Needs and Prospects.

Ioannis Siamas

Department of Logistics, University of Piraeus, Greece

[email protected], [email protected]

Abstract

This paper aims to analyze the offering of the forwarding sector to supply chain cycle and Logistics, focusing in territorial organization in Attica. Attica is the center of the actinic network of transport via which entire Greece is served. The territorial arrangement of Logistics is a very important factor for the improvement of productivity of Greek economy and the competitiveness of Greek products abroad. For this reason, the location of forwarding activities is investigated concerning the industrial and consuming physical network of Attica and Greece, as it resulted in the past few years, including enterprising needs and social impacts. It is also observed, that balanced growth is abandoned and replaced by urban cleansing of the Attica basin. The paper analyzes the problem of difficulties in forwarding function, resulting from the changes mentioned above and the impact they have on the difficulty of shipment organization, the reliability of supplies and the pollution of the environment. It also records the institutional framework of the current situation and the territorial planning for transport as well as the strategic interventions of the state for the development of inland transport, as a condition for the emergence of Greece as an international hub of transit. The new trends in the organization of freight transport, according to the EU transport policy, promote the combined transport through distribution networks and Logistics Centers. Finally, locations of organization of forwarding companies are proposed which instead of being driven by the supply of land will be driven by demand.

Keywords: Forwarding, Cross-Dock, Logistics Centers, Comodality, Supply Chain, Freight Transport. 1. Introduction

Supply chain (SC) services manage the flow of goods, information, capital, under specific processes. In freight transport, part of these processes are linked to Logistics (COM (2006) 79). The activities are divided into:

• Preparation of goods for shipment and shipment from the production site
• Transport of goods
• Forwarding of goods
• Warehousing, storage and inland terminal operations.

Third party Logistics (3PL) services take place when Logistics services are provided by experts, for property goods of others. Forwarding and Logistics, according to CLECAT, are the services that are related with transport, consolidation, warehousing, handling, packaging, or distribution of goods, as well as complementary and advisory services without being limited by customs and fiscal matters, declaration of goods for official purposes, insurance, collection or payment and collecting or providing documents relating to the goods. Forwarding also includes Logistics services where modern information technology and communication is combined with transport for handling or storing of goods and the integration of SC management.

Paramount importance in the organization of the SC and the economy is the determination of any static and therefore territorially arranged activity such as forwarding, Logistics, respecting the dominant trend of reorganization and the improvement of urban centers, meaning the gathering of Logistics activities in specialized facilities, to the benefit of the urban center. A suitable area meets the needs of Logistics and plays an important role in competition and productivity, by facilitating the network of production, manufacturing and consumption. Especially in Attica which is a redistributive center the development of the city led to the translocation of the industries away from the urban center to locations around the Attica basin, resulting in the difficult operation of forwarding which remained at the same location due to unfinished legislation issues and lack of strategy by the ministries.

The bibliography used is based on Greek legislations, the White Paper and other Directives form the European Union, scientific approaches from Iakovou et al. (2009), Fitzsimmons (2008), Chopra and Meindl (2007), Arvis et al. (2007), Brunet and Roger (2002), papers of Tsamboulas, Kapros (2003) and the economic study made by KEPE (2001).

The contribution of this paper to the scientific community is the collection of scientific trends, regarding the development of SC, their evaluation and their channeling in the political community for immediate implementation. The paper summarizes key proposals that will allow the reorganization of the SC in Attica for the benefit of Greek economy and the competitiveness of the services provided both to Greek and passing goods. Its contribution to the Greek SC, economy and environmental balance lies on the scientific proof of the necessity of concentration of SC services and forwarders cross-docking, in Logistics Center (LC) located in “Thriassio Pedio”, as their natural location.

The current state of freight transport in Athens, Greece and the Balkan region is recorded in section 2. Section 3 presents the scientific trends of organization and reorganization in the sectors of SC and section 4 explains the necessary changes need to be made in order to apply these new trends. The proposals are summarized in section 5 and a summary of the conclusion ends the paper.

