PORT NEWS - Autorità Portuale di Livorno

Port news
Livorno, Scali Rosciano, 6/7
Numero 19
www.porto.livorno.it
Port Authority Livorno
Ottobre 2015
Livorno and the forest products traffic
1
SOMMARIO
Introduction:
Livorno, The port of reference for pulp
page 3
The Livorno Port Authority Director for Marketing and Research, Gabriele Gargiulo
We can become the Italian point of reference for forestry products
page 5
The contribution of researchers from IRCRES-CNR
520 people working full time in the forestry sector
page 7
A coffee break with Mr. Paolo Culicchi; the Chairman of Assocarta,
The Italian paper industry produces 8.6m tons of paper
page 8
Asamar’s point of view
Laura Miele: the Port Authority’s Approach is excellent
page 10
Face to face with Gloria Dari Spedimar’s Chairperson,
The New Port Plan opens many doors
page 13
Confindustria Livorno: The words of the General Manager Umberto Paoletti
This is how we can develop the traffic in forestry goods
page 15
Lucia Filippi, Vice President of Grieg Star
We need new marketing strategies to increase exports
page 17
2
SOMMARIO
Assimprese’s point of view: Federico Barbera
We have to develop the synergy between the port and freight village for forestry goods
page 18
An interview with the Commercial Director of CILP, Antonio Rognoni
I think the future will see far more transhipments for pulp
page 19
The General Manager for MarterNeri, Giorgio Neri, considers the European Platform
The western front of the Darsena Toscana pier will be dedicated to forestry products
page 22
Carlo Bartoli, co-owner of F.lli Bartoli
What we need is to improve the operations and infrastructures
page 24
An interview with Claudio Torchia, the General Manager of Mito
Our alliance with Bonsignori is a great asset
page 25
The Character - Giovanni Tozzi
N. Tozzi a specialist in kraft rolls
page 28
The position of the sellers: the head of Trades Srl, Curzio Mugnai, shares his opinion
Can Livorno become the main port for the Mediterranean? It’s a possibility
page 29
The Port of Livorno at the 21st Transport Symposium
Operators and Institutions are in search of new traffic at the Brema Conference
page 31
3
The study of Livorno Port Authority: “Forestry product traffic in the port of Livorno”
Livorno, the port of reference for pulp
60% of domestic imports pass through our docks
This is the first time that the
Port Authority and IRCRESCNR have worked in synergy
with operators to carry out research on one of main goods
to be handled in Livorno; forestry products. Freight forwarders,
shipping
agents,
shipping owner and lines, international producers, receivers, and terminal operators
have all been consulted and interviewed for this special edition of Port News, published
on 13th October, for the International Workshop on Forest
Related Products organised by
the Marketing and Research
Department of the Livorno
Port Authority. The Chairperson of Spedimar, Gloria Dari
has welcomed the initiative
and the spirit in which this
cluster of managers and the
Port Authority have worked
together. Port Authorities
should no longer be viewed as
mere guardians whose sole
function is to issue authorisations and concessions. This
position will change with the
forthcoming reforms under
law 84/94 that assigns them
greater responsibility; making
them the link between research centres and the business
world.
The approach used for the
research.
What points to this being a
reality and not merely a hope
is the manner in which the research has been conducted; the
figures on the amount of traffic and the investigation on the
quality of services come from
interviews and with people in
the know about the integrated
logistics chain for forestry
products and the analysis of
open questionnaires.
«This has been a study involving many parties and has provided a forum for direct
dialogue with operators so that
we can have their view on the
processes”, explains Barbara
Bonciani, who has worked on
the research with her collea-
gue Patrizia Innocenti under
the direct supervision of Director Gabriele Gargiulo. “The
project has strengthened the
relationship between the PA
and port community, and improved the existing connections with the industries in the
catchment area for the port of
Livorno».
Not only has this research
been useful in mapping the
current situation but it has also
analysed the strengths and weaknesses of the Port of Livorno for this type of traffic
and will provide data on which
to assess possible future scenarios so that the Port can
make enhancements for the
handling of forestry related
products.
The figures on forestry products
The activities in the Port of
Livorno primarily involve the
unloading of certain products
such as: pulp, fluff, kraft
paper and timber. The goods
are mainly handled in break
bulk although there is also a
considerable quantity of container traffic. In addition,
some forestry goods are managed as dry bulk and in ro-ro.
In 2014 forestry products became the leading category in
“packaged goods by number”
with 65% of the total and an
overall discharged tonnage of
1,400,000 tons. The first six
months of 2015 saw an increase in forestry products
handled of 21% over the same
period for 2014.
4
The record for pulp
As pointed out in the study,
pulp is the most handled product in the forestry category at
85%. In 2014 Livorno handled
about 1,500,000 tons of pulp
(1,200,000 in break bulk and
300,000 in containers), confirming its domestic position as
leader. The data supplied by
Assocarta shows that domestic
imports for pulp totalled
3,146,000 tons with an estimated 2,520,000 being transported by sea. About 60% of this
sea trade passes through Livorno and is mainly destined
for the paper mills around
Lucca, which account for 41%
of Italy’s pulp import. These
mills produce about one million tons of tissue and one million tons of corrugated board
every year; the former being
about 80% of domestic production and the second 40%.
The geography of pulp imports
Most of the break bulk pulp
coming into Livorno originates from Brazil. Significant
amounts come from the United
States, Chile and Uruguay,
while the biggest European
suppliers are Spain and Finland.
The rise of Latin American
countries in the International
forestry product markets, and
pulp in particular, marks one
of the most important changes
in the last few years. They
have specialised in the cultivation of plantations for the export of pulp and have launched
themselves onto the market
with a high level of innovation
thanks to the use of new and
efficient machinery. This
study underlines how the lea-
ding position of International
producers has benefitted from
new sales conditions and upset
the balance with operators in
the integrated logistics chain
by cutting out the middle man
and favouring direct dealings
with terminal operators and
producers on one hand and
producers and paper mills on
the other.
New sales conditions
The newly acquired position
of leaders, held by Latin American producers has brought
about a number of significant
changes; upsetting the existing
balance between operators in
integrated logistics services.
To cite the study, “South American production companies
have set up a trade network
throughout Europe and their
need to concentrate logistics
services in a single place and
with a single operator has increased”. The greatest changes
in the forestry product business mainly revolve around
sales conditions. The study
continues, “While a few years
ago the majority of goods imported were subject to CIF
(with the paper mill giving the
shipper the mandate to pay
port charges to the terminal
operator on its behalf and to
take care of customs operations and the transportation of
the cargo to destination),
goods now reach their destination under FCA and DAP
terms”. Under these terms the
paper mill buys all the services or semi-complete services
directly from the seller, who
assumes the risk of the goods
being damaged until the time
they are loaded in the port area
(in the case of FCA). So to
recap, these days it is the
paper mill that decides the
best solution, in terms of timing and quality of service,
with the producer, while the
latter negotiates the cost and
manner of port operations offered to the receivers directly
with the terminal operators.
The study observes, “in this
process the terminal operator
has an opportunity to broaden
its portfolio of services, since
it has to provide more operations involved in port logistics, including transportation
from the port to the paper mill,
in the case of DAP”. At the
same time, it should be pointed out that CIF contracts have
been maintained with North
American and Canadian producers.
Possible future scenarios
Interviews conducted as part
of the study have hinted at possible future scenarios for forestry products. According to
people interviewed, if the port
of Livorno is to maintain its
position as leader and acquire
new traffic much will depend
on its logistics and infrastructure investments. To this end
the Port Authority already has
two projects underway, doubling the MK warehouse and
broadening the access road to
Molo Italia. Yet if the port is to
improve its competitiveness,
particularly with North European ports, it will have to operate to a higher level of
efficiency. The last part of the
study highlighted the contribution to employment levels that
can be generated from the port
traffic of forestry products
since these are often labour intensive operations.
Interview with the Marketing and Research Director of the Port Authority
5
Livorno forestry products: Research to promote the port
We can become the Italian point of reference
companies’ marketing cannot be
separated from that of the PA
and that is why he has decided to
undertake a series of studies into
the traffic in the port of Livorno,
in conjunction with companies,
freight forwarders, ship owners
and shipping lines, shipping
agents and producers. “All the
studies we have prepared, like
the recent one on forestry products will be presented with a
practical purpose; illustrating the
strengths and weaknesses of the
This is a review of the events port of Livorno”.
that have enabled Livorno’s potential to literally explode in the I would first like to ask why
traffic of forestry products. At did you choose to conduct a
the same time this study looks study on forestry products?
into the weaknesses that have so For a number of reasons: Firstly,
far held the port back from ex- because forestry products are
ceeding the levels reached. The one of the most important goods
Director uses the 2,100,000 tons passing through the port of Liof forestry goods (1.4m in break vorno. Secondly, because we
bulk and 0.7 in container) han- feel it is the Port Authority’s
dled in 2014 as his launch pad. duty to help operators identify
These figures point to Livorno’s possible future scenarios so that
success but also to its real needs they can enhance the competitiif it is to become the main point veness of the port.
of reference domestically. Gabriele Gargiulo was formally the What approach did you use for
commercial director of Compa- the study?
gnia Portuale (CILP), spent ten We decided to work hand-inyears as the Managing Director hand with port operators. The
of TCO and since then has spent quantative analysis on traffic
many years dockside as the com- was supported by a qualitative
mercial director of the Port Au- study with information being obthority. He does not want to hide tained through interviews with
behind the protection of the those in the know in the world of
word “publicity” to pretend that forestry products. We have intereverything is going well; “We viewed trade associations, shipwant to work alongside opera- ping
lines
and
owners,
tors and join forces, look at what international producers, receiis working but also where things vers, shipping agents, freight
are going wrong, because it’s in forwarders and terminal compaour mutual interest to improve nies. At the same time we have
the efficiency of the port of Li- worked with IRCRES-CNR,
vorno. In Mr. Gargiulo’s eyes who have looked at the impact
that this sector has had on employment. I would like to add something else”.
Please do
I would like to make my thanks
known to my colleagues Patrizia
Innocenti and Barbara Bonciani;
they have given me their full
support in this enterprise; by gathering all the necessary facts
and figures. To tell the truth this
is just the first in a series of studies that we want to undertake
on traffic of interest to us. In
2016 we will be looking at other
areas: the next study will be on
the Motorways of the Sea. These
surveys will provide the direction for the PA’s marketing strategies.
How?
We don’t want to hide behind a
stick. We have boldly set ourselves the task of looking at the
causes that have enabled the
growth of traffic in the port of
Livorno but also the critical
points that have prevented the
port from obtaining even better
results. That is why we decided
to involve leading port stakeholders in a study that I would call
very practical and not particularly theoretical.
Let’s look at some of the questions. Can you give us some
details: how many forestry
products did the port handle in
2014?
Last year the port of Livorno
handled a total of 1.4m tons of
break bulk forestry products.
Without doubt this makes us the
leader in the “packaged goods”
category, comprising 65% of the
6
total.
And how many tons of forestry
products are handled in containers?
We have loaded and unloaded
more that 700 thousand tons of
forestry products in containers,
particularly pulp cargo, Kraft
rolls and timber.
Do you have the latest figures
for 2015?
