Chemlog 3.1.3 SWOT FINAL Germany-Chemical Industry SWOT

8/3/2019 Chemlog 3.1.3 SWOT FINAL Germany-Chemical Industry SWOT

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ChemicalLogistics

Cooperation

inCentralandEasternEurope

SWOTAnalysis

Germany

(SaxonyAnhalt)

Weaknesses

Strengths

Opportunities

Threats


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SWOTAnalysis Project[ChemLog]

ProjectPartner:GERMANY Page2/39

TABLEOFCONTENT

1 STRUCTURE.......................................................................................................................................................................... 4

2

INTRODUCTIONTOREGION/COUNTRY......................................................................................................................................

5

3 DESCRIPTIONOFCHEMICALINDUSTRY........................................................................................................................................ 7

3.1 CHEMICALSALES........................................................................................................................................................... 8

3.2 COMPANYSTRUCTURESIZEOFENTERPRISESANDEMPLOYEES............................................................................................... 9

3.3 INTERNATIONALTRADE................................................................................................................................................... 9

3.4 REGIONALSTRUCTUREOFCHEMICALINDUSTRY................................................................................................................. 10

4 DESCRIPTIONOFCHEMICALLOGISTICSINTHEREGION/COUNTRY................................................................................................... 13

4.1 INTRODUCTION........................................................................................................................................................... 13

4.2 INTERMODALTRANSPORT............................................................................................................................................. 14

4.2.1ACTUALANDPLANNEDFIGURES...................................................................................................................................... 15

4.2.2MAINCORRIDORSANDMAJORINFRASTRUCTURE................................................................................................................ 15

4.2.3GOVERNMENTPLANSANDPOLITICALPROGRAMS

................................................................................................................

16

4.3 ROADTRANSPORT....................................................................................................................................................... 17



4.3.3GOVERNMENTPLANSANDPOLITICALPROGRAMS................................................................................................................ 19

4.4 RAILWAYTRANSPORT................................................................................................................................................... 20




4.5 WATERWAYTRANSPORT............................................................................................................................................... 24




4.6 PIPELINETRANSPORT................................................................................................................................................... 26



5 INTERNALSTRENGTHSOFCHEMICALCOMPANIESANDLOGISTICPROVIDERS..................................................................................... 30

5.1 STRONGINTEGRATIONOFPRODUCTIONPROCESSES............................................................................................................. 30

5.2 CENTRALISATIONOFONSITELOGISTICS........................................................................................................................ 30

5.3 INTERNALOPTIMISATIONOFSUPPLYCHAINCOSTS............................................................................................................. 30

5.4 CONTRACTLOGISTICSFORSTORINGRAWANDPACKAGINGMATERIAL....................................................................................... 30

5.5 STOCKMANAGEMENTANDCONTROL............................................................................................................................... 30

5.6 LOCATIONDEVELOPMENTCONCEPTS............................................................................................................................... 305.7 ONSITETERMINALSFORINTERMODALTRANSPORT............................................................................................................. 31

5.8 PIPELINENETWORKS.................................................................................................................................................... 31

5.9 RESPONSIBLE TREATMENT WITH MATERIALS AND PROCESSES IN THE PRODUCTION, LOGISTICS AND TRANSPORT

HIGHSAFETYSTANDARDS.............................................................................................................................................. 31

5.10 PERFORMANCEIMPROVEMENTSBYJOINTEFFORTSANDCOOPERATION.................................................................................... 31

6 INTERNALWEAKNESSESOFCHEMICALCOMPANIESANDLOGISTICPROVIDERS................................................................................... 32

6.1 HIGHSUPPLYCHAINCOST............................................................................................................................................ 32

6.2 DEPENDENCEOFMARKETVOLATILITYREGARDINGINTEGRATION............................................................................................. 32

6.3 INSUFFICIENTRELIABILITYOFSELLINGFORECASTS................................................................................................................ 32

6.4 INSUFFICIENTABILITYTOPLANTHEDEMANDOFRESOURCES.................................................................................................. 32

6.5 CUSTOMERRELATIONS................................................................................................................................................. 32


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7 EXTERNALOPPORTUNITIESANDCHANCESFORCHEMICALLOGISTICSINCENTRALANDEASTERNEUROPE................................................... 33

7.1 CENTRALLOCATIONINEUROPEATTHECROSSROADSOFTRANSPORTAXESBETWEENWESTERNEUROPEANDASIA............................ 33

7.2 POSITIVEECONOMICDEVELOPMENTANDINCREASINGFREIGHTTRANSPORT............................................................................... 33

7.3 GOODINFRASTRUCTUREESPECIALLYROADINCENTRALGERMANY.......................................................................................... 33

7.4 PARTICIPATIONINSHAPINGREGULATORYFRAMEWORK....................................................................................................... 33

8 EXTERNALTHREATS,PROBLEMSANDBARRIERSFORCHEMICALLOGISTICSINCENTRALANDEASTERNEUROPE.......................................... 34

8.1 INADEQUATEACCESSTOWATERWAYS.............................................................................................................................. 34

8.2 RAILSYSTEMSINWESTANDEASTEUROPEARENOTCOMPATIBLE......................................................................................... 34

8.3 LACKOFPIPELINECONNECTIONSFROOLEFINSBETWEENTHECHEMICALCOMPLEXES................................................................... 34

8.4 INADEQUATERAILANDROADINFRASTRUCTURE................................................................................................................. 34

8.5 LONGDURATIONOFREALISATIONOFPLANNEDINFRASTRUCTURE............................................................................................ 34

8.6 INADEQUATESTRUCTUREOFTERMINALSTRUCTUREFORINTERMODALTRANSPORT................................................................... 34

8.7 CONGESTEDPORTSINTHEBALTICANDTHEBLACKSEA........................................................................................................ 35

8.8 INSUFFICIENTHARMONIZATIONOFADMINISTRATIVEANDTECHNICALSTANDARDS,SAFETYANDSECURITY

STANDARDSANDSOCIALSTANDARDS............................................................................................................................... 35

8.9 BUROCRACYINCUSTOMSCLEARANCE(RIDSGMS)........................................................................................................... 35

8.10 ABSENCEOFEMERGENCYRESPONSEANDCRISISMGMTSYSTEMS(I.E.TUIS).......................................................................... 35

8.11 HARDTOFINDPEOPLEWITHEXCELLENTLOGISTICSBACKGROUND........................................................................................... 35

8.12 DIESELPRICE/TOLLFEES.............................................................................................................................................. 35

8.13 BEHAVIOUROFFORMERSTATEOWNEDRAILWAYCOMPANIES(BLOCKING,INTRANSPARENCYANDFREIGHTCOSTS)LIBERALISATION......35

8.14 LACKOFPARITYOFWESTEASTTRANSPORT....................................................................................................................... 36

8.15 LACKOFAWARENESSFORCHEMICALTRANSPORTS............................................................................................................... 36

9 NEEDSFORFUTUREACTIONSANDIMPROVEMENTSCONCLUSIONS................................................................................................. 37

9.1 BETTERCOORDINATIONOFPANEUROPEANINFRASTRUCTUREPROJECTS................................................................................. 37

9.2 MOREEFFECTIVEDISTRIBUTIONOFEUFUNDS................................................................................................................... 37

9.3 DEVELOPVISIONOFAPANEUROPEANOLEFINPIPELINENETWORK........................................................................................ 37

9.4 INVESTMENTSINRAILANDROADINFRASTRUCTUREINCE&EE.......................................................................................... 37

9.5 INVESTMENTSINTERMINALSFORINTERMODALTRANSPORT............................................................................................... 38

9.6 BUILDALTERNATIVEPORTSFORSHORTSEATRANSPORT....................................................................................................... 38

9.7 HARMONIZATIONOFSTANDARDS................................................................................................................................... 38

9.8 IMPLEMENTERANDCRISISMGMTSYSTEMSFORTHECHEMICALINDUSTRY............................................................................. 38

9.9 KNOWHOWTRANSFER............................................................................................................................................... 38

9.10 COORDINATIONANDBUNDLINGOFTRANSPORT............................................................................................................ 38

10 LITERATURE....................................................................................................................................................................... 39


