Seventh Report of Session 2013-14 - European Scrutiny Committee Contents


11   Freight transport

(34977)

10982/13

+ ADD 1

COM(13) 278

Commission Communication: The Marco Polo programme: results and outlook

Legal base
Document originated14 May 2013
Deposited in Parliament5 June 2013
DepartmentTransport
Basis of considerationEM of 17 June 2013
Previous Committee ReportNone
Discussion in CouncilNot known
Committee's assessmentPolitically important
Committee's decisionCleared

Background

11.1  A 2001 Commission White Paper on transport policy proposed that more intensive use of short sea shipping, rail and inland waterway transport should be key elements in the development of intermodality as a practical and effective means to achieve a balanced transport system. This led to establishment of a programme, named Marco Polo, to support actions aiming at shifting freight from roads to short sea shipping, rail and inland waterways or to a combination of modes of transport in which road journeys were as short as possible. Marco Polo I ran from 2003 to 2006, with a budget of €102 million (£87 million), and was followed by a successor programme, Marco Polo II, which runs from 2007 until the end of this year, with a budget of €450 million (£384 million).

11.2  The Regulation establishing the second phase requires the Commission to report on the results achieved by the Marco Polo programmes during the period 2003-10.

The document

11.3  This Communication is the evaluation report required for the Marco Polo programmes during the period 2003-10 (the Commission updates the period by including operational data obtained up until November 2012). The Communication is accompanied by a Staff Working Document giving more detailed information.

11.4  The effectiveness of the whole programme is measured in terms of realised modal shift/traffic avoidance. The Communication and accompanying Staff Working Document give the following details:

  • statistics for the number of proposals in each year of Marco Polo I and II, the number of contracts, available budget, committed funds and paid funds;
  • the effectiveness of the programme, in terms of modal shift;
  • the amount of road freight transport in the EU;
  • the environmental benefits; and
  • the efficiency achieved by selected projects.

11.5  The Staff Working Document also discusses:

  • the impact of the Polo II Regulation (as amended);
  • the experience of the Executive Agency for Competition and Innovation with programme management;
  • the need to differentiate between transport modes with regard to the conditions for funding on the basis of safety, environmental performance and energy efficiency;
  • the effectiveness of traffic avoidance actions;
  • the need to set up demand-driven assistance at the application stage, taking into account the needs of small and micro transport enterprises;
  • recognition of economic recession as an exceptional reason for extending the duration of actions;
  • lowering of the eligibility thresholds for product-specific actions;
  • the possibility of indicating targets for minimum funding thresholds for proposed actions in terms of energy efficiency and environmental benefits in addition to tonne-kilometres shifted;
  • the appropriateness of including the transport unit in the definition of the term 'freight';
  • the availability of complete yearly overviews of actions which have been co-financed;
  • the possibility of ensuring consistency between the programme, the Freight Transport Logistics Action Plan[52] and the Trans-European Transport Network (TEN-T) by taking appropriate measures to co-ordinate the allocation of EU funds, in particular for Motorways of the Sea;[53]
  • the possibility of making costs incurred in a third country eligible if the action is carried out by undertakings from a Member State and the possibility of extending the programme to neighbouring countries;
  • the need to take into account the specific characteristics of the inland waterway sector and its small and medium sized enterprises, for example by way of a dedicated programme for the inland waterway sector; and
  • the possibility of further adapting the programme to the insular and archipelagic Member States.

11.6  The Commission reports that:

  • Marco Polo I achieved 45.9% of the expected target modal shift of 47,714 millions of tonne-kilometres (Mtkm);
  • the total modal shift for Marco Polo II had reached 19,500 Mtkm by November 2012, compared to the expected total of 87,704 Mtkm, but these figures represented on-going projects and the total would increase over time;
  • there was a total of 1,756 billion tonne-kilometres of road freight transport in the EU in the period 2003-10;
  • Marco Polo I achieved €434.05 million (£370 million) of environmental benefits on the basis of external cost coefficients provided for environmental impacts (air quality, noise, climate change) and socio-economic impacts (accidents, congestion) in 2003-06;
  • Marco Polo II achieved €405 million (£346 million) of environmental benefits between 2007 and mid-2012, but again these figures represented on-going projects and would increase over time; and
  • the efficiency achieved by Marco Polo I, measured as a ratio of outputs (tonne-kilometre) to inputs (€ in committed or paid budget) in 2003-06 was 597 for paid funds and 743 in committed funds.

11.7   The Commission also notes other important factors:

  • the uptake of the Marco Polo programme is not entirely satisfactory;
  • introduction of audit certificates in 2010, has facilitated verification of the quantities of freight transported and has decreased the risk of miscalculation and alleged fraud, but increased the administrative burden;
  • the modal shift approach is not attractive for insular Member States with limited modal shift potential; and
  • there may be some deadweight in the programme, so some of the projects would have gone ahead without the funding.

11.8  The Commission concludes that:

  • based on the achieved results and taking account of the evolving policy context, the Marco Polo II programme will be discontinued;
  • instead a new scheme, which takes account of the lessons learned from the Marco Polo programmes, will be integrated within the revised TEN-T programme and funded from the Connecting Europe Facility;[54] and
  • this will contribute in particular to the efficient management and use of transport infrastructure, allowing deployment of innovative and sustainable freight transport services on the multimodal core network, which is supposed to serve the most important European traffic flows.

The Government's view

11.9  The Parliamentary Under-Secretary of State, Department for Transport (Stephen Hammond), says that:

  • the Government is broadly supportive of measures to encourage modal shift from road transport;
  • it notes, however, that, while the Marco Polo schemes have delivered a significant amount of modal shift, the programmes have fallen short of the amounts anticipated and that much of the allocated funds were not used;
  • it therefore supports the decision not to continue the Marco Polo programme in its current form; and
  • it will endeavour to ensure that any successor scheme is as effective as possible and provides good value for money.

Conclusion

11.10  Whilst clearing this document, we draw it to the attention of the House in relation to the Commission's sensible reaction to the evidence that the Marco Polo programmes have not been wholly successful.





52   See http://ec.europa.eu/transport/logistics/freight_logistics_action_plan/action_plan_en.htm. Back

53   See http://ec.europa.eu/transport/modes/maritime/motorways_sea/. Back

54   (33275) 15629/11 + ADDs 1-2 (33302) 16176/11 + ADDs 1-2: see HC 428-xliii (2010-12), chapter 2 (7 December 2011) and HC Deb, 19 January 2012, cols. 909-938. Back


 
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