The data show the difference between the competitive position of Mediterranean countries belonging to the EU and those countries that are not EU member states. Excluding Israel and Turkey (whose ranking is comparable to the most advanced EU countries), the rest of the countries show a lower level of competitiveness of their national transport and logistics systems with reference to North African (e.g., Tunisia, Morocco, Algeria and Libya) and Middle East countries (e.g., Lebanon, Jordan and Syria). These data demonstrate the logistical difficulties on the part of many Mediterranean countries before the outbreak of the war between Ukraine and Russia.

Beyond the above difficulties, the freight transport and logistics sector in Mediterranean countries is beset by the following challenges:

– Fragmentation of transport infrastructure: the lack of a coordinated approach to transport infrastructure development and maintenance across Mediterranean countries has resulted in fragmentation of transport infrastructure. This has led to inefficiencies in freight transportation and logistics processes, increased logistics costs and reduced competitiveness. Improvements in infrastructure, such as roads, railways, and ports, are needed to support the growth of the sector.

– Complexity of supply chains and logistics processes: Mediterranean countries have complex supply chains due to their geographical location, which makes them prone to natural disasters, geopolitical risk and conflicts. This results in long lead times, increased inventory levels and higher logistics costs.

– Insufficient investments in infrastructure and technology: Mediterranean countries are facing funding constraints due to economic and political instability, resulting in insufficient investments in transport infrastructure and technology. This has hindered the development of efficient transport networks and logistics processes.

– Lack of standardization and harmonization of regulations: the lack of standardization and harmonization of regulations across Mediterranean countries has resulted in administrative barriers to cross-border freight transportation and logistics, leading to increased transportation costs and delays. ¶{p. 241}

– Sustainability: the freight transport and logistics sector is a significant contributor to greenhouse gas emissions, air pollution and other externalities. Mediterranean countries need to adopt sustainable practices, such as the use of alternative fuels, to reduce their environmental impact.

– Trade facilitation: cross-border trade can be hindered by administrative barriers, such as customs procedures and regulations. Mediterranean countries need to harmonize their regulations and improve trade facilitation measures to reduce the time and cost of cross-border trade.

– Competitiveness: Mediterranean countries face competition from other regions, such as Asia and Northern Europe, which have more advanced logistics infrastructure and services. Mediterranean countries need to improve their competitiveness by investing in logistics infrastructure, adopting innovative technologies, and improving the efficiency of logistics processes.

Faced with the above-mentioned challenges, some Mediterranean countries have implemented logistics projects to improve their freight transport and logistics sectors. Examples of measures adopted by some Mediterranean countries are described below [ISPI 2023b].

Morocco has implemented a national logistics strategy that focuses on improving logistics infrastructure, regulations and services. The strategy aims to make Morocco a logistics hub for Africa and improve the country’s competitiveness. It has resulted in the development of new logistics platforms, such as the Tanger Med port, which is now one of the largest ports in the Mediterranean region. The strategy has also led to improvements in logistics regulations, reducing administrative barriers to cross-border trade and improving the efficiency of customs procedures.

As a result of these efforts, Morocco has seen an increase in foreign direct investment in the logistics sector and a growth in exports.

Greece has also implemented a national logistics strategy that aims to improve logistics services and reduce logistics costs. The strategy focuses on developing new logistics infrastructure, improving the efficiency of existing infrastructure, and harmonizing regulations across different modes of transport. As a result of these efforts, Greece has seen improvements in its logistics performance, with the country’s rank in the LPI climbing from 52nd in 2014 to 42nd in 2018.¶{p. 242}

Egypt has launched a national logistics centre that aims to improve logistics infrastructure and services, particularly in the area of transport and storage. The centre provides a platform for coordination between different stakeholders in the logistics sector, including government agencies, logistics service providers and industry associations. It also provides support for logistics companies looking to invest in Egypt, including providing information on regulations, incentives and investment opportunities.

Turkey has invested heavily in logistics infrastructure to become a logistics hub for Eurasia. The country has developed a network of logistics centres and logistics villages, which provide integrated logistics services to companies. Turkey has also implemented a number of initiatives to improve the efficiency of its logistics processes, including the development of an electronic customs clearance system and the adoption of a single-window system for trade. As a result of these efforts, Turkey has become a major logistics hub for the region, connecting Europe and Asia.