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1 STRUCTURE

IntroductiontoRegion/Country

Descriptionof

Chemical

Industry

Descriptionoftransportinfrastructure

Descriptionofchemicallogisticsintheregion/country

Internal

Strengths

ofChemical

Companies

andLogistic

Providers

Internal

Weaknesses

ofChemical

Companies

andLogistic

Providers

External

opportunities

andchances

forchemical

logisticsin

Centraland

Eastern

Europe

External

Threats,

Problemsand

Barriersfor

chemical

logisticsin

Centraland

Eastern

Europe

Needsforfutureactionsandimprovements Conclusions

Literature


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2 INTRODUCTIONTOREGION/COUNTRYSaxonyAnhalt is one of the 16 Federal States (Lnder) in Germany. It boarders to four

neighboursBrandenburg,Saxony,ThuringiaandLowerSaxonyandhasnoboardertoforeign

countries.Saxony

Anhalt

is

the

eight

largest

(in

terms

of

surface

and

the

ten

largest

(in

terms

of population) Land in Germany. The surface of SaxonyAnhalt equals to 20.445 square

kilometres(5.7%ofthesurfaceofGermany)and2.52millioninhabitants(3.5%ofGerman

population) livehere.Thenorthernareashavearather lowdensityofpopulation,whereas

the central a southern parts of the region have more than 150 inhabitants per square

kilometre.Theaverageisapproximately123.5inhabitantspersquarekilometre.Thecapital

ofSaxonyAnhaltisMagdeburgwith229.725inhabitants.Halle/Saaleisthelargestcitywith

234.802inhabitants.

The infrastructure has been constantly extended and improved in the past years. A dense

transport

network

connects

the

Land

with

its

neighbouring

countries.

The

highway

A2

(HannoverMagdeburgBerlin), A9 (NrnbergHalleBerlin) und A14 (DresdenMagdeburg)

are crossing SaxonyAnhalt. The highway through the southern Harz (A38) is under

construction. The internationalAirport is located in HalleLeipzig. Moreover SaxonyAnhalt

has important inland waterways (Elbe, Saale, Mittellandkanal, ElbeHavelKanal). Already

since the establishment of the railway network in the 19th century, several important

railway routes are crossing SaxonyAnhalt (e.g. connection NrnbergHalleDessauBerlin).

TheriverElbeisoneofthemost importantcentralEuropeanwaterwaysandconnectionof

theinlandwatertransporttotheoverseeportsinHamburg. TheElbeflowsfromSoutheast

toNorthwestofSaxonyAnhalt303kilometres

2007

InhabitantsinMio 2,5

Areainkm 20.445

GrossDomesticProductinbillionEUR:

2000 2001 2002 2003 2004 2005 2006 2007 2008

43,3 44,0 45,8 46,1 47,2 47,3 49,2 51,6 53,8

GrossDomesticProduct/capita(employee):

2000 2001 2002 2003 2004 2005 2006 2007 2008

40.892 42.331 44.787 45.703 46.937 47.733 49.381 51.030 52.790


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MapofSaxonyAnhaltanditslocationinCentralGermanyandEurope


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3 DESCRIPTIONOFCHEMICALINDUSTRYThe chemical industry is the 2

nd biggest industrial sector in SaxonyAnhalt and has high

importancefortheregionaleconomy,internationaltradeandinnovationcapacity.Sincethe

early1990s,

investments

in

the

amount

of

17

billion

euro

were

made

at

the

major

sites

in

SaxonyAnhalt Leuna, Schkopau, BitterfeldWolfen, Zeitz, Piesteritz and Bhlen (Saxony)

andSchwarzheide(Brandenburg)intorehabilitationandnewconstructionofinfrastructures

andproductionplants.TheCentralGermanChemistryTrianglehasachemistryparkareaof

more than 5,500 ha and ultramodern product integration schemes. These sites with their

synergetic potentials provide best prerequisites for new business settlements. Key

competenceareasintheregionincludefineandspecialtychemistry,polymerchemistryand

plasticsdevelopment,compositematerialsandagrochemistry,whileeminentinternational

potentials are also available in the fields of nanotechnology and material research and

developmentforthesolarindustry.

The chemical industry in the regions SaxonyAnhalt, Saxony, Thuringia and Brandenburg

haveinitiatedtheChemistry/PlasticsClusterCentralGermanyasthebusinesscommunityas

a platform of interstate collaboration at the future conference of Economic Initiative for

CentralGermanyin2003.Membershipincludeslarge,medium andsmallscaleenterprises,

their associations, education and research institutions, service providers as well as politics

and administrations. The Future Cluster builds on established network and cooperation

structuresandpromotes formationofvalueaddedchainsasare formedfromresearchvia

feedstockmaterials to finalproducts.Onegeneric featureofclusters isaconcentrationof

valueadded chains. This applies in particular to Central Germany because the corporate

landscape

in

Saxony,

SaxonyAnhalt,

Thuringia

and

Brandenburg

is

characterised

by

chemistry. The region between rivers Elbe, Saale, Havel, Spree and Neie is a land of

chemistry.

Chemicalindustryandplasticsprocessinghavewrittenanimpressivesuccessstoryfollowing

introductionofmarketeconomyinEasternGermanyandtodayareamongthemajorgrowth

branchesinCentralGermany.Thisindustrytakesacombinedshareofabout14percent in

the total sales of the processing trade in the federal states of Saxony, SaxonyAnhalt,

Thuringia and Brandenburg. Some 750 chemical and plastics companies generated a

turnover of ca. 20 billion Euros in 2007 an increase of some 15 per cent compared to

previous

year

figures.

Thus,

a

development

was

kept

up

that

has

continued

for

eleven

years.

Saleshaverisenby200percent from1995 to2006.Thechemicalandplastics industry in

Saxony,SaxonyAnhalt,ThuringiaandBrandenburghasalsoprovenanemploymentmotor

and currently provides 76,000 jobs in 2007 a growth by approximately 40 per cent

comparedto1995.Anotherproofofthesuccessfulroadisalsothesharpriseinproductivity

whichwas120percent in2006withsalesof251,000europeremployeeascompared to

1995.


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The turnover of central German chemical industry and plastic and rubber industry have

increased above average compared to German and global levels. From 20022007 the

turnover of the chemical industry has increased by 11,4 % p.a. and by 10,0 % p.a. in the

plastic and rubber industry. These growth rates are twice as high as the German average.

The leap becomes even more obvious when looking at the time before restructuring. In

Leuna,for

instance,

27,000

employees

generated

aturnover

of

the

equivalent

of

1.5

billion

euro in1990. In2006,9,000staffgeneratedsixbillioneuro, i.e.quadrupled theeconomic

performance.

The strengths and challenges but also the economic importance of the chemical industry

differsbetweenthecentralGermanLnder.InSaxonyAnhaltandBrandenburgtheturnover

productivity and export rate is higher than the German average. The Plastic Region

Thuringia ischaracterisedbymanysmallandmediumsizedcompaniesandtheChemistry

Region SaxonyAnhalt has larger companies. The joint challenges are especially the

relatively low R&D expense of the enterprises, which are important for the international

competitiveness.The

wage

level

has

seen

asmall

equalisation

to

the

Western

regions.

The

wagelevelsareinbothbrachesatapproximately70%.