The first six months of 2015
have seen a 21% increase over
the same period last year, with
840,192 tons of goods being
handled; 796,725 tons of which
where discharged and 43,467
loaded.
Why are imports higher than
exports?
Because forestry products are
mainly imported goods and because nowadays there is no export activity on large ships in
break bulk, although it must be
said that the main shipping lines
that stop in Livorno are now
equipping themselves to develop
exports by loading suitable material onboard: systems, machinery and yachts.
What accounts for the increase
in forestry product traffic in
the first half of 2015?
Mainly due to the increase in
South American traffic that accounted for over 56% of all
goods handled in Livorno in
2014. Brazil is our main supplier, followed by Chile.
And what can you tell me
about imports from European
countries?
Statistics for 2014 show that
they are 43.9% of the total, some
of which travels by sea. There is
good quality pulp imported from
Scandinavian
Spain.
countries
and Fondale 2014 had a gross tonnage greater than those serviced
at Molo Italia.
What do we import mainly?
Mainly pulp for paper, which is How many operators are there
over 80% of forestry products.
in this sector in Livorno?
There are two important terminal
Why is pulp so important in operators: CILP and MarterLivorno?
Neri. In addition to these two we
The port of Livorno is the gate- have the companies Bartoli and
way for pulp destined for the N. Tozzi, that are specialised in
area of Lucca, home to Italy’s Kraft-paper rolls.
leading paper mills. Every year How are the goods transported
this area produces a million tons from the port to the paper
of tissue (for home and sanitary mills, by road or rail?
use) and one million tons of cor- Mainly by road. The rail network
rugated board, with tissue ma- is used to transport to north Italy,
king up approximately 80% of although recently there was a
domestic production.
trial of a complete train to a
paper mill in the area of Lucca.
Do we only supply the area of
Why is road used more than
Lucca?
No. Thanks to our policy of logi- rail?
stic-infrastructural specialisation For a number of reasons: the
Livorno also supplies the northe- short distance between the port
ast and northwest of the country, and Lucca makes it more conveand some parts of southern Eu- nient to transport by road.
rope.
Trucks are also more flexible
and can cater for any urgent reWhat infrastructures does the quest for pulp from warehouses
port of Livorno have for this in the port. Railways can become
type of cargo?
more strategic over medium to
There are over 120,000 square long distances and will be the
metres of warehouse space for real bet to win in the future, if
forestry products and another we are to enhance the port’s po80,000 square metres in the area sition as the national hub for this
behind the port. There are also sector. The rail link from the port
docks dedicated to the handling to the Tyrrhenian line, which is
and management of forestry pro- currently under development,
ducts in break bulk; these have a could become a real strength for
draft of 13 metres and can ac- our port.
commodate large ships capable
of holding 50,000 tons of cargo. So Livorno can aspire to becoming an important base?
What are the main areas where Yes, with the necessary infraforestry goods are handled?
structures. The port of Livorno
In 2014, 45.8% of ships were has the potential to confirm its
serviced at Molo Italia, 27.1% in status as leader for Italy and the
Alto Fondale, and 21.4% at the Mediterranean and can even depier 38 (Bartoli), 4.7% at pier 41 velop its traffic in the area of
(Silos del Tirreno, public moo- transhipments.
ring). Ships serviced at Alto
7
The contribution of researchers from IRCRES-CNR
Livorno and forestry products: a positive impact on employment
520 people working full time in the forestry sector
It’s rather
like the method used by
doctors
when making a diagnosis:
observation
and study of
the body is
Alga D. Foschi
required before proceeding with a diligent and
careful medical history of the patient; without this approach one
cannot identify the illness and provide the right cure. Giampaolo Vitali, researcher at the Institute for
Sustainable Economic Growth
(Istituto di Ricerca sulla Crescita
Economica Sostenibile - IRCRES),
explains, “We have adopted a similar approach in this micro-macro
research: we conducted an analysis
of the individual companies to have
a proper understanding of the
macro sector”. ICRES is the only
body in the National Council for
Research (Consiglio Nazionale
delle Ricerche – CNR) that studies
economics applied to enterprises.
IRCRES - CNR provided a fundamental contribution to the study on
forestry products, presenting a report regarding the impact on employment that pulp traffic has in the
port of Livorno.
The Port Authority and ICRES
have recently established a protocol
with the undertaking of signatory
bodies to contribute to the study of
the port economy and local development.
“This cooperation is very important
for CNR” – says Mr. Vitali, “it can
make the considerable scientific
knowledge acquired in the port and
maritime sectors available. As
things stand, ours is an empirical
demonstration of the situation. The
next step is to make the appropriate
political considerations.
What kind of considerations?
“Well, for example, basing oneself
on employment levels in this sector
and deciding what type of investment to undertake to promote the
growth of the port to increase levels
of employment”.
Giampaolo Vitali has no doubts,
just as dottoressa Alga D. Foschi,
professor in the degree course of
Economics and the Management of
Logistics Systems of the Polo della
Logistica in Livorno, a faculty of
Pisa University, who also happens
to be an associate researcher at IRCRES and has contributed to the
study on forestry products.
Alga Foschi points out, “In the field
of transport economics I have dealt
with sea transportation and the problems relating to port-to-port and
hub and spoke, the themes of efficiency and the competiveness of
ports, as well as the Motorways of
the sea and short sea shipping.
Being an industrial economist what
really interests me is the ability to
implement a maritime economy within a region.
Professor what employment do you
believe the traffic of forestry products could generate in Livorno?
“Look, first of all, its important to
know that the handling of forestry
products is labour intensive in a
port. This is a good thing. It’s important for local economies to drive
labour intensive activities which,
all things being equal, create more
benefits for an area”.
Foschi and
Vitali underline the
fact
that
their research shows
the positive
impact that Giampaolo Vitali
forestry
shipping has on port activities,
“more than 500 workers have fulltime jobs in the various phases of
the work cycle for forestry goods,
whether in break bulk or containers. Firstly, the ships come into
port; nearly 200 break-bulk ships
and 27,000 containers are involved
in this transportation that give work
to 64 people. The second step involves unloading the goods onto
the docks and their storage into warehouses, this requires a further 202
full-time workers. Finally, there is
delivery to the paper mills that generates work for 254 personnel,
consisting mainly of drivers for the
163 lorries used in 2014. So we
have a total of 520 full-time staff,
without taking the indirect effect on
the local economy of the port companies into account. This will be researched in the future”.
The two researchers are happy with
the work thus far carried out and
the synergy with the Port Authority.
Mr. Vitali explains, “for the last few
years now public institutions are
more open to working together. We
have understood that the real situations are more complex. When, as
in this case, research meets practical, operational applications we
have the ideal mix to understand
what the true potential of the port
supply chain is. This cooperation
with the Port Authority has provided precisely this opportunity: a
But how many people are emplo- union between theory and practice”.
yed in this sector?
8
A coffee break with Mr. Paolo Culicchi, the Chairman of Assocarta
The Italian paper industry produces 8.6m tones of paper
Over 1.2m tons of pulp is imported from South America
Assocarta also represents the
sector and its status at EC
and International institutions
through CEPI (the Confederation of European Paper Industries).
Chairman Culicchi, can
you start by introducing
your Association to us?
Of course, Assocarta is a
trade association that brings
together, represents and safeguards companies that
produce paper, board and
pulp in Italy.
Assocarta gives support to
its Members, who produce
90% of the volume of paper
and board made in Italy, by
helping to determine and
plan for institutional activities arising from the various
needs of the Italian paper industry. In this way it represents legitimate interests and
promotes development and
competiveness.
What is more, Assocarta is
part of Confindustria and is
the go-between with the
principal Italian political institutions and administrations, including Parliament,
the Government, Trade
Unions and other Groups.
Can you give us some figures on the production of
paper in Italy?
Currently, the Italian paper
industry produces 8.6 tons
of paper and board every
year using over 3.5 million
tons of pulp, especially
paper for graphic, hygiene,
household and sanitary purposes, 4.7 million tons of recycled paper, for paper and
board to be used in packaging and 1.7 million tons of
non-fibre materials. This is
an energy intensive industry
that uses 7 bn KWh of electrical energy (over 50% of
which is self produced) and
2.4 bn m3 of gas. While an
estimated 240 m cubic metres of water are used. Turning to virgin fibres,
demand
is
satisfied
mainly
by
imports since
domestic
production is
very limited,
so we imported over 3.1
million tons
in
2014,
equal to 90%
of the industry’s needs.
What types of pulp make
up the majority of our imports?
According to ISTAT figures
for foreign trade, the majority of imports comprise two
types of chemical sulphate
pulps:
•Bleached Softwood Kraft VD 4703 21 00: 1.4 million
tons in 2014, with 60-62%
coming from other EU countries (first and foremost
Sweden and Finland but also
Austria,
Germany
and
France) and 27-28% from
North America (mainly the
USA);
•Bleached Hardwood Kraft VD 4703 29 00: 1.6 million
tons in 2014, over 70-72%
of which was imported from
South America (Brazil,
Chile and Uruguay), while
23% came from the EU
(mainly Spain but also Portugal, Belgium and France);
Over the years long fibre has
gradually given way to short
fibre, due both to South
9
America’s increasing
capacity to produce
the latter and the
steady reduction in
production of the graphic paper sector; a situation that is part of
an international trend
with this sector favouring the use of long
fibre due to its intrinsic characteristics, that
offer better performance that other types
of pulp.
What does the future Paper industry associations from Austria, Belgium, Finland, France, Germany, Italy,
hold for the traffic of Norway, the Netherlands, Poland, Portugal, the United Kingdom, the Czech Republic,
pulp in the Mediter- Slovakia, Rumania, Slovenia, Spain, Sweden, Hungary are all members of CEPI
ranean and Livorno in par- lion tons). Exports in this Livorno is for the tissue
area grew considerably: mills. Even during this long
ticular?
Based on the information going from 3.5 million tons crisis this sector has remaicoming from Livorno Port to over 13 million tones, of ned stable, at a national level,
Authority, the volume of which 5.4 was shipped to with 2012 seeing a return to
pulp handled in the port is Europe (the CEPI area). the peaks of 2007. In terms of
1.5 million tons (48% of na- Italy in particular imported value of production the tissue
tional imports). This is a si- 1.2 million tons from Latin sector (75/80% of which is
gnificant volume that is not America, most coming from located around Lucca) repreonly destined for the paper Brazil (883 thousand tons in sents 20% of national paper
industry of Tuscany and the 2014) and Chile (240 thou- income (this is an increase on
tissue plants around Lucca – sand tons). Brazil is the lea- the 17.4% in 2007, due parplayer
in
Latin tly to the fall in production
whose imports are estimated ding
America;
producing
15
mil- for the graphic paper sector).
at 1.3 million tons - while a
smaller amount also goes to lion tons of pulp compared Together with Germany, Italy
to the 6 million used in is a European leader in terms
other parts of the country.
2014.
of volumes produced. At the
same time it must be rememAnd what are the prospects
for pulp use in South Ame- Can you tell us something bered that our multinationals
about the current situation have plants in Europe and inrica?
Latin America has increased and the forecasts for ternationally, thereby contriits production capacity for growth in the area around buting to other economies.
