Romania towards competitive exports,

Role of European Gateway Project EGP

Dr. Costin Lianu

Director General USH Pro Business Center
Coordinator National Export Strategy
Coordinator Priority Area 8, competitiveness,
EU Strategy for the Danube Region

National Context

Export structures is changing through specialization and

integration in European and insertion in the international

value chains ;
Growing importance of FDI and shoring ;
regionalization in European context;
Poor transportation infrastructure, logistics under
developed;
No logistical networks, hubs or clusters;
Disparities among development regions in export intensity;
Technological gap of export products;
Unutilized factors (raw materials, biodiversity, land), and
human resources;
Few national champions and Romanian brands

International
context
Accelerated mobility of factors;
Volatile international value chains in terms of

localization;
Diversification of exportable products and services;
Post off-shoring attraction, new near-shoring trends;
Growing competition for access to raw materials;
Increased East West trade flows and growing
importance of East-West trade corridors and logistical
corridors;
Growing importance of Danube and the Danube
macro-economic region

Trade Routes East - West

Existing route Europe Kazakhstan
China

Trans Siberia Line to China

Non-existent today. Opportunity to link South

Europe to Trans Siberia Line. Threat is coming
from Hungary & Slovakia

Kazakhstan, Near Asia, West China

Virtually non-existent today, due to lack of

assembly parks / inland ports in Romania.
Threat is coming from Hungary & Slovakia

In competition with Bulgaria esp RoRo

via Varna. Today Varna wins due to lack
of development Constanta

Silk Route to Near Asia, West China

Trade leads logistics

Direct route to CEE
+ Near-Shoring =
Market Potential for
Romania

Purchasing Power: Past

72 % of the

Source: NDL

European / and
Central
Distribution
Centres are
located in NorthWest Europe.
All in a circle of
100 km around the
ports of
Rotterdam,
Antwerp &
Hamburg.

Increased regional cooperation and

Purchasing Power Europe
Gravity centre shifting East
EU entry CEE

states accelerates
purchasing power
development
Economic weight

shifting to the East

Delivery

requirements
starting to upgrade
to W-European
levels
Logistics solutions
Source: NDL

leap-frog W-Europe

The EU Strategy for the Danube Region

EUSDR
Why ? What ? How ?

EU STRATEGY FOR THE DANUBE REGION (EUSDR) | www.danube-region.eu

Priority Area

Countries in charge of coordination

P1 | Mobility and intermodality

Inland waterways: Austria, Romania

Rail, road and air: Slovenia, Serbia

P2 | More sustainable energy

Hungary, Czech Republic

P3 | Culture and tourism, people to people

Bulgaria, Romania

P4 | Water Quality

Hungary, Slovakia

P5 | Environmental risks

Hungary, Romania

P6 | Biodiversity, landscapes, quality of air

and soils

Germany (Bavaria), Croatia

P7 | Knowledge society (research,

education and ICT)

Slovakia, Serbia

P8 | Competitiveness of enterprises

Germany (Baden-Wrttemberg), Croatia

P9 | People and skills

Austria, Moldova

P10 | Institutional capacity and cooperation Austria (Vienna), Slovenia

P11 | Security and organised crime

Germany, Bulgaria

EU STRATEGY FOR THE DANUBE REGION (EUSDR) | www.danube-region.eu

How is Europe served

How to serve Europe

Annually > 55 mln TEU are handled

in Europe
70% of containerized cargo entering
Europe originates in Far East
About 5.5 mln TEU is destined for
Central & Eastern Europe (CEE) but
goes to ports in NW Europe

Current Purchasing Power (PPP) of

CEE countries is 12% of total Europe
GDP
PPP in CEE growing whereas PPP in
West Europe will only grow marginally
Environmental pressures will increase
cost of land transport in Europe

EU Strategy Ports & Hinterlands

Develop South & East Gateways
EU 2020
EU TEN-T

EU Danube
Strategy
EU
Transport
Policy
EU Green
Policy

Supply Chain optimization

Direct Route into CEE is essential
Plan

Deliver
Return

Source
Return

Make

Deliver

Source

Return

Make

Return

Deliver
Return

Source
Return

Make

Deliver

Source

Return

Return

Time of Supply Chain

Shorten supply chain
Constanta Romania route saves up to 7 days

Cost of Supply Chain

SUPPLY CHAIN

Reduce cost in supply chain

Constanta Romania route can save over 20% of total supply chain cost

Logistics serves Trade

The Romanian Corridor is your route
Captive
market
Hamburg
Rotterdam

Venlo
Wien

Timisoara
Constanta

Bucharest

The Romanian Corridor

4 Pillars
1.

Hard Infrastructure

2.

ME: (Re)Export Unit

Extended customs
gates
Commercialization
Timisoara

Trade

4.

MTI: Inter-Modal Unit

Soft Infrastructure

3.

Inter-modal
Inland hubs
Freight villages
Port of Constanta

Two implementation units:

Taxation
Promotion

Know-how

Supply chain & logistics

Bucharest
Constanta

The Romanian Corridor

Key development areas to 2020
Freight villages
1) Constanta

N2

1) Giurgiu Bucuresti
1) Timisoara Arad

N1

2) Targu Mures Cluj

N1

2) Galati Braila
2) Craiova Pitesti
2) Suceava Iasi

N2

Infrastructure

N2

Road

N1

Rail

N1

IWT

Location Requirements
- Outside view on Romania today 1. Strategic logistic location: Yes
2. Space for growth: Yes, but where
3. Development strategy: No
4. Low operational costs: ??
5. High quality transport facilities: No
6. Multi-modal transport solutions: No
7. Freight villages: No
8. Stable & high quality personnel: Yes??
9. Facility quality on international level: No
10. Simple and straightforward procedures: No
11. Availability of residential solutions: No
12. Wellness environment (e.g. schools, nature, golf): No

Is there a market tomorrow?

Market requirements

?? EURO

Potential Market Romania:

2020
Domestic: +50%
Transit/trade: HUGE

Requirement
Path of Least Resistance

4
?? EURO

3
?? EURO

EGP project

?? EURO

Romania competes head on

with other European
Countries:
Hard infrastructure
Soft infrastructure
Trade policy
Marketing & Sales

Business case
Benefits:
GDP contribution: 10.7bln
Tax income State: 1.6bln
Jobs: 176.000
External cost savings for Europe: 120mln/year

Cost:
Investment: 500mln for period 2011 - 2020

DanuClus, Danube cluster

network
Core Group

Automotiv
e Industry

HORIZONTAL
TOPICS

Active
Ageing
ICT

Green
Technologies /
Climate
Change

INNOVATION

Creative
Industrie
s

Service
Innovation

CLUSTER
OPTIMIZATION

Online
Platform
Mapping and
benchmarkin
g
Training and
best practice
exchange

Innovation
and Gender
Internationalizatio
n
Next
Generation
Competitivenes
s Initiative
(OECD)

19

Cluster as a business
model

Transfers
and
sharing

Way forward
1. Re enforcing EGP-project as a Project of National

importance
2.

Create a strong , collaborative concentration of stake

holders ( cluster in logistic ? Council ?)

3.. Promote EGP as flagship project in the EUSDR

Contact details
Dr. Costin Lianu,
clianu@gmail.com
Phone 0040740521967