Competitiveness between short sea shipping and road freight transport in mainland port connections; the case of two Greek ports

While road freight transport is essential to any modern economy, short sea shipping (SSS) offers a competitive alternative mode of freight transport in terms of private and social costs, when applied in the connection of mainland ports. This mainly stems from the fact that within the context of the latter costs, accidents and environmental impacts in many road links constitute undesirable externalities with which road freight transport is heavily burdened. This paper compares the aforementioned economics of road and sea transport with reference to the connection of the port of Patra (the main western freight gate of Greece) with West Attica (the biggest Greek industrial centre), aiming at providing a viable solution towards the promotion of SSS in the transport chain between mainland ports.     

Changes in the external costs of freight surface transport In Spain

This paper studies the external costs of surface freight transport in Spain and finds that a reduction occurred over the past15 years. The analysis yields two conclusions: trucks have experienced a reduction in external costs, and rail has lower externalities. The external costs of road freight transport decrease between 1993 and 2007 (44%). The external costs of rail freight increase by 12%. During this period, the external costs of road freight related to climate increase by 16%, oppositely than those from air pollution and accidents (51 and 44%). The external costs of rail related to pollutant emissions and climate increase by 4% and 43%. Oppositely, the external costs related to accidents decrease by 27%. Road freight generates eight times the external costs of rail, 2.35 Euro cents per tonne kilometre in 2005 (5.6% accidents, 74.7% air pollution and 19.7% climate) vs. 0.28 (13.4% accidents, 53.9% air pollution and 32.7% climate).     

The impact of low sulphur fuel requirements in shipping on the competitiveness of roro shipping in Northern Europe

Annex VI of the MARPOL Convention aims for a reduction in sulphur oxide emissions from ships. The limits applicable at sea in Emission Control Areas (ECAs) were reduced from 1.5% to 1% in 2010 and are planned to be further reduced to 0.1%, effective from 1 January 2015. This paper analyses the impact of the International Maritime Organization’s Tier II/III standards introduced by Annex VI amendments adopted in October 2008 on costs and prices of roro (roll on/roll off) traffic in the ECAs in North Europe and on the competitiveness of roro shipping in the ECAs compared to trucking. We demonstrate that the new Annex VI agreement may be quite costly for the participants in the shipping industry and will result in higher freight rates. Based on a detailed price analysis on modal competition between the roro/truck option and the ‘truck only’ option on thirty origin–destination routes linked to the ECAs, we conclude that the use of low sulphur fuel is expected to increase the transport prices particularly on the origin–destination relations with a medium or long short sea section. The paper also presents the results of a survey among leading short sea operators in the ECAs in view of providing more insight on expected modal shifts and price elasticity in the short sea market.     

Part I: Externalities and economic policies in road transport

Road transport imposes negative externalities on society. These externalities include environmental and road damage, accidents, congestion, and oil dependence. The cost of these externalities to society is in general not reflected in the current market prices in the road transport sector.An efficient mobility model for the future must take into account the true costs of transport and its regulatory framework will need to create incentives for people to make sustainable transport choices. This paper discusses the use of economic instruments to correct road transport externalities, but gives relatively more weight to the problem of carbon emissions from road transport, as this is particularly challenging, given its global and long-term nature.Economics offers two types of instruments for addressing the problem of transport externalities: command-and-control and incentive-based policies.Command-and-control policies are government regulations which force consumers and producers to change their behaviour. They are the most widely used policy instruments. Examples include vehicle emission and fuel standards in the US as well as driving or parking restrictions in Singapore. The implementation cost of these instruments to the government is small. Although from an economic perspective these policies often fail to achieve an efficient market outcome, the presence of political constraints often make them the preferred option, in terms of feasibility and effectiveness.Economic theory shows how policies, which affect consumption and production incentives, can be used to achieve the optimal outcome in the presence of externalities. Incentive-based policies function within a new or an altered market. We first examine incentive-based policies, which cap the aggregate amount of the externality, such as carbon emissions, by allocating permits or rights to the emitters. The emitters are then free to trade their permits amongst them. The permit allocation mechanism is important-although market efficiency would be satisfied by an auction, political influences usually favour a proportional allocation based on historic emissions. We discuss EU ETS as an example of a cap-and-trade system, however, no such policy for CO₂ emissions in road transport has been implemented anywhere in the world to date.Fiscal instruments are, like command-and-control, widely used in road transport, because they are relatively cheap and simple to implement. They include the use of taxes and charges in order to bridge the gap between private and the social costs and, in principle, can lead to an efficient market solution. Registration, ownership, fuel, emissions, usage taxes, and parking and congestion charges have been implemented in many countries around the world. On the other side of the spectrum, subsidies can be given to those scrapping old cars and buying fuel-efficient vehicles. Some cities, such as London, have implemented congestion charges and many states in the United States have introduced high occupancy lanes. Other interesting possibilities include pay-as-you-drive insurance and other usage charges. However, the size and scope of taxes and subsidies are determined by governments, and because of their imperfect knowledge of the market the outcome is still likely to be inefficient.Governments have many effective economic instruments to create a sustainable road transport model. These instruments can be used separately or together, but their implementation will be necessary in the nearest future.     

