I Free & Special Economic Zones Summit, the Role of Logistics by Salvatore D'Alfonso, Union for the Mediterranean (UFM)

Forum organized by:

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Salvatore D`ALFONSO, Senior Project Manager, Transport and Urban Development Division

“The role of Logistics and Free & Special Economic Zones attracting FDI”

1st edition of the Free & Special Economic Zones Summit 26th November 2014, Casa Llotja de Mar, Barcelona

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The UfM in short | Facts & Figures

43 Countries

28 EU member states 15 partner countries

Total Population > 800 Million

Total GDP > 15 Trillion EUR

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The UfM in short | Governance

The co-presidency

The UfM is chaired by a co-president from the EU and a co-president from the Mediterranean partner countries.

The Senior Officials

The work of the UfM is overseen and coordinated by the Senior Officials of the Foreign Affairs departments of the 43 partner countries, EU institutions and the League of Arab States.

The Secretariat

Based in Barcelona, it is led by a Secretary General, assisted by 6 Deputies Secretary General for the 6 areas of work. It is financed by the European Commission and countries’ contributions.

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The UfM in short | Priority Areas

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Water &

Environment

Business

Development/

SMEs

Climate

Change

Renewable

Energy/

Energy

Efficiency

Higher

Education and

Mobility

Civil Society

and Women

EmpowermentTransport

Sustainable

Urban

Development

The UfM in short | Objectives

1. Gather and promote regional, sub-regional, transnational projects, ornational projects in the framework of regional strategies or initiatives.

2. Improve the socio-economic development, regional integration,sustainable development and the exchange of knowledge.

3. Work in synergy with other key stakeholders in the Euro-Mediterraneanregion

Enhance cooperation and understanding between the two shores of the Mediterranean, through the

implementation of concrete projects

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UfM Projects | Project Lifecycle

REGISTRATION

ASSESSMENT

LABELLING

MONITORING

PROMOTION

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As of October 2014:24 labelled projects, 10 out of 24 under implementation.

UfM Funding Strategy

Strengthen relations with International & Bilateral Financial Institutions

Financing

of UfM

Projects

Develop long term private sector partnerships and strategic alliances

Develop financing tools for projects which complement the existing offer

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UfM labelled projects| Trans-Maghreb Motorway

Completion of the central section of the trans-Maghreb Motorway Axis

Secretariat of the Group of Transport Ministers of the Western Mediterranean (GTMO 5+5)

Elimination of two missing links of 102 km in total will allow to manage a unique, seamless and homogeneous Motorway Corridor linking the major cities of Morocco, Algeria and Tunisia

The entire population of the three Countries (80 M), logistics sector, trade, tourism, small and medium sized enterprises, large-scale distribution, ports

February 2012

2013-2015 (studies) - 2015-2020 (works)

EUR 670 M (EUR 600 M Tunisian section, EUR 70 M Moroccan section)

Promoter

Objective

Beneficiaries

UfM Label

Duration

Budget

10

UfM labelled projects | Jordan Railway

Jordanian National Railway

Promoter

Objective

Beneficiaries

Duration

Budget

Ministry of Transport of Jordan

Integrating the Jordan railway system with the regional network by establishing an effective rail connection with neighboring countries, Gulf Cooperation Council countries and Europe.

Jordan and neighboring countries

2013-2020

EUR 2 bn

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UfM labelled projects | Logismed-TA

LOGISMED - Training Activities

Promoter

Objectives

Beneficiaries

UfM Label

Launching

Duration

Budget

Funding

European Investment Bank

Create an experienced workforce for the “LOGISMED”, the Mediterranean network of logistics platforms

All MPCs for the spread of knowledge and the creation of logistics associations, and 5 specific Countries for the training action lines linked to the platforms of the network

November 2011

17 June 2013

2013-2018

EUR 6.6M (includes Observatory and Coordination, as complementary activities)

European Commission (EUR 3M), Deauville Partnership MENA Transition Fund (EUR 3.4M), MPCs (EUR 0,2M)

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LOGISMED | Network of Platforms

Tunisia: Feasibility Study on Djebel Oust logistics platform, aimed at defining thetechnical, environmental, economic, financial, marketing and organizational points, wasconcluded and Tunisian Government the government is planning the next steps togetherwith EIB.

Morocco: Market study and APS reports on the Logistics area of Zenata have beensubmitted by the Consultant to the Agence Marocaine de Développement de laLogistique (AMDL), and approved. The strategic position of Zenata located at thecrossroads of the most important axes of the national transport network, will beenhanced by the creation of an efficient road connection of 24 km linking the port ofCasablanca.

Jordan: Ongoing finalization of the ToRs for a Feasibility Study for a Dry Port and LogisticCentre in Madounah area near Amman, after field mission with the Consultant.

Egypt: Consensus on the site of the “6th October” as the priority site.

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5 Platforms and 10 MPCs concerned throughout the Mediterranean

“European Logistics Association”

certification

Specific program for trainers

Establishment of a first group of “white

collars”

Establishment of permanent training

units for each platform

300 logistics professionals

throughout the region

15 trainers per platform

100 to 200 managers per platform

200 to 400 workers per platform

LOGISMED - TA| Direct Training Impact

Free Zones | The UfM MoS Initiative

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The motorways of the sea represent agood way to develop positivesynergies between logistics and freezones.

A “Motorways of the Sea” UfMInitiative will be launched in 2015.

There are on-going contacts withnumerous stakeholders of the publicand also private sector, in order topromote new maritime services thatcould effectively connect the ports ofthe Northern shore of theMediterranean with the ports of theSouthern and Eastern shore.

Modelling TMN-T| Modelling scenarios

Soft measures (2020-B):

• Motorways of the Sea – implementing new lines with high quality standards

and competitive costs

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Mersin-Taranto-RadesCivitavecchia-Palermo-Malta-Rades

Free Zones | The nexus with LOGISMED

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The LOGISMED EIB initiative could receiveconsiderable momentum from thedevelopment of free zones in theMediterranean, with regard to thefollowing key aspects:

Location of free zones

Employment

SMEs

Best Practices and Training

Economic advantages

Foreign Direct Investments

MoS

FDI

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• Location: it is opportune to make a connection between the most dynamic free zones andthe highest performing ports.

• Employment: free zones can play an important role, increasing employment andconsequently increasing standards of living of the population.

• Development of SMEs: free zones can be regarded as incubators for new small andmedium sized companies.

• Best Practices: free zones can provide services to the companies, in the form of“consultation” or “training courses” on best practices in modern methodologies ofmanufacturing, training and networking.

• Advantages: a fundamental advantage of free zones is economic: more than 25 millionunits of direct employment are currently in free zones and the reduction of costs ofproducts exchanged between the continents is often over 35%.

Free Zones | The nexus with LOGISMED

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Free Zones | A core network of Mediterranean free zones

The evolution of FDI | FDI figures in the MPCs

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Despite the exceptional situationdue to the severe effects of thisperiod of political transitioncombined with the Europeaneconomic crisis, theMediterranean region is showing agood capacity for resilience.

The figures of 2012 are ratherhopeful, 2012 is the fourth bestyear in the last decade, in amountsof foreign direct investmentannounced.

Except Syria, all the Southern andEastern Mediterranean countriesare back to business in 2012, andmost of them managed to increasetheir average foreign directinvestment project size, which wasin constant decline since 2006.

THANK YOU FOR YOUR ATTENTION

TRANSPORT & URBAN DEVELOPMENT DIVISIONFollow-us on:

Salvatore D’[email protected]

www.UfMSecretariat.org

@UfMSecretariat

www.facebook.com/ufmsecretariat