2. Analysis of current situation

2.1. In general

Forwarding companies operated in their early form as transportation agencies in places near the industrial zone of Attica, serving supply and consuming needs of the area. Since 1950, in the area of “Keramikos”, to end up in 1970 in the area of “Eleonas”, where they are still located today. Using that location, traders and industrial companies sent their goods to their customers outside Athens and received raw materials from their remote suppliers. The business needs of that time, created around that area, an informal but essential LC that served the needs of companies for road, rail and maritime transport. As a result of these, forwarding companies, transport until today all packaged goods, practically working as an intermediate hub, between multiple suppliers and consignees. This procedure that resembles to cross-docking was not a strategic option, but a result of business practice and shows the correctness of the choice of that specific network distribution model as the most functional for the needs of Greece. The period when the land borders of Greece were “closed” for the eastern bloc countries, import and customs processing were limited and specified and the needs for customs and transport services were stronger than storing services. In recent years this trend has reversed. Customs services are favored, border crossings are allowed and intra-European movements are free. Thus, the focus of service passed to storage and transportation of goods, creating large storage needs. The result of this was the translocation of international forwarders in areas with lower land costs in order to satisfy their large storage needs. Thus, international forwarders had a scattered and individual development around the Attica basin in places not included in the town plan, as their core business was storage and processing of customs of import of goods, functioning as warehouses for importers. Furthermore, the use of land in areas out of the town plan, does not allow forwarding and other SC services. But warehousing is allowed, for the goods of industrial and trading companies, with a building factor between 30 to 40%, depending on the case. For 3PL that do not trade goods, the use of land refers to other activities and the building factor is only 10% (PD 24/31-5-1985).

The slow territorial review, forced Logistics services, parts of which are forwarding companies, to work under outdated frameworks, resulting to their large spatial dispersion without planning and organization. Τhis led to the reduction of competitiveness of all Greek trade and export companies in international markets. National forwarding companies, on the other hand, remain on the same location for the last 40 years, since the initial need of creating an informal LC for the redistribution of goods and the simultaneous service of industry and consumption in Attica has not changed. During these years, the city of Athens evolved as a hub for the growth of the actinic transport network of the country. It is undeniable that the increased size of the city changed the urban planning and the environmental standards, and that meant the relocation of industries to the peripheral regions of Attica. But, forwarding companies were not able to follow the deindustrialization of the center of Athens.

In the area of “Eleonas”, the lack of network infrastructure and licensing of buildings, are major problems, because the region, as a city outside the town plan, lacks infrastructure of water supply, sanitation, communication, roads, urban network and in order to be a buildable land, a minimum of an acre is needed (PD 24/31-5-1985). Thus, the region has not been characterized by the urban city plan but through the redevelopment plan of the area of “Eleonas”, applicable since 1995 (Government Gazette 1049/30-11-1995, Issue D), providing a recreational character to the area. Direct consequence of all these is the licensing failure of existing buildings and thus licensing the operation of businesses, since the area does not meet the legal requirements, when in order to operate legally, building permits must be issued with the use of a Freight Station (PD 79/2004).

With the tolerance of the state, which for 40 years tolerates arbitrariness, without proposing any solutions, building arbitrariness strengthened. That is confirmed by the fact that no forwarding company has been granted a permanent license. The chaotic and dense building, contributed to the lack of basic sanitary conditions aggravating for workers, goods and public health. Conditions improved with the removal of productive and industrial facilities within 15 years of implementation of the PD 1049D/31-5-1985 regarding the area of “Eleonas”. Forwarding companies, despite the need of relocation until the end of 2010 according to today’s decrees, are trapped in unsuitable premises, since the new relocation area is not yet determined. In the location where this informal LC was created, combined transport of goods was very difficult to implement. Approach of the railway network was impossible due to the mandatory mediation of road means. Thus, the advantage of combined transport was lost, since the loading and unloading of goods from one mean of transport to another increased the cost greatly. Finally, the inconsistent routes of freight trains reduced, even more the effectiveness of the mean. “OSE”, as responsible for the completion of the LCs, has already started the necessary procedures and has determined the position of these centers, in Attica at “Thriassio Pedio” and in Thessaloniki at the camp of “Gonos” (Law 3333/2005).

2.2. Legislative coverage of relocation

The rules set by the state for the territorial reorganization are recorded as following:

• Territorial planning
• Urban planning trends
• Government priorities.