3.1 CHEMICALSALESSalesofchemicalindustryinMioEUR: 2000 2001 2002 2003 2004 2005 2006 2007

Manufactureofbasicchemicals*

Manufacture of pesticides and other agro

chemicalproducts

Manufacture of paints, varnishes and similar

coatings,printinginkandmastics

Manufacture of pharmaceuticals, medicinalchemicalsandbotanicalproducts**

Manufactureofsoapanddetergents,cleaning

and polishing preparations, perfumes and

toiletpreparations

Manufactureofotherchemicalproducts***

Manufactureofmanmadefibres

Manufacture of chemicals and chemical

products

3.634 3.678 3.901 3.844 4.365 4.961 5.522 6.557

Manufactureofrubberproducts**** 246

Manufactureofplasticproducts***** 1.543

Manufactureofplasticandrubberproducts 879 1.037 1.071 1.305 1.447 1.509 1.704 1.789

Share of chemical sales in processing

industry

2000 2001 2002 2003 2004 2005 2006 2007


products

19% 18% 19% 16% 17% 17% 16% 17%

Manufactureofplasticandrubberproduct 5% 5% 5% 6% 6% 5% 5% 5%


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3.2 COMPANYSTRUCTURESIZEOFENTERPRISESANDEMPLOYEESNumberofenterprises 2000 2001 2002 2003 2004 2005 2006 2007


products

19employees

1049employees 1.441

50249employees 5.078

250 employees 9.178

Manufactureofplasticandrubberproduct

19employees

1049employees 1.506

50249employees 4.429

250 employees 2.777

Numberofemployees 2000 2001 2002 2003 2004 2005 2006 2007


products

11.676 11.896 12.486 12.773 13.141 13.663 14.217 15.697

Manufactureofplasticandrubberproduct 5.641 6.480 6.376 7.514 8.152 8.241 8.250 8.712

3.3 INTERNATIONALTRADEExportquotain% 2000 2001 2002 2003 2004 2005 2006 2007


products

32% 39% 40% 42% 43% 44% 45% 42%

Manufactureofplasticandrubberproducts 23% 26% 27% 25% 25% 24% 27% 28%

ImportofchemicalsinMioEUR 2000 2001 2002 2003 2004 2005 2006 2007

Manufactureofbasicchemicals*

Manufacture of pesticides and other agro

chemicalproducts

Manufacture of paints, varnishes and similar

coatings,printinginkandmastics

Manufacture of pharmaceuticals, medicinal

chemicalsandbotanicalproducts**

Manufactureofsoapanddetergents,cleaning

and polishing preparations, perfumes and

toiletpreparations

Manufactureofotherchemicalproducts***

Manufactureofmanmadefibres


products

1.177 1.426 1.552 1.619 1.883 2.196 2.458 2.763

Manufactureofrubberproducts****

Manufactureofplasticproducts*****

Manufactureof

plastic

and

rubber

products

201

269

286

324

361

363

458

505


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Geographic breakdown of chemicals

exportin%

2000 2001 2002 2003 2004 2005 2006 2007

EU27

EU15

Estonia, Latvia, Lithuania, Malta,

Poland, Slovakia, Slovenia, Czech

Republic,Hungary,Cyprus

Bulgaria,Rumania

RestofEurope

NAFTA

LatinAmericaandtheCaribbean

Asia

Africa

Australia/Oceania

Geographic breakdown of chemicals

importin%

2000 2001 2002 2003 2004 2005 2006 2007

EU27

EU15

Estonia, Latvia, Lithuania, Malta,

Poland, Slovakia, Slovenia, Czech

Republic,Hungary,Cyprus

Bulgaria,Rumania

Restof

Europe

NAFTA

LatinAmericaandtheCaribbean

Asia

Africa

Australia/Oceania

3.4 REGIONALSTRUCTUREOFCHEMICALINDUSTRYMajorCompaniesandchemicalsites Turnover2007

inMio

EUR

Location/chemical

site

Numberof

employees

DowOlefinverbundGmbH* 4.890 Schkopau 2.300

BASFSchwarzheideGmbH 1.032 Schwarzheide 1.898

SALUTASPharmaGmbH 920 Barleben 1.400

DomoCaproleunaGmbH 610 Leuna 470

BayerBitterfeldGmbH 580 BitterfeldWolfen 513

SKWStickstoffwerkePisteritzGmbH 473 Lutherstadt

Wittenberg

769

*turnoverofcompany


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Central European Chemical Network The Internationally Successful Network of the

CentralGermanChemicalSites

ThenetworkoftheCentralGermanchemicalsites,theCentralEuropeanChemicalNetwork

(CeChemNet), combines the six sites in Bitterfeld, Leuna, Schkopau, Bhlen, Zeitz and

Schwarzheide

with

about

5500

hectares.

There

are

600

companies

operating

with

27000

employees. CeChemNet isa network of chemical companies and chemical park operators,

which successfully links competencies and knowhow of chemical park management. The

network concentrates regional strengths of chemical park development, creates synergies

with the feedstock integration in the Central German chemical triangle and forces the

knowledgetransferamongitssixchemicalsitesinthreefederalstatessuchasSaxonyAnhalt,

SaxonyandBranberburg.MoreoverCeChemNetcoordinatestheexchangebetweenindustry,

sciencesandpoliticsandsupportsthemarketingofchemicalparkareainclosecollaboration

withinvestmentandmarketingagenciesatnationalandfederalstatelevel.

CeChemNetpartners

are:

ChemicalsiteLeuna/InfraLeunaGmbH

Investments and competence have made Leuna into a leading industrial site in Central

Germany. More than twenty international groups and numerous SMEs are relying on its

locationattheheartofEuropeandhaveinvestedsome5.5billioneurotodate.InfraLeuna

GmbHand itsaffiliatedcompaniesareownersandoperatorsofthe infrastructurefacilities

atthechemicalsiteLeuna.TheattractiverangeofservicesprovidedbyInfraLeunacomprises,

interalia,powergenerationandsupply,watersupplyandeffluentdisposal,securityservices,

including

fire

brigade,

analytics,

logistics,

and

telecommunications.

InfraLeuna

acts

as

site

developmentcompanyandsupportsandassistsnewfirmsineveryrespect.

ChemicalsiteBitterfeldWolfen/PDChemieParkBitterfeldWolfenGmbH

Today, The ChemiePark`s industrial profile is mainly characterized by chlorine, phosohor,

dyestuffs,pharmaceuticals,silicaglass,fineandspecialtychemicalsaswellasmetallurgy.By

thesettlementofQCellsAGtheregiondevelopedtooneofthemostefficientsolarsitesin

Europe.ThePDChemieParkBitterfeldWolfenoffersidealconditionsforcompaniestofocus

ontheircorebusinesswhiletheyarefreetobuyallservices(infrastructure,mediaetc.)as

required.230millioneurohasbeeninvestedinmodernizingthewholeinfrastructureonsite.

An

own

wastewater

treatment

plant

provides

sewage

disposal

at

reasonable

prices.

An

immediate availability of commodities due to comprehensive feedstock integration, a

favourablecoststructureandaninnovationfriendlyenvironmentattractinvestorstocome,

succeedandgrow.

DowOlefinverbundGmbH/DowValuePark

DowValueParkisfarmorethanamereIndustrialParkwheredifferentfirmsdobusinessat

the same site. As Dow is one of the biggest global players and one of the most modern

chemicalcompaniesinCentralGermany,weensurethatallpartnersareintegratedintoour

extensivematerial

flow

system,

the

supply

and

production

chains

and,

of

course,

our

joint

service and safety management system. Whether we are talking about the quality of


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feedstock,reliabilityofdeliveryoravailabilityofspecialservices,DowValueParkprovides

almosteverythinginvestorsmayneed.

Our partners here are handpicked to optimize potential synergy effects and our selection

criteria guarantee a wellbalanced mix of manufacturers, logistics service providers and

suppliers.A

broad

range

of

research

and

development

services

makes

the

Dow

ValuePark

particularlyinterestingforinnovativecompanies.www.dow.com/ValuePark

ChemicalsiteSchwarzheide/BASFSchwarzheideGmbH

LowerLusatiaoffersachemicalsiteofEuropeanstandingBASFSchwarzheideGmbH.21

stateoftheart plants produce polyurethane base products and systems, engineering

plastics, cropprotection agents, waterbased coatings and refining chemicals. There are

three attracting site advantages: the proximity to Eastern Europe markets, modern

infrastructureandtheVerbundconceptofTheChemicalCompany.15companiesdoalready

profitfrom

the

intelligent

networks.

They

are

not

only

using

the

supply

chains

and

selected

services; theyareevenextending thevalueaddedchainbyobtainraw materials from the

Verbundorsupplyproductsforfurtherprocessing.Companies intheplasticsandchemical

sectorareofferedinterestingprospectsatBASFsiteinSchwarzheide.

ChemicalandIndustrialParkZeitz

The Chemical and Industrial Park Zeitz is an internationally attractive and economically

successfulsite.Nationalandinternationalcompaniesinthechemicalindustries,LifeScience

andrenewableresources,ResearchandDevelopmentaswellasindustrialandconstruction

services

have

settled

at

the

site

of

232

hectares.

