volumes of goods would
be based on the results of the former years.

Regarding the location factor Beresford and Dubey list the following factors to take into
consideration:
Traffic flows between centres of production, consumption and the ports.
Transport infrastructure in the vicinity of the site.
Modes of transport available and network capacities.
Existing auxiliary transport related services in the vicinity of the site.
Possible reduction in tonne-km by road transport with the introduction of the dry
port.
The actual functions of the dry port, such as road haulage, stuffed and empty
container storage, shunting customs clearance etc.
Scope for future site expansion.

Before starting the process of initiating more dry ports in the Baltic Sea Region it would
therefore be a good idea to follow some of these advices, and in this way build the
development of the dry ports on well-proven ideas for how to handle this phase of the
development. A dry port might as well be an already established transport centre, which
by offering facilities like custom clearance, warehousing and other harbour related issues,
can be regarded as a dry port.

7.2 Content of the feasibility study
One of the ideas behind conducting a feasibility study is based on the approach that the
market is not always in its optimum, like many neoclassical economists would believe it
is. It will therefore often be possible to find better and more effective solutions than the
present. This is also applicable within the goods transport area.


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The feasibility study of the dry port concept should focus on the following:
Figure out the best solution under the existing market design/conditions. Is it
possible to create added value by developing the dry port in a given area?
Localise the technically potential best alternatives and thus also take
technological development possibilities into consideration.
Localise institutional and economical conditions that are hindering the
development and implementation of the dry port concept.
Design Public Regulation Measures that removes the innovation obstacles
under pt. 2. This could encompass: tax structure, possible subsidies to dry
ports, technological assistance, introduction of ICT, etc.

The feasibility study of the dry port would therefore include a few preliminary steps in
order to be structured in the most comprehensive way. In table 7.1 below are shown three
important steps for the feasibility study.

Table 7.1: Important steps in a feasibility study
Step I Step II Step III
What should be studied?
(Alternatives)
For whom should it be
studied?
Why should it be studied?
Which time horizon should be
used?
How should it be studied?

(The Diamond E analysis)

Implementation of the
feasibility study



The first step is to figure out what should be studied. In general there will always be two
or more alternatives, which should be analysed. In this case it would for instance be the
development of the dry port concept versus a continuously development of goods
handling areas at the harbour front.

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For whom it should be studied is also an important issue. Here there are three
opportunities. 1) A feasibility study for a specific firm normally referred to as business
economic feasibility study. 2) A feasibility study for the society in general, usually
referred to as a socio economic feasibility study and 3) A feasibility study for other
organisations.
Regarding the development of the dry port concept it could be an idea to conduct both a
business economic and a socio economic feasibility study and in this way consider more
aspects in the analysis.

The why question is focusing on which problems the dry port development should solve.
This would in this regard be issue like, congestion, environmental and spatial problems,
etc. See section 4.4 for more related issues to consider.

Regarding time plan it is often a good idea to deal with both long-term and short-term
effects of the project. In this way more expected effects would be taken into
consideration.

Step II in the feasibility study is to make the Diamond-E analysis. The purpose of this
analysis is to identify, which consequences of a project the feasibility mainly should
focus on. On figure 7.1 is shown the diamond E model.


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Figure 7.1: The Diamond-E-analysis-model

Organisational and natural resources
In order for the dry port to function, it is important that workers with good skills and
knowledge are available. Here it should be stated that people with a working knowledge
of at a logistics centre, also would be able to work at a dry port, because similar
qualifications and skills are required.

Organisational goals
A feasibility study must naturally focus on the goals that the project investor has stated. If
these goals encompass demands for transport work minimization, effective transport
chains, job creation, environmental sustainability, etc. Then the feasibility study should
naturally focus on the effects within these areas. The goal could as well be to create an
added value within a short-term period; if that is the case then the focus should be this.

Financial resources
Before designing a feasibility study, a preliminary profile of the financial opportunities
and problems in the case region should be analysed. As stated earlier a part of this could

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be to analyse the amount of goods at present stage, but also to make an estimate of the
future amount of goods passing through the region. In this way it is figured out whether
there could be or already are a need for developing a new concept.

Feasibility study strategy
All of the above mentioned steps will in inter-relationship make sure that a strategy for
the completion of the feasibility study will be made. Each feasibility study needs to be
tailored to the specific case. In this way each study will be unique.

Natural and socio-economic external environment
A complete feasibility study must furthermore relate to the external socio-economic and
environmental impacts that can be expected by the development of the dry port concept.
Therefore it will be a good idea to investigate which demands regarding air pollution of
small particles from diesel driven vehicles and green house gas emissions that possible
will evolve in the international community. In this way the standards on these areas can
be integrated in the planning.

These five steps will to a certain degree ensure that the feasibility is structured in a way
where there will be a red thread in the planning of a possible new structure. After this the
last step will be to implement the feasibility study.

During the feasibility study it would, seen from a macro economic perspective, be a good
idea to make an estimation of the benefits of job creation in connection with the
implementation of the dry port. Furthermore it would be a good idea to estimate the
benefits with regard to environmental issues. In many cases a dry port would most likely,
reduce the number of kilometres travelled by heavy vehicles and in this way create an
environmental benefit for the area where it is introduced.