Impacts of increased rail infrastructure charges in Sweden

The impacts of the already decided increase in rail infrastructure charges in Sweden are described for various market segments within the rail transport system and on the aggregate level for society as a whole. The need for complementary measures in the road transport system is also discussed. Likewise, the paper also mentions the impact of increased rail infrastructure charges on certain significant industrial sectors. An increase in rail charges may reduce social welfare even though the reduction in rail transport mileage is small. This is mainly due to large non-internalised absolute externalities for road freight. For commuter trains, the infrastructure charges' share of the costs of rail transport is expected to rise to 13 percent, which in an international perspective still will be small.     

Financial and environmental impacts of hypothetical Finnish dry port structure

One main theme of European Union’s in transport policy statements has been the increased role of railways in the reducing environmental impacts and costs of transport activity. One option to increase the modal share of rail transport is to utilize the dry port concept, particularly applicable to general cargo. At the Port of Gothenburg (Sweden) use of this concept in combination with rail transport has led to a reduction of CO₂ emissions, and lower transport energy costs. The main objective and motivation of this research work are to examine through analytical models, how this same dry port concept could be implemented in the Finnish transportation network, with estimates of the benefits being gained.The research method of this study is macro gravitational models of distribution. Main input data for the models are distances and population in the area. The approach aims to research, how relative transport costs behave by increasing the number of dry port distribution locations. For the actual computation work the authors apply linear integer programming. Based on the results, the authors argue that relative transport costs can decrease considerably by increasing the number of dry ports, up to the level of six locations. This is considerably less than what is the current situation in Sweden. The found solution also differs from Sweden as the fragmented Finnish seaport system enables using numerous seaports instead of one, which further decreases inland transportation distances and volumes considerably. At the same time forthcoming sulphur emission reduction regulation (for sea transports) might impact the transportation network structure by decreasing sea transport and the number of seaports used. This might lead to a further increase in land-based hinterland transport.     

The competitiveness of short sea shipping in multimodal logistics supply chains: service attributes

Much has been written and spoken about short sea shipping within the European Union (EU) as a means of shifting goods from road to sea and of achieving a sustainable economic development. However, this shift is far from being a general reality, despite the few individual, and success stories that have taken place and the EUROSTAT data suggest that the overall effort has contributed very little towards attaining this desired shift. In the light of this, research was conducted to discover how to put short sea shipping on a more competitive level within European multimodal logistics supply chains. This paper aims at identifying service attributes of short sea shipping operations within multimodal transport chains by means of a questionnaire and, for that, examines the short sea shipping environment and contemporary European logistics trends. The analysis is based on empirical research, involving logistics operators, shippers' associations and intermodal rail operators, and allows an evaluation (based on statistical techniques) of the short sea shipping industry and its competitors. It extends previous work by considering these short sea shipping attributes within a multimodal transport context.     

Short sea shipping

This paper quantifies the potential environmental benefit of short sea shipping. Critical strategic issues relevant to formulating public policy are developed. Coastal shipping has traditionally been a major sector of the maritime industry. This continues to be the case in the European Union, but the sector has diminished in relative importance in North America as the transport industry has become increasingly dominated by less environmentally-friendly interstate trucking and railroads. Congestion threatens to overwhelm overland carriage and limit economic growth. An alternative strategy is to revitalize coastal shipping as short sea shipping to alleviate traffic congestion and enhance economic development by maintaining freight flow efficiency. Because ship transport offers higher fuel economy and lower emission of harmful pollutants, the environmental benefits of short sea shipping over land transportation can be quantified and used to inform public policy.     