Apart

from

the

traditional

petrochemical

industry,theChemicalandIndustrialParkZeitzisalsofocusingon:

o promotingthecurrentestablishingoffirmsbyexpansion,realizationofoptimizedo supplyandproductionchainsandbyusingthesitessynergeticeffects.o theextensionoftheChemicalandIndustrialParkZeitzforindustrialexploitationofo renewableresources.o Developingprojectsforthematerialandenergeticexploitationofnativebrowno coal.


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4 DESCRIPTIONOFCHEMICALLOGISTICSINTHEREGION/COUNTRY4.1 INTRODUCTIONThe

country

Saxony

Anhalt

located

in

the

middle

of

Germany

owns

apowerful

transport

infrastructure. Allkindsoftraffic infrastructurearerepresented:streettraffic,railways,air

frightservices,frighttrafficontheriversElbe,Saale,ondifferentcanalsandintheportsand

atleastcombinedtraffic.

Roadtransport:

Streettrafficrangesoverasupralocalnetworkof10951km(383kmsuperhighways,2700

kmstatehighways,4000kmcountryhighways,4300kmcountyhighways).

Railwayfreight

transport:

Therailwaynetwork inSaxonyAnhaltcontains3100km(1100kmofthemarenotfederal

ownedrailways).

800kmofthemarereservedtofreighttraffic,and226kmofthemarepublicaccessible.

IntermodalTransport:

Intermodal transport i.e. freight transportation using at least two traffic carriers without

changing

the

container

is

using

5

ports

as

interface

between

railway,

road

and

waterway.

Thereexisttrimodalterminalsforcombinedtraffic.

It is planned to build a new terminal for combined traffic nearby the centre of chemical

industryinthesouthofthecountry.

Trimodalinterfacesarelocatedin:

o PortAkeno CityPortHaldenslebeno PortHalleTrothao PortDessauRosslauo HansePortMagdeburgo ValueParkSchkopau

Airfreighttransport:

CentreoftheairfrighttrafficinthecatchmentareaofSaxonyAnhaltistheAirFreightHub

Leipzig/Halle(dominatedbyDHL).

Itisplannedtorisethefrighttranshipmentwithinthenext10yearsupto1Miotonsp.a.


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In2009theprivatisationoftheAirportMagdeburg/Cochstedtwillbefinished.

INthefuturethislocationwillbedevelopedtomiddlesizedAirFrightLogisticCentre.

Freighttransportonrivers,channelsandintheports:

SaxonyAnhaltowns580kmshippablewaterwaysandispartoftheEuropeanwaterwaynet.

ThebackboneofthelocalwaterwaysistheriverElbewhichconnectsthehinterlandtothe

North Sea. The waterway net is completed by the Lower Havel Waterway, Mittelland

ChannelandtheElbeHavelChannel.

SaxonyAnhaltholds5ports.

In2007thevolumeoftranshipmentinshipfreighttrafficassessed7.5Miotons.

4.2 INTERMODALTRANSPORTIntermodal transport mainly takes place in the 5 ports of countrywide importance. Since

1995 the country government invested in the ports to guarantee the intermodality of the

ports.Forexamplereplacementsandexpansionsoftheportrailwayshappened.


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There were created powerful trimodal terminals for combined traffic. In the Value Park

Schkopau was built a new combined terminal which is working since December 2005. It

offers very good assumptions for bimodal fright transport, especially for the chemical

industryinthisarea.

Inorder

to

further

developments

of

the

chemical

industry

location

Leuna

and

in

order

to

betterconnectthecentresofthechemicalindustryandtokeepthesustainableabilityofthe

logistics industry it is planned to build a further new terminal for combined traffic nearby

Grosskorbetha.Thissiteisfacingnationalandinternationaltransports.

4.2.1 ACTUALANDPLANNEDFIGURESGoodstrafficaccordingtotransportmodes quantity

GoodstrafficinMiotons 2000 2001 2002 2003 2004 2005 2006 2007

Total

305,7

276,1

282,9

309,5

301,1

306,1

298,0

305,8

Road 268,6 238,5 240,4 261,3 251,3 250,4 245,0 254,2

Railway 30,4 31,6 36,4 41,7 42,8 47,8 45,5 44,0

Inlandwaterway 6,7 6,0 6,1 6,5 7,0 7,9 7,5 7,6

Pipeline

Goodstrafficperformancein1000tkm(quantity*km):

GoodstrafficinMiotons 2000 2001 2002 2003 2004 2005 2006 2007

Total

Road

Railway

Inlandwaterway

Pipeline

Forecastsaboutdevelopmentofintermodaltransport(quantitiesandterminals):

4.2.2MAINCORRIDORSANDMAJORINFRASTRUCTUREMain

corridors

for

road

transport

are

the

superhighways

A14,

leading

from

the

agglomerationLeipzigHalletothenorth,theEWdirectedA38inthesouthofthecountry,

A2 BerlinHannover and A9 MunichBerlin and a number of highways cross through the

country.

Logistic nodes/ terminals are located between Leipzig and Halle (Air Freight Hub Leipzig/

Halle),furthermorearetoannotatethe5portsmentionedabove.

All frightwaysare integrated in the tightlymiddle European traffic system. In the country

arecrossingoldtrafficroutesfromNtoSandEtoW.


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4.2.3 GOVERNMENTPLANSANDPOLITICALPROGRAMSExtensionplans,financing PPP,investmentvolume,focusoncorridors,etc.

Thereexistplanstoenforcetheintermodaltransport.Reasonforthisarethenecessityfora

better

use

of

capacities,

to

avoid

bottlenecks

in

road

freight

traffic

and

to

increase

the

attractivenessofthelogisticlocationsbyahighervalueadded.

Duetothenewbuiltandextended5trimodalportlocations,thenewbuiltbimodalterminal

SchkopauandthelocalimportantterminalsinLeunaandBernburgwascreatedaintermodal

network.

Federalgovernmentandthegovernmentofthecountrydosupporttheshiftoftrafficfrom

roadtorailwayandwaterway.AtleastoneoftheintermodalinlandharboursHaldensleben,

Magdeburg, Aken, DessauRosslau and HalleTrotha are accessible within 90 minutes from

everypoint

in

Saxony

Anhalt.

One example for meeting the requests is the setup of container trains from the harbour

HalleTrothatotheNorthSeaharboursHamburgandBremerhaven.Inthebeginningofthis

connectionin2002just178containersweretransported.Thisnumberwasrisinguntil2007

upto36000containers.

ExcellentconditionsforbimodaltransportexistintheterminalValueParkSchkopau,where

byhelpofafurthernewterminalespeciallychemicalproductsareshippedtoLudwighafen,

DuisburgorMunich.

ThecapacityofthefirstterminalinSchkopauwasexhaustedin2004(15000containers),but

by setting up the new terminal the transhipment did increase. More terminals of local

relevancearelocatedinLeuna,BernburgandrespectivelyinNessa.

Accordingtotheroadmapofthefederalgovernmentthecountryisinterestedinstrengthen,

extendinganddevelopingthelocations.

CombinedTraffic:

Furtherfacilitiesofthecombinedtrafficaretodevelop,ifexistingfacilitiesarenotthreaten

and

if

there

are

needs.

Principally

such

development

is

possible

in

the

Chemiedreieck

(triangleofthechemicalindustry).


17/39



4.3 ROADTRANSPORTThefollowingmapoffersanoverviewoverthemainlyroadnetinSaxonyAnhalt.


18/39



Asalreadymentionedintheintroductiontheroadtrafficrangesoverasupralocalnetwork

of10951km(383kmsuperhighways,2700kmstatehighways,4000kmcountryhighways,

4300kmcountyhighways).Accordingtothepopulationdensitytheroadsareconcentrating

inthesouthofthecountry. Roadtransportusesamainlywelldevelopednetworkofroads

ofall

categories

from

superhighways

to

local

streets.

The

density

of

the

supra

local

road

net

is 4539 m/ 1000 inhabitants (date: 31.12.2007) and ranges matchable to other German

Lnder.The fractionof rebuilt,extendedandrenewedroads is94% (federalroads),54%

(countryroads).Itshowsthatthereisahigherneedforrebuildingcountryroads.