Territorial planning

The urban planning of the country is designed by the General Framework for Territorial Planning and Sustainable Development (GFTPSD, 2008), which sets the development priorities of each region, according to the resources and the priorities recorded. Thus, the West Attica region is designated as the host of SC services, along with the areas of “Avlona”, “Mandra”, “Spata” and “Piraeus”. It also sets public duty the creation, under priority, with the contribution of the state’s organized infrastructure, LCs of national range, to serve combined transport of containers, and other related value added services, such as Logistics services and light manufacture. At the same time, excludes the possibility of creating smaller supply infrastructures, when in the same region operates a large LC (Iakovou et al. 2009). Then followed the Framework of Territorial Planning and Sustainable Development for Industries (FTPSDI, 2009), which provided a more specific analysis of terms such as LCs, business parks and hubs of intermodal transport. It included new activities, in the use of organized zones of the tertiary field such as: LC, wholesaling and supply, services to companies; however Ministries maintain shared duties (Iakovou et al. 2009). Finally, in the master plan of Attica, forwarding and other multiple functions of the SC are included in the large scale of freight facilities.

Urban planning trends

According to urban planning, a small percentage of industries is established in organized zones, which means that, even for industries, the option of building without considering the town plan, is primary. Also, it is a common phenomenon, the formation of small or bigger areas by the concentration of individuals units, mainly on zones that can affect urban centers that need cleansing, following the trend of balanced development. Today, balanced development takes place only in small towns, while in cities like Athens and Thessaloniki, cleansing procedures are preferred (GFTPSD, 2008).

Government priorities

The emergence of Greece as a hub of international transport of cargos and energy, through the creation of internal networks, rests on government priorities for the development of freight and energy policies of the country. These are commonly accepted goals even from the opposition.

3. Trends of organization and reorganization of forwarding companies

The departments, of central infrastructure design, such as transport, telecommunications and energy, are developed in global web platforms that are linked together with the use of hubs. Specifically, the territorial organization of the SC is based on the development of strong and high capacity hubs, like LCs, terminal stations and redistribution nodes. By that way, Logistics services are gathered in specialized locations, in areas that serve their exact needs. One step further, SC is formed as a network that depicts the relationship between capital cost and the service time of customers (Fitzsimmons, 2008).

We can see different models of distribution methods such as: manufacturer storage with direct shipping, manufacturer storage with direct shipping and in-transit merge, warehouse storage by distribution, distribution storage with last mile delivery, manufacturer or distributor storage through cross-dock DC, with customer pick-up. All the above traditional models of distribution using networks based on warehouses mainly operate as push systems. But nowadays they are evolving in pull systems with fast responsiveness and continuous replenishment. For the case of 3PL, these traditional models evolve in cross- docking distribution centers (Chopra S., Meindl P., 2009). Cross-docking is the model that covers the case of fast forwarding, where goods enter the warehouse and remain there for a very small period of time, less than 24 hours. Then redistributed, without any special repackaging and with little warehouse requirements. The warehouses used look like reloading stations and compared to other traditional methods, cross-docking results in cost reduction.

It is no coincidence that it functions successfully for decades, since the comparative performance is better, regarding response time, customer experience, order visibility, facilities, service, information and transportation cost. The weaknesses of this method, such as product variety and availability, returnability and inventory, have no consequences, because they refer to industrial and trading companies and not 3PL.

Outsourcing

In the private sector, companies that need to increase their productivity and improve their competitive position, turn into experts in order to outsource any activity, beyond their core business. It is an effort of adjusting supply with demand, through agile business procedures (Fitzsimmons, 2008). Thus, transportation, which is not clearly included in the production process, probably might be the first sector that outsourcing could take place. However, outsourcing is blocked by the Greek institutional framework, since the companies that are part of the SC cannot vertically integrate their activities and are obliged to turn to outsourcing using public use trucks (PUT). For years, the number of PUT remained the same and that led to the great increase of private use vehicles, despite the fact that in other European countries their number is decreasing. In countries where the boundaries of working as a transporter were banned, companies tend not to buy their own trucks to cover their transport needs but to relieve themselves from the ones that they already possess. Although in Greece, we do not possess any comparable evidence, the purchase of new vehicles shows a disproportionate increase on private use vehicles with a number of 1.000.000 against 28.000 PUT. This negative effect is probably the biggest problem created by the licensing system which remains the same for the past 40 years, creating substitution conditions of public use vehicles with private (KEPE, 2001). Similarly, the establishment and operation, of companies operating the railway network is not yet been settled by law, although theoretically freight exploitation is freed.

