Case Study. Lovosice Inter-Modal Terminal. European Commission

Transcription

1 Case Study Lovosice Inter-Modal Terminal European Commission 1

2 CASE STUDY THE PLATFORM If transport continues to grow at the same rate as the economy, this will become both an economic and an environmental problem. lncreasingly congested roads are as much a disadvantage to European business as they are to society at large. The bestlog project, initiated by the European Commission, will establish an exchangeplatform for the improvement of supply chain management practice across Europe. OBJECTIVES To improve logistics practice and logistics education To raise the overall standards of practice across Europe To set high standards for logistics education and practice To create economic growth and job opportunities as a result Achieve a better match between EC policy and business decisions SOLUTIONS & ACTIVITIES European platform for sharing logistics best practice Online directory of logistics best practice case studies Online directory of European logistics education opportunities Benchmarking on line for European companies European conferences to share logistics best practice Web forum, award directory, media directory, and more lndustry workshops 2

3 CASE STUDY Lovosice Inter-Modal Terminal PROBLEM DESCRIPTION In the Central European region, road and rail transport have traditionally been competing for the vast majority of hauls exceeding distances of around 300 kilometers. FTL shipments to and from major European sea ports in particular have been the subject of fierce competition between these two modes of transport. CD Cargo a.s., a subsidiary of Ceske drahy a.s., is one of the top 6 railroad companies in Europe. It offers wide a range of services in the intermodal transport of goods. In 1994, together with the private Kombiverkehr company, Ceske drahy a.s. launched the Ro-La inter-modal project based on accompanied transport of road trucks. At that time, a special terminal designed for loading and unloading of trucks onto railroad cars was built at the site of the CSKD Intrans container terminal and the Lovosice railroad station. After EU accession of the Czech Republic, the system become obsolete and the service was finally disconnected. Ceske drahy a.s. was suddenly faced with the problem of how to use the facility. At the time, Ceske drahy a.s. initiated another project with the ultimate aim of generating business for the terminal as well as reducing the volume of road traffic en route from the Czech Republic to the inland German ports. As it is now, the terminal provides public access to all intermodal as well as conventional road-rail transport services, and there are plans for further construction to meet the ever-growing demand from existing and new customers. The INTER-MODAL terminal in Lovosice, CZ, was launched as a project of Ceske drahy a.s. and DUSS mbh. The terminal offers public access to services such as swap body handling, container handling and road trailer handling between road and rail as well as pallet and parcel handling inside a modern warehouse. The terminal broadens the portfolio of services offered by Ceske drahy a.s. and it also fills the gap in the intermodal transport of road trailers from the Czech Republic to the German inland ports. COMPANY FACTS Company name: Intermodal Transport Location: Lovosice (Czech Republic) Industry/sector: Logistic Services Company size: Small Employees: 8 employees Turnover: 1.35 million (2008) Scope of services rendered: handling of containers (20 45 ), tank containers (max. 45t), swap bodies and manipulatable trailers storage and warehousing of transport units transport and storage of dangerous cargo (ADR/RID Class II.-VI., VIII.-IX). trucking services agency for intermodal operators and final customers customs operations including bonds for customs debts petrol station handling of consignments, reloading, packing storage of goods, subsequent consolidation and preparation for forwarding to the production process according to day-to-day customer requirements 3

4 CASE STUDY THE SOLUTION The intermodal terminal in Lovosice, CZ, is the end result of a project aimed at responding to the inevitable decline of rail transport in favor of road transport in the early nineties. The former balance of road and rail transport in former Czechoslovakia paertly ensured by by vast shipments of bulk materials across the former Eastern Bloc and partly by government incentives no longer exists. Most commercial entities would prefer road transport for its flexibility, speed, and customer orientation. Newly established industrial sites and logistic parks have been built with no direct access to rail transport services, and no major sums have been invested in existing container terminals either. The Czech rail transport operator CD owned by the Czech government has suffered a substantial decline in transported volumes and, consequently, also total revenues. The solution builds on two fundamental prerequisites: the first one is the fact that the road network along the main cargo streams (incl. the one between Germany and the Czech Republic) are operating close to their capacity limits. The second is the assumption that demands for intermodal transport can be boosted only by construction of a new or major reconstruction of an existing intermodal facility permitting fast, safe and affordable handling of individual cargo units. CD therefore initiated the establishment of a new service organization called CD Duss, a joint venture of CD and Duss mbh. The newly established organization maintains and develops the intermodal terminal in Lovosice, CZ and, even more importantly, it plays a major role in attracting traditional road freight customers to intermodal solutions by providing superior service, customized solutions and reasonable pricing driven by sufficiently high volumes. The final solution is in fact a blend of 3 elementary components: customer orientation, service diversification and the desire for better utilization of existing assets. These 3 drivers have predefined the nature of the entire project. Pronounced customer orientation was the most significant driver for the subsequent transformation of the company or rather its cargo division - into CD in

