Multimodal Transport

The case for more inland waterway transport

Much of the basic raw materials and semi-finished products that are essential to Europe’s manufacturing base and energy transition goals are transported by inland waterways. Some of the EU’s largest ports have a strong reliance  on inland waterways for their hinterland connectivity, with IWT shares in modal split exceeding 50%. Moreover, IWT’s heavy-duty capacity also provides essential support to the offshore industry and wind parks at sea, ensuring the reliable delivery of materials and services. This underlines the importance of IWT not only as a sustainable alternative, but as a cornerstone of waterborne logistics.

To increase the share of inland waterway transport and to drive decarbonisation and promote sustainable supply chains, we need policies that help multimodality to become the default option. Further integration of waterway transport with other modes should be pursued not only for international and inter-regional flows, but also in urban areas where most negative externalities are generated. Construction materials are the largest freight flow in cities, and construction and demolition represent one third of EU waste generation.

The Inland Navigation Market Observatory has carried out an assessment of new market opportunities for inland navigation, shedding light on new types of logistics, vessels and new areas of operation that will be required to capture new markets. Promising markets include urban passenger and freight transport, new flows of goods generated by the circular economy, and the transport of renewable energy and its components for its generation.

Revision of the combined transport directive

In order to support the modal shift from road freight transport to lower emission modes such as inland waterways, maritime transport and rail, the Commission published a revision of the Combined Transport Directive at the end of 2023. The scope is limited to intermodal transport from A to B in the same loading unit. In order to implement the “polluter pays” and “user pays” principles, the Commission proposes that Member States establish national policy frameworks for intermodal operations that save 40% of external costs compared to the road-only alternative. Users of intermodal operations must use eFTI platforms to be eligible for support. Member States will be able to choose measures appropriate to their situation, but the aim is to achieve a 10% reduction in the cost of combined transport within 7.5 years. The Commission proposal is currently with the co-legislators, the European Parliament and the Council of Ministers.

Revision of State aid guidelines

The Commission is also working on a new Transport Block Exemption (TBER) and the revision of the 2008 State aid guidelines for Railways. The new name is “Land and Multimodal Transport Guidelines (LMTG)” as the scope will be extended to multimodal transport to enlarge the possibilities for Member States to support multimodal transport and modal shift. The TBER will exempt certain categories of rail, inland waterway and multimodal aid from the obligation of prior State aid notification .The LMTG set out the conditions for assessing the compatibility with the internal market of State aid to sustainable land transport not covered by the block exemption. Together, they will provide a comprehensive and updated State aid framework for aid to sustainable land transport.

Towards an EU Port Strategy

With the EU Port Strategy, the Commission aims to strengthen seaports as vital multimodal hubs within the supply chain, thereby connecting maritime and land transportation networks. Ports are also of crucial importance for the production, storage and supply of sustainable energy, driving industrial activity and the circular economy. Finally, ports play a pivotal role in military mobility and general security, a domain that encompasses both maritime and inland waterway infrastructure, which serve as hosts to critical assets.

Priorities for INE

  • INE calls upon the Commission to integrate inland waterways in the forthcoming EU Port Strategy. Inland waterways play a vital role in the EU port ecosystem due to their function as sustainable, resilient and strategic transport corridors for critical goods. These corridors extend the reach of maritime trade for industry in ports’ hinterlands. Their importance goes far beyond transportation, however, as these waterways also provide essential water supplies for industry and energy, pertinent flood control systems, and are key in the protection of critical water infrastructure across Europe. INE proposes coordinated EU-level action for a secure, strategic and sustainable port ecosystem.
  • INE is deeply disappointed that, contrary to what was announced, the Commission’s proposal on combined transport did not extend the scope to multimodal transport (volumes shipped by different modes of transport). The potential to shift more freight to inland waterways has been completely missed. INE advocates that the scope is extended to multimodal transport in line with the EU policy objective of more sustainable transport.
  • INE is more positive about the new state aid rules in the pipeline. It is positive that the scope includes multimodal transport. However, INE calls on the Commission to increase the aid ceilings in combination with tendering. Member State authorities will not be burdened with lengthy notification procedures if the aid ceilings are too low or the framework conditions too restrictive, which would unfortunately have a negative impact on the prospects for modal shift.