Logistics Centers

With LCs it is possible to gather all SC services. That helps create dynamic synergies for the organization of the transportation system. This organization leads to the reduction of transportation cost and the increase of service level concerning a cargo in a specific area. Their development outside the city, gives great potential for fast flow, while it does not create problems to the function of the city function or its supply. Also, the concentration of activities in a specific area, gives the opportunity of using special infrastructure support such as telecommunications, roads, irrigation systems, drainage systems, recycling and environmental protection, high-capacity machinery, etc. otherwise no such potentials would have emerged. It will also provide specialized services for indoor and outdoor storage, parking, and cargo service through machinery, road network, railway network and connection through internal hubs. Companies that concentrate inside LCs, achieve higher levels of space exploitation since they are led by demand, which means that they can lease, as much space as they need. On the contrary when they are scattered, they are mostly driven by the supply of land and they need to lease all the land that owners offer, even though it might be more than needed. This causes the creation of a bullwhip effect in the urban plan of the district, resulting to lack of free land due to the illogical use of it. In these areas, productivity of the fleet used, will be increase, as the movement of cargos will decrease and every mean will maintain its best possible position in the Logistics chain. Rail will be used for mass long distance transport and road means in more agile transport. The availability of existing road means will not be used for long distance transport, which for so many years substituted, and will be directed to operations around the LC, in distances lower than 150km (Council Directive 92/106/EEC/1992). Especially for Attica, a scattered development of Logistics service companies will hinder the organization of trade flows, delaying them and reducing their speed and the competitiveness of Greek corridors.

European instructions for reorganization of the transport system will also be followed through the creation of LCs and by adopting concepts of combined transport friendly to the environment such as intermodality and comodality. The principles for sustainable mobility and sustainability were depicted in 2001 by the European Union into the White Paper.

As for strategic purposes, LCs should meet organizational, environmental, political and economic purposes. This new way of supplying markets, which in Europe is already in use for 40 years, makes the best use of resources, business organization and consolidation of cargos, to the benefit of the supply speed and urban decongestion. The continuous urbanization with high population density creates corridors of high growth rates. The Increasing population density in eastern Europe, Turkey, Balkans, countries of the and former Soviet Republics creates respective conditions for the creation of economic development zones similar to the ones of Central Europe, or their expansion to the east, creating a new economic center (Brunet, Roger, April 2002). Their location must be appropriate in order to have the opportunity of future use and connection to TENs, as well as traverse trans-European corridors.

From the financial point of view, organization of supply businesses could be controlled regarding its sustainability in 4 separated phases (Tsamboulas, Kapros, 2003):

§ Site selection and traffic forecast

§ Definition of services offered and corresponding dimensions

§ Estimation of investment and operation costs

§ Political and economic evaluation and the potential of public private partnerships.

The choice of the location proofs that a fully private investment for a LC will be unsustainable, with the main difference lying in the choice of the location which translates to the ensurance of land. It is even more difficult to maintain viability of a fully private investment, regarding a subset of activities such as forwarding, for the same reasons. At the same time, the administration's decision on the location of the LC in “Thriassio Pedio” is considered a fact, defining the strategy of choice, which differentiates the terms of the methodology, turning it from site selection, through an actuarial relationship of public and private contributions, into an actuarial method only, since it cannot control the site selection methodology (Tsamboulas, Kapros, 2003). This means that public contribution is necessary, here as well, in order to achieve the sustainability of the LCs and the translocation of forwarding companies into them (Iakovou et al., 2009). At the same time, other similar infrastructures that coincide in the same range and control, along with LCs, self-negate the strategies of the system of LCs when they are not included in the same control system (Iakovou et al., 2009). These special conditions of service spread, jeopardize the viability of Public-Private partnerships (PPP), due to sharing of incoming freight flow, while they prohibit a wholly private investment. Additionally, the static scheduling of daily operations as carried out today will be replaced by dynamic programming based on system connectivity and process visibility (Fitzsimmons, 2008).

For Greece, that does not possess significant production and manufacturing activity, the activities of SC and Logistics should be focused on third party freight services. This trend is reinforced by the geopolitical position of Greece as the peninsula closer to the eastern part of Europe and as a gate for the European continent and by business investments of shipping companies CKYH (Cosco, Kawasaki, Yang Ming, Haνzing) focusing on third party transportation of goods. Under these circumstances, forwarders, who organize the transportation process (by providing added value to transfer), are obliged to work as suppliers, as customers and as custodians of the goods and at the same time, emphasizing in administrative organization (Fitzsimmons, 2008). The ultimate goal is to meet both needs of production and consumption, supply and demand and the achievement of balance, by ensuring the movement of goods, from point of origin to their final destination, at the right place at the right time and in good condition (CLECAT).