Costs clearly have an impact
HW pulp. There the annual Lucca?
production of pulp was 11 The Lucca paper mills pro- on competitiveness and domillion tons in 2000, and by duce two types of paper and mestically we have two han2014 this had increased to board: one for packaging dicaps: firstly, Italy has the
23 million tons. However, (whose main raw material is highest energy costs in Europe and secondly, the weak
this same period saw a de- recycled paper) and tissue.
mand that was more modest Over 80% of the volume of Euro increases the cost of
(going from 7.5 to 9.7 mil- pulp coming into the port of non-EU pulp.
10
Asamar, the Shipping Agents’ Association
Watch out for the megaships: they will also have an impact on Break Bulk
As for forestry products? Only those who pull together will have a future
a result Dole decided to use
containers and reached an
agreement with MSC
to supply the Italian
market from Central
America.
“We must all learn from our
mistakes. History is our best
teacher”. Whoever asks Fabio
Selmi, the Vice President of
Asamar, whether there is a future for forestry products in
Livorno shouldn’t expect the
usual answers. He likes to
give examples that serve as
warnings from other sectors
such as the extinct fruit and
vegetable market. Mr. Selmi
is the CEO of a large shipping
agency, CSA that has always
used it connections with Dole
for shipments to and from
Central America. He knows
that mega ships will have an
increasing impact on shipping
markets.
Mr. Selmi, what should the
case of Dole teach us?
As you know this company
worked in Livorno with its
own shipping lines. At a certain point conventional reefer
ships started to lose their market share to refrigerated containers that were increasingly
used for this type of goods. As
What was behind
this choice?
Dole was chartering
ships for trade lines
between Spain and
Italy and decided to
leave Livorno at a
particular moment. It
was a time when the cost of
petroleum was high and affected fruit prices exponentially,
making the company uncompetitive towards it direct rivals. By choosing not to have
its own ships and in signing
an agreement with MSC, Dole
was able to lower costs and
keep a considerable market
share.
But what is the connection
with forestry products?
Well, mega container ships
are going to affect the forestry
market. Shipping lines' only
concern is to fill ships, causing them to lower freight
rates in order to entice customers and not have empty
space. The lower costs of container freight will make break
bulk transportation less and
less competitive and this is
bound to affect forestry products that are currently transported in the hold. To sum
up, what happened to Dole
will happen to other operators
that are specialised in the handling of other types of goods.
The APL's research?
Simply “excellent”
The APL's research is excellent
according
to
Laura Miele, the
President of Asamar, who is now
into her second
term of office in
this association
that represents
the interests of
ship agents in Livorno and its
province. “I am fully in favour of this
new approach to important themes. I
think the Port Authority is doing the
right thing by conducting this practical research and interfacing with operators who have their finger on the
pulse of the situation”. Laura Miele
appreciates this type of approach,
“operators and institutions must act in
concert. I think this move by the APL
to provide real answers, not theories,
on the future trends for traffic in the
Port of Livorno are positive. One
thing is for sure, the dialogue will be
very useful. In effect, Asamar represents ship-owners from all over the
world and we want to give our input.
And we will do so because we feel
the strong need to work together, particularly in light of the establishment
of the much hoped-for “Autorità di
Sistema Livorno – Piombino”.
The Association has operated in Livorno and other Tuscan ports since
1952. ASAMAR is part of Federagenti, that is the national association
for ship agents and works with Port
Authorities and other interest groups
to enhance the various forms of traffic
in the Port of Livorno. To this end, it
helps coordinate the work of its
Member that currently comprises 58
companies.
11
carriages for example. Li- the buyer’s door. What is
Like forestry products.
vorno has great potential for more, it is the producer who
Precisely. But for a simple project cargo.
negotiates the sea freight with
reason, aside from the cost of
the ship-owner, as has always
the ship, the pulp must be di- As a shipping agent have been the case, while also nescharged put into storage and you ever dealt with pulp gotiating the unloading costs
then reloaded onto trucks. traffic?
and premiums directly with
With containers everything is Well I started at the end of the the terminal operator.
so much easier: the container 70s. I acted as agent for big Tutto. Con il DAP, certi acis unloaded onto the dock then Portuguese companies, like cordi non li fanno più gli arloaded onto a lorry and taken Port Line, C.N.N. and Tran- matori direttamente o tramite
to its destination where it is sinsular. All the pulp from gli agenti marittimi che li rapemptied by the receiver. All in Portugal was handled by my presentano, ma il produttore.
all, there are fewer steps when shipping agency. However, È lo stesso produttore a strintransporting goods via contai- those were very different gere un accordo con il comner and a portacontainer ship times since sales conditions pratore per includere nella
can be loaded and unloaded were not DAP but Liner fattura di vendita del prodotto
even when the weather is not Terms.
la consegna della merce sino a
good, unlike break bulk.
domicilio. Inoltre, è sempre il
produttore che, oltre a conWhat are those?
Plus there is the question of In Line Terms contracts trattare il nolo mare con l’arexports, right?
freight included shipping matore, come è sempre
Exactly, in the paper sector all transportation from the bot- avvenuto, tratta anche i costi
the exported finished products tom of the hold to the crane di sbarco e di franchigia diretare put into containers, not hook. Instead road freight, na- tamente con il terminalista.
break bulk. Instead incoming mely the entire set of operaships arrive full of pulp or tions from the crane hook to What does this involve?
kraft paper and leave empty. the warehouse, to the loading Intermediaries have lost conIf you look carefully the com- of goods onto lorries was the tracting and financial power.
petitive edge for north Euro- responsibility of the receiver. In door-to-door, namely in dipean ports comes down to one
rect dealings between one facthing only.
What about DAP?
tory and another the skills of
DAP stands for “delivery at shipping agents and freight
Which?
place, or door to door”, mea- forwarders has been undermiAntwerp and Rotterdam are ning all operations from the ned. Nowadays the trends in
not only better equipped to source to the goods’ final de- the rest of the business world
handle mega ships but are also stination are the responsibility are being imported into ports
specialised in project cargo, of the international producer. and shipping.
which is obviously not transported via container. You see So what has changed for you Meaning?
Small shops are being swallowhat Livorno needs more than shipping agents?
anything else is a study on Everything. With DAP ship wed up by mass distribution
project cargo. I'm convinced owners no longer make agree- centres. In so doing the excess
that we can foresee ships car- ments directly or through intermediate steps are elimirying break bulk for export; shipping agencies that repre- nated. There is nothing
all that his needed is new sy- sent them but go directly to anyone can do about this, just
nergy with enterprises opera- the producer. It is the produ- as we cannot stop ship-owners
ting in the port's hinterland; I cer who now reaches an from carrying out land operaam thinking of Nuova Pi- agreement with the buyer. tions that they previously didgnone, but the same could be This includes the sale of the n't do. Nowadays the only
said for Breda (now Hitachi) product and the delivery to way forward is pooling at all
12
levels.
Take
the
Bonsignori/CFT alliance as an
example; in order to become
more competitive operators
have gone into logistics and
offer a complete, turnkey service to shipping lines.
just four hours to unload and you need larger ships, which
send goods to their destina- in turn need a bigger draft,
tion.
what's more you need larger
yards and piers with a draft of
Why do you think that is?
at least 16m. Take the PiattaOur hands are tied by inflexi- forma Europa for example
ble work shifts. The first is
from 7.30am to 1.30pm, the Yes what about it?
Let's go back to pulp. What second starts at 1.30 and ends It's not only essential but it is
are Livorno's prospects for at 7.30pm and so on until the fundamental that the Port Augrowth in this sector?
fourth shift. Do you know thority have undertaken this
There is and always will be a what happens here?
project … and you know why?
margin of growth. However,
we must reach new horizons No, what?
No, tell me?
and look beyond the confines Well, let's say a ship comes Because a ship-owner's agreeof the paper industry in into port at 10.00am; it needs ments with a port, or contracts
Lucca. Italy has paper mills to wait until 1.30pm before for the transportation of goods
north and south of Lucca too. work can begin. In addition, to the port of destination are
The objective has to be the ac- we have no concept of termi- signed on at least a two-yearly
quisition of new traffic and nal call, namely the idea that basis if not four-yearly. So if
becoming increasingly com- a team of workers can go from you want to drive the port of
petitive, even against our di- one ship to another to carry Livorno it’s no good deciding
rect challengers like the ports out other types of operations today about next year's traffic.
of Monfalcone, Savona and – in other words we have no Think about the Piattaforma
Naples.
multi-purpose skills.
Europa, it will take 5 years to
complete, but in the timeWhat can Livorno do to Is that the same in the north scale of a port 5 years is not
reach this objective?
an aeon. You must start thinof Europe?
Firstly, we need infrastructu- They don't have the same king about things now beres that work, we need more mentality. It takes us longer to cause soon the new port
space and more pier availabi- unload a cargo of fruit onto infrastructures will free up
lity. We also need good road the pier and take it into a re- new space on the Darsena Toand rail links, from a logistics frigerated warehouse than at scana docks and this space
point of view Livorno is in an the ports of Antwerp or Rot- will attract new traffic that is
excellent position, we can terdam. In northern Europe already starting to increase in
Livorno but which doesn't
feed both the north and the there is no down time.
have enough space for
south but we have the same
growth.
Why is that?
old problems.
By the end of a shift in LiWhich?
vorno we will have been less And so?
There are two things that productive than our north Eu- So I would welcome all those
mainly affect our performance ropean counterparts. It’s a initiatives that aim to promote
levels: storage capacity for question of mentality and this the port of Livorno and inform stakeholders of its pogoods and competitiveness needs to change.
tential. We all need to work
that is influenced by production costs. We can build as Aside from labour opera- together to fulfil the forecasts
many infrastructures as we tions aren't the infrastructu- of the Port Plan. I'm thinking
want but we won't get any- res that a port provides of of Ro/Ro traffic for example,
the designated areas that Prewhere if it takes us a day's fundamental importance?
work to unload a ship, while Obviously. If you want to in- sident Gallanti wanted have
in the north of Europe it takes crease a port's productivity never seen the light of day .
13
An interview with Gloria Dari, the President of Spedimar
Livorno has a great history in forestry products
The New Port Plan opens many doors
maritime traffic and the economy, as well as for our
image since we would be facilitating sea transport over
road haulage with all the associated benefits for the environment (CO2 emissions) and
safety.
President Dari, Livorno is in
the top spot for the handling
of forestry products. What
steps should be taken to
reinforce this position?
We need guarantees for moorings and infrastructures dedicated to this type of traffic.
We also need to give guarantees and dedicated planning to
those ship-owners who have
always used our port and who
could increase their investment with us. For some
types of goods there are specific, indispensible infrastructures and this is particularly
the case with pulp that requires customs warehouses, storage and redelivery facilities.
Last and by no means least,
we must consider our new target; that of attracting intraEuropean traffic that currently
travels by truck. As an interested party we have suggested
to and been working with the
Port Authority to lower port
charges for goods and ships
coming from European countries. There is a considerable
market in northern Europe.
This action would have positive fallout as an incentive for
What
are
Livorno’s
strengths in this type of
traffic?
Livorno has a great tradition
in the field of forestry products and has acquired a
“know how” that few other
ports can boast of. This is an
invaluable resource, in terms
of professional skills that can
and must be used to increase
traffic. The port has an enormous competitive advantage
thanks to its geographical location; the proximity of the
manufacturing
centre
in
Lucca means an overall saving on logistics costs.