4.3.1 ACTUALANDPLANNEDFIGURESActualandplannedroadnetworkinkm inoperation inprogress planned total

Highway 383 5 108,1 496,1

Stateroad(Bundesfernstrassen) 2708 23,5 312,9 3044,4

Goods traffic in % according to traffic

area road

2000 2001 2002 2003 2004 2005 2006 2007

Domestictraffic

Crossborderentrance

Crossborderdispatch

Transit

Othertransportationabroad

The

further

development

in

the

traffic

sector,

especially

the

long

term

development

in

freighttraffic,staysachallengefortheroadinfrastructureinthecountry.Aprognosisfound

out,thattheroadfreighttrafficintotalGermanywillcontinuetoriseintheyearstocome.

Inconclusionofthisdevelopmentthevolumeoftransportedfreightswillgrowaswellasthe

distancesoftransports.

DuetotheextensionoftheEUtotheEastandthecentrallocationofthecountryweexpect

a growing of transit traffics. But also in smaller distances (up to 50 km) in reaction to

changing transport modesand thecreation of logisticnetworks (likedistribution traffics)

weexpectagrowingtransportvolumeandperformance.Regardingfederalmotorwaysthe

efforts

are

concentrating

to

the

realisation

of

the

traffic

project

German

Unity

(new

buildingandextension)andtoclosethegapoftheA14betweenthebothcountrycapitals

MagdeburgandSchwerin.FurthermorealinkbetweenA14andA38(A143)isplanned.

Maintaining achievements will rise in a noticeable amount in the next few years. The

progressing new build of B6n (up to now the half of the total length of 93 km in Saxony

Anhalt is useable) offers a capable WElink which is of enormous importance for the

development in the Harz mountains region. For the new construction of the North Harz

MountainsHighwayEU,federalgovernmentandcountrygovernmentprovide600Mio.

Accordingtothefederaltrafficwaysplan2003morecitybypassesareintheplanningphase.


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WiththeInvestmentFrameworkPlanUntil2010ForTheTrafficInfrastructureofGermany

(IRP) a guideline exists. For a need oriented traffic infrastructure the condition of the

bridges is of importance. Bridges at federal highways were almost completely renewed.

Thatiswhythefocusofbridgemaintenanceisdirectedtofederalroadsandcountryroads.

Itistonoticethattheconditionofbridgesatcountryroadsisworsethenatfederalroads.

4.3.2 MAINCORRIDORSANDMAJORINFRASTRUCTUREMaincorridorsofroadtransportarethefederalmotorwaysA14,A9(bothNSdirected)and

A38,A2(bothWEdirected).

Besidesthemanefficientnetworkofsubordinatedroadsexists.

Logisticnodes/Terminalsarelocatedat:

Location

Transport

Carrier

Interfaces

Port

Aken

Trimodal

railway/road/

waterways

KthenHalle/Magdeburg

B187a,inNheA9,A14

ElbeContainerlinie (ECL2000)

Haldensleben

CityPort

Trimodal

railway/road/

waterways

HannoverMagdeburgBerlin,

A2,A14,B71,

BrdeContainerFeeder

Port

HalleTrotha

Trimodal

railway/road/

waterways

HalleBremerhaven/Hamburg,

HalleLeipzigDresden,

A9,A14,A143,B6,B100

PortDessauRolau

Trimodalrailway/road/

waterways

MagdeburgBremen/Hamburg,

Leipzig/HalleDresden,

A9,B184,B187,


Magdeburg

HansePort

Trimodal

railway/road/

waterways

MagdeburgStendalBremen/

Hamburg,

MagdeburgLeipzig/Halle

Dresden,


A2,A14,B1,B71,B81

Schkopau

ValuePark

Bimodal

railway/road

HalleGrokorbethaLeipzig,

A

9,

A

38,

A

143,

B

91

ThecountriesrailwaynetworkisfullyintegratedintheEuropeannetwork.

4.3.3 GOVERNMENTPLANSANDPOLITICALPROGRAMSTheextensionoftheA14isofenormousimportancefortheroadtransportinSaxonyAnhalt.

ThetrafficministersofthecountriesBrandenburg,MecklenburgVorpommernandSaxony

Anhaltand the federalminister for traffic agreed to finance theextensionof this highway

fromMagdeburgtoSchwerin.


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The extension costs will amount 1.3 billions and will be realised in tree steps. The

extensionwillcloseagapinthehighwaynetbecauseitwillconnecttothehighwayBerlin

HamburgandtotheBalticSeaHighwayA20.

Especially for thenorthof thecountry thiswillbea improvement inaccessibility.Butalso

theaccessibility

of

the

German

Sea

Ports

will

be

improved

and

the

role

of

the

country

as

a

hinterlandhubwillbestrengthened.

Thefirstpartoftheextension(betweenWolmirstedtandStendal(rd.36km),Osterburgand

Karstdt(rd.45km)andLudwigslustSdandthehighwaytriangleSchwerin(rd.16km))will

beuseableuntil2015.

Forthisfirstphaseofrealizationcostsof775Mio.areplanned(financedatupto42%by

EUandupto29%byfundsofthecountriesandupto29%byspecialfinancing.

Thiscost

sharing

will

be

continued

after

2015

for

the

second

and

third

phases.

In

phase

B

the

parts between Stendal and Osterburg (25 km) and between Karstdt and LudwigslustSd

(22km)willberealised.At leastthepartsbetweenDahlenwarslebenandWolmirstedt(11

km)willbebuilt.ForthephasesBandCcostsof425Mio.estimated.

ThemotorwayB6nwillconnecttheA14(Bernburg)withtheA395(length94km).

4.4 RAILWAYTRANSPORTActuallytherailwaynetwork inSaxonyAnhaltextends to2000km (DBNetzAG)and1115

km

(non

federal

railways).

Approximately

800

km

of

them

are

reserved

to

freight

traffic

(226

kmofitispublicaccessible).

The railways density is 18.3 km/km and ranks over the average of the new German

countriesandisaleadingvalueworldwideatcountrybase.

BesidestheleadingenterpriseDBNetzAGthereareseveralotherprivateenterprises.

Important railway nodes are located in Magdeburg, Halle, DessauRosslau, Halberstadt,

Stendal, Bitterfeld and Wittenberg. Backbone of the railway freight traffic are 76 freight

trafficpoints,theshuntingstationHalle(whichisgoingtogetextended),thetrainbuilding

facilityMagdeburg

Rothensee

and

the

freight

station

Grosskorbetha.

Interfacesbetweenrailwaytraffic,airfreighttrafficandinlandwaterwaytrafficarerealised

by5trimodalportsandthetrimodalAirportLeipzig/Halle.


21/39




22/39



4.4.1 ACTUALANDPLANNEDFIGURESActualandplannedrailwaynetworkinkm inoperation inprogress planned total

Mainrailroads public

Standardgauge1

public 2702

Narrowgaugepublic 169

Private 824

Total

Goods traffic in % according to traffic

area railway

2000 2001 2002 2003 2004 2005 2006 2007

Domestictraffic

Crossborderentrance

Crossborderdispatch

Transit

Explanations:

To match the rising demands of freight traffic in the future it is necessary to push the

electrificationoftheroutes,toraisethemaximumtravellingspeed,toextendrouteswith2

tracksandtoavoidthebackbuildingofrailwayinfrastructures.

Athighlyfrequentedfreightroutstheelectrificationshouldbefullyrealised.

4.4.2 MAINCORRIDORSANDMAJORINFRASTRUCTUREMaincorridorsofrailwayaretheroutes

o HannoverBerlin,o DresdenLeipzig/HalleMagdeburgStendalBremen/Hamburg,o BerlinHalle/Leipzig,o Halle/LeipzigErfurtNuernberg,o LeipzigHalleKassel,HalleEilenburgHorkaWegliniec(Poland).

