Post on 18-Dec-2015
transcript
Challenges for Rail Freight
OSJD Freight Commission
Odessa, 30 May 2011
Oliver Sellnick, Director Freight UIC
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UIC – a global association with over 200 members around the world
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8080Members Active 8282 3535Associate Affiliate
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The World-wide organization for co-operation among Railways
Provider
Facilitator
OrganiserDeveloper
Know How, technicaland operational expertise
Technical solutions Regulations, standards,
best practises
Exchange platforms,Innovation: new ideas, new concepts
Project management Support policies of
development of key infrastructure projects
Forums Platforms Study groups International conferences Congresses
Specifications Standards Interfaces Studies Interoperability for international rail corridors
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Promoting the development of rail transport at world level,
in order to meet the challenges
of mobility and sustainable development
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Mission of freight department
„What“− Increase revenues of members by improving the
competitiveness of international products and services
− Reduce costs of members by harmonizing international business, operational and information processes
„How“− Being the major facilitator and neutral manager of
multilateral cooperation in non-competitive areas among members
− Organising knowledge transfer among members and from other industries with benchmarking, workshops, conferences
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Different characteristics and framework conditions of freight markets – development in isolation
Western Europe Eastern Europe North America Asia
COMPETITION -Road
-Barges
-Coastal shipping
-Increasingly rail
-Increasingly road
-Increasingly rail
-Road
-Rail
-Shipping
-Road
AVERAGE
TRANSPORT
DISTANCE
350 km 500 km > 2.000 km 1.200 km
INTERMODAL
MARKET SHARE
10%-15% stabilizing
15-25% still declining
30% stable >30% China / India growing
BOTTOM LINE Loss making Breakeven to profitable
Profitable Profitable
KEY CHALLENGES
Ensure long-term survival of sector
Stabilize volume at sustainable level
Attract capital to ensure moderate growth
Build infrastructure to support rapid growth
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Key trends rail freight
>Opportunities Growing world trade needs more transportation. Modal shift to rail
important for sustainable transport Rail freight increasingly integrates into logistic solution International corridors in Europe, Asia, the Middle East promoting efficient
long-distance rail traffic
>Challenges Interoperability and cooperation:
- intramodal in terms of technology / administration / law / operations
- but also intermodal connectivity Productivity: train length and weight, capacity utilization Integration with customers and information transparency
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The European railway policy
EU Vision
« Creation of an integrated European railway area to allow cross border services under a single responsibility in order to guarantee the quality of services to the customer »
The cornerstones of the EU approach
Open access in rail transport to favour competition and create incentives for product innovation and service quality
Fostering the interoperability of the national networks (and hence international services) through technical harmonisation
Develop a common rail safety approach to facilitate market access while maintaining a reasonably high level of safety
Develop the trans-European Network for rail
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> Free access improves competitives of rail
but …
> Lower infrastructure investments in rail
> Infrastructure access more expensive
> High external costs of road not internalised
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Around 600 rail operating licenses in freight in Europe
Scope
Outside scope
Scope (EU 27 – Cyprus, Malta & Ireland) + Norway + Switzerland
Source: ** European Commission - rail market monitoring scheme_2008, *VDV website 2010
FINLAND (1, 0)
Country (number of valid RU licenses, market share non-incumbent [%])
ESTONIA (13, 49)
LATVIA (4, 9.6)
SWEDEN (17, 20*)
LITHUANIA (1, 0)
NORWAY (8, 21)
POLAND (67, 24)
UNITED KINGDOM (26, 45)
DENMARK (11, 5*)
GERMANY (315, 22)
NETHERLANDS (26, 45)
BELGIUM (5, 6.1)
LUXEMBOURG (2, 100)
SWITZERLAND (20, y)
CHECK REPUBLIC (33, 5*)
AUSTRIA (17, 14)
SLOVAKIA (1, 0)
FRANCE (7, 10)
SPAIN (10, 5)
PORTUGAL (2, 0)ITALY (17*, 12*)
GREECE (1, 0)
ROMANIA (25, 41)
BULGARIA (6, 3)
HUNGARY (22, 14.4)
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Creation of a European Rail Network for Competitive Freight
Creation of internationally integrated infrastructure Investment and capacity planning Parameters (train lenghts, axle load, etc) Operational rules Path requests (OSS) Quality monitoring
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Market segments of European rail freightSegments Commodities Share of
volumeCompetitive environment
Coal, Steel
Constructionmaterials
~ 35%
Traditionally barge competition
Focus of intra-modal rail competition
Price decline
Chemicals
Paper and pulp
Automotive
Steel
~ 45% Focus of road competition
Complex production process,high barriers to entry
Finished goods
Containerizedgoods
~ 20%
Strong road competition
Intermodal Operator and Freight Forwarder as partner
Block Train
Wagonload
Combined traffic
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Combined Traffic
Wagon Load
Freight Forwarders
InformationTechnology
Quality Mgm.
Wagon Exchange
Freight Ops.
TAF TSIMigration
Global Freight
Active cooperation of members on freight projects
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> Zurich, 18 February 2010: signing of alliance and press conference
> Xrail: production alliance
> For international wagonload business
> Uniform production standards
Leading railways launched wagonload production alliance
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Improving the productivity of intermodal rail-road/sea transport
– Strong volume growth projections but infrastructure capacity constraints
– Roles and responsibilities along the value chain complex with numerous interfaces and duplicities
– High volatility in business und non optimal resource deployment:
–Peak work loads–Train lengths / weights
– Unsatisfactory financial results of players in highly fragmented market
Productivity has to increase regarding network, hub & terminal infrastructure and rolling stock to enable profitable growth
Business has to be “industrialized” employing international best-practice processes, systems & price incentives
Improved cooperation & coordination needed along the value chain both vertically and horizontally
Agenda 2015 for Combined Traffic in Europe Actions IM RU IO TO MoT EC Other
Employment of infrastructure-efficient, train path-saving rail production systems □ nApplication of incentives in infrastructure access charging systems n □ □ □
Improvement of punctuality of rail traction services nEnhanced process organization of rail traction services □ n □
Advanced train and network capacity management systems □ nImplementation of longer and/or heavier trains including minor infrastructure adaptations □ n □ □1)
Increased wagon axle loads n □ □ □1)
Best practices in terminal operation and management □ □ □ n
Implementation of ongoing and envisaged rail network investments n □ □
International agreement on “Achilles’ heels” removal programme □ □ □ □ nRealization of ongoing and envisaged terminal investments and intermodal hub programme □ □ □ n □Standardized process for international co-ordination of CT terminal development □ □ □ □ n
1) Railway Industry ■ Main Actor □ Involved Party
More infrastructure investments and international co-ordination
More efficient use of infrastructure
The future is paperless
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Goals
− paperless transport
− No manual intervention, thus improved quality
− avoiding physical paper transport, thus reduced costs