Rail freight: a shift to innovation

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1 Rail freight: a shift to innovation

2 The New Silk Road is a perfect opportunity to solve global scale transport, ecological, economic, and technological goals. Its creation and usage become drivers for erasing boundaries, updating the rail infrastructure along its entire length. Cargo flow redistribution enables the strongest players to win in a competitive environment. The new transport corridor, uniting countries, companies and people as well as meeting the market s needs, becomes a well-timed response to challenges in the modern world. Anna Guseva, Head of Rail Logistics GEFCO RUSSIA A world of new rail routes at your service IMPLEMENTED BY PRESIDENT XI JINPING IN 2013 TO BRING NEW ECONOMIC VITALITY TO THE COUNTRY S ANCIENT SILK ROAD TRADE ROUTES, ONE BELT, ONE ROAD INITIATIVE (OBOR FOR SHORT), HAS ALREADY ESTABLISHED MORE THAN 9,000 KM OF RAIL FREIGHT LINES (1). THIS NEW SERVICE IS BASED ON A NEW ECONOMICAL MODEL WHICH TOTALLY DISRUPT THE USE OF THE TRAIN FOR THE TRANSPORT OF GOODS. Many of these new direct rail links between China and Europe are giving shippers like you opportunities to explore innovative new ways to lower costs while dramatically reducing delivery times compared with those of traditional maritime routes. While rail may not be the main means of freight transportation in Europe, it can now offer you economic and ecological advantages for shipping demand-driven products and seasonal operations from China. In reverse flow as well, rail is a viable mode of transport for consumer goods, reefer goods, and spare parts for the aftersales market. As the need for faster, more competitive shipping routes increases, exciting new rail freight markets are being developed not only in Asia, but throughout Europe and in Russia. The first direct railway service from The Port of Koper now links China to South Germany and Bavaria, one of the most developed and export-oriented German regions. And to handle growing rail freight traffic between China and Russia (which saw 80% growth in 2017) (2), a billion rouble Russian Railways investment program (3) has been launched to increase freight traffic capacity. According to the European Rail Freight Transportation Market Analysis Report, the rail freight market is projected to reach a staggering $34 billion by 2023 in Europe (4). Shouldn t you offer innovative new rail solutions to your customers? Sources: (1) (2) (3) (4) 2

3 One of the main challenges for industrial players in a highly competitive market is to improve their performance and at the same time enhance the quality of their product. To attain this double goal, they source more and more in the global market and improve their reaction times. The supply chain is strategic for their competitiveness. The players who shift their shipments to rail are looking to the future. They want to differentiate themselves, and while transit times, cost savings and security are the biggest advantages, they also appreciate the low carbon transport mode. With global warming, CO 2 reductions are a big target for companies who care about their impact and who also anticipate the future CO 2 taxes. More sustainable, eco-friendly transport RAIL TRANSPORT OFFERS MANY BENEFITS TO THOSE WHO MAKE THE SWITCH FROM SEA, AIR OR ROAD, INCLUDING COMPETITIVE NEW OPTIONS FOR TRANSPORTING YOUR GOODS OVER LONG DISTANCES FASTER THAN BY SEA, AT FAR LOWER COST THAN BY AIR, AND WITH A SMALLER CARBON FOOTPRINT THAN ROAD SOLUTIONS. No matter how complex your transportation issues are, from covering long distances or serving congested areas, to transporting significant volumes, heavy lift equipment or raw materials, making the shift to rail freight can enhance your economic performance while maintaining your environmental commitments to help you be more competitive and resource-efficient. Today s intercontinental rail solutions in Russia and Central Asia are twice as fast as ocean transport and 10 times cheaper than air freight (1). While maritime shipping to Europe takes about 40 days, rail only takes two or three weeks, with trains setting new records all the time as new rail lines are put in place. Rail transportation is also a greener, more socially responsible option when compared to other modes. Not only does shipping by rail emit five times less CO 2 per tonne kilometre (2) moved than by road, it also produces far less noise pollution (3) than all other modes. (In fact, 25% of Europeans are exposed to road noise, but only 4% are exposed to rail noise.) (4) And these things matter to your customers, because today, no matter what business you re in, offering socially responsible solutions (CSR commitments) is essential to your success. Alice Defranoux, Global head of Rail Freight GEFCO Sources: (1) (2) (3) (4) 3

