Transcript Document

Global Rail Freight Expansion
needs, plans and initiatives
A European Shippers’ Perspective
Nicolette van der Jagt
Secretary General
European Shippers’ Council
New Delhi, India, 22-24 March 2007
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AGENDA
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European Shippers’ Council
What the customer requires
Global Logistics trends
Barriers/Problems
Solutions
Way forward
ESC
• National organisations representing
interests of shippers
• Cargo owners as users of freight transport
services in all modes of freight transport
 These are manufacturing industries that
are producing goods for consumption in
the single market and beyond
WHAT SHIPPERS REQUIRE
 Profitable and sustainable trade and
industry through efficient logistics by:
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QUALITY: reliabilty and punctuality
Competitive pricing
Door to door solutions
Focus on efficient supply chains/not on intermodality
per se
 Rail Specific
 Transit time equal to road transport
 Cost close or beating road transport costs
INDUSTRY TRENDS
 Fierce global competition
 Quality and adding value in transport most
important but also focus on costs
 Sourcing from the best supplier: globalisation
 Outsourcing
 Logistics becomes part of the production
process
Ever larger containerships……
INDUSTRY TRENDS
• Reducing inventory
• Reducing depots/sites/warehousing
• Reducing empty mileage
• Improved agility and cost: shortened logistics
cycle time due to short product life cycles and
value of goods
• Improved reliability
CONFLICT!
• Reducing inventory
• Reducing depots/ sites/
warehousing
• Reducing empty mileage
• Improved agility and cost
• Improved reliability
• Environmental
pressures
• Local emissions
• Noise
• Social Regulation:
Working Time
• Safety & Security
SITUATION TODAY
 Rail preferred mode of transport for
- High quantity of cargo
- Dangerous goods
 Road freight is under pressure
 Inland waterways and SSS often not located to
the plant/warehouse.
RAIL FREIGHT SEGMENTS
FULL TRAIN
Coal Steel
Construction
~ 35%
Competition
from Inland
waterways
SINGLE WAGON
CHEMICALS
VEHICLES
MACHINERY
~ 50%
Focus on road
Market entry
difficult for
newcomers
INTERMODAL
FINISHED/
CONTAINERISED
CARGO
~ 15%
Focus on Road
Container
transport
booming
BUT SUFFERING FROM:
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Lack of customer orientation
Monopolies
Weak logistics integration
Priority given to passenger transport
Absence of transnational corridors (except
Rotterdam-Genua corridor)
 No real open access to infrastructure (
RAIL FREIGHT IN EUROPE
 Prices for rail freight are rising
 Singe wagon load:
 Prices high
 Quality is down
 Difficult to offer for newcomers
 Difficult for customers to launch their own rail
company
SOLUTIONS?
 Continue to open up the Rail Market/More effective
enforcement
 Improve Quality of Service!
 Increase European wide railway strategies and a
business oriented corridor appraoch
 Increase in road tolls is no solution: increasing
freight logistics costs is harmfull for EU
competitiveness (compare 12% of GNP compared to
8,5% in US)
A POSITIVE SCENARIO
 No more monopolies
 Real open acces to rail infrastructure
 No non-commercial stops at boarders
EUROPE RAILFREIGHT NETWORK CONCEPT
… and then to Russia and China
A POSITIVE SCENARIO
 Railway could take a part of the market share In a few
years train may be running smoothly between Europe
and Asia.
- Sea route is approx 10 days longer
 CHALLENGE in overcoming capacity problems and
costs disadvantages
A positive scenario possible if:
 Improved communication between all the
supply chain
 Measuring the performance
 Demand/Customer driven transport
providers: New products/service culture
MEASURE PERFORMANCE
• Standard measures of performance
– Air freight
– Short-sea
– Rail freight?
• If you cannot measure it you cannot manage it
PLUS…
• Cross-sector/modal comparisons
• Sign of maturity, responsibility, quality management!
CHANGE CAN TAKE TIME
 Liner Shipping
- 20 years for change!
“The man who moved a mountain is the one who
started moving away a small stone”
(Chinese verb)