Logisticnodes

/Terminals

Location TransportCarrier Interfaces

Port

Aken

Trimodal

railway/road/

waterways

KthenHalle/Magdeburg

B187a,inNheA9,A14


Haldensleben

CityPort

Trimodal

railway/road/

waterways


A2,A14,B71,

BrdeContainerFeeder

Port Trimodal HalleBremerhaven/Hamburg,

1Regelspurstreckenffentlich

2nonfederalownednichtbundeseigeneEisenbahnen


23/39



HalleTrotha railway/road/

waterways

HalleLeipzigDresden,

A9,A14,A143,B6,B100

Port

DessauRolau

Trimodal

railway/road/

waterways

MagdeburgBremen/Hamburg,

Leipzig/HalleDresden,

A9,B184,B187,

ElbeContainerlinie

(ECL

2000)

Magdeburg

HansePort

Trimodal

railway/road/

waterways

MagdeburgStendalBremen/

Hamburg,

MagdeburgLeipzig/Halle

Dresden,


A2,A14,B1,B71,B81

Schkopau

ValuePark

Bimodal

railway/road

HalleGrokorbethaLeipzig,

A9,A38,A143,B91

Because

of

its

central

location

in

middle

Europe

the

railway

transport

network

in

Saxony

AnhaltiswellintegratedintotheEuropeanTransportCorridors.

4.4.3 GOVERNMENTPLANSANDPOLITICALPROGRAMSRemarkable are ambitions of the DB AG to enforce the AmerikaLinie i. e. the railway

UelzenSalzwedelStendal.

ThisroutepotentiallycandevelopasabypassoftherouteHamburgSouthGermanyand

canfunctionasaxistoSeaPorthinterlandtraffic.

Another

project

called

EU4Sea

rail

focuses

the

railway

connection

of

four

seas

in

Europe.

ConcerningtheTENnetworkwerefertothestandpointofthecountry.


24/39



4.5 WATERWAYTRANSPORT


25/39



The waterway network in SaxonyAnhalt consists of 580 km federal water ways like Elbe,

Saale, Lower Havel waterway, Mittelland Channel and ElbeHavelChannel. It is well

integratedintotheEuropeanwaterwaynetwork.

Theriver

Elbe

is

an

international

waterway,

but

the

channels

mentioned

above

are

parts

of

thetransEuropeantrafficnetworktoo.

The five trimodal ports Magdeburg, Aken, DessauRosslau (all at the river Elbe),

Haldensleben (MittellandChannel) and Halle (river Saale) are of importance not only as

interfacesforthetrimodalfreighttraffic.

Inland navigation is a important and indispensable transport carrier for the country. The

shiptranshipmentintheportsandstevedoringpointsinSaxonyAnhaltwasrisingsince1991

(2.7Miot)to7.6Miotin2007.Theimportanceofcontainerheavycargoandprojectcargo

trafficis

going

up.

4.5.1 ACTUALANDPLANNEDFIGURESGoods traffic in % according to traffic

area waterway

2000 2001 2002 2003 2004 2005 2006 2007

Domestictraffic

Crossborderentrance

Crossborderdispatch

Transit

Explanations:

Forecastsaboutdevelopmentofwaterwaytransport(quantitiesandterminals):

4.5.2 MAINCORRIDORSANDMAJORINFRASTRUCTUREMaincorridorsofwaterwayaretheriversElbeandSaale,LowerHavelwaterway,Mittelland

ChannelandElbeHavelChannel.

LogisticnodesarethetrimodalportsHalle,DessauRosslau,Aken,Magdeburg,Haldensleben,

completedby

ship

transhipment

points

in

Piesteritz,

Bernburg,

Calbe,

Schnebeck,

Vahldorf,

Rogtz,Blstrigen,Parey,Niegripp,GenthinandArneburg.

ThewaterwaynetofthecountryiswellintegratedintheEuropeannet.Theportsalongthe

riversareimportantlogisticnodes.

4.5.3 GOVERNMENTPLANSANDPOLITICALPROGRAMSActually the port Magdeburg gets a floodgate to make the port independent from level

variationsoftheriverElbe.


26/39



4.6 PIPELINETRANSPORTAbout pipeline transport in the country dont exist many information, because the whole

pipelinenetisprivateowned. Theattachedmapshowsthelocationofthepipelinesandthe

refineries in SaxonyAnhalt. Traditionally the pipeline net is existentially for the chemical

clusterin

Saxony

Anhalt.

Crude

oil

is

delivered

from

Russia

to

Spergau

via

Schwedt.

Product

pipelinesare leadingfromRostock,HartmannsdorfandBhlen (both located inSaxony)to

Spergau.

4.6.1 ACTUALANDPLANNEDFIGURESPipelinetransport:

Pipelinetransportinthousandsoftons 2000 2001 2002 2003 2004 2005 2006 2007

Product1

Product2

Product3

Total

Explanations:

Forecastsaboutdevelopmentofpipelinetransport(quantitiesandterminals):

4.6.2 GOVERNMENTPLANSANDPOLITICALPROGRAMSChemical

sites

in

Central

German

are

pioneers

in

the

global

restructuring

process

in

the

chemical industry The Chemistry Triangle with a chemistry park surface totalling 5 500

hectaresboastscomprehensiverawmaterialandsynergypotentialsthatarejointlyusedby

localcompanies. A430kmlongfeedstockpipelinestartingintheBalticSeaportofRostock

connectsthechemicalsitesofDowOlefinverbundGmbH inBhlenandSchkopautoglobal

material and commodity flows. A specific strength of the Central German Chemistry

Triangles is the feedstock integration of several sites, such as Leuna, Schkopau, Bhlen,

Bitterfeld,PiesteritzandSchwarzheide(seeMap).

FeedstockintegrationintheCentralGermanChemicalTriangle

TheCentralGermanChemicalTrianglehasabigrawmaterialandsynergypotentialthat is

jointly used. A complex and direct access to raw material exists with the help of the

feedstockintegrationinsideandbetweenthechemicalsitesinCentralGermany. Feedstock

integrationenhanceseachsiteintermsofattractinginternationalinvestorsbecauseitoffers

manydifferentwaystogetintegratedinthevalueaddedchain(seegraph).


27/39



Explanation:

Shortdescriptionofchemical logistics,Transportedchemical goodsshareofmodes road/

rail/river


28/39



Relevanceofthelogisticssectoringeneralfortheregion/country:

o numberoflogisticscompanieso grossaddedvalueofthesectoro sectoralturnovero numberofemployeeso grossinvestmentswithinlogisticssector

Chemicallogistics:

o majorlogisticcompaniesprovidingservicesforthechemicalindustryo productstransportedo developmenttrendo transportationcostsandstructureo regional/nationalpeculiaritiesofchemicallogisticso shortdescriptionofchemicallogisticsintheregion/country

Transportedchemicalgoodsshareoftransportationmodes

Transported chemical goods

thousandsoftons

2000 2001 2002 2003 2004 2005 2006 2007

Road

Railway

Waterway

Pipeline

Total


29/39




30/39



5 INTERNALSTRENGTHSOFCHEMICALCOMPANIESANDLOGISTICPROVIDERS5.1 STRONGINTEGRATIONOFPRODUCTIONPROCESSESThe

chemical

industry

in

Central

Germany

has

due

to

its

strong

integration

and

optimised

structuresoftheproductionprocessesagoodcompetitiveposition.Highinvestmentsanda

largescalerestructuringprocessintheframeworkoftheprivatisationafterthereunification

have created the basis for a highly modern and competitive chemical industry, which has

grownaboveaverage inthepastyears.Theestablishmentandthefurtherdevelopmentof

clustersandnetworksalongsidethevalueaddedchainareanother locationadvantagesfor

thecentralGermanchemicalindustry

5.2 CENTRALISATIONOFONSITELOGISTICSImprovements

of

efficiency

of

the

chemical

logistics

have

been

especially

achieved

by

centralisationoflogisticsonthechemicalsites.Thechemicalcompanieshavedevelopedan

intensive cooperation with logistics service providers for strategic and operative logistic

activities. A large part of the operative logistic services have been outsourced in the

frameworkof newpartnershipconcepts.Strategicsteeringactivitieshaveremained in the

chemicalcompanies.

5.3 INTERNALOPTIMISATIONOFSUPPLYCHAINCOSTSThe chemical enterprises have undertaken successful efforts in the past years to improve

internalprocess

and

structures

for

the

optimisation

of

logistics

costs.