4 Digitalization has opportunities and consequences across the entirety of the end-to-end supply chain strategy, planning, sourcing, manufacturing, distribution, collaboration, and customer service. Digitalization technologies can be implemented within these functions to improve the efficiency and effectiveness of operations, and they can be implemented across functions to improve both internal and external collaboration it is estimated that there is $10 trillion in inventory across the globe and digitalization will continue to reduce and right-size inventory levels in dramatic new ways. Ted Stank, PhD HASLAM COLLEGE OF BUSINESS Security, reliability, and connectivity TODAY S RAPIDLY EVOLVING RAIL TRANSPORT ROUTES, INFRASTRUCTURE, AND SOLUTIONS CONTRIBUTE TO ENSURING THE SAFE AND RELIABLE DELIVERY OF SENSITIVE CARGO OR LARGE VOLUMES FOR COMPLEX INTERNATIONAL SUPPLY AND DISTRIBUTION CHALLENGES. To promote the highest possible levels of safety and reliability across the entire industry, rail freight operators are increasingly investing in Internet of Things (IoT) technology and IT systems for management, control, monitoring, and communication. As a result, rail freight safety and performance are constantly improving, offering substantial benefits to your customers. With all these technological advances, the challenge for rail freight is to integrate this new connectivity into a fully digital logistics ecosystem where improved information flows will boost logistics productivity and optimise tracing. Other smart train safety technologies include onboard train location and detection systems that enable trains to see the positions of other trains, reducing the risk of collisions while allowing trains to operate safely in close proximity to one another. And digital sensors, from GPS to temperature monitors to asset trackers, are bringing whole new levels of security to rail freight customers. Rail also offers your customers a reliability advantage: rail s timetabled discipline can help with logistics planning by affording near-certainty of departure and arrival times as opposed to the unpredictability of roadway congestion not to mention the risk of accidents. Rail freight is also less impacted by bank holidays or fuel oil price increases than other modes, and doesn t face shortage capacity as road transport does. 4

5 The automotive industry has historically run convoys across Europe and China. In a context of increased competition and huge market disruption, the automotive supply chain challenge is to be cost-and green-competitive from end-to-end, and customer-centric. Railway traffic represents the right compromise between speed, volume, safety, and cost over long distances. However, the rail environment footprint could still be reduced. To achieve this, it is necessary to continue innovating in order to facilitate conventional rail system interoperability. A dedicated solution, whatever your industry YOUR INDUSTRY NEEDS A SPECIFIC ANSWER TO DEAL WITH YOUR CHALLENGES - RAIL TRANSPORTATION OFFER CUSTOMISED SOLUTION FOR EACH INDUSTRY TO SUPPORT AND ACCELERATE YOUR INTERNATIONAL GROWTH. Customisable options from multimodal transport, rail transport in door-to-door mode, block train to single wagon and oversized cargo transportation are available to meet the industry-specific needs for raw materials and finished products. 1. AUTOMOTIVE: When transporting cars, trains are the way to go. For finished vehicle transportation, double-deck wagons, mobile decks and flat wagons optimise loading while wagons equipped with protection systems (e.g. mesh sides, wedging systems, etc.) ensure vehicle stability and security during transit. 2. ENERGY AND STEEL TRANSPORT: Rail is ideal for safely and cost-effectively transporting the vast quantities of raw materials and equipment necessary for the energy and construction sectors. Dedicated solutions, from block trains, tank wagons, containers and flexitanks for liquids to specialised wagons for coil transport, ensure secure, optimised end-to-end transport. 5