What are the critical points?
Whether as a result of the global economic factors caused
by this crisis without precedent, or ship-owners politics,
especially concerning liners,
competition has moved to the
container sector. Containers
offer greater flexibility both
for quantities of goods to ship
and for logistics management
since it is undoubtedly easier
and offers savings on door-todoor. At a time of abundance
in hold space and lower and
lower sea freight costs, we
have seen a change in the methods of transport. At the
same time ship-owners are investing in larger capacity bulk
ships with a deeper draft. So,
as I see it, the greatest need is
to ensure that there are piers
with suitable draft to accommodate the large vessels of
shipping lines that use bulk
ships in this market sector.
What’s more, in order to be
competitive land transportation is primarily by truck with
only a small quota of goods
travelling by rail. We should
try to increase the latter. We
should also try to improve
traffic flows for trucks, which
already have very low rates,
since they are often slowed
down at customs borders
where there is a multitude of
types of traffic.
Despite Livorno’s proximity
to the paper industry a lot of
traffic still comes from distant north European ports.
Why do you think that is?
This is the situation for many
commodities, not just forestry
products. Firstly, it is a consequence of container use in all
market sectors, secondly it is
due to the vast offer of north
European ports such as Rotterdam and Antwerp, for numerous trades and the highly
efficient rail links from the
large Norther ports like Rotterdam and Antwerp that are
fast and arrive on on time at
Italian freight villages like
Milan, Bologna and even Padova and Verona. Finally
these ports have better redelivery efficiency than ours.
14
Considering all of this, doorto-door may become more
competitive especially for the
Tri Veneto area.
Livorno’s involvement is essentially concentrated on
imports for forestry goods.
Can anything be done to develop exports in this sector?
Is it possible?
Of course it’s possible; it depends on the offer of export
services. The exportation of
finished products in the paper
market is in containers: at the
moment Livorno has competitive prices for its services to
the USA, Canada, Central and
South America. It is less so
with regard to trade routes to
Asia/the Far East/and Indian
continent, but also for the Eastern Med and North African
countries like Algeria and
Marocco.
Unfortunately,
other ports have a multiplicity of services and more efficient transport links.
warehouses for a sector that
plays a strategic role in our
economy. We could have a
better management and organisation of spaces and in so
doing protect one of our
port’s fundamental resources:
bulk goods, that are a resource and a competitive advantage. Ours is a port
capable of attracting and managing all types of cargos
with a very professional approach.
What is your verdict on the
research conducted by the
Port Authority working in
close conjunction with CNR
and port operators?
It is an important idea and I
would like to take this opportunity to thank the Port Authority. The approach has
been very professional and I
believe it is emblematic of
the spirit and role of Cluster
Manager that a PA should
have. The research and study
of strategic product sectors is
of fundamental importance
for the marketing of our region and there is no doubt
that the CNR is a point of excellence in our country. I
should like to add that the synergy with operators and mutual support is equally
important and has been much
appreciated by all those involved. I hope this is the first
of many such studies so that
we can launch effective marketing campaigns and increase traffic.
What are the prospects derived from the New Port
Plan for the traffic in forestry products?
I think the new PP can lead to
many different scenarios and
generate many opportunities
for our port. Opportunities
that must be seized and developed. We must not forget that
for all businesses the economic multiplier in the goods
sector is about 2.5 and the
employment multiplier for
our region is about 3.3. The
new PP we will be able to
offer companies the guarantees we were talking about How have the new DAP
earlier, in other words: more sales conditions affected
space, piers and dedicated your work?
DAP has mainly been on the
rise due to Loaders’ and Receivers’ need to simplify and
have faster delivery times for
door-to-door given the obstacles in our Country. However,
these conditions are not controlled entirely by ship-owners, since in many cases
they are not set up for typical logistic services. The
role of Freight Forwarders
is to guarantee the supervision of delivery right to the
door; including customs
operations.
About
Spedimar
Spedimar is a trade Association
for Freight Forwarders. It was
founded in 1952, and represents
over 100 companies employing
about 1400 staff. Spedimar
member companies are mainly
located in Livorno and its province although there are also
members in other Tuscan provinces like Massa Carrara, Pisa
and Florence.
Spedimar, belongs to the national association Fedespedi (Italian Federation of Forwarding
Companies) and Confetra (Italian confederation of traffic and
logistics).
So we can say that Spedimar represents the cargo.
15
A talk with Umberto Paoletti, the Managing Director of Confindustria Livorno
A production centre for the processing of goods
This is how we could develop the traffic in forestry products
des efficient solu- What else?
tions ships will come, We must review this evident
misalignment between incoand how!!”.
ming and outgoing forestry
Mr. Paoletti, Li- goods.
vorno is the Italian How?
leader in the han- By improving infrastructures
dling of forestry (both tangible and intangiproducts.
What ble), reorganising resources,
steps can be taken to human and otherwise to meet
enhance this posi- the needs of the sector. In
tion?
this way we can attract a perForestry
products, centage of finished product
and pulp in particu- going to its final destination
Umberto Paoletti (in the middle) with Luca Becce
boat, by alternative
(TDT, sx) and with Gabriele Martelli (Confindu- lar, are an important by
stria, dx)
– as well as traditio- means.
The Managing Director Con- nal – type of goods passing zzando uomini e mezzi per
findustria Livorno, Umberto through the port of Livorno. corrispondere adeguatamente
Paoletti, has a prompt answer Our geographical position alle esigenze del settore, in
to what he believes should and the final destination of modo da attrarre anche quella
form the springboard for in- these goods is certainly an percentuale di prodotto finito
stitutions and operators plan advantage. However, we che raggiunge destinazioni
of attack to enhance the port have had the misfortune to finali raggiungibili via nave,
of Livorno’s position in the witness how the value of pro- in modo alternativo.
forestry sector: Mapping out ximity to one’s final destinaand comparing the needs of tion can be nullified by What else?
producers and users, determi- greater organisational effi- Well competitiveness must
ning the clear misalignment ciency and the streamlined be increased by planning for
between incoming and out- bureaucracy of competing any necessary investments so
going forestry goods, stimu- ports. So I believe we must we can transfer part of forelating the competiveness of concentrate on policies that stry cargo from break-bulk to
the port, planning inve- will consolidate and boost containers and finally …,
stments that promote the traffic; this is where the Port
transferral of forestry goods Authority’s role is crucial.
Finally?
from break bulk to containers
We should be able to ascerand introducing some of the How exactly?
tain the possibility of carprocesses for incoming/out- First of all we must map out rying out part of the
going forestry products.
and examine the needs of the processing of incoming/outDott. Paoletti is convinced producers and users to in- going forestry products in the
that the Port Authority’s ini- crease traffic, regularly chec- port of Livorno by offering
tiative is “absolutely posi- king
with
Maritime incentives in the Planning
tive. A detailed knowledge of Authorities, Customs Agen- Agreement. By setting up a
the market and its particular cies and other relevant bo- production centre, however
requirements is the first step dies to rationalise procedures small, we would undoubtedly
in providing an answer to its and reduces times.
become more attractive.
needs. And when one provi-
16
If you had to sum up, what
do you think the port’s weaknesses and strengths are
in this sector?
As I have already mentioned,
one of Livorno’s strengths is
its proximity to the paper
mills of Lucca and the good
infrastructures
epitomise
how the port has attained its
position as leader in this
trade, plus the expertise of
our operators is certainly
another strength, particularly
when combined with the
multipurpose and flexible
transferral of logistics that is
becoming increasingly important in the transportation
of forestry goods, finally
there are our long-term relationships with the countries
of origin.
geographical location, having
suitable dedicated areas and
having an organised work
model and service costs that
make one centre cheaper than
its competitors.
As far as forestry products
go, Livorno’s operations are
virtually only for imported
goods. What could we do to
develop exports in this area?
Do you think it is possible?
The key is change for the
better. The main stakeholders
are the producers in Lucca
who must go from being
clients to becoming partners
and our shareholders in a
project of industrial development that fulfils market demand. Once the project has
been decided a suitable strategy can be developed for
both imports and exports. As
What about our weaknes- products develop so must
ses?
processes.
Without doubt I would say
the fragmentation and resul- How does the New Port
ting “dispersion” of traffic in Plan cater for forestry prothe port, is a weakness. This ducts?
also occurs with other types Rationalisation where port
of cargo. Cruise traffic is a areas are dedicated to a partitypical example. This scena- cular type of cargo is a good
rio negatively affects opera- start. I would just like to retion times and as a result our mind you that forestry procompetitiveness. If we esta- ducts are not limited to pulp.
blish specialist zones, once There are operators who hanand for all, a big part of this dle other types of forestry
problem will be solved.
goods that have seen significant development and contriDespite the port of Li- bute to enhancing the port.
vorno’s closeness to the When looking at how to impaper industry a large prove competitiveness these
amount of traffic is still products must also be given
handled by North Europe. due consideration. The new
Why do you think that is? space that is created by the
Because “overall competiti- rationalisation of existing
veness” is the sum of a num- areas under the New Port
ber of factors including: Plan and the extra space
created with the reclamation
of the Darsena Europa, will
free up large areas in the
commercial port, naturally
leading to an increase in this
traffic.
What is your take on the
study that the Port Authority has carried out with
CNR and port operators?
Unconditionally positive. As
I was saying, detailed knowledge of the market and its
needs are the best foundations for effective solutions.
And when we have an efficient response you can bet
that ships will arrive.
Confindustria Livorno is an
Association of companies
that has been active in the
Livorno area for over 60
years. Today it represents
over 400, small, medium and
large enterprises with a total
workforce of 20,000. It safeguards and supports a dynamic range of industries that
have a deep bond with the
area and are highly innovative. Over the years Confindustria Livorno has been a
point of reference for businessmen, providing them
with protection, support,
consultation and services.
17
Lucia Filippi, the Vice President of Grieg Star Shipping
Piers, suitable drafts and warehouses, these are what we need now
For the future? New strategies must be found to develop exports
owned capital. It has one of the
world’s largest fleets of openhatch and dry bulk ships. Its Headquarters are in Norway and it
has offices in the USA, Canada,
Europe, Asia and South America.
The Livorno office takes care of its
operations in all Mediterranean
Ports.
An interview with Lucia Filippi,
the Vice President of Grieg Star
Shipping; a company that has operated in Livorno since 1971.
In response to our question about
developing forestry traffic she doesn’t hold back. “Well if I were you
I would first start by maintaining
existing traffic, because it is by no
means certain. After 44 years of
calling at the Port of Livorno our
company has recently had to face
uncertainties over the future as a
result of the New Port Plan. We
need quality piers with suitable
drafts and above all bonded warehouses near the docks”.
This manager from Livorno who
has dedicated her life to the sea
has clear ideas about the present
and the future needs of the port. In
addition to guarantees for enhancements to the port’s equipment
and infrastructures we also need
new marketing strategies to increase exports.
Mrs. Filippi, can you give us
some details about your company?
Grieg Star is a ship-owner in the
Grieg group with 100% privately
How long have you been dealing
with the port of Livorno?