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7.3 Analysis of the possibility of introducing the dry port concept

The attitude towards the dry port concept was also investigated in connection with the
questionnaire analysis conducted under WP1. In this the respondents should assess
whether it would be interested for them to use hinterland terminals for their maritime
transport. The answer to this question can to a certain extent indicate whether it at all
would be a good idea to investigate the feasibility of the dry port concept in the Baltic
Sea region further. Figure 7.2 shows how the respondents, which at the same time can be
regarded as possible users of the dry port, distributed the answers to this question.

Figure 7.2: The attitude towards the dry port concept among the respondents in the Baltic Sea Region
according to the scale 1 =not important, 5 =very important.


The study has shown that there is a positive attitude towards the dry port concept in the
Baltic Sea Region. As it can be seen approximately 18.2% is negative about the concept
1
2
3
4
5

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(the red and the yellow colours indicate that the respondents either strongly disagree or
just disagree to the posed statement). Approximately 48,5% of the respondents are neutral
towards the question and finally are 33% positive of the idea. In common this shows that
there is a basis present in the Baltic Sea Region, for developing the concept of dry ports.
Furthermore this shows that only a very small percentage is against the idea of
introducing the concept of dry ports. But what might be most noteworthy is that a very
large part of the respondent does not have a stance when it comes to the question of
whether the dry port concept is a good idea.

This stage of the feasibility study therefore shows that the possibilities for developing the
dry port concept in the Baltic Sea Region are present, but further investigations are
necessary in order to analyse whether it would be a concept that would create added value
to the Baltic Sea Region.

Before developing the dry port concept in a specific region, further analysis with regards
to the above-mentioned aspects, with regard to the specific case region, have to be
conducted. This could, depending on the size of the dry port facilities, be an
Environmental Impact Assessment, which has to be conducted before the dry port
development goes into its initiating phase.

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8. Recommendations
With the present urban development, the harbour fronts in many harbour cities experience
a development where the old industries are moving out and instead are replaced by office
and residential areas. The harbour areas as they where known 20 years ago is in many
cities therefore are not structured in the same way as they were in the past. The
possibilities of expanding the harbour areas for industry purpose within the city
boundaries is therefore not present in many cities in Europe. Furthermore the amount of
traffic to and from the cities is increasing each year, what courses congestion especially
in the morning and evening peak hours, and to some extent the traffic flow will decrease
to a level where something has to be done in the affected cities, in order to keep the
possibilities of competing with other harbours that are not located directly in the city
centres or has developed other measures which makes them capable of avoiding
congestion. This calls for a need for a new way of planning with concern to the handling
of goods at the harbour fronts. It is here that the dry port concept supplies a possible
solution to these issues. Of course the dry port in it self cannot solve all the problems
related to traffic congestion and high renting prices, but it can supply better conditions for
the transport of goods to and from the harbour, by moving a large amount of the working
load to a dry port area outside the central city areas.

Concerning the dry port concept it is very important that the concept is developed only in
regions where investigation has shown that there is a competitive advantage of
developing the concept. This means that the dry port should contribute to added value, for
instance by making a more efficient transport connection between site of production and
site of destination in form of time reductions or by reducing the transport cost for the
overall transport chain.


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Developing the dry port concept could be a strategy for fulfilling some of the issues in the
EU strategy for freight transport logistics. Here it is among others mentioned that the
goals for the goods transport sector are:
Promoting the sustainability of logistics and multimodal solutions.
Addressing terminal efficiency
Launching an exercise to identify bottlenecks for logistics

These are of course only some of the goals, but it is recommendable that the national
transport policies try to fulfil these goals to the widest possible extent.

Three possible methods of analysing the potential of dry ports in a region are given in this
report. (Interviews, Balanced Scorecard and Feasibility Study). Both the balanced
scorecard and the feasibility study are methods for analysing the possibilities of
developing the dry port concept in the Baltic Sea Region. Whether to use none, one or
both of them is up to the project investor, but the more analysis there has been conducted
in the preliminary phase, the better is the foundation for an eventual implementation.
Furthermore interview analysis and questionnaire analysis have been conducted in order
to investigate the attitude to the dry port concept.

All in all this has supplied the background for setting up a framework for the
investigation of possible dry port developments in the Baltic Sea Region. A possible
approach for how to manage the dry port development in the Baltic Sea Region could
therefore be the one shown in table 7.2:


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Table 7.2 five steps to undertake

Five steps to undertake during the development of the dry port
concept
Step 1: Perform if possible a socio-economic feasibility study and a
business economic feasibility study in order to investigate
whether there is something to gain both for the society in general
and for the investors.
Step 2: Make an ex ante balanced scorecard concerning: attractiveness,
productivity, efficiency and potential of a possible dry port.
Step 3: Make interviews with possible interested parts. Such interviews
have been performed during the making of this report and have
showed that the possible users of a dry port especially would like
to have functions like special services and custom clearance
available at the dry port area.
Step 4: Analysis of the possibilities of getting the needed permissions to
load the goods to sealed containers or other transport units
already at the dry port area.
Step 5: Make preferably the dry port as a Public Private partnership. See
the report Case study on financial and legal aspects of ports
and logistics centre networks for further details.

By following this framework it should be possible to gather enough information of
whether dry ports are a suitable solution within the development of the transport sector in
the Baltic Sea Region.