4. Need of plan for territorial arrangement of the Supply Chain

The unfinished territorial organization of the industries of Attica and the weakness of supporting the unorganized SC, which has not been formed in such way in order to support productive and consuming goals, require the acceptance of trends regarding the concentration of SC services into LCs that define the necessity of the creation of a reorganization plan for the SC. Therefore we can see the need of implementation of a plan for territorial arrangement of the SC and for those included in it, in a common partnership with two stakeholders. Firstly, forwarding companies and secondly the public contribution which should not take place only as a financial contribution. Alternatively it may be substituted by ensurance of low price lease of public property, participation in infrastructure creation and their shared management.

To implement these new trends in Greek freight transport, the reorganization of the Greek transportation system in needed. Primary concern is the territorial arrangement of Logistics services as well as the translocation of forwarding companies, for reasons of organization of the SC, increase of the services provided to industries, contribution to sustainable growth, to the environment and the reduction of congestion in the Attica basin. In detail, the SCs all over the world is put in place by special infrastructures and organized transportation systems. Especially in Europe, the idea of combined transport through organized LC that handle cargos and exploit the benefits of all means, is quite widespread. LCs are connected to each other by hubs through transportation and communication infrastructures, creating a web of physical transport, with every LC playing the role of a hub in a cross-docking procedure (The Economist, 2006). The basic contributor to the organization was forwarding, which since the emergence of modern trade, created networks of companies worldwide, with global coverage and with knowledge in handling and coordinating goods. More recent the development of 3PL extended their services, to the benefit of traders. Freight forwarders are at the heart of the present wave of globalization. They facilitate an ever more demanding system that connects firms, suppliers, and consumers on what The Economist characterizes as the physical internet. The physical internet is global, but the ability of countries to access it depends on the quality of their national infrastructure as well as the effectiveness of their policies and institutions (Arvis et al., 2007). The ability of connection with the physical network plays a very important role in the competitiveness of a country, especially for the current period, providing access to vast new markets. In case of loose Logistics connections in the physical network, the cost of exclusion becomes increasingly unbearable (The Economist, 2006).

For the last 20 years, the growth of the industry sector, focused in the development of the urban centers of the country, mainly in the Attica basin. More specifically, the creation of new roads, such as “Attiki Odos”, the “Varis-Koropiou” avenue and also the under construction “Elefsina-Yliki”, created zones of peripheral industrial development, based on the absorption of products by the population, the high offering of employment and the needs of construction sites for the “Athens 2004” Olympic Games (FTPSDI, 2009). A large part from the industrial units came from the translocation of similar non-modern facilities that were located in places closer to the center of Athens, “Piraeus Street” and the industrial zone of Piraeus. This resulted in the urban cleansing of residential areas in Attica, creating an industrial circle around Attica, focused in the western district of the Attica, in the pre-existing actinic transport network of Greece. But, despite the industrial translocation, the transportation needs are still covered by forwarding companies of “Eleonas”, who know that their widespread movement will cause negative effects throughout the whole sector.

The wide sector of transport is responsible for the pollution of the environment, mainly because of the use of road means and by not implementing comodality. Under present circumstances, goods start from places around Attica, return into the urban web, increasing the environmental pollution disproportionally to the benefits that emerged from the translocation on industries around Attica. The reduce of congestion within the Attica basin is considered a fact as long as the majority of trucks will be moving in the peripheral zone of Attica, leaving the urban road network in the use of cars, buses and of course to small supply vehicles. Additionally, the increase of use of rail transport will relieve the national road network.

Nationally, the SC organization, will take place through six LCs (Athens, Thessaloniki, Igoumenitsa, Alexandroupoli, Patra and Volos) from which only the first 2 have moved on, into the stage of study. At international level the Greek government should focus in freight flows from and to the countries of the Balkan region, former Soviet republics as well as the countries of the Black Sea. Today, those flows are served by the Northern Sea. This means that freight flows that come from Asia are forced to travel around Europe to end up in Balkan destinations. Specifically, in “Vosporus”, vessels suffer a long service delay due to heavy traffic and long waiting time. The emergence of Greece as an international transit centre of the Balkan region requires attractive approach to markets and reliable operation of a uniform system of LCs (Iakovou et al., 2009).

