“Logistics, our new challenge” / INTERVIEW

Venice - What role could the port of Venice play in the near future, according to your experience?

«The port of Venice and its development - answers Pino Musolino, the President of the Venice-Chioggia Port System Authority - can contribute in a fundamentally important way, on one hand, by supporting exports from companies in the region, by contributing to the growth of industry in the North East, and by bringing the best of Made in Italy to all world markets. On the other hand, the development of the port system and logistics at Porto Marghera could attract new companies and generate new jobs today and for young people in the future. We must first of all make the most of the investments that were made in the existing infrastructure, and watch the market closely, its demands and its dynamics. Porto Marghera now employs 13,000 people and hosts more than 1,000 companies, three quarters of which are engaged in logistics and the port sector; our commitment is to them and to the entrepreneurial fabric of the North East, despite also aspiring more and more to reach South Central European markets. Furthermore we will always bet on logistics and integrated and sustainable port systems. It is necessary to attract new high value-added industries by reusing and restoring the disused areas in the port of Marghera that would make the most of the enormous existing infrastructure, whose value is estimated at €6.4 billion».

What are the most important strong points for those who work in/with the port of Venice?

«Besides the centuries-old tradition that characterizes us as an ancient port, certainly our privileged geographical position with respect to European manufacturing, infrastructural areas that are among the largest in Europe, and specialized operators in sectors with high growth potential. For example, among the latter, I am thinking of exceptional loads - which have grown 15% on an annual basis - of the agribusiness sector, which is worth 2.5 million tonnes of freight/year between cereals, oilseeds and flour; and we mustn’t forget the movement of containers, in which the port of Venice leads the Adriatic with over 600,000 TEU. With regard to the sector that generates the most value for the region, which is RO-RO, we are growing speedily after a difficult period because of the instability in the Mediterranean. In fact, RO-RO has grown 30.7% from 2015 to 2016. In addition to this, there is the great opportunity to move freight not only by sea, but also efficiently by railway. From 2009 to 2016, rail traffic almost doubled, +180% in rail wagons handled in the basic terminal service. 2016 was a record year for rail transport in Porto Marghera, with about 2.24 million tonnes and about 90,000 wagons moved - or 7,140 trains - and there are six rail companies: Trenitalia, Rail Traction Company, Inrail, Captrain, SBB, CFI. They operate at the Marghera Scalo Station, which is linked to 25 terminals of which 14 are in operation. The trend is continuing in 2017, as a matter of fact with a slight increase: in the first quarter almost 600,000 tonnes of goods, about +2.5% more than the record quarter the previous year».

What are the prospects for the Port of Venice?

«We expect significant growth and the possibility of making the most of this port’s potential. On 23 July in Venice we will celebrate the 100th anniversary of this incredible industrial-port hub called Porto Marghera, which will allow for the creation of an extraordinary logistical platform, partial processing in the port and therefore development for the type of manufacturing that we now handle. We currently have bottlenecks to be removed, including the adjustment of the navigation basin for access to the port once the MoSE System for the protection of the city of Venice from high waters enters service, and a solution for the cruise industry. These are two issues that have remained unresolved for too long, which could harm the future growth of the port, but could also offer new opportunities once they are resolved».

In what sense?

«In terms of the navigation basin, since we will have to do something to make it functional, we are thinking of creating a deep-water berth that would allow larger ships to come to Venice. This investment, which is not excessively large, but is crucial, could make the most of some existing MoSE facilities that are to be demolished (resulting in further useless cost burdens) and become the solution to restore the accessibility of the port. In addition to this, we must work to bring in as much traffic as possible not only in the container sector, but also, as we have done, in RO-RO and the automotive sector, which came to Venice for the first time in May, 2017».

The Upper Adriatic was at the centre of Italy’s recent mission to China. In your opinion, what sort of relationship should Venice have with the other ports in the area, including the foreign ones?

«Full collaboration with Trieste, we are complimentary ports for traffic and markets. We are closely watching the ports on the other side of the Adriatic, which are achieving double-digit growth rates, but we are not alarmed. China’s Silk Road project is very complex and gives Venice certainty. We are preparing to make the most of the opportunities and the traffic that comes to us, every port will do the best it can as it must. For the moment, from the institutional point of view, we have already signed collaboration agreements with the two Chinese ports of Ningbo and Tianjin and we are working with Venice’s Cà Foscari University, which has been collaborating with our Chinese partners for a while; from the commercial point of view, in addition to the Ocean Alliance’s direct container line to the Far East, we remain a reference port for oversize load exports to China and iron and steel imports. In addition to that, there are the international relationships that we have undertaken with the ASEAN countries, and with Vietnam in particular. Therefore these are the solid and tangible foundations on which we are building our marketing strategy, as part of the BRI (Belt and Road Initiative)».

The previous Port Authority president’s term was very much oriented toward the deep-water port project. What is your point of view on this subject?

«Before launching monumental investments, one must make the most of what one has, and it is especially necessary to make a proper study of the market and its dynamics. The North Adriatic now has no presence on the major transhipment routes, so thinking of making a major investment - even an economical one - which would reach its break-even point at 6 million TEU is not sustainable. We must think about projects which are perhaps smaller, but are totally market oriented. The project for a deep-water berth at Malamocco goes in this direction, and is combined with the very significant potential of the former Montesyndial site (which was already contemplated for the offshore project) and which will be entirely dedicated to growing the container sector up to an additional 1 million TEU. I believe that this is an achievable and sustainable objective for Venice».