Since 1971. Grieg Star has been
an important player in the growth
of services to forestry products
with its open-hatch ships that have
become increasingly specialised
over the years and satisfy extemely
demanding clients by providing
superior services with high levels
of care for the entire goods range,
as well as finished products. This
top level of service includes the designing of high-quality equipment
for loading and unloading operations. Such has been the degree of
satisfaction that word has spread
and producers of other goods have
come calling, attracted by the quality of our service as evidence of
our sense of responsibility, safety,
ethics and respect for the environment that are fundamental values
in our company.
hub for the entire Mediterranean.
What should Livorno’s priorities
be if it wants to confirm its leadership in this sector?
I should firstly like to point out
that not only must a port worry
about getting bigger and better but
also about maintaining existing levels of traffic because it is dangerous to take anything for granted,
especially at this particular time
and in such a competitive market.
So there should be guarantees for
the present, combined with a medium-long term strategy that enables ship-owners to plan their
policies.
Can you explain what you mean
exactly?
After 44 years of calling at the
Port of Livorno our company has
recently had to face uncertainties
over the future as a result of the
New Port Plan. We need quality
piers with suitable drafts and
above all bonded warehouses near
the docks for the rapid storage of
our goods that are particularly
sensitive to the weather. Moreover,
these warehouses must be of the
requisite quality, particularly as
far as finished products are concerned. We are aware of the alterWhat do you think Livorno’s native plans but so far we have not
strengths are for this type of seen their implementation or even
the start of work.
cargo?
In addition to its proximity to an
important paper/tissue producing Why do we always lose out to
area, there is Livorno’s advantage- North European ports?
ous geographical position that Although many people think the
makes it an ideal node for distri- main reason is the cheap freight
bution to final destinations. It is rates in North Europe, there is
precisely this location that could also the resulting factor of efficient
lead to it becoming an important port operations since there are
18
very short clearance and redeliFederico Barbera, the President of Assimprese
very times in North Europe, in ad- Let’s strengthen the synergy between the Port and Freight Village
dition the rail network makes it
“We need to of reference, not only for the storage
easy to reach the European hinterstrengthen the of forestry products but also being
land cheaply. It would also be of
synergy bet- able to deliver them directly to the
great value if Livorno were to deween the Port paper mills in Lucca”.
velop exports, as is the case in
and Freight Clearly for the success of such a proVillage. What ject it is necessary to bet everything
North European ports, since this
forestry
pro- on the development of a rail link betwould enable ship-owners to earn
ducts have al- ween the paper mills of Lucca and
from return journeys.
How?
Italy has a tradition of excellence
in the processing of raw materials
and can attain high levels of quality in a broad range of finished
products. So exports should be a
target that a Port can aim to develop in its marketing strategy. This
is valid for all types of product, not
just paper.
What is your assessment of the
study conducted by the Port Authority working closely with CNR
and port operators?
The Port Authority should have a
role as coordinator with Trade Associations, Ship-owners and the
area to get detailed information
for sector studies and to promote
the port with the producers and exporters of goods. To this end, I
would like to thank the Livorno
Port Authority and in particular
the work of the Director for Marketing and Research, Dott. Gabriele Gargiulo, with the help of
his team comprising Dottssa Patrizia Innocenti and Dottssa Barbara Bonciani, for this workshop
on forestry products. It's the first
time the subject has been dealt
with so thoroughly; they have been
able to involve businesses operating in the sector and have already
obtained excellent results. I hope
this will be a starting point for the
continuation of collaboration that
helps the port grow.
ways needed is space and God only
knows that port terminals aren’t a rarity these days”.
If you want to know the precise idiosyncrasies of the Port of Livorno, its
strengths and weaknesses, the opportunities for future growth, you’d be
hard put to find somebody more
knowledgeable than Federico Barbera. He has spent his life dockside,
initially as a stevedore supervisor for
Zim ships at Intercontainers, subsequently as a key man at the Terminal
Calata Orlando. Like few others in
Livorno Mr. Barbera has perhaps got
a complete vision of the problems
and potential of our city. After being
the head of the Vespucci Freight Village for three years, Barbera is now
the chairperson for Assimprese, the
association that represents the interests of article 16 (e 18) operators in
Livorno.
His considerations on forestry products must naturally start from the
perspective of the Vespucci Freight
Village, “Given that its not possible
to use the terminals on the edge of
the pier for long storage periods, it is
necessary to find a way of making
better use of the Freight Village”. In
Mr. Barbera’s eyes it’s not just a case
of taking advantage of the Vespucci’s infrastructures that have a
wealth of warehouse space and covered areas, some of which are particularly suited to the storage of pulp,
we need to look beyond these assets.
“Once the plan for the overpass has
been completed (The Governor for
the Tuscan Region, Enrico Rossi,
has announced that public work will
be ready by mid 2016), the Vespucci
Freight Village could become a modern inland terminal acting as a point
the freight village. “It’s worth giving
serious consideration to this idea and
exploring its possibilities. Moreover,
it will be essential to have an MTO
(multimodal transport operator) that
has an adequate terminal approach
for the transfer of goods from the
port to the freight village and from
there on to the paper mills”.
As far as the President of Assimprese
is concerned, forestry products represent not only the present but also
the future for the port of Livorno.
“Our port has become increasingly
specialised in this sector becoming
the point of reference for the entire
Mediterranean. What’s more it is the
only sector in the port that was not
overly affected by this big crisis and
needed only marginal government
support”.
So what of Livorno’s future? “On
the horizon I see the Port Plan and
the Piattaforma Europa. However,
we must be careful; operators, institutions and trade unions must undertake to prepare for the skills required
tomorrow and train young people
who will be able to carry out ever
more complex operations with the
use of innovative technology, in a
few years time.
The Piattaforma Europa requires
new professions and skills; let’s train
our youngsters to work there”. Barbera’s final words are dedicated to
the workshop on forestry products;
“these conferences are wonderful
opportunities to meet and give Livorno’s operators the chane to listen
to and be heard by the Port Authority
and international stakeholders. Not
only is such an initiative well-received but there should be others for all
the other types of goods”.
Interview with the Commercial Director of CILP, Antonio Rognoni
19
What does the future hold for pulp? I see a lot more transhipments
There are rewards for those who provide integrated services
Last year, the Compagnia Impresa Lavoratori portuali (the
business branch of the CPL
group - 50% of which is currently owned by the GN investment group) handled 640,000
tons of foresty products. The
company operates on the Alto
Fondale docks and has wellestablished relations with such
ship owners as Grieg Star Shipping, Saga Welco and Gearbulk.
As recently as 2013 the company invested 2m euro in modernising its equipment. Linde
Material Handling supplied the
company with 15 8-ton forklifts
under a full service rental
agreement for a minimum period of 6 years.
We interviewed CILP’s commercial director, Antonio Rognoni, whom we asked to
explain, amongst other things,
how he views the port’s future
in this sector.
Mr. Rognoni, the Port Authority
has undertaken a project with
the CNR to conduct a series of
studies to map the trends and
prospects for growth of the
many goods passing through
the port. To this end, leading
players have been interviewed
in the forestry sector, from
dockside operators to the paper
mills. What have you made of
this research that has been conducted in synergy with operators?
It is useful and advantageous
for the Port Authority to support
the terminal operator’s conventional marketing with its institutional marketing research.
The fact that concessionaires’
businesses are supported by government institutions scouting
abroad cannot be understated,
with two provisos however; A)
That this type of support is continuous, and not sporadic, B)
that it is coordinated. I think
that this study on forestry products is evidence that such a
strategy is possible. Now let’s
see what happens next; if it will
bear fruit.
At the moment we are discussing forestry products: why is
the Compagnia Impresa Lavori Portuali currently the
biggest Italian terminal operator in this sector?
Because it has all the necessary
assets. CILP has the necessary
human resources that enable it
to service ships for 363 days a
year. It is organised in such a
way that the company can ope-
rate over four shifts every day
and perform numerous tasks in
a single cycle. Nowadays, for
example there are operators
who do not deliver when the
ship is in port. Moreover, the
CILP has large concession areas
and warehouses quite near the
piers; just think of TAF, Docks
Etruschi and MK. We can guarantee the discharging of 22/24
thousand tons of forestry products a day while performing
all our other port services, such
as the departure of over 100
trucks a day. This makes our
company extremely competitive.
In the first six months of this
year Livorno handled significant quantities of pulp in
transhipment. Do you think
this type of traffic could increase in future?
That all depends on the economic conditions. Livorno has
two competitors in transhipment at the moment, the ports
of Monfalcone and Tarragona.
Who is winning? Clearly,
whoever charges less and essentially the cost is derived
from two factors: the terminal
operators rates and the sea
freight. Obviously, on top of
this there are such considerations as which port has cheaper
maritime services. If a port’s
configuration is such that 3 tugboats are needed to berth every
time this would not be very economical. It should also be said
that pulp is very voluminous
20
so-called
return
cargo. Both Grieg
Star and Saga Welco
are working on this.
I can add that CILP
is loading more and
more goods onto
outgoing pulp carrier vessels.
ducts.
This sector requires separate
considerations. A forwarding
agent looks at two things: reasonable sea freight and continuous traffic flow. The
problem with pulp is regularity: as I said pulp ships call at
the port of Livorno once a
A ship moored at Alto Fondale
month for each ship-owner.
and has few ports of call. Take What type of cargos?
How can you sell return cargos
the example of Saga Welco, Machinery and Yachts. The with that sort of frequency. Port
that handles over 450 thousand input that large shipping lines calls should occur at least once
tons of product with just 12 are giving their local agents is every ten days. But …
ships a year. The infrequent to load more and more export
number of port calls lowers cargos.
But what?
nautical service costs. There
Things are starting to change.
are other commodities that Why, according to you?
The big shipping lines are getwould require at least 2 ships a I will answer with an example; ting input from their various
week to transport 450 thousand I worked in the fruit and vege- foreign offices to load outgoing
tons. That’s a total of 104 moo- table sector for several years. goods, especially piping,
rings. Maritime services have a There was a time when we yachts and machinery. We are
greater impact on this type of asked ourselves if it made snowed under with these retraffic.
sense to pay return fuel costs quests; our customer service
only with the import journey department can barely keep up
Despite Livorno’s proximity for bananas. Since the ship is with providing spot quotations,
to the paper producing returning anyway it doesn’t there are about 100 requests for
plants, a large amount of ma- make sense to go back empty, estimates every month. The
terial still comes from North right?
market appears to be moving
European ports, why do you
towards spot loads.
think that is?
Right.
I think it is a diminishing trend. That was when Clerici gave me How has your sector changed
You must remember that there the task of setting up a plan for since the introduction of the
are only two companies in return cargos. You know what 2010 incoterms (DAT Delivered at Terminal and DAP DeLucca, SCA and Sofidel, that I did?
livered at Place) that make
buy their raw material through
sellers liable for costs and
North Europe. If, however, the No what?
port of Livorno were more ef- I reached an agreement with risks up to destination?
ficient with adequate space and big freight forwarding compa- Things have changed for the
competitive tariffs there would nies that could arrange to han- better. The stretching of the lobe no reason to buy directly dle large loads all over the gistics chain and customer lothrough North Europe.
world. In this way we were yalty have laid the basis on
able to spread fuel costs and which to develop exports.