5.4 CONTRACTLOGISTICSFORSTORINGRAWANDPACKAGINGMATERIALConsignmentstoresforrawandpackagingmaterial increaseflexibilityofchemical logistics

and reduce costs for the producing company. The supplier can develop a more intensive

connection with the producing company. In this respect the selection of qualified and

reliableenterprises(SQAScertification)isveryimportant

5.5 STOCKMANAGEMENTANDCONTROLThe chemical enterprises have developed innovative solutions for the stock management

andcontrolinordertocontributetooptimisationoflogisticprocesses.Anefficientplanning

allowstoearlyinfluenceproductionandlogisticprocesses.

5.6 LOCATIONDEVELOPMENTCONCEPTSThedevelopmentofspecific locationconceptscontributestothe improvementof location

attractivenessandinternationalcompetitivenessbysettlingenterprisesalongsidethevalue

addedchain.Theoptimisationoflogisticprocesseshasaspecialimportanceinthisarea.


31/39



5.7 ONSITETERMINALSFORINTERMODALTRANSPORTSomechemicallocationshaveestablishedpublicterminalsforintermodaltransportontheir

sites or in their proximity. These terminals are especially specialised for the handling of

chemicalgoodsandplayacentralrolefortheimprovementofchemicallogistics.

5.8 PIPELINENETWORKSSelected chemical location in Central Germany and larger chemical companies have

developedextensivepipelinenetworks, inordertoensurecosteffectiveandsafetransport

of raw and intermediate materials. Pipelines are also an active contribution to

environmentalprotectionandavoidanceoftransportonroadandrailway.

5.9 RESPONSIBLE TREATMENT WITH MATERIALS AND PROCESSES IN THE PRODUCTION,LOGISTICSANDTRANSPORTHIGHSAFETYSTANDARDS

The chemical industry in Central Germany has achieved a high safety standard in the

production,logisticandtransportinthepastyears.Thisensuresaresponsibletreatmentof

chemical products and processes in relation to the employees, clients and environment.

InitiativesuchasResponsibleCareandSQASplayanimportantroleinthisrespect.

5.10PERFORMANCEIMPROVEMENTSBYJOINTEFFORTSANDCOOPERATIONIn close cooperation between chemical enterprises and logistic service providers, a clear

improvementofperformanceofthechemicallogistichasbeenachievedbyactivesupportof

theprocesses.

There

are

alot

of

best

practice

solutions

in

this

area.

The

chemical

logistic

is

inaconstantprocessofoptimisation.


32/39



6 INTERNALWEAKNESSESOFCHEMICALCOMPANIESANDLOGISTICPROVIDERS6.1 HIGHSUPPLYCHAINCOSTThe

logistic

costs

are

8to

12

%

of

the

turnover

of

the

chemical

enterprises

(or

even

higher).

These costs are an important factor; its optimisation plays an important for the

improvementofcompetitiveness.

6.2 DEPENDENCEOFMARKETVOLATILITYREGARDINGINTEGRATIONThe specific product portfolio of the enterprises is underlying different market changes.

Changesinproductionandexchangeofproductscauseincreasinglogisticcosts.

6.3 INSUFFICIENTRELIABILITYOFSELLINGFORECASTSTheenterpriseshaveproblemswithan insufficientreliabilityofsellingforecasts,whichare

the basis for planning of the production. A high optimisation of production processes

reducesinthisframeworktheflexibilityandmarketvolatilitycancauseproblems.

6.4 INSUFFICIENTABILITYTOPLANTHEDEMANDOFRESOURCESTherearegeneralproblemscausedbymodestpossibilitiestoplanthedemandforresources.

6.5 CUSTOMERRELATIONSThe stability of customer loyalty in Central and Eastern Europe is lower than in Western

Europe.

o ReliabilityandfulfilmentofagreementsInthebusinessrelationstoCentralandEasternEuropetherearepartiallyproblems

withreliabilityandfulfilmentofagreements.

o OftenchangingcontactpersonsThe often change of responsible employees and contact persons of customers in

CentralandEasternEuropeisabigproblem

o CommunicationandLanguageBarriersThe communication and language barriers especially for international business

activitiesareaweakness,whichhastobeespeciallyrespected.


33/39



7 EXTERNAL OPPORTUNITIES AND CHANCES FOR CHEMICAL LOGISTICS INCENTRALANDEASTERNEUROPE

7.1 CENTRAL LOCATION IN EUROPE AT THE CROSSROADS OF TRANSPORT AXES BETWEENWESTERNEUROPEANDASIA

The central location of the chemical industry in central Germany at the crossroads of

transportaxesisastrategicadvantage.ThecentralGermanchemicallocationscantakeover

aturningplatformfunctionfor logistics inCentralEuropewithspecialproximitytoEastern

Europe.

7.2 POSITIVEECONOMICDEVELOPMENTANDINCREASINGFREIGHTTRANSPORTDespite

the

current

financial

and

economic

crisis,

the

expected

positive

long

term

economic

developmentandtheincreasingfreighttransportvolumesareachanceforthegrowthand

the further development of the central German chemical enterprises. This can be an

important contribution for the stabilisation of markets and the improvement of customer

satisfaction.

7.3 GOODINFRASTRUCTUREESPECIALLYROADINCENTRALGERMANYIntheyearsafterreunificationamodernandcapable infrastructurehasbeendeveloped in

CentralGermany.EspeciallytheconnectionofchemicalenterprisestotheHighwayandroad

networkisgood.

7.4 PARTICIPATIONINSHAPINGREGULATORYFRAMEWORKIn the harmonisation and standardisation process the chemical enterprises have the

opportunity to actively participate in the definition ofjoint standards and the transfer of

knowledge.Inajointdialogueprocessjointeffortsforthecoordinationoftransportroutes

canbeimplemented.


34/39



8 EXTERNALTHREATS,PROBLEMSANDBARRIERSFORCHEMICALLOGISTICS INCENTRALANDEASTERNEUROPE

8.1 INADEQUATEACCESSTOWATERWAYSThe central German chemical industry has a location disadvantage due to the inadequate

access towaterwaysand the overseeports. Therefore theconnection to the international

commodityflowsismorecomplicatedandexpensive.Hence,theinlandtransportviarailway

androadplayamoreimportantrole.

8.2 RAILSYSTEMSINWESTANDEASTEUROPEARENOTCOMPATIBLETheincompatibilityofrailwaynetworksandthedifferenttrackwithinWesternandEastern

Europeareaspecialproblemforchemicalenterprises.Anadditionalreloadingcauseshigher

costs,abiglossandhighersafetyrisks.

8.3 LACKOFPIPELINECONNECTIONSFROOLEFINSBETWEENTHECHEMICALCOMPLEXESTheinadequatepipelinenetworkforOlefinsisabigcompetitivedisadvantageforthecentral

German chemical industry in comparison to the Western European competitors. The

enterprises are forced to transport a large share of their products on the road and the

railway,whichleadstohighercostsandlongertransporttimes.

8.4 INADEQUATERAILANDROADINFRASTRUCTURETheinadequaterailwayandroadinfrastructureinCentralandEasternEuropeisabigbarrier

forchemicaltransportinthisregion.Alargeshareofthechemicalgoodsaretransportedon

theroads,becausetherailwaycanonlybeusetoalimitedextend.Butthecapacitylimitsof

theroadsarealreadyexceeded.Aspecialweaknessoftherailwaytransportisthereloading

attheboarderstations.

8.5 LONGDURATIONOFREALISATIONOFPLANNEDINFRASTRUCTUREThe closing of identified railway infrastructure gaps in Central Germany is delayed due to

time

consuming

procedures

for

planning

and

realisation.

An

inadequate

coordination

betweentheneighbouringstates leads tofurtherdelaysanddiscontinuity inthetransport

routes.

8.6 INADEQUATESTRUCTUREOFTERMINALSTRUCTUREFORINTERMODALTRANSPORTAt the moment there is no well developed structure for intermodal terminals in Eastern

Europe.Thiscircumstance leadsto lossofefficiency inchemical logistics forthecombined

transportofrailwayandroad.


35/39



8.7 CONGESTEDPORTSINTHEBALTICANDTHEBLACKSEADuetothecongestionofportsintheBalticandBlackSea,theseportscanonlybeusedfor

chemicaltransportsinalimitedway.FurthermoreacapableportintheMediterraneanSee

is missing. Therefore chemical goods have to be transported via the cost intensive inland

routes.