5 CASE STUDY Cargo a.s. - development from the traditional concept of a governmental institution into a modern operatorwith a strong focus on the quality of all services offered. This has also involved ISO 9001 certification by Lloyd s Register Quality Assurance. Customer focus was a key driver of systematic diversification efforts into the provision of logistics services which ultimately resulted in major investment in the Lovosice container terminal. The former terminal was then converted into a modern intermodal terminal offering a wide range of logistics services. The expansion and development of the Lovosice is not yet complete. Recent observations confirm the original estimates: the solution generates additional business for the parent company, creates new jobs in the present location and, most importantly, has excellent potential to handle a high proportion of the of traditional road cargo on its journey from the Czech Republic (as well as a certain volume of transit shipments) to Germany and vice-versa. CHALLENGES Challenge 1: Definition of a suitable portfolio of services meeting the current and future requirements of customers and potential customers Challenge 2: Departure from the concept of a pure rail transport operator and involvement in the field of customized logistics solutions Challenge 3: Implementation of new elements into the existing marketing strategy of a traditional provider of rail transport services 5

6 CASE STUDY LESSONS LEARNED AND SUCCESS FACTORS The project is most beneficial not only from the economical, social, One of the key important challenges of this project was to bring together rail and road transport operators. The main lesson learned was that once benefits for all interested parties were identified, they were willing to participate and make valid contributions to the project. Increasingly, environmental concerns are considered to be valid reasons for changing traditional arrangements; Especially with line hauls becoming longer in a common European market that is still growing, shippers are more willing to consider going intermodal. Proper intermodal solutions enable operators to make better use of their assets, as well-designed solutions have the ability to generate a critical mass of shipments. environmental, and technological points of view; it also helps a great deal to introduce the once from logistic point of view left behind rail mode as valid, reliable, desirable, and active part of modern supply chains Pavel Sprachal, Director, Division of InterModal Transport, CD Cargo, a.s. 6

7 CASE STUDY THE BENEFITS The general benefits of Inter-Modal are: an increase of the market share of Ceske drahy a.s. in the intermodal business, reduced negative environmental impact of road transport along the E 50 between the Czech Republic and German inland ports and an increase in the volume of unaccompanied intermodal goods transportation in the continental hauls from and to the Czech Republic Economic SUSTAINABILITY The solution introduced a new service - unaccompanied intermodal transport The solution benefits from the fact that the services of the transport provider and the logistics provider are ultimately offered by the same company. This is the ideal prerequisite for customized solutions for individual customers The practice significantly enhanced the availability and capacity of logistics centers; the independent provider guarantees instant flexibility and access for virtually any customer Environmental Decreased noise pollution from trucks on the roads Helps to decouple the overall increase of transport volumes and reduces traffic congestion on the roads Optional third mode available nearby (rail access to the Elbe river port) Social Staff have been trained for more qualified jobs, e.g. new warehousing and handling technologies. Positive impact on employment in companies connected with terminal operations CHALLENGES TRANSFERABILITY Transferables Country Transferable to any country with an adequate rail and road infrastructure. Limited transferability in terms of sectors. There is no problem in using this technique for small, but it may sometimes be too expensive. 0 Sector - Company Size ++ Limitations Except for inadequate infrastructure (incl. modern intermodal facilities) the only limitation we have been able to identify was the sincere desire of two modes of transport, i.e. road and rail, to share the business; the reward for cooperation should be an overall increase in business volumes for both (or all) partners; However, in times when most road haulers are faced with a critical lack of drivers, this limitation should shortly become obsolete and become an opportunity. ++: very high, +: high, o: neutral, -: low, --: very low 7

8 Contact Resources Network Design Procurement Sourcing People Best Practice Topics in bestlog Customer Product Tactical Planning Transport Production Information & Communication System Markets & Strategies Reverse Distribution Structures & Planning Infrastructure Processes & Operations Enablers & Support PROJECT SECRETARIAT Berlin Institute of Technology H90 - bestlog Strasse des 17. Juni Berlin - Germany Phone: Fax: info@bestlog.org Web: European Commission Rumler, Miroslav. Reliant s.r.o. (2009): BestLog Good Practice Cases. Lovosice Inter-Modal Terminal. Published by BestLog Project.. This document, including but not limited to text and photographs, is protected under copyright. The copyright owners admit the use for informatory and training purposes. Any commercial use of the document or parts thereof is prohibited. 8