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The economics of Motorways of the Sea

Author

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  • Alfred J. Baird

Abstract

The last several decades have witnessed very substantial public sector investment in roadway and railway infrastructure throughout the EU. The seaway has tended not to be supported to the same degree, possibly due to the mistaken assumption by policymakers that the seaway represents some kind of free highway, and is therefore not deserving of public subsidy in the same way as roadways and railways. To a limited extent, the evolving EU Motorways of the Sea policy appears to recognize these distortions, and mechanisms are now being put in place to enable short sea shipping to develop further. Acceptance by the European Commission that short sea shipping offers the potential to hold back the dramatic growth in road freight transport throughout the EU reflects the fact that policy is now beginning to move more positively in favour of maritime intermodal transport solutions. Recent EU-funded research on the subject of Motorways of the Sea as well as increased EU grant aid reflects this shift and highlights the important role of the EU in this regard. Analysis of sea motorways in practice demonstrates the substantial modal shift that can be achieved by innovative carriers using advanced ship technology supported by appropriate policies, and/or due to specific environmental circumstances. However, there continues to be a mismatch whereby transport policy throughout Europe accepts the continued state financing of roadway and railway infrastructure but not seaway infrastructure. It is argued in this context that the seaway-equivalent infrastructure of roadways and railways is the deck of a ship. This argument is convincing for a number of reasons, not least because it is relatively easily demonstrated that the sea itself is anything but a free highway (if indeed it is a highway at all), whereas ports simply act as nodes, not as transport platforms. Acknowledgement of what actually comprises seaway infrastructure could have far reaching implications for the future attractiveness and competitiveness of maritime transport vis-à-vis subsidized land transport alternatives in Europe, and should result in more adequate policy mechanisms being introduced to help overcome market distortions and ensure a level playing field between sea and land transport.

Suggested Citation

  • Alfred J. Baird, 2007. "The economics of Motorways of the Sea," Maritime Policy & Management, Taylor & Francis Journals, vol. 34(4), pages 287-310, August.
  • Handle: RePEc:taf:marpmg:v:34:y:2007:i:4:p:287-310
    DOI: 10.1080/03088830701538976
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    Citations

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    Cited by:

    1. Adolf K.Y. Ng & Sergi Saurí & Mateu Turró, 2013. "Short sea shipping in Europe: issues, policies and challenges," Chapters, in: Mattias Finger & Torben Holvad (ed.), Regulating Transport in Europe, chapter 8, pages 196-217, Edward Elgar Publishing.
    2. Douet, Marie & Cappuccilli, Jean François, 2011. "A review of Short Sea Shipping policy in the European Union," Journal of Transport Geography, Elsevier, vol. 19(4), pages 968-976.
    3. Miguel Ángel López-Navarro, 2014. "Environmental Factors and Intermodal Freight Transportation: Analysis of the Decision Bases in the Case of Spanish Motorways of the Sea," Sustainability, MDPI, vol. 6(3), pages 1-23, March.
    4. Gouvernal, Elisabeth & Slack, Brian & Franc, Pierre, 2010. "Short sea and deep sea shipping markets in France," Journal of Transport Geography, Elsevier, vol. 18(1), pages 97-103.
    5. Lupi, Marino & Farina, Alessandro & Orsi, Denise & Pratelli, Antonio, 2017. "The capability of Motorways of the Sea of being competitive against road transport. The case of the Italian mainland and Sicily," Journal of Transport Geography, Elsevier, vol. 58(C), pages 9-21.
    6. Inge Vierth & Victor Sowa & Kevin Cullinane, 2019. "Evaluating the external costs of trailer transport: a comparison of sea and road," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(1), pages 61-78, March.
    7. José I. Castillo-Manzano & Juan P. Asencio-Flores, 2012. "Competition Between New Port Governance Models on the Iberian Peninsula," Transport Reviews, Taylor & Francis Journals, vol. 32(4), pages 519-537, January.
    8. Juan Carlos Pérez Mesa & Emilio Galdeano Gómez, 2011. "Demand Analysis For Alternative Sea Transport Services: Application Of Discrete Choice Models To The Agrifood Exporters," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 19(3), pages 65-95, Winter.
    9. Tiago A. Santos & C. Guedes Soares, 2017. "Methodology for ro-ro ship and fleet sizing with application to short sea shipping," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(7), pages 859-881, October.
    10. Dražen Žgaljić & Edvard Tijan & Alen Jugović & Tanja Poletan Jugović, 2019. "Implementation of Sustainable Motorways of the Sea Services Multi-Criteria Analysis of a Croatian Port System," Sustainability, MDPI, vol. 11(23), pages 1-21, December.
    11. Morales-Fusco, Pau & Saurí, Sergi & Lago, Alejandro, 2012. "Potential freight distribution improvements using motorways of the sea," Journal of Transport Geography, Elsevier, vol. 24(C), pages 1-11.
    12. José F. Baños & Luis Valdés & Eduardo Valle & Emma Zapico, 2018. "Economic importance of the motorways of the sea for tourism: The experience of the route Nantes–Gijón," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(2), pages 300-320, June.
    13. Marino LUPI & Alessandro FARINA & Antonio PRATELLI & Letizia BELLUCCI, 2017. "An Analysis Of The Italian Ro-Ro And Ro-Pax Network In The Years 2008-2015," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 12(SE), pages 127-140, December.

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