EC Reviews Marco Polo Freight Transport Program
December 10, 2008 // Published as a news service by IHS
The European Commission (EC) recently reviewed its second call for proposals, made in February this year, for the creation and upgrade of freight transport services under the second Marco Polo program.
The program, an initiative of the European Union (EU), was launched in 2003.
Reducing congestion
The Marco Polo program aims to shift or avoid a substantial part of the expected increase in international freight traffic, estimated at 20 billion ton-kilometers (ton-km) per year, from Europe's roads onto short-sea shipping, rail and inland waterway transport.
Europe's road network suffers from ever-growing congestion, increasing the time lost by road users and worsening environmental pollution.
Long-distance freight, particularly international freight traffic among EU member states and between the EU and third countries, is a major contributor to this congestion.
Europe's road system has borne the brunt of increasing freight traffic mainly because of the failure of alternative modes - rail and shipping - to keep pace with rising demand and to contribute to an integrated transport solution.
Therefore, the EC maintains that Europe needs - and should be working towards - a sustainable transport system that shifts freight off the roads onto more environmentally friendly transport modes.
Shifting freight off the roads
Indisputably, trucks are often the preferred means of transporting freight for the first and final legs of deliveries. But they are costly - both in economic and environmental terms - over long distances.
Within the context of the EC's 2001 white paper on transport and its 2006 mid-term review, the Marco Polo program seeks to reduce road congestion by shifting or avoiding the yearly increases in international freight traffic from roads onto short-sea shipping, rail and inland waterway transport.
Launched in December 2006, with a budget of €450 million for the period 2007-2013 (participation of third countries brings an increase in the budget), the second Marco Polo program, as its predecessor, contributes to an efficient and sustainable transport system by backing commercial undertakings that set up intermodal - rail, sea and road - freight transport services.
Support goes to firms to enable them to offer more environmentally sustainable services in international freight transport markets. The emphasis is on services, as Marco Polo does not support research projects or the development of core infrastructure.
Main types of action supported by Marco Polo program
Marco Polo support may be given for these types of actions:
- Modal shift actions, which provide aid to start-up services. Projects should be robust, but not necessarily innovative, aiming simply to shift freight off the roads.
- Maximum subsidy of €2 per 500 ton-km shifted off the road.
- Minimum threshold of 80 million ton-km shifted every year over the total length of each contract.
- Subsidy rate up to 35% of eligible costs.
- Ancillary infrastructure costs up to 10% of total eligible costs.
- Project duration of three years.
- Support must not distort competition unduly.
- Project must be viable after subsidy ends.
- Catalyst actions, which aim to overcome structural barriers in the market. Projects should be highly innovative, aiming to achieve a real breakthrough.
- Maximum subsidy of €2 per 500 ton-km shifted off the road.
- Minimum threshold of 30 million ton-km shifted every year over the total length of each contract.
- Subsidy rate up to 35% of eligible costs.
- Ancillary infrastructure costs up to 10% of total eligible costs.
- Subsidy available for up to five years, with a minimum of three years.
- Project must disseminate results.
- Mid-term review of each project.
- Political support may be given by the EC if required by a project.
- Support must not distort competition unduly.
- Project must be viable after subsidy ends.
- Common learning actions, which aim to improve cooperation and sharing of know-how. Objective is mutual training to help cope with an increasingly complex transport and logistics market.
- Minimum subsidy threshold of €250,000.
- Subsidy rate up to 50% of eligible costs.
- Subsidy available for up to two years, with an extension possibility of two additional years.
- Project must disseminate results.
- Motorways of the sea, which aim to shift freight from road to short-sea shipping or a combination of short-sea shipping with other transport modes.
- Maximum subsidy of €2 per 500 ton-km shifted off the road.
- Minimum threshold of 250 million ton-km shifted every year over the total length of each contract.
- Subsidy rate up to 35% of eligible costs.
- Ancillary infrastructure costs up to 10% of total eligible costs.
- Subsidy available for up to five years, with a minimum of three years.
- Support must not distort competition unduly.
- Project must be viable after subsidy ends.
- Traffic avoidance actions, which aim to integrate transport into production logistics to avoid a large percentage of freight transport by road.
- Maximum subsidy of €2 per 500 ton-km shifted off the road.
- Minimum threshold of 80 million ton-km avoided every year over the total length of each contract.
- Subsidy rate up to 35% of eligible costs.
- Ancillary infrastructure costs up to 10% of total eligible costs.
- Subsidy available for up to five years, with a minimum of three years.
- Support must not distort competition unduly.
- Project must be viable after subsidy ends.
Who can participate?
Marco Polo support is open to commercial undertakings only.
Participants may come from EU member states, or "close third countries," which are European Economic Area (EEA) and European Free Trade Association (EFTA) members, candidate countries for EU accession, and Mediterranean partner states.
Funding from the EU budget is available to participants from EU member states. In addition, participants from candidate countries and from EEA and EFTA members may also receive EU funding where specific agreements are in place.
Projects must demonstrate a European dimension to be eligible for support. They should cover an international route, involving EU territory and that of "close third countries."
Key points for applicants
- Proposals - Proposals can be submitted only in response to an annual call published in the EU's Official Journal. The Marco Polo web site gives indicative dates for forthcoming calls and full information.
- Routes used for calculating subsidy - Subsidy calculations are always based on the route the truck would have taken, if the freight had not been shifted to an alternative mode of transport (ship, rail or a combination of ship and rail).
- Participation and funding - While commercial undertakings from both EU member states and "close third countries" are eligible to participate, only costs arising on the territory of EU member states or countries that have concluded specific agreements with the EU are eligible for Marco Polo funding.
Therefore, in calculating the subsidy for each project, only the parts of the route in countries eligible for funding can be used. This also applies in calculating the environmental benefit of the modal shift. Each call will specify the eligible countries.
- Projects eligible for support - Only projects concerning freight transport services may be supported by the Marco Polo program. Infrastructure projects, RTD and study projects are not eligible for support.
- Participation by public authorities - Only commercial undertakings are eligible to participate, but administrations may be up to 100% owners of participating commercial undertakings.
Legal basis of Marco Polo
The main legal basis of the second Marco Polo program is Regulation (EC) No 1692/2006, of Oct. 24, 2006, published in the Official Journal of the European Union (OJ L 328, 24.11.2006, p.1) the following month.
Source: European Commission.