The environmental costs and economic implications of container shipping on the Northern Sea Route

The Northern Sea Route (NSR) has tremendous potential for ocean shipping between Europe and Asia due to the savings from shorter transit time and distance. However, the Arctic area is environmentally vulnerable and thus there is a trade-off between NSR’s impacts on environment vs. its economic benefits, especially when compared with the traditional route, such as through the Suez Canal Route (SCR). This study estimates the market shares of different transport modes and alternative shipping routes for the container transport market between Europe and Asia, and the resulting environmental costs. Our result suggests that NSR can be a viable option under the status quo. However, its environmental costs tend to be higher than SCR due to small ship size and low load factor in the present, thus the development of NSR would lead to worse environment outcomes. If these issues can be resolved, NSR can benefit from lower operational and environmental costs, which will lead to higher market share and social welfare. Otherwise, increased use of NSR may lead to higher total environment costs than the status quo.     

The impact of port operations on efficient ship operation from both economic and environmental perspectives

Recently, shipping lines have focused on efficient ship operation, which relates to energy efficiency issues in shipping and, particularly, to operational issues such that the minimisation of fuel consumption and resulting greenhouse gas emissions. Efficient ship operation in container lines is closely related to the ship’s time at sea and ship’s time in port. Reduction in port time, thanks to high-quality port operations, allows improvement in the operational efficiency of a liner service by reducing the fuel consumption of a ship at sea and its resulting CO₂ emissions. The main goal of this article is to investigate how time in port affects efficient ship operation in terms of operating costs, CO₂ emissions and externalities. For this, as a methodology, a simulation based upon system dynamics is introduced. Major finding is that less time in port resulting from the improvement of port operations contributes to efficient ship operation in terms of operating costs, amount of CO₂ emissions and external effects in the liner shipping industry. In particular, a sensitivity analysis on efficient ship operation vis-à-vis the quality of port operation shows that bigger ships need to select highly productive calling ports that provide less time in port.     

The potential for British coastal shipping in a multimodal chain

A strategy to revitalize coastal shipping within Great Britain is investigated. An examination of the regulatory environment shows government, at both the EU and British levels, aware of the environmental benefits of coastal shipping compared to road freight transport, if only mildly supportive in tangible terms. The geography of Great Britain and the modern preference for just-in-time deliveries have severely restricted the ability of coastal shipping to compete effectively with road freight transport. The primary objective of the paper is to investigate whether coastal shipping could be integrated into a multimodal door-to-door supply chain, where it is currently hampered by high costs of transhipment, slow transport speeds, and the incongruity of load sizes between land and sea modes. Integration requires the co-operation of all organizations within the multi-modal supply chain. However, coastal shipping companies have been known to be individualistic and mistrusting of alliances. Therefore, a Delphi study is undertaken to investigate the standpoint of leading managers in such companies towards multimodal integration. The results of the Delphi study indicate that managers are in favour of multimodal developments, in particular cooperation between coastal shipping and road haulage. However, there was agreement that the business is highly competitive, and this may prevent the forms of collaboration required for multimodal systems. The secretive nature of the coastal shipping sector could impede joint marketing to promote a mode of transport that is often 'invisible' to shippers. There was little consensus on the relationship that should exist between coastal shipping and ports, a topic worthy of further investigation.     

The potential for British coastal shipping in a multimodal chain

A strategy to revitalize coastal shipping within Great Britain is investigated. An examination of the regulatory environment shows government, at both the EU and British levels, aware of the environmental benefits of coastal shipping compared to road freight transport, if only mildly supportive in tangible terms. The geography of Great Britain and the modern preference for just-in-time deliveries have severely restricted the ability of coastal shipping to compete effectively with road freight transport. The primary objective of the paper is to investigate whether coastal shipping could be integrated into a multimodal door-to-door supply chain, where it is currently hampered by high costs of transhipment, slow transport speeds, and the incongruity of load sizes between land and sea modes. Integration requires the co-operation of all organizations within the multi-modal supply chain. However, coastal shipping companies have been known to be individualistic and mistrusting of alliances. Therefore, a Delphi study is undertaken to investigate the standpoint of leading managers in such companies towards multimodal integration. The results of the Delphi study indicate that managers are in favour of multimodal developments, in particular cooperation between coastal shipping and road haulage. However, there was agreement that the business is highly competitive, and this may prevent the forms of collaboration required for multimodal systems. The secretive nature of the coastal shipping sector could impede joint marketing to promote a mode of transport that is often ‘invisible’ to shippers. There was little consensus on the relationship that should exist between coastal shipping and ports, a topic worthy of further investigation.     