5. Suggestions

The delay in the territorial organization of companies that are part of the SC, held back the development of transport systems, the implementation of the sustainable mobility and the use of alternative ways of transport. The growth of internal transport was slowed down and the participation of Greece in alternative ways of transport through Greek freight corridors never took place. For the rational territorial organization of SC services, a plan of development is proposed according to the following parameters:

· Infrastructure plan from the state

· Logistics Centers

· European experience.

Infrastructure design by the State

For freight transport, the state promotes development through the creation of LCs across the country. According to the basic design of territorial reorganization, no SC service will be located outside LC.

Logistics Centers

The law 3333/2005 with the changes made by the law 3710/2008 defines the terms and conditions for the establishment and operation of LCs. But, it has not yet become operational, since a number of necessary ministerial decrees have not been issued.

European experience

Relevant European experience, of concentration of freight activities in LC (also known as Logistics Villages, Freight Villages and Logistics Parks), where nodes of combined service flows are created, is seen throughout central Europe, specifically in Verona. In Verona, the AIZ LC was established in an agricultural area, parts of which were gradually turned into industrial areas with special use of Logistics 3PL. The project was very successful since the LC can expand practically without limits.

Analytically, the suggestions follow the environmental and scientific trends, as well as the political and economical goals of Greece. The territorial organization of SC services, through the translocation of forwarding companies inside the LCs, is proposed for the following reasons:

• Promotion of combined transport through the attraction of forwarding to areas where the alternation of means takes place
• Environmental cleansing of the area of “Eleonas”
• Uninterrupted flow of goods across Greece and into Europe and uninterrupted supply during the translocation process
• Adjustment to the European standards
• Improvement of the urban planning and the territorial arrangement
• Deindustrialization of the urban center of Athens
• Creation of transport systems
• Reduce the costs, of alternation of means and of the replenishment
• Contribution to the economic sustainability of the LC
• Series of laws that will lead to these results.

Especially for Attica, the translocation should take place in the LC of “Thriassio Pedio”. That’s because in that specific area, high concentration of cargos is anticipated and this will be of big interest for forwarders. The movement of cargos that do not add value to the SC stops and cargos gain high speeds, while operational and environmental problems are solved. The areas required, will not be driven by supply of land, but instead will be driven by demand with rational use of the area inside the LC. On the contrary, concentration of forwarding companies in areas outside the LC will maintain all the current operational problems, meaning unnecessary movement of cargos, resolving only the problem of the recreational work in “Eleonas”.

Environmental effects

Traffic flows in the current location of “Eleonas” (in “Kifissos Avenue” and surrounding streets) are considered urban traffic flows, while the new position near “Attiki Odos” is considered national or international level road, with much higher speeds. Therefore, in the current locations, the speed of vehicles is limited due to the dense network flow, emitting pollutants according to the city fuel consumption. In the proposed new area with new conditions of transport and distribution, speeds will be highway speeds, much greater than those of the city, with fast flows, lower fuel consumption and greenhouse gas emissions. In addition this new territorial arrangement will contribute to comodality, resulting in the reduction of pollution and the acceptance of European rules regarding sustainable mobility (COM (2006) 314).

Scientific validation

It covers the current scientific trends such as outsourcing, 3PL, LC, intermodal hubs, comodality and physical internet. As for the establishment area, differentiates in trade and industrial companies, where according to analysis using multiple criteria, different factors are examined, regarding the cost of land, the distance from suppliers and customers, the quality of the road network, the existence of work force and the possibility of resale of land (Prastakos, 2005). On the other hand, in extended specialized infrastructures, for companies that provide SC services, like LCs, where public sector’s priorities are involved, sustainability is examined, given the location according to political and economical criteria set by the administration. In these places, forwarders, 3PL, provides income, able to differentiate the viability of the project.

Political and economic effects

It covers the political and economic priorities on the extroversion of the Greek economy. Channels, national and international freight flows, to and from developed regions of Europe, through Greece, leading to the development of the country. It's also a way to stabilize and rejuvenate the economy, with investments in innovative solutions, unprecedented for Greece, that show the benefits of innovation, supported financially by the National Strategic Reference Framework 2007-2013. With the use of synergies, companies can take advantage of infrastructure and technology, through the high funding and modernize by implementing combined transport, resulting in high productivity. The servicing of passing cargos of large shipping companies, with Europe being their final destination, benefits the society as a whole. Theoretically, goods could also be distributed by rail, since the railway network is very close. Practice has shown that the intervention of the truck prevented the change of mean due to time issues. The new connection of means that takes place through the operation of LCs, improves circulation, in contrast to what will happen with the spread of the companies. Through that area, economies of scale are achieved regarding the shipment of goods to and from rural districts, since it works as a hub of transit in a national supply network. For customers and suppliers, it will work as a transportation campus, where all needs will be served, using the actinic transport network of the country. They differentiate though from typical Logistics companies due to lower storage needs, since the time to renew the stock of goods, ranges from a few hours up to one day.

