Logistics: Selection of National Development Projects of Transport Infrastructure

Executive Summary
The transport infrastructure projects facilitate the country’s economic growth by improving mobility. Slovenia’s topography partly explains why traffic connections in some regions are very different from modern highway and high-speed rail connections common in other parts of the country.  This, in turn, blocks mobility and affects competitiveness of the region’s economy.

Land transport
The focus on the development of the transport infrastructure and multimodal transportation means that the modernization of the existing and the construction of new rail network infrastructure alongside investment in highways will increase traffic flows and safety and improve mobility.  Investment in the railway infrastructure will improve rail service and hopefully reduce carriage of goods by road that in Slovenia accounts for well over 70% of all land transportation. The EU Cohesion Fund priority axes aim at enhancing the territorial cohesion between Member States – rail, road and maritime infrastructure, and Slovenia’s priorities axes will be co-financed from the EU funds.

The development projects pencil in the enhancement of one third of Slovenia’s rail network infrastructure (428 km of the total length of tracks of 1228 km) and improved rail service. The route sections Trieste–Divača/Koper–Divača will increase the freight capacity of the line that continues via Ljubljana to Budapest and the Ukrainian border and is considered vital to positioning Luka Koper as the operator of Koper’s port as the port of choice in the northern Adriatic Sea. The Slovenian Railways as the operator of the national railway infrastructure are looking for developers and funders also for the construction of a logistics hub to make the best use of available trade and transportation related assets and eliminate bottle-necks that might increase transaction costs and create unnecessary delays. In addition to catering to distribution and storage needs, the logistics hub would also accommodate a technology park with enterprise incubators, manufacturing facilities, service companies, retail tenants etc.

The investment in the motorway network will lead to a reduction of bottlenecks leading to greater traffic fluidity and safety as well as ensuring good traffic linkages inside Slovenia and with other European regions. Currently, there are about 630 km of well-maintained motorways and around 1,050 km of major roads. Between 1994 and the end of 2008, almost 500 km of motorways, major and local roads have been built. The completion of the extended motorway network is scheduled for 2013. The reconstruction and modernization of some 215 km of roads (65 km of which will be part of the Trans-European Network) complements investments in the Slovenian port infrastructure in effort to promote motorways of the sea and the importance of inter-modal freight terminals.

Sea shipping
The Port of Koper, Slovenia's only cargo port, facilitates international trade between Europe and overseas markets. It is the shortest transport route linking Central and Eastern Europe with the Mediterranean countries and the countries along the Suez Canal. Shipping to the Port of Koper means gaining 7 to 10 days for ships arriving from Asia in comparison with Europe’s northern ports.

There are currently 11 modern and fully equipped specialized terminals, indoor and outdoor warehouses for general cargo and several custom-built warehouses, as well as other facilities including the port’s economic zone.

The port operator, Luka Koper, has been independently audited and certified to be in conformance with ISO 9001 and ISO 14001 standards. Its quality management system demonstrates its ability to consistently provide product that meets customer and statutory and regulatory requirements, and to address customer satisfaction through the effective application of the system, which is the backbone of the port’s growth so far and its further expansion including the construction of a new railway track.

In line with commitment to overcoming congestion of the main land-corridors and enhancing maritime links and the multimodal aspect of the trans-European transport network (TEN-T), Luka Koper champions two development projects: the construction of a new pier and the construction of a modern passenger terminal.

Pier III for another container terminal capable of berthing vessels having a draught of up to 17 m will be complemented by some 200,000 m2 of storage area, rail service, access roads and other infrastructure. The value of the project has been set at € 490 million and since the port sector handles more than 90% of the EU's trade with third countries and approximately 30% of intra-EU traffic plus couple of hundred million passengers every year, it is a lucrative deal. The promotion and integration of sea shipping into environmentally-friendly multimodal transport networks is an objective of the EU's transport policy and a window of opportunity for Luka Koper and investors. The project will be executed in phases so part of the terminal will be available for use before the completion of all facilities six years after the commencement date.

Koper’s passenger or rather cruise-ship terminal will offer ideal facilities for cruise arrivals or departures. The number of passenger going though the passenger terminal is expected to exceed 100,000 by 2015 and the Koper passenger port will boast facilities and services adding to the bustling commercial port also a busting passenger terminal. The estimated value of the project is € 10.7 million and the project should be completed in two years’ time. Potential investors will appreciate opportunities for associated investments: hotel and restaurant business, retail, entertainment…

Air transport  
There are a couple of investment projects with certain economic benefit on the back of suitable renewal and construction works as a contribution to improving Slovenia’s airport infrastructure and improve business performance.

Ljubljana Jože Pučnik Airport, 25 km from Slovenia’s capital, is the largest Slovenian airport for passengers and cargo and the sixth biggest passenger airport in the new EU-12 member states. The airport has been recently renovated, its infrastructure extended and the cargo terminal modernized. Regular and charter flights carry passengers to all important European destinations.

The blueprint for the Ljubljana international airport development, Aeropolis Ljubljana (airport city) and a new passenger terminal building envisages some 38,000 m2 of passenger facilities for a quality service capable of handling 850 departing and 850 arriving passengers per hour.

Aeropolis Ljubljana is a major upscale mixed-use complex on 80 hectares and the future commercial and logistics centre of Ljubljana International Airport complete with a shopping mall, a four-star hotel, offices, services and an airport railway station. In a nut-shell, all the attributes of an important regional distribution and logistics centre.

Maribor Edvard Rusjan Airport  located 8 km southeast of Maribor in the immediate vicinity of the motorway and the railway. There is a modernization project for the further construction and reconstruction of the passenger terminal, purchase of equipment for aircraft reception and dispatch and the reconstruction of airport facilities. The masterplan for the airport’s development until 2040 is in the pipeline, with the procurement of equipment for aircraft reception and dispatch and the reconstruction of airport facilities are planned for 2011/2012.

The provisional value of the works and services is € 15 million, of which € 11 million will be obtained from the EU funds.

Portorož Airport  has facilities for smaller planes only and is seeking developers/funders to extend the runway and modernize facilities of the airport right by highly popular sea-side resorts.

The national carrier Adria Airways  boasts a modern fleet of aircraft and is planning to build a new hangar for large passenger airliners. Investors can obtain a stake in Adria’s subsidiary, an aircraft maintenance company, estimated at € 5 million.