Cost assessment of ship emission reduction methods at berth: the case of the Port of Piraeus,Greece

This paper addresses the problem of ship exhaust emissions at the Port of Piraeus and undertakes the challenge of finding a cost-effective option for its reduction according to the upcoming requirements of the 2005/33/EU Directive, through analysis of port traffic data and the utilisation of the experience gained through previous studies in this field. The Port of Piraeus makes a particularly suitable reference for this type of work, since it is one of the busiest and highly urbanised ports in the world. It is shown that cruise ships calling at Piraeus fulfill the criteria of selection for such an exercise by virtue of their frequency of calling, berth power requirements and time spent at berth. It was found that, according to current practice, cruise ships at berth consume 11 034 tons of fuel and produce 620.1 tons of NO_X, 274.8 tons of SO₂ and 20.7 tons of PM, totalling to 915.6 tons of exhaust emissions per year. This represents an overall annual cost of 21 million euro, divided between private (bunkering) and external (emission damage) costs by 19.4% and 80.6%, respectively. With regard to the upcoming EU requirements for ship power at berth, it was found that, irrespective of whether operating on ultralow-sulphur (0.1% sulphur) fuel or on shore-side electricity, a sizeable reduction in emissions and associated external costs is achieved, whereas private costs were always higher than those of the current practice. Comparing the two options, it was further found that the shore-side electricity presents the lowest external costs but highest private costs, whereas the overall costs are around 25% lower than the onboard use of ultralow-sulphur fuel.     

The effects of slow steaming on the environmental performance in liner shipping

The environment issue is one of the significant challenges that the liner shipping industry has to face. The International Maritime Organization (IMO) has set a goal to reduce greenhouse gas (GHG) emissions from existing vessels by 20–50% by 2050 and develop the Energy Efficiency Operational Indicator (EEOI) as a measure for energy efficiency. To achieve this goal, IMO has suggested three basic approaches: the enlargement of vessel size, the reduction of voyage speed, and the application of new technologies. In recent times, liners have adopted slow steaming and decelerated the voyage speed to 15–18 knots on major routes. This is because slow steaming is helpful in reducing operating costs and GHG emissions. However, it also creates negative effects that influence the operating costs and the amount of GHG emissions at the same time.

This study started with the basic question: Is it true that as voyage speed reduces, the operating costs and CO₂ emissions can be reduced at the same time? If this is true, liners will definitely decelerate their voyage speed themselves as much as possible so that they can increase their profits and improve the level of environmental performance. However, if this is not true, then liners will concentrate just on increasing their profits by not considering environmental factors. This led the authors to set out three objectives: (1) to analyze the relationship between voyage speed and the amount of CO₂ emissions and to estimate the changes by slow steaming in liner shipping; (2) to analyze the relationship between voyage speed and the operating costs on a loop; and (3) to find the optimal voyage speed as a solution to maximize the reduction of CO₂ emissions at the lowest operating cost, thus satisfying the reduction target of IMO.     

Effects of the ‘Belt and Road’ initiative on the wine import logistics of China

China’s Belt and Road (BR) initiative is expected to facilitate international trade between the countries involved. In this study, we review the special requirements of wine logistics and the market growth potential of wine consumption in China. A model minimizing generalized logistical costs is developed and applied to wine imports in China, so that the best candidate cities in which to locate transport gateways and distribution centers can be identified. Our analysis suggests that the most preferred gateways are Shanghai, Tianjin, Guangzhou, and Hong Kong, which all have similar delivery costs. In comparison, Beijing and Chongqing have much higher delivery costs, mainly because they do not have good access to marine transport and/or efficient domestic distribution networks. For long-distance intercontinental transport of large volumes of wine, marine shipping remains the only viable delivery mode. However, wine distribution within China extensively uses air, road, and water transport. Therefore, cities with excellent multi-modal transport services are better positioned to become wine logistics gateways. Our study also highlights the importance of value-added services and good government support, which are important factors that influence distribution costs and quality.     