8.8 INSUFFICIENTHARMONIZATIONOFADMINISTRATIVEANDTECHNICALSTANDARDS,SAFETYANDSECURITYSTANDARDSANDSOCIALSTANDARDS

Aninsufficientharmonisationoftechnicalandadministrativestandardsforthetransportof

chemicals causes increased costs and time for the handling of crossboarder transports.

Differentsafetyandsecuritystandards for the transportofchemicalgoods lead todouble

redtapeandfurtherdelays.Differentsocialstandardsdistorttheequallevelplayingfieldsto

thedisadvantageoftheCentralGermanchemicalindustry.

8.9 BUROCRACYINCUSTOMSCLEARANCE(RIDSGMS)Complex custom clearance and partially different interpretation of regulations by the

custom authorities are a handicap for crossboarder chemical transports. Under these

conditions,contractlogisticsisalmostnotpossibleandinterferenceshaveanegativeimpact

onthecustomersatisfaction.

8.10ABSENCEOFEMERGENCYRESPONSEANDCRISISMGMTSYSTEMS(I.E.TUIS)There

is

no

common

Emergency

Response

and

Crisis

Management

System

in

the

Eastern

European States outside the European Union (especially Russia and Ukraine). This is a big

threattothesafetyofchemicaltransports.

8.11HARDTOFINDPEOPLEWITHEXCELLENTLOGISTICSBACKGROUNDAgeneralproblemistheavailabilityofqualifiedemployeesforchemicallogistics.

8.12DIESELPRICE/TOLLFEESThe

development

of

the

diesel

price

and

toll

fees

is

an

important

cost

factor

for

chemical

logistics.Increasingpricescauseadditionalcostburden.NationalandEuropeanregulations,

which lead to higher prices and fees compared to the global market, are a specific

competitivedisadvantageforEuropeanchemicalenterprises.Thediscriminationandmissing

equaltreatmentofforeignersforthecollectionoftollfeesisaspecialprobleminRussia.

8.13BEHAVIOUR OF FORMER STATEOWNED RAILWAY COMPANIES (BLOCKING,INTRANSPARENCYANDFREIGHTCOSTS)LIBERALISATION

Thebehaviourofformerstateownedrailwaycompaniesisbeingconsideredasabarrierfor

the chemical industry.An intransparentmethod ofoperation,anattitude ofblockadeandhighfreightchargesaswellasanarbitrarilypricepolicyareamongthebiggestproblems.


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8.14LACKOFPARITYOFWESTEASTTRANSPORTThecomparisonoftransportflowsshowsanimbalancefortheEastWesttransport.Todaya

largeamountofchemicalgoodsistransportedfromWesttoEast.

8.15LACKOFAWARENESSFORCHEMICALTRANSPORTSEspecially in Russia there is an inadequate awareness for the specific characteristics and

needs of chemical transports. There are especially deficits in the mentality and

consciousness.


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9 NEEDSFORFUTUREACTIONSANDIMPROVEMENTSCONCLUSIONS9.1 BETTERCOORDINATIONOFPANEUROPEANINFRASTRUCTUREPROJECTSAbettercoordinationofthepanEuropean infrastructureplansinWestEastandEastWest

directionis

necessary

to

agree

on

common

priorities

for

the

development

of

transport

routs

andtospeeduptherespectiveextensionof infrastructure.Therelevantstakeholdersfrom

policy, industry and administration have to be actively integrated in this coordination

process in order to ensure high chances for implementation and the focus of planning

according to the expected needs. The different political levels regional, national and

European have to be involved according to their specific regulatory and decision making

competencies.TheChemLogprojectwantstodeliveraspecialcontributionfortheareaof

chemical logistics in this respect. At the same time the project aims to develop close

cooperationwithsimilarinitiativessuchastheprogrammeoftheChamberUnionElbeOder

for the development of infrastructure, ensuring mobility and access, strengthening of

economicdevelopment.

9.2 MOREEFFECTIVEDISTRIBUTIONOFEUFUNDSThe development of crossboarder infrastructure projects in Central and Eastern Europe

shouldbesupportedbyamoreefficientuseofEUStructuralFundsininteractionwithother

regionalandnationalfundingsources.Thisshouldcontributetothe integrationofthenew

MemberStatesintheEuropeanUnionandtostrengthencompetitivenessoftheCentraland

Eastern European industry. The EU funding has due to its leverage effects for the

mobilisation of further public and private investments a special importance. In the

framework

of

the

use

of

EU

funds

a

prioritisation

on

especially

important

infrastructure

projectsisnecessary.

9.3 DEVELOPVISIONOFAPANEUROPEANOLEFINPIPELINENETWORKThe development of a vision for a pan European Olefin pipeline network in Central and

EasternEuropeisanimportantcontributionforthestrengtheningofcompetitivenessofthis

region especially in comparison with the highly integrated Western European chemical

locations.Thepipelinenetworkcanonlybeimplementedunderconsiderationoftheinterest

of private enterprises in close cooperation with the political level. The pipelines can

contribute

to

avoidance

of

transport

especially

on

the

congested

roads

and

railway,

to

improvesafetyofchemicaltransportsandtoreducecostsforchemicallogistics.

9.4 INVESTMENTSINRAILANDROADINFRASTRUCTUREINCE&EEExtensive investments intherailwayandroad infrastructure inCentralandEasternEurope

are necessary for an improvement of chemical logistics. Especially the barriers at the

boarder crossing and at identified bottlenecks should be overcome. Important transport

corridors for the chemical industry are starting from Central Germany to the economic

centres and growth markets in St. Petersburg, Moscow, Vladimir, Kiev or Odessa and

furthermoreto

China.


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9.5 INVESTMENTSINTERMINALSFORINTERMODALTRANSPORTInvestments in Terminals for intermodal transport have a special importance for the

chemical industry. The combined use of different transport modes especially railway and

roadareespeciallyimportantforanefficientinlandchemicallogisticsinCentralandEastern

Europe.

Intermodal

Terminals

have

to

be

developed,

extended

and

connected

especially

closetotheeconomiccentresalongsidetheimportanttransportcorridors.

9.6 BUILDALTERNATIVEPORTSFORSHORTSEATRANSPORTTheextensionofalternativeportsfortheshortseestransportisimportantforthechemical

industry,toimprovetheaccesstotheinternationaltransportflowsandtobypasscongested

existingports.

9.7 HARMONIZATIONOFSTANDARDSTheharmonisationofstandardsinthetechnicaladministrativeareaaswellasinthesafety,

security and social dimension are necessary to improve efficiency of chemical logistics for

crossboardertransports,toreducecosts,toreducedeliverytimes,tominimisesafetyrisks

andtoensureanequallevelplayingfield.

9.8 IMPLEMENTERANDCRISISMGMTSYSTEMSFORTHECHEMICALINDUSTRYIn the area of safety standards, best practice solutions from Western Europe can be

transferredtoCentralandEasternEurope.

9.9 KNOWHOWTRANSFERTheknowhowtransfertoCentralandEasternEuropecancontributetoanimprovementof

chemical logistics.Theexperiencesoftheconstantoptimisationprocessof logisticscanbe

usedinclosedcooperationbetweentherelevantstakeholdersinmutualadvantage.

9.10COORDINATIONANDBUNDLINGOFTRANSPORTThecoordinationandbundlingofchemicaltransportsfromoneregiontoaselectedtarget

destinationcan

produce

synergies

and

cost

advantages.

This

approach

requires

ahigh

level

ofcooperationbetweentherelevantchemicalenterprisesand logisticprovidersacrossthe

boarders.

Solutions can only be developed and implemented in close cooperation between

Enterprises/LogisticProvidersandPoliticsandAdministrationat regional,nationaland

EuropeanLevel


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10LITERATUREListofrelevantliterature,studies,surveys,policydocuments

ListofexpertsinRSM

Chemlog 3.1.3 SWOT FINAL Germany-Chemical Industry SWOT

Documents

Transcript of Chemlog 3.1.3 SWOT FINAL Germany-Chemical Industry SWOT