Do you think it is possible to avoid having to set uncompetiexport with break-bulk tive prices for sea freight of im- How?
ships?
ported bananas and exotic fruit. When you are responsible for
Not only is it possible but there
taking goods to the paper mill
is a lot of research going into Getting back to forestry pro- by truck, the first you think of
21
asking is whether the client has
any finished product that needs
to be exported. The objective is
for trucks taking cargo to Lucca
to come back full. There are numerous advantages for this type
of operation: if we were able to
load trucks with finished product we could cut transportation
costs, what’s more we would
have a stock of about 10-15
thousand tons of goods with
which to fill containers directly
in the port. The consolidation of
operations cycles boils down to
you becoming more competitive or flexible on THC.
What can you tell us about
your relations with Mito?
Mito is our partner for overland
transportation. Having said that
there are a number of things
that still need to be looked at. I
find it astounding that CILP
only entrust road transportation
to this Florentine company
whilst taking care of rail transportation itself. The fault with
this management system lies
precisely with logistics. Where
is intermodality in all of this?
Talking about intermodality,
does CILP have any plans for
integrated logistics?
Yes there are prospects for considerable growth, CILP’s
growth in the delivery and collection of goods will soon require that decisions be taken,
not least of which - the choice
of partner.
I would like to ask one final
question. It looks like pulp
traffic will increase. If things
go well 1.8 million tons of
pulp will be
handled
in
2015. Does the
port have the
capacity, in
terms of infrastructures,
to cope with
this increase
in sea transportation?
I will answer
with another
question.
200 thousand square metres of warehouses
Please do
Let’s say that 2
million tons of
forestry products
come
into port, fil- The ex Tabacchi, Sacci, Valessini and Etruschi docks
ling the availa- warehouses visible in the photo, are just some of the
b
l
e storage space for forestry products available in Liw a r e h o u s e s ; vorno. There is a total of 116 thousand square metres
let’s take this of warehouse for forestry products, with an additioone step fur- nal 80 thousand square metres in the area immediather, let’s say tely behind the port, giving a total of 200 thousand
square metres.
that Livorno
stops at 2 million but that there
is potential to reach 2.5 million. Who is Antonio Rognoni
What do you think we should
Antonio Rognoni, from Lido? Stop?
I don’t know, you tell me.
There is only one solution; develop a logistics system that incorporates remote warehouse
space in Verona, Padova, Piacenza and other strategic points
in Italy. I think that the relocation of pulp in remote sites for
final distribution could be an alternative for the near future.
The so-called transit warehouse
system could enable us to cover
the last mile, that is what the
global company Fibria is looking into.
gura, and Ocean master with
considerable experience acquired in the ports of Ravenna and Salerno, has held
many management positions
in his career with such companies as ZIM and Dole (as
Terminal Toscana Director in
Livorno, in 1987), Gruppo
Orsero from Savona and Clerici Spa in Genoa, for the latter he founded MedReefer
Shipping Agency and Logistics in 2008, (from the merger of Clerici Agenti and
Medreefer). Today Rognoni is
the commercial director of
CILP.
22
The CEO of Marter-Neri, Giorgio Neri
The west bank of the Darsena Toscana?
We could use it for forestry and sundry goods
the possible scenarios that
will arise once the Piattaforma Europa has been completed. “Looking at the new
location for the terminal container we can foresee a large
new area for forestry and various goods being freed up on
the west bank of the darsena
Toscana».
Mr. Neri, can you please tell
us something about the
company for which you are
the CEO?
Gruppo MarterNeri operates
in the ports of Livorno and
Monfalcone. We are specialised in forestry products and
their derivatives, in non-ferrous and ferrous and various
goods. Our services cover the
complete cycle, namely discharging, ancillary opera-
tions and the distribution of
goods throughout Italy and
the Mediterranean by truck,
complete trains, feeder ships
and containers. We have over
130,000 square metres of recently constructed warehouse
and are the leader group by
volume in the handling of forestry products in the Mediterranean.
Livorno is the leader for the
handling of forestry goods.
What steps should be taken
to consolidate this position?
The Port of Livorno is about
to undergo fundamental
changes as a result of the
New Port Plan, part of which
will be completed in the next
few years. This depends on
the
determination
and
strength of Government bo-
The present and the future.
Whoever operates and works
in a port cannot fail to consider a) the present situation b)
the variables that could worsen or improve in any given
situation. Given his profession Giorgio Neri must constantly weigh up the pros and
cons of the via facti and via
rigoris.
The CEO of MarterNeri, one
of the largest handlers of forestry products has a clear
idea of what needs to be done
to develop pulp traffic further, “we must continue to
work on improving infrastructures, warehouses, services and rail links. If we really
want to grow we need to increase capacity, once we have
done this I am convinced that
the work will come in”.
Giorgio Neri believes this is
the only way forward if Livorno is to maintain its posi- The south bank of Molo Italia (in the photo) has a draft of 13m.
This is where the MarterNeri group of Livorno loads and unlotion as leader. The future
ads pulp, paper and timber. The concession was assigned to its
scenarios are to a greater or
Scotto srl subsidiary in July 2013 and expires on 31st December
lesser degree, connected with
2024.
23
dies that, I must say, are working very well to this end. It
is reasonable to presume that
we will have a new, large and
efficient port in a relatively
short time. Looking at the
darsena Europa and new positioning of terminal containers, we might imagine a
large new area for forestry
and various goods on the
west bank of the Darsena Toscana. In the meantime we
must strengthen the tools that
we have to become even
more efficient and competitive.
What
are
Livorno’s
strengths for this type of
traffic?
Undoubtedly its geographical
location, that optimises sailing times (and so helps cut
sea freight costs) and the
overland distribution of
goods. Furthermore, its proximity to Lucca’s tissue production
and
industrial
packaging plants is an
equally important factor.
Thanks to this pivotal location we can easily reach the
leading production centres in
the north and south of Italy
with limited costs.
So what are the weaknesses?
In recent years the Port
Authority has taken large
strides forward to improve
the port’s capacity, just
think of the access channel and the dredging of the
entire Molo Italia that
today has a draft of 13 metres. We must continue to
work on improving infrastructures, warehouses,
services, and rail links. If
we really want to grow we
must think about developing
new skills, after that I’m sure
the work will come in.
ves, although we already
know the answer and the port
is working on a solution.
What is the answer?
In the end, it’s the same
issue. We need constant work
on infrastructures including:
piers, drafts, warehouses and
efficient rail links.
What is your assessment on
the study conducted by the
Port Authority in synergy
with CNR and port operators?
It’s a very interesting and
Despite Livorno’s proximity useful idea and I would say
to the paper mills, some excellent all in all.
goods are still transported
overland from North Europe. Why do you think that
is?
In some cases there is a price
difference in sea freight to
North Europe compared to
the Mediterranean, which
some find tempting. However, coming to Livorno and
having shorter road haulage
runs, which would make for a
more efficient service and Neri s.p.a. (today MarterNeri)
lower costs than our Northern was established in 1900 as a
counterparts, should be a Freight Forwarder and along
with CILP is one of the leading
winner in the long run.
terminal operators for forestry
As far as forestry products products. The company (that ingo, Livorno’s operations are cludes Neri, Scotto & C s.r.l.u.
virtually only for imported and Marchi Terminal), covers the
goods. What could we do to entire cycle of logistics services,
develop exports in this from loading and unloading to
area? Do you think it is pos- port storage, up to customs operations and distribution by truck,
sible?
ship and truck and rail. In addiFinished product mainly tration to forestry products (paper,
vels in containers, and as we
pulp and timber) operations conknow, some shipping lines
ducted on the south side of Molo
don’t stop at our port. So I Italia, the Neri group also hanwould say that this should the dles non-ferrous metals (copper,
first question to ask oursel- zinc, aluminium and lead).
24
A chat with Carlo Bartoli, a partner in the company F.lli Bartoli
Operative efficiency, more and better infrastrcuctures
According to Carlo Bartoli these are the prerequisites for growth
When it comes down to it Carlo
Bartoli, a partner in F.lli Bartoli
along with the other family members Andrea, Paolo, Paola, Claudio
and Riccardo (The Chairman),
would like pretty much the same
things as the others operating in
this sector; less red tape, more operational efficiency and transportation infrastructures for the faster
distribution of goods to destination.
More than anything this company is
specialised in the handling of copper, however they discharge about
160 thousand tons of forestry products from Spain every year, more
or less 14/16 thousand tons of
goods (mainly pulp) every month.
The company works hand-in-hand
with Mito-Bonsignori for these
goods and the imports from the Iberian peninsular are sent to the
Lucca paper mills.
“The goods stay in the warehouse
for about 30 days – says the Chairman- then we load them onto lorries and take them to the paper
mills, partly using our trucks and
partly with those of Mito/Bonsignori”.
Yes either way the goods are usually
loaded onto lorries, “and yet there
are some paper mills that would be
interested in arranging transportation by rail …”.
Why?“Some paper mills have si-
gned a very advantageous agreement with the railways and would
rather use this means of transport.
But they have the usual problem.”
Namely?
“A lack of rail links. In our area
there is only one track located opposite the Etruschi docks, which
happens to be used by MarterNeri
and CILP. We need more port infrastructures and I’m not just referring
to railway tracks”.
Mr. Bartoli is pointing to Via S.Orlando, where his offices are located,
adding, “Via Orlando and Via della
Cateratte are bottlenecks and become congested very easily, plus we
only have one entrance to the port
that is open 24 hours a day; the Valessini gate. This is the only access
road to Alto Fondale, and Molo Italia piers and the adjacent areas.
This lack of roads is certainly a weakness of this port”.
The Bartoli terminal is located right
next to the other access to the forestry product area, the Zara gate,
which was closed between 2008
and 2013 before being temporarily
reopened to permit access for passenger vehicles, it took until 2014
for it to be opened permanently.
“We fail to understand why the
Zara gate should only be opened
from 7 in the morning until 11.
These days a modern port entrance
should be opened for at least eight
hours a day. Instead we have to use
a single gate, the Valessini where
there is a traffic jam every morning”.
Carlo Bartoli is a practical man
who believes that only a few improvements are needed for the port to
increase its traffic on today’s levels.
According to this partner of F.lli
Bartoli the port of Livorno needs is;
less bureaucracy, more operational
efficiency, more and better infra-
structures to make it more competitive. “Amongst the tangle of ambitious improvements on the sea front
of the port we must not overlook the
little things and the research you
have carried out on forestry products if full of merit, particularly for
the interest it has aroused amongst
operators by asking them for a serious, thoroughly pondered input on
what they consider to be both the
potential and the weaknesses of our
port.
Fratelli Bartoli is a shipping agent
and freight forwarder with its own
human and instrumental resources
for the loading and unloading and
storage of cargos. The company
carries out all the services related
to international freight of non-ferrous metals and also operates in
other product sectors, such as forestry.
The company has two of its own
Terminals where all the necessary
operations for goods handling are
conducted. The first TERMINAL,
is at their premises in via S. Orlando, comprising a yard of 15.000
square metres and is authorised by
customs as a VAT DEPOT and
D.D.P. (private customs depot). It’s
other TERMINAL is in the port
(next to Varco Zara), totalling
22,000 square metres, with associated piers for the mooring of medium tonnage vessels. There is a
warehouse of over 4,000 square
metres in this area that is primarily
used of the storage of pulp and has
a VAT DEPOT and D.D.P.