6 Good examples of these new beneficial technologies are the ERTMS, the European Rail Traffic Management System, a uniform signalling system enabling to cross net borders in Europe without a break in vehicle continuity or driving process. Other developments are inspired by the road industry, such as the autonomous train project, being an echo of self-driving lorries. There is also more advanced research on convoy capabilities, such as long-freight trains (up to 1000 m) and the means with which to tow them, and the powerful bi-mode, bicurrent, multiple axle width EuroDual engine, which can travel almost everywhere on the continent and beyond. Gracio Centracchio, Group Director for FVL and inland Rail solutions GEFCO 3. FASHION: Rail is an innovative solution for shipping today s multiple annual collections from Asia to Europe. It s ten times cheaper than air freight and twice as fast as sea transport. Door-to-door GOH (Garment on Hanger) lined containers guarantee the integrity of products and accelerate time to market, ensuring timely delivery of seasonal goods. Your customers can move garments directly from the container to the shop floor, ready for sale, and benefit in terms of time, labour and savings. 4. HIGH-TECH SECTOR: Safe and efficient end-to-end rail transport solutions meet your customers demands for security, transit times and sustainable development, with climate-controlled containers which allow temperature-sensitive, high-value products to be shipped year-round far less expensively than by air. 5. AGRICULTURAL, BUILDING MATERIALS, MINING AND HANDLING EQUIPMENT: Specialised solutions for oversized equipment and end-to-end turnkey rail solutions can be tailored to the weight and volume of equipment. A Conventional rail transport Combined rail transport B For Bulk For Finished vehicles For Chemical For Heavy equipment C and D are transhipment points A C D B For containers For swap bodies For trailers 6

7 Rail freight : new challenges, new solutions 4 CHALLENGES TO MEET Equipment and infrastructure availability having the right equipment in the right place at the right time. Intermodality guarantee the connectivity of rail with other types of transport to ensure continuous service door to door. Respect lead times Remember to identify hidden delays during connections to save more and more time. Shipment tracing Connected rail transport lets you follow your goods in real time, just as with other means of transport. 4 STEPS TO TAKE Integrated door-to-door offer Demand an end-to-end solution including the physical and documentary management of flows. Mutualisation Optimise resources by mutualising capacities. Innovation In tracing and in opening new routes but also in locomotive motorisation, because being greener and faster is imperative in order for you to stay ahead of the game. Visibility The ability to control and manage flows is essential to ensure high-quality, continuous service. GEFCO S SOLUTIONS > End-to-end integrated offers for your finished products and raw materials to optimise your flows and strengthen your customer satisfaction > Official Forwarder of Russian rail tariffs > Large, regular volumes with automotive trains that guarantees you tariffs and capacities even during seasonal peaks. GEFCO IN FIGURES 4,000 car-carrier wagons 900,000 new vehicles transported per year by train Access to 85,200 km rail network operated by RZD 1 international team present in 15 countries on 3 continents > 360 visibility via web portal and/or control tower. 7

8 GEFCO. Partners, unlimited At GEFCO, we believe long-lasting cooperation with partners is the key to shared growth. Building on 69 years of expertise and a strong heritage in the automotive industry, we design smart, flexible solutions for complex supply chains. Today, GEFCO Group is the N 1 European leader in finished vehicle logistics, and a top 10 global partner in multimodal supply chain solutions. With 300 destinations across five continents, GEFCO s global network of experts push back boundaries and respond with agility to the most demanding supply chain challenges. GEFCO s aim is to play an innovative and influential role in supply chain transformation to help customers meet their evolving technological, social and environmental challenges. The Group is proud of its ability to nurture innovation internally and with external partners to offer pioneering solutions in line with changing industry needs. Contact us Crédits photos : istock, Shutterstock. aressy.com - 10/