In Spain, one of the most important countries in the Mediterranean, the freight and logistics industry is growing steadily. The country has an extensive network of highways, railways and ports, making it one of the major freight transport hubs in the Mediterranean. In addition, the country is increasingly investing in temperature-controlled logistics to support the export of fresh produce such as fruit and vegetables.

In Italy, which is located in the heart of the Mediterranean, the freight and logistics industry is also growing. The country has major commercial ports such as Gioia Tauro, Genoa and Naples, which are important transit points for goods travelling between Europe, Asia and Africa. In addition, Italy is investing in the digitalization of logistics, with the goal of improving the efficiency and transparency of freight transport through technology.

Tunisia is becoming increasingly important as a transportation hub for the region. The country has major commercial ports such as Rades, which is capable of handling large cargo ships. In addition, Tunisia is investing in modernizing its transportation infrastructure and promoting logistics as a strategic sector for the country’s economic development.

Lebanon, located in the eastern part of the Mediterranean, is a major transportation hub for the Middle East region. The country has major commercial ports such as the port of Beirut, ¶{p. 243}which is a transit point for goods travelling between Europe, Asia and Africa. However, the country’s recent economic and political crisis has had a significant impact on the freight and logistics industry.

The above examples demonstrate the importance of a coordinated approach to logistics development, involving different stakeholders from government and industry. They also highlight the need for investments in transport infrastructure and the adoption of innovative technologies to improve logistics processes. The next section discusses the impact of the war between Russia and Ukraine on the logistics and transport sector in the Mediterranean region.

The war in Ukraine is having a severe impact on freight transport and trade. Ukraine’s transport networks suffer on-going destruction, which is causing serious disruption in global supply chains and creating unprecedented transport-related challenges [Paché 2022]. This section discusses the impact of the conflict in Ukraine on freight transport and logistics while emphasising the implications for the Mediterranean region.

The current conflict between Russia and Ukraine has the potential to significantly impact logistics and freight transport in Mediterranean countries. Russia and Ukraine are key players in land and maritime international logistics and the war is disrupting international routes that guaranteed the transport of goods, particularly the route linking Europe and Asia. In addition, trade sanctions against Russia have fuelled tensions between Russia and Western countries, including some Mediterranean countries such as Italy, Spain and Greece. Such restrictions or trade barriers are having a negative impact on international trade of Mediterranean countries, limiting the movement of goods across borders. This unstable and uncertain political situation has led to supply chain interruptions in the Mediterranean area.

Wars and conflicts have a significant impact on freight transport and logistics, affecting both the movement of goods within the affected countries and the flow of goods through regional trade ¶{p. 244}routes [Ruta 2022]. The war in Ukraine has not only created a humanitarian crisis but has caused extensive economic impacts with substantial global consequences. The most immediate effects were the increase in energy prices and the disruption of grain supplies, which led to global food inflation.

The Middle East and North Africa region was affected by both. With the exception of Lebanon (that was already affected by hyperinflation), all the countries belonging to the MENA region experienced a substantial increase in the inflation rate in 2022 [ISPI 2023a].

Although the impact was felt throughout the region, it is hardly surprising that low- and middle-income oil-importing countries faced more significant challenges. Low- and middle-income households are paying a heavy toll for the rising global energy and food prices.

Most of the Ukrainian economy is suffering the consequences of the war as supply chains are disrupted in several sectors such as food, textiles and other products, as well as equipment and materials that support the country’s industrial and agricultural sectors. The most critical transport infrastructures, such as ports or railways, have been destroyed as a result of war operations and are now unusable, especially on Russian territory. This has cut off Russia from international trade and logistics routes.

On the other hand, the situation in Ukraine is impacting supply chains far beyond the Ukrainian area. For example, to escape war zones, logistics companies have adopted the strategy of bypassing the West, via Scandinavia, or the East, via China, which increases lead times and costs while reducing transport capacities. Moreover, since the beginning of the war, the shortage of drivers in the European road transport sector has become even more severe due to the lack of Ukrainian drivers.

The most critical impacts of war on freight transport and logistics that may have implications on the Mediterranean countries are described below.