6. Conclusions

The area of “Eleonas”, is no longer appropriate for forwarding companies. That is because, goods re-enter the urban web, thus negating the benefits from the translocation of industries around the Attica basin. They only reason for its existence is its point development that serves trading and sustains the supply rate of the country, prevailing over any other environmental planning. The scientific solution is given through the LC of Thriassio. European experience shows the way in including all SC services within specialized infrastructures. Accordingly, forwarding is one of the services that should be included. That will create an integrated transportation services system which will be able to support even the investment project of Cosco. This investment will help Greece show its ability and consistency in servicing freight flows throughout the international SC. The faster creation of LCs will also help other investment, which search for specialized solutions throughout the SC and at the same time enhancing the national network. Apart from organizational reasons, the feasibility of including forwarding companies in LCs is also forced by the cleansing of the urban center. In recent years, in the Attica Basin, all industries were relocated, from their urban locations to locations around the basin in order to purify it. Despite all that, the center of transport replenishment of companies remained inside the urban web, in the area of “Eleonas”, negating the cleansing effort.

Finally, this paper refers to the history of forwarding and the necessity to complete its relocation, through the SC organization, service of industries and consumption. It mentions the contribution of the forwarding sector to the sustainable development, the environment and the reduction of the traffic congestion in the Attica basin. It analyses the legislative framework covering the relocation process, current trends regarding the urban planning and government priorities, based on the territorial planning of the country. It presents the infrastructure design, according to the Greek legislation and the European experience. The current situation of “Eleonas” as well as technical details are analyzed regarding licensing processes, public health issues, network’s analysis and redevelopment plans in the area. This paper contributes to the organizationally, environmentally and institutionally acceptable solution to the problem of relocation of forwarding companies of Attica and to the territorial organization of the SC in Greece, as an international hub of transit in the Balkan region.

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Legislation

Greek legislation (Hellenic)

11. Framework of Territorial Planning and Sustainable Development for Industries, (FTPSDI), 2009. Government Gazette 151/13-4-2009, Issue AAP.
12. General Framework for Territorial Planning and Sustainable Development, (GFTPSD), 2008. Government Gazette 128/3-7-2008, Issue A.
13. Government Gazette 1049/30-11-1995, Issue D. Approval of urban planning study for the revision and extension of parts of municipalities of Athens, Agios Ioannis Rentis, Egaleo, Peristeri and Tavros (Area of “Eleonas”) (Attica district).
14. Law 3333/2005, Government Gazette 91/12-4-2005, Issue A. Establishment and operation of Logistics Centers.
15. Law 3710/2008, Government Gazette 216/23-10-2008, Issue A. Arrangements for transport issues.
16. PD 24/31-5-1985, Government Gazette 270/1985, Issue D. Building factors for lands outside the urban plan.
17. PD 79/2004, Government Gazette 62/1-3-2004, Issue A. Definition of terms and conditions for establishing operating stations for loading and unloading goods.

European Union Legislation

18. COM (2001) 370 White Paper. European transport policy for 2010: time to decide
19. COM (2006) 79 Communication from the Commission. Proposal for a Regulation of the European Parliament and of the Council on enhancing supply chain security (SEC (2006)251).
20. COM (2006) 314 Communication from the Commission. Keep Europe moving - Sustainable mobility for our continent Mid-term review of the European Commission’s 2001 Transport White Paper {SEC (2006) 768 }
21. COM (2006) 336 Communication from the Commission. Freight Transport Logistics in Europe – the key to sustainable mobility {SEC(2006) 818} {SEC(2006) 820}
22. COM (2007) 606 Communication from the Commission. The EU's freight transport agenda: Boosting the efficiency, integration and sustainability of freight transport in Europe {SEC(2007) 1351} {SEC(2007) 1367}
23. Council Directive 92/106/EEC of 7 December 1992 on the establishment of common rules for certain types of combined transport of goods between Member States.