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ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS JANURAY 2011 VOL 2, NO 9 As one can see, the table above is not including ton-km for SSS in the EU. This is not needed because we already have the CO2 level/ton-km based on the table from chapter one. The final calculation is showing a massive annual saving of kg CO2 by just switching 3.11 percent of the ton-km from Road to SSS. 4.3 Competitive advantages for SSS in Europe compared to the USA It is clear in section 3.0 (Empirical Data) that SSS transported 1.6 billion tons in 2003 in the EU-15 which is equals to 63%. On other hand, deep sea shipping has a market share of 37%. 70% of the products transported by the SSS are bulk products (52% of liquid bulk and 18% solid bulk), 13% RORO, 10% are containers and 7% traditional. The data shows the healthy picture of the SSS in the EU regions. It is informing us that EU has really a good potentiality for more growth. Moreover, EU-15 assessed the average annual rate of growth in SSS at 2.2% for 2000-2003. Furthermore EU has other unique advantages as cited by Paixao and Marlow (2002), in below: � EU has a coastline of more than 67,000 kilometers. � 60% & 70% of EU‘s industrial & production centers are located within 150-200 km of coast. � EU has a network of inland waterways of 25,000 km of which 12,000 km are part of the combined transport road network. Such unique benefits give SSS with a geographical advantage over other modes of transport, especially for the door-to-door transport of certain types of cargoes by coastal and sea-river vessels. This geographical advantage can provide heavy economic impacts as SSS can contribute to the economic development of the regions of the EU. So, EU has unique benefits for SSS. As a summary, it is possible to explain that there are some distinct differences between the European and the US freight transportation networks. For example, rail mode is perceived mostly as passenger transportation mode in the EU. On the other hand, US cargo trains have almost 30% market share of the freight transportation in ton-miles. Moreover, roads in Europe are considered to be more congested (refers to the following diagram) and in some cases, road expansion is extremely difficult. Furthermore, EU strongly supports SSS by financing projects that can help initiating modal shift from to sea mode for high external costs of truck transportation (PERAKIS and DENISIS, 2008). As we can see in the following diagram that EU-15 has more percentage of SSS in the modal split than the USA because of the above causes. 5. Conclusions Short Sea Shipping has many benefits. Because, it helps to reduce congestion on the major trading places, helps to reduce the amount of road accidents, get better air quality in the urban areas. Moreover, it can assist in improving efficiency problems at the major EU ports. Additionally, SSS produces less carbon dioxide (CO2) than other modes of transport which can contribute to meet the target level of carbon monoxide (CO) and hydrocarbon (HC) as established by the Kyoto Environmental Protocol. Similarly, it generates less nitrogen oxide COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 442
ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS JANURAY 2011 VOL 2, NO 9 (NOx) and sulphur dioxide (SO2) than other modes of transport, especially road transportation. But there are some administrative and operational problems to implement SSS in the full swing in the EU countries. This study has gone through the problems and listed some common challenges. The bad sides of freight transportation should be identified, measured with national level policies to promote transportation mode‘s attitudes and behaviors to more sustainable mode of transportation. Moreover, transportation decisions should be based on the perfect pricing arrangements to avoid social costs and include external costs. With these purposes, short sea shipping is the best alternative available that is currently becoming popular in the EU region. Although it is difficult to measure the external costs of the transportation modes, SSS can testimony that it is a sustainable mode of freight transportation in the shorthaul and long-haul. To get the full benefits of the SSS, it should be fully integrated with the intermodal transportation. Co-operation with the truck companies and port authorities can help significantly to become fully integrated. To attract shippers and ship owners, SSS must provide that it is commercially viable and will be successful. Future researches on cost-benefit analysis can help to identify the future potential benefits in order to establish successful SSS operations. To facilitate the full benefits of the modal shift changes from road to the SSS, the national Governments should support and financial benefits to the ship owners of the SSS. COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 443
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