25
An interview with Claudio Torchia the CEO of Mito
Our alliance with Bonsignori is one of our strengths
We are aiming to handle the entire logistics chain for forestry products
are not the only assets, thanks to
this alliance CFT has also acquired the article 16 authorisation of
Mediterranea Trasporti, which allows it to handle goods in the port,
using its own vehicles and depot,
a service it can even offer to third
parties.
With this manoeuvre CFT has entered the port of Livorno with a
bang and strengthened its position
in the region. Mito, the logistics
and transport company, which is
entirely controlled by the Florentine Group already has a contract
No. No I wouldn’t call it a simple with CILP; taking care of the lattake over. The deal made in Au- ter’s customs shipments and deligust between the CFT coopera- very of pulp to the end client.
tive, operating through the
logistics and transport company Claudio Torchia Mito’s CEO
Mito, together with the two com- came to Palazzo Rosciano togepanies of the Bonsignori family: ther with Antonio Bonsignori and
Osvaldo Bonsignori and Mediter- Fabrizio Santini to describe the
ranea Trasporti, was more than an special nature of this synergy in
acquisition, rather it was a syner- the forestry product sector.
getic alliance in the pulp market.
The stated objective was to set up So Mr. Torchia I’ll start by fia company that is capable of ma- ring a question at you, what do
naging the entire logistics cycle you think of the port of Livorno?
for forestry products.
From a logistical point of view we
Osvaldo Bonsignori has been in are convinced that Livorno is Itabusiness for almost a century and, ly’s best port. Moreover, this past
together with its sister company - year there has been a notable inMediterranea trasporti, it has crease in quality, from all points of
brought an annual dowry of about view, starting with volumes of
6.5 million to the CFT Group, not traffic that have risen considerato mention a 3,600 metre square bly. Livorno is no longer a port in
warehouse in the Amerigo Ve- crisis; and this is something that
spucci freight village and another businessmen are starting to reaof 2,000 square metres in conces- lise, beyond what the numbers
sion at the Marzocco terminal in say. As CFT we have already exthe port area of the Valessini gate. perienced how competitive the
However, warehouses and yards port is with regard to the fruit and
vegetable market.
Can you explain?
As you know, one year ago CFT
won the tender for the acquisition
of 80% of CSC shares, this company operates in the warehouses
located in the freight village in
Guasticce. The group concentrated its fruit and vegetable business
there. Except for Orsero, operating in Savona, the main suppliers
for this sector are Dole and Del
Monte who chose Livorno as the
distribution hub for their goods.
The growth in this sector has
meant that we have increased our
income by 400% on the previous
year. We invoiced 650 thousand
euro in 2014 and for next year we
expect to reach 2 million. What’s
more, through CSC, we have
made a proposal to LRT shareholders for the rental of a brand of
their company, where we intend to
offer a range of activities in the foodstuffs and ancillary market.
Can you tell me what CSC does
exactly in the fruit and vegetable sector?
I’ll explain briefly. Container
goods are discharged at the TDT
and Lorenzini Terminals: we
(MiTO) go to pick them up on the
pier and empty the containers and
make delivery (MiTO – CFT).
So what has changed from previously?
Firstly, we go and pick up the container goods alongside the ship
since we now have the authorisation to do so under the terms of
art. 16, secondly we take the
26
goods into the warehouse where
we empty the containers. Finally,
we take care of the last mile and
transport goods to their final destination.
So you do everything
Precisely. The client has an incentive to choose us, and with us Livorno, because in this area we are
their only point of contact and
they needn’t worry about getting
hold of whoever is taking care of
customs procedures, or moving
the goods alongside the vessel, or
managing the warehouse or seeing
to the final transportation.
I assume that is how you would
like to operare in the forestry
sector.
That’s right. You must remember
what I have just said. By choosing
Mito a client has an undoubted
and clear advantage; having as
few intermediaries and phases as
possible. Take a container of fruit
for example: let’s say a variation
in temperature has ruined the produce inside, it is impossible, or exceedingly difficult to identify the
liable party in a journey that involves numerous people; from the
terminal operator to the shipping
agent, or the freight forwarder to
the carrier. Instead a client wants
to have just one point of contact in
these cases, a single person who is
responsible for the entire operation. Nowadays clients pay for
complete turnkey services, in return for which they have a logistics group that takes care of
everything.
So tell me does your take over of
Bonsignori put you in competition with CILP?
Not at all. Mito has an exclusive
contract with CILP for logistics
services and we have every inten-
tion of continuing this profitable
partnership. However, we must
bear our strategic alliance with
Bonsignori in mind, our relationship is evolving: today we are
80% supplier and 20% client.
Thanks to this acquisition (because technically speaking that’s
what it is) we are not only able to
offer services but also to ask for
them.
Antonio Bonsignori, what has
changed for you?
A lot. Osvaldo Bonsignori, the
freight forwarder, shipping agent
and terminal operator has been
based in Livorno since 1917. Before becoming part of Mito, we
were the owners of a group that
could offer all types of port services including distribution, particularly in the forestry sector.
Then Mito came along.
By becoming part of the company
we will be able to develop an integrated system that traces the entire route of goods until they
finally reach their destination.
We could replicate what CFTMito are already doing in the fruit
and vegetable sector.
Namely?
As CFT we have specialist warehouses. In CFT incoming goods
are unloaded, weighed, packaged
and taken to the end user through
our network. Do you know what a
good move would be in the forestry sector?
No what?
Reloading finished product onto
the same trucks that have taken
raw and semi-processed materials
to the paper mill.
truck reaches the paper mill with
the pulp that is unloaded and then
loads finished product 2) Upon its
return the truck delivers the finished product to the CFT warehouses for packaging. 3) CFT uses its
distribution network to deliver the
packaged product to distribution
hubs.
Is that a realistic objective?
We need the client to be prepared
to follow our suggestion. Timing
is essential: if I have a preferential
channel when unloading and can
do so immediately, I can expect to
deliver in a relatively short space
of time. But if I have to waste five
hours for the unloading process,
we have the paradox that instead
of waiting it is more profitable for
the empty truck to return to the
base for another job.
Mr. Torchia, returning to you.
Was this the motivation behind
the Bonsignori operation?
Antonio is absolutely right, thanks
to this acquisition we have a company that can do everything. The
Bonsignori group is part of Livorno’s history, it’s a terminal operator, a shipping agent, as well as a
customs forwarder. We haven’t
made things up. Road haulage was
where we had most of our experience and now with Bonsignori
we are complete. Mito is a neutral
third party that can deal with CILP
or Bartoli without any conflict.
We share a common interest;
doing business. Today we are at a
fork in the road.
What do you mean by that?
Whichever way you look at it
Mito is a company with roots in
this area. When we came to Livorno to sign a partnership agreement with CILP we gave work to
Can you be more specific?
I’ll explain it in three steps 1) The 80 inhabitants with 35 new hirings
27
in the space of one and a half
years. We have a staff of 180 people between Montopoli and Pontedera while our company has 180
human resources from Livorno.
So we have every interest to share
a mutual objective; managing to
underpin local enterprises to prevent outsiders coming in and adversely affecting us.
proach promotes cheapness over
quality of service. By lowering
prices excessively you are condemning less well-organised companies to certain death. If we take
the position that there will always
be someone capable of providing
the same service at one cent less
than us, we won’t get anywhere.
Our objective is to set up strong
synergies in the supply chain and
What are you referring to?
offer high-grade integrated serviI’m thinking of the big logistics ces.
holding companies, which have
such a big turnover that they Since you have mentioned supcould even worry colossal multi- ply chains and integrated servinationals, let alone local busines- ces, I would like to ask you
smen. The idea is to strengthen another question: do you think
the businesses in the area. I’ll be road-rail intermodality is possiplain; we haven’t come to take ble in Italy?
traffic away from Livorno but to I’ll be honest: it is very difficult to
bring new traffic. I will give you develop real intermodal networks
a practical example…
in our country and that is due to
its geography. Even large foreign
Please do
logistics operators, whose mission
I’m thinking of the American is to provide integrated land, sea
wine importer who comes to Italy and air transport and contract loto buy Ornellaia, operating by gistics, have found it and still find
himself and using a foreign com- it very difficult to penetrate our
pany to bypass freight forwarders markets. Let me give you an
and Italian customs. Such an im- example.
porter must be intercepted. We
have to tell him that if he wants to Please do
come into our area he has no other Goods going from La Spezia to
option than to go through the port Padova can be transported by rail,
of Livorno.
but delivery to distribution hubs in
Padova can only be done by truck.
And how will you convince him So it follows that although you
to come to Livorno? By offering might save money on the section
the same service at lower rates? of rail link between La Spezia-PaYou must understand that a com- dova, you lose a lot of money and
pany’s competitiveness cannot time in the loading and unloading
just be measured by its ability to of trucks and trains. Breaking the
provide a client with the same ser- load in Padova, added to which
vice at a lower rate. Such an ap- you have the necessary transit time
in the freight village, creates inefPort News
ficiencies. Consequently, it is eaTwo monthly mgazine.
sier
to do the run by truck directly
Location: Scali Rosciano 6/7
from La Spezia to the distribution
Editor: Giuliano Gallanti
Managing Director: Marco Casale
centres.
Since 14/3/2012
So what is the moral of the
story?
As things stand transportation by
rail is not economical and is an organisational hurdle. The system
works better for the auto industry
since there are hubs that send the
goods directly to the nodal platforms. However, even here transport often takes place by road to
speed things up. Look, I have been
in logistics for many years and I
have been to conferences/seminars/study groups on intermodality, however, trains have always
been the most difficult aspect to reconcile in projects. There are two
reasons for this; firstly, because we
have the obstacle of the Apennine
mountains in Italy, and secondly
because the priority for rail traffic
is passengers and not cargo.
Having said that, Italian inefficiencies in rail cargo have helped
us to defend against the assaults
of large logistics operators, haven’t they?
That’s what you say, however it’s
not entirely inaccurate to say that
large logistics competitors generally push for rail transportation
and that is why they have focussed
their interests in France and Germany, leaving their competitors
more room for manoeuvre in Italy.
But we can’t turn inefficiency into
a virtue. Prizes in the logistics sector must be earned by providing a
high quality service.
And is that what you are aiming
for in the pulp sector?
Absolutely. Our objective is to try
and manage the entire logistics
cycle of pulp and forestry products; with their 21% increase on
the same first half year period in
2014, they are one of the most strategic activities for the port of Livorno.
28
Giovanni Tozzi – the Character
400,000 tons of goods every year
N. Tozzi is a specialist in kraft rolls
Palazzo Rosciano has been home to
many bosses, starting with President
Nereo Marcucci through to the present-day Extraordinay Commissaire
Mr. Gallanti. Throughout this time
the N. Tozzi company has maintained
its position in Livorno as a specialist
in rolls of kraft paper for which it is
the leading shipper.
“When I started working the Alto
Fondale still had a gravel surface,”
recounts Giovanni Tozzi after he welcomes us to his offices in Via Salvatore Orlando, “I’ve been doing this
job for forty years”
Giovanni is a man from a different
era, one who is used to hard work, “I
went to the nautical school and was
on oil liners for 10 years, since then I
have always worked in the port, from
the morning to the evening, even
using the mechanical equipment. I
would get home with blisters on my
feet”.
