European transporters are still afraid of the water

Water transport is both cheaper and cleaner than road transport. So why does nobody want it?

When Jan van der Linden was a barge captain in the 1940s he faced a dilemma. He had to make regular deliveries to a town he could not reach by boat. So he decided to ship the cargo to a nearby city and use cars for the last 5 kilometres of the trip.

His initiative developed into what is now the regional transshipment centre in Waalwijk, the Netherlands. It is being run by his grandson John van der Linden. On the company's quay a forklift picks up containers and sets them down in the hold of a relatively small riverboat - it can fit 24 large or 48 small containers. Trucks drive off and on.

Van der Linden charters three riverboats that bring in cargo from the Maasvlakte, an industrial area built on reclaimed land off the coast of main port Rotterdam.

The way Van der Linden combines road and water transportation is an example of how it should be done, said economist Tilam Platz. He researched inland shipping in Europe and came to the conclusion that it represents only 5 percent of total European freight transport.

Despite years of subsidies

Platz said Europe's rivers and canals could easily carry twice as much freight as they do now. The European Commission has been promoting water transport for years, saying it is cheaper, it relieves traffic congestion and it's better for the environment. Ships emit six times less carbon dioxide per 1,000 kilogrammes of cargo than trucks.

Still road transport remains by far the most popular form of transport, despite years of subsidies from the European Commission to companies that make the switch from road to water. Brussels has a 62 million-euro yearly budget to subsidise transportation by water between EU countries. This year it doubled the subsidy per 500 ton-kilometres from 1 to 2 euros.

So why isn't it working? Platz said transport companies need to improve their services. Since many companies are not near a waterway the transport companies should also provide the customers with 'before and after' transportation. "All inclusive service is a must."

The problem is that many skippers are one-man businesses with just one or two ships, said Kees de Vries of the Inland Shipping Information Agency. "It is easier said than done to add a forklift and road transport to the operation."

Borders still in place

De Vries said it is the companies that use their services who should look at the proximity to a waterway when they choose a location. "And companies should get a subsidy if they choose a location near a waterway."

There is room for improvement at the ports too, said Platz. In big ports like Rotterdam or Antwerp inland shippers say they are discriminated against. Seagoing ships always get priority at sea ports, which frustrates the inland skippers' planning. Van der Linden: "Every time a seagoing ship comes in our ships have to wait. That costs time and money."

Another reason for the continued popularity of road transport is, ironically, borders. The European Union may have done away with land borders, but they are still firmly in place at sea. Any country's national borders stop at 22 kilometres off the coast. If a ship leaves the territorial waters of one EU country it has to pass customs upon re-entry, even if it is transporting goods between two EU-countries. This can add a day to the trip.

"That's valuable time if you know that it takes two days to go from Hamburg to Rotterdam by ship," said Tineke Netelenbos of the Royal Association of Netherlands' Shipowners.

Earlier this year European transport commissioner Antonio Tajani proposed to abolish customs for ships traveling between EU countries, but he was immediately criticised by his colleague László Kovács (Customs) who is afraid it will encourage smuggling.

Netelenbos hopes the commissioners will work it out. "We know it's possible; they did it for the land borders."