Transcript Diapositive 1

Challenges for Rail Freight
OSJD Freight Commission
Odessa, 30 May 2011
Oliver Sellnick, Director Freight UIC
UIC – a global association with over 200
members around the world
Members
2
2
80
Active 82 Associate
35 Affiliate
The World-wide organization for co-operation
among Railways
Promoting the development of rail transport at world level,
in order to meet the challenges
of mobility and sustainable development
3  Exchange platforms,
1  Know How, technical
and operational expertise
 Technical solutions
 Regulations, standards,
best practises
2  Specifications
 Standards
 Interfaces
 Studies
 Interoperability for
international rail corridors
3
Facilitator
Provider
Developer
Organiser
Innovation: new ideas, new
concepts
 Project management
 Support policies of
development of key
infrastructure projects
4  Forums




Platforms
Study groups
International conferences
Congresses
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“
4
−
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
Freight railways expanding around the world
5
5
Different characteristics and framework conditions
of freight markets – development in isolation
Western Europe
Eastern Europe
-Road
-Increasingly road
-Road
-Shipping
-Barges
-Increasingly rail
-Rail
-Road
350 km
500 km
> 2.000 km
1.200 km
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
COMPETITION
North America
Asia
-Coastal shipping
-Increasingly rail
AVERAGE
TRANSPORT
DISTANCE
INTERMODAL
MARKET
SHARE
6
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
7
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

1
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
2
3
4
Develop the trans-European Network for rail
8
> Free access improves
competitives of rail
but …
> Lower infrastructure
investments in rail
> Infrastructure access more
expensive
> High external costs of road
not internalised
Around 600 rail operating licenses in freight
in Europe
Scope (EU 27 – Cyprus, Malta & Ireland) + Norway + Switzerland
FINLAND (1, 0)
Scope
NORWAY (8, 21)
Outside scope
DENMARK (11, 5*)
SWEDEN (17, 20*)
ESTONIA (13, 49)
LATVIA (4, 9.6)
LITHUANIA (1, 0)
GERMANY (315, 22)
UNITED KINGDOM (26, 45)
NETHERLANDS (26, 45)
POLAND (67, 24)
BELGIUM (5, 6.1)
CHECK REPUBLIC (33, 5*)
LUXEMBOURG (2, 100)
AUSTRIA (17, 14)
SWITZERLAND (20, y)
SLOVAKIA (1, 0)
HUNGARY (22, 14.4)
FRANCE (7, 10)
ROMANIA (25, 41)
SPAIN (10, 5)
PORTUGAL (2, 0)
BULGARIA (6, 3)
GREECE (1, 0)
ITALY (17*, 12*)
Country (number of valid RU licenses, market share non-incumbent [%])
9
Source: ** European Commission - rail market monitoring scheme_2008, *VDV website 2010
1
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
10
Market segments of European rail freight
Segments
Block Train
Commodities
Share of
volume
Coal, Steel
Construction
materials
~ 35%
Competitive environment
 Traditionally barge
competition
 Focus of intra-modal rail
competition
 Price decline
Chemicals
Wagonload
Paper and pulp
~ 45%
 Complex production
process,
high barriers to entry
Automotive
Steel
Combined traffic
Finished
goods
 Strong road competition
~ 20%
Containerized
goods
11
 Focus of road competition
 Intermodal Operator and
Freight Forwarder as
partner
Active cooperation of members on freight projects
12
Wagon
Load
Combined
Traffic
Freight
Forwarders
Wagon
Exchange
Freight
Ops.
Quality
Mgm.
TAF TSI
Migration
Information
Technology
Global
Freight
Leading railways launched
wagonload production alliance
> Zurich, 18 February
2010: signing of alliance
and press conference
> Xrail: production alliance
> For international
wagonload business
> Uniform production
standards
13
1
1
Xrail features address customer needs
14
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
15
 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
More efficient use of infrastructure
□ n
Employment of infrastructure-efficient, train path-saving rail
production systems
Application of incentives in infrastructure access charging systems
Improvement of punctuality of rail traction services
Enhanced process organization of rail traction services
Advanced train and network capacity management systems
Implementation of longer and/or heavier trains including minor
infrastructure adaptations
Increased wagon axle loads
Best practices in terminal operation and management
n □ □ □
n
□ n □
□ n
□ n □
n □ □
□ □ □ n
1)
□
□1)
More infrastructure investments and international co-ordination
Implementation of ongoing and envisaged rail network investments
n
International agreement on “Achilles’ heels” removal programme
□
Realization of ongoing and envisaged terminal investments and
intermodal hub programme
□
Standardized process for international co-ordination of CT terminal
development
□
1)
Railway Industry
□
□
□
□
□
□ n
□
□ n □
□
□ n
□ Involved Party
■ Main Actor
The future is paperless
Goals
−
paperless transport
−
No manual intervention,
thus improved quality
−
avoiding physical paper
transport, thus reduced
costs
17
EUR Pallet – invented in 1961 and kept
young since then by UIC
18
Measuring GHG emissions and energy
consumption with www.EcoTransIT.org
19
www.RailFreightPortal.com – the central
information hub for rail freight
20
Thank you for your attention
OSJD Freight Commission
Odessa, 30 May 2011
Oliver Sellnick, Director Freight UIC