Sustainable procurement and environmental life-cycle costing in maritime transport

Transportation sector, including maritime transport, exerts significant environmental impact. Public procurement as a policy strategy instrument which applies to the purchase of transport means, construction of infrastructure and the provision logistic services in supplying the goods, services and executing of works must integrate environmental considerations in the contract award procedures. While conventional life-cycle costing (LCC) is based on four categories to be assessed e.g. investment, operation, maintenance and end-of-life disposal expenses, the environmental LCC method also takes into account the external environmental costs. The paper is focused on sustainable public procurement and environmental life-cycle costing aspects of EU 2014 Directive. Analysis is made of the real cost of procurement, the externalities and the impact of maritime transport sector on the environment. The purpose of this research is to propose the framework for assessment of integral impact on the environment which combines environmental LCC approach with TBL concept using non-monetary units for measuring externalities. The authors advocate clean and energy-efficient maritime transport ensuring effective implementation of environmental policy objectives and targets and emphasize the role of public authorities and entities in fostering the inclusion of environmental externalities in calculation of LCC.     

大连长兴岛海域沿岸输沙率的定量计算及定性分析

根据波能流法,采用SMB公式、徐啸公式和夏都公式对大连长兴岛海域的沿岸输沙率进行了定量计算,并从泥沙来源、海岸地形与地貌方面,对海域的沿岸输沙问题进行了定性分析。综合定量计算与定性分析的结果,长兴岛海域沿岸输沙属于微弱型,对港口建设无大碍。     

Greenhouse effect,sea level rise,and coastal zone management

Abstract

Increasing concentrations of carbon dioxide and other gases are expected to warm the earth several degrees in the next century by a mechanism known as the greenhouse effect. Such a warming could cause sea level to rise two to five feet by expanding ocean water, melting mountain glaciers, and perhaps eventually causing polar glaciers to melt and slide into the oceans.

A rise in sea level of even three feet could cause substantial erosion of beaches and coastal wetlands, increased flooding, and intrusion of saltwater into rivers, bays, and aquifers. Fortunately, many of the adverse consequences can be avoided by taking timely measures in anticipation of sea level rise. Nevertheless, many coastal zone managers are reluctant to take these measures until the prospect of sea level rise becomes more certain.

This article examines the implications of future sea level rise and identifies anticipatory measures that may be appropriate today in spite of current uncertainties.     

舟山海域油品码头布局与溢油风险评估

提出了一个基于不确定性分析理论的区域油品码头空间布局的溢油风险模拟与评估方法。该方法可系统分析沿海区域油品码头空间布局及其产生的海域溢油风险的空间分布规律,能够满足我国当前近海高强度开发形势下战略环评和环境风险评估的技术需求。以舟山海域为研究对象,通过油品码头布局模型和不确定性分析,对舟山海域进行综合溢油风险评估,结果表明该方法可以用于综合评估某一海区的溢油风险水平;基于溢油风险概率和污染损害的时空分布,依据风险值集中度最大及风险总值最小的原则,能够实现多种码头布局方案下的海域溢油风险水平的综合比较,并得到最优油品码头布局方案。     

Part II: Policy instruments for sustainable road transport

Without questioning the fact that to achieve efficiency emitters should pay for the true costs of their actions (a core principle of economic policies such as pollution taxes), we find sufficient evidence in the literature to demonstrate that many other policy instruments can be used in combination with taxes and permits to ensure that the transport needs of the present generation can be met without compromising the ability of future generations to meet any needs of their own.The policies and policy aspects considered in this paper broadly fall into three categories: physical policies, soft policies, and knowledge policies. All three aim to bring about changes in consumers’ and firms’ behaviour, but in different ways. The first category includes policies with a physical infrastructure element: public transport, land use, walking and cycling, road construction, and freight transport. We also consider the particular challenges for mobility in developing countries, and how these may be addressed. Soft policies, on the other hand, are non-tangible aiming to bring about behavioural change by informing actors about the consequences of their transport choices, and potentially persuading them to change their behaviour. These measures include car sharing and car pooling, teleworking and teleshopping, eco-driving, as well as general information and advertising campaigns. Finally, knowledge policies emphasise the important role of investment in research and development for a sustainable model of mobility for the future.The main findings can be summarised as follows.