What about these days? Listening to
Giovanni Tozzi you get the impression that the approach to doing business has changed, the way the port is
set up and works, the equilibrium has
changed as have the powers on the
piers, but despite this he has stayed
the same. He is one of the top 15 tax
payers in Livorno but can’t sit still in
his armchair, at the age of 62 he still
helps out by working with fork lifts,
“for us work is fun, we don’t go on
holiday other than in August, my staff
are at work by 6:30 in the morning.
Anyone who doesn’t like getting up
early isn’t cut out for our company.”
The Tozzi company is autonomous
“we work with our own funds, not
loans from banks”, invoicing about
12 million euro a year. The company
has 37 staff on its books and is managed by three brothers and their three
sons. Today it operates from different
areas in the port; it has the concession
for the warehouse on the Calata del
Magnale, rents the yard near the Zara
gate from the electricity company
ENEL and manages a terminal in the
area immediately behind the port in
the ex Pierburg site on via Salvatore
Orlando, near which it also has its offices.
N. Tozzi handles an average of
400,000 tons of goods every year,
half of which come from the United
States.
The businessman doesn’t want to feel
inferior to his colleagues from whom
he distinguishes himself by the fact
that he has a different type of business and because he doesn’t get traffic from the ship-owners but deals
directly with paper industries.
Mr. Tozzi explains, “My client is
whoever is shipping, we deal with
Americans, Russians, South Africans,
Australians and Brasilians. Our
strengths? We provide fiscal representation for foreign suppliers, on
whose behalf we carry out customs
clearance and deliver cleared goods
to the client. We take care of virtually
the entire supply line of kraft rolls”.
Tozzi is a transport company, freight
forwarder, customs operator, shipping agent and art. 16 company, claiming to manage virtually the entire
cycle of operations, “the paper mill
sends us the packing list, tells us
which shipping lines it would like us
to contact, I then contact the lines,
and manage operations directly in the
country of origin, also arranging for
the storage of goods in containers.
Once the ship arrives in Livorno, I receive the sealed containers containing
the kraft rolls and separate and store
them in my warehouses. Next the
rolls are delivered to their various destinations”.
This shows how Tozzi’s work starts
directly in the country of origin. The
fact that the company takes care of fiscal matters in Italy, on behalf of its
non-resident supplier, gives it the opportunity of taking care of the various
phases of port logistics.
“In order to keep things going we
need to make money, and a lot of it.
You don’t get rich with forestry products, you get rich if you get paid. I
make money because I do a specific
and difficult job, a job in which it’s
easy to make a mistake; paper is sold
according to thickness and weight, if
these measurements are incorrect, it
is highly likely that the client will return the goods to you”.
What are the prospects for growth in
this particular segment of forestry
goods”
“They are enormous, I could take on
another 20 staff if I had enough space
to accept the increasing amounts of
traffic”.
Tozzi has asked the Port Authority for
authorisation to rebuild its Magnale
warehouse, “That warehouse is 5 and
a half metres high, it’s not enough. I
need to demolish it and build a new
larger one that will allow me to receive and store larger quantities in the
future”.
Whatever happens Tozzi is sure that
kraft paper is a segment of forestry
product that will never see a prolonged period of crisis, “kraft paper is resistant and made of wood pulp, it is a
semi-processed material and amongst
its many uses is the making of sacks
and paperboard for packaging. Many
of my clients make corrugated board,
and turn the corrugated board into:
packaging, cases, tabletop and freestanding display units. Italy is a country with a wealth of processing plants
and as long as there are companies
like Piaggio, that uses this board to
package its motorcycles, this market
segment is bound to grow”.
29
The seller’s point of view; in the words of Curzio Mugnai the CEO of Trades Srl
Livorno the base port for forestry products? Maybe
but first it is necessary to develop intermodality
many new machines produce
rolls that are 280cm in height
with a diameter of between
140 and 150cm. Moreover,
with the advent of new technologies, particularly in recycling and big investment in
emerging countries there is
more availability of paper
from non traditional areas
and ports.
Curzio Mugnai is the commercial director at Trades srl,
established in 1984. This
company is specialised in the
supply of paper for the production of corrugated board,
in the form of virgin and recycled fibre both in import
and export. The company has
a close relationship with Central National Gottesman Inc.
in New York, one of the biggest, if not the biggest distributors of paper and forestry
products in the world.
Mr Mugnai, what do you
see as the major changes in
the market of corrugated
and packing board in recent
years?
The main changes have come
from the increase in the size
of machines for corrugation;
these have increased roll size
to such an extent that the
most commonly produced
rolls can no longer be containerised because of their dimensions and weight. Indeed,
sector) reach the port of Livorno?
The majority of our sales go
through the port of Livorno.
What about Savona, Monfalcone and Naples, don’t
you use these ports?
Only occasionally. We do not
ship through Monfalcone
since it is not on the route of
our usual carriers and while
For example?
Savona and Naples are ideal
I am thinking of new paper access ways for some clients,
producers, with whom the they are not supplied by us
port of Livorno is beginning right now.
to form ties, like Turkey. Moreover, there are new busines- According to you what are
ses in the Far and Middle the strengths and weaknesEast with whom we should ses of the port of Livorno?
try to network both for im- One of the port’s strengths is
ports and exports.
definitely its cost and quality
in the handling of rolls. HoWhat effects have these wever, there are a number of
changes had on ports? I am weaknesses starting with the
thinking particularly of the lack of lines to ports in emerexisting relationships bet- ging countries that produce
ween producers, terminal paper. Unfortunately, in Lioperators, receivers and vorno there is no integrated
ship owners.
logistics system for rail and
From our point of view there road; such a system would
are no significant changes in enable delivery to small busidealings with the port enter- nesses like graphic artists and
prises. Instead relations with printers.
ship-owners have seen significant change. It would be Many paper mills import
good if there were a logistics large quantities of forestry
system that maintains its high products from north Eurolevel of specialisation in the pean ports. Why do you
port of Livorno with the addi- think some Italian mills
tion of greater variety and in- chose to use these ports?
tegration of services.
I think it is for two main reasons.
How many tons of forestry
product sold (distinct by Which?
30
Well, north European ports We don’t expect a big change
have more competitive pri- in the number of containers
ces.
coming from the usual ports
due to the improvements in
And?
quality and local production
They can provide multimodal of pulp based papers and belogistics and also have vast cause of the larger corrugawarehouse space available ting machines that produce
for the distribution of goods. rolls that cannot be containeIn Italy we should intervene rised. While for ports on the
to improve our logistics net- newly established trade rouwork and capacity to handle tes in the Baltic Sea, Middle
specific paper products, and Far East the possibility
while for more generic pro- for container traffic growth is
ducts Livorno should try to an exciting prospect, the aim
lower its costs for the overall there would be to intercept
cycle.
traffic that now reaches Italy
via North Europe.
25% of Livorno’s traffic in
forestry products is in con- How would you rate Livortainers. Do you think this no’s chance of becoming a
port of reference for forewill increase in future?
As people try to lower costs, stry products?
I am convinced it will. This is Once we have solved the prosomething that should worry blem of being able to service
us given Livorno’s inability ships with a larger capacity
to satisfy the demands of and improving logistics stralarge shipping lines that are tegies, I think Livorno has a
introducing
increasingly realistic chance of becoming
large ships on traditional rou- a hub port for forestry protes.
ducts. I am particularly thinking of products with greater
Generally speaking do you added value that are attracforesee an increase in the ting more interest as our ecocontainer traffic of forestry nomy improves and demands
higher quality products.
products and if so why?
Corrugated paperboard
The study by GIFCO
6.3 billion metres square of
board was produced in Italy
in 2014. This fact was underlined by Gruppo Italiano
Fabbricanti di Cartone Ondulato (GIFCO) [Italian Group
of Corrugated Ppaerboard
Manufacturers] during their
annual general meeting on
last 8th May in Fasano, in the
province of Brindisi. Production remained steady at
3.569.821 tons for 2014, a
2% increase on the previous
year.
A detailed analysis of production by weight in the form
of sheets and cases, the two
drivers of growth for 2014,
showed a +2.3% and +2.2%
increase respectively on the
previous year.
Lombardy is Italy’s top production area for corrugated
board (23.2%), followed by
Emilia Romagna in second
place (23.1%) and Tuscany in
third (17%)
The food industry remains
the main area of use for corrugated board; absorbing nearly 60% of all production.
31
The 21st Transport Symposium Europe
Livorno in the shop window at Bremen
Operators and institutions hunting for new traffic
Bonsignori/Mito; CILP and
MarTer-Neri. Are the names
in bright letters on the panel
that will be on show in Bremen for two days from next
October 19th; they contain
more information than an
ANSA headline. Everyone,
and I mean everyone will be
at the 21st Transport Symposium Europe; all the local
operators from the forest products sector. No one will be
missing.
The PPI, held in Germany
this year, is a unique two-yearly international event that
will see the participation of
producers, ship owners, big
players and shippers from
over 30 countries. “Participation is a must for Livorno”,
says Roberto Lippi the Port
Authority’s Marketing manager and curator of the event,
“I won’t be saying anything
new; we are one of the leading ports in Italy for breakbulk and on 19th of October
our terminal operators will
be called upon to play their
cards”.
The event in Bremen might
become a model for this new
system of networking between businesses and government bodies. Mr Lippi
elucidates “Institutional marketing and business marketing can and must be
Play their cards in a game mutually complementary. I
that Livorno’s top players
will try to win by obtaining
new forest product traffic for
the port. “We are preparing
for this event thoroughly”
Mr Lippi emphasises “we
have prepared a detailed
study for the sector that has
the added value being a collaboration between institutions, trade associations and
big companies. We hope to
provide new opportunities
for business for the port and
increase our stake in the maThe promotion manager
ritime market”.
of Livorno Port Authority
Roberto Lippi
32
am very happy that we have
reached such a level of
agreement with local businesses and operators. In recent years the Livorno Port
Authority has worked hard to
find a balance in its role as
economic driver of the port,
capable of constantly updating services and infrastructures in an environmentally
sustainable way, and of being
open to the territory’s newly
emerging needs.
Mr. Lippi is convinced that
the territory’s needs must not
be overlooked. The IPP Transport Symposium, whose previous
edition
was
in
Baltimore, has been organised by RISI (an information
provider for the global forest
products industry) in association with the International
Forest Products Transport
Association (IFPTA) and
promises to be an important
showcase for the port of Livorno.
Gabriele Gargiulo
the director for
Marketing
and
Marketing research told us, “it is
our intention to
provide a catalyst
to the port in the
forest
product
sector, by publicising,
amongst
other things, the
latest infrastructure
planning
under the New
Port Plan. We will present
ourselves to international stakeholders as a model for the
pulp supply chain by illustrating the reorganisation of the
port under the new Plan.”
The Port of Livorno first attended a PPI with local operators in Hamburg. From that
moment the PA has attended
may editions of the two-yearly transport symposium, including those of Quebec City,
Liverpool, Mobile, Amsterdam and now Bremen where,
amongst other things, it will
present the output of the international workshop and research on forest products
conducted in Livorno.