Physical policies

An increase in the use of public transport, combined with a decrease in the use of private cars, can reduce traffic congestion and, more importantly, carbon dioxide (CO₂) emissions, as public transport generally causes lower CO₂ emissions per passenger kilometre than private cars. Public transport fares are subsidised in most places, which can be justified by economies of scale and by the fact that public transport can reduce total road transport externalities. London, Singapore, Portland and Curitiba are all examples of good practice at government level, having achieved reliable, frequent and integrated public transport.Policies to increase public transport use must be part of an integrated policy. Integrated policy refers to integration across different modes of transport, different government objectives (such as the economy, health and the environment), considering the needs of different social groups, and coordinating action between the relevant government institutions. There is evidence that a lack of coordination can jeopardise the achievement of policy objectives.A sustainable model for transport policy also requires integration with land-use policies. These may be somewhat limited within the bounds of existing cities, but as cities grow and new cities are built, urban planners must put more emphasis on land use for sustainable transport in order to reduce congestion and CO₂ emissions. Sustainable land-use policy can direct urban development towards a form that allows public transport as well as walking and cycling to be at the core of urban mobility.Walking and cycling, which improve general health and produce no tailpipe emissions, constitute an excellent alternative to motorised transport on short-distance trips within towns and cities. The policies which can incentivise walking and cycling include crime reduction to make streets safer, well-maintained and clean pavements, attractive street furniture, safe crossings with shorter waiting times, dedicated cycle paths, showers in offices, and lower speed limits, to name but a few.Road construction and expansion used to be seen as one of the most promising ways to reduce traffic congestion. However, in the mid-1990s, the issue was reassessed and it was found that building and expanding roads, increased, rather than decreased, congestion, and ultimately induced higher levels of travel demand. The reason for this is that the extra capacity reduces the general cost of travelling and the less expensive the travel, the more it will be demanded. Regarding freight modal shift, road transport is much more polluting than rail per tonne-km of goods transported and therefore a shift towards greater use of rail in freight transport is desirable. Inadequate infrastructure is the main obstacle preventing this modal shift taking place.Developing countries face great mobility challenges: rural areas are often extremely poorly connected to transport infrastructure, such that, in contrast to the situation in developed countries, the benefits of road construction can strongly outweigh the total costs (including environmental ones). The main challenge, however, is to develop a solution to the problems arising from the combination of urbanisation and motorisation. Integration of transport and land-use policy will be key to rising to this challenge.

Soft policies

Car sharing and car clubs can also potentially reduce CO₂ emissions, although the aggregate reduction in congestion and emissions has not been measured with an adequate degree of precision in the literature. Teleworking and teleshopping can potentially reduce congestion and also CO₂ emissions. However, the evidence for this reduction is rather mixed, as it is unclear whether these measures lead to overall reductions in road transport.Eco-driving campaigns aim to inform and educate drivers in order to induce them to drive in a fuel-efficient and thus environmentally friendly way. There seems to be some consensus in the literature that eco-driving could lead to reductions in CO₂ emissions of around 10 per cent.Information and education policies have often been advocated as instruments which may affect behavioural change. We find in this paper that these types of measures are necessary, but not sufficient for behavioural change. Advertising and marketing may go a long way in changing peoples’ behaviour. In California, for example, Kahn (2007) finds the “Prius” effect: the Toyota Prius is preferred by consumers relative to other similarly green vehicles, probably due to extensive marketing and celebrity endorsements. Family life changes are also found to trigger changes in behaviour ( [Goodwin, 1989] and [106]). People whose lives are being changed by some important development (birth of a child, retirement, etc) tend to respond more to changes in the relative attractiveness of different transport modes. Advertising campaigns promoting a modal shift towards public transport, for instance, may thus be more successful if targeted at people in the process of important life transitions.

Knowledge policies

Research and Development is crucial for developing sustainable and low-carbon transport for the future, and it is essential that governments provide incentives to undertake R&D, so that new low-carbon technologies in the transport sector can be demonstrated and applied at a large scale.Finally, we consider the issue of policy combination and integration. There is evidence that the combination and integration of policies can lead to positive side-effects and synergies. Policy integration is crucial in order to rise to the challenges we face in moving towards a sustainable mobility model. We conclude that classical economic policies may be successfully combined with a number of policy measures discussed in this paper in order to achieve sustainability in transport.