Rail Freight Solutions for Greening Logistics
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1 Rail Freight Solutions for Greening Logistics 11th UIC Sustainability Conference Madrid, 16 June 2010 Oliver Sellnick, Director Freight UIC
2 Transportation is the only sector of the world economy with growing CO2 emissions Projected changes in EU15 CO2 emissions from 1990 to 2010 with existing policy measures What to do about the dirty side of globalization? 2 Source: EEA 2007
3 Modal shift is the key element to curb the CO2 emissions from transportation Global transport CO2 emissions by modal share, 2005 EU rail market share: Passenger 7% Freight 18% On average rail emits three to four times less CO2 than road 3 Source: International Transport Forum
4 Railways have to continously improve their environmental performance and to offer attractive products Potential strategies for reducing impact of transportation on global warming Outside influence of rail Convince customer with attractive services Constant need to innovate and optimise 4
5 Strong economic growth does not always have to lead to a shift to road Western Europe Eastern Europe North America China / India COMPETITION -Road -Road -Road -Shipping -Barges -Rail -Rail -Road -Coastal shipping -Increasingly rail AVERAGE 350 km 500 km > km km TRANSPORT DISTANCE INTERMODAL MARKET SHARE 5-20% stabilizing 20-30% still declining 30% stable >30% China / India growing BOTTOM LINE Loss making Breakeven to profitable Profitable Postive CF KEY CHALLENGES Ensure long-term survival of sector Stabilize volume at sustainable level Attract capital to finance infrastruture expansion Build infrastructure to support rapid growth 5
6 Market situation in three major business segments in Europe 6
7 UIC a universal platform for cooperation in freight EU TAF TSI UIC FREIGHT FORUM Chairman Ferdinand Schmidt - CEO RCA GLOBAL TAF TSI Implem. Single Wagon Load Combined Traffic Freight Forwarders Wagon Users Freight Ops. Quality Mgm. Information Technology Global Freight SG Ops J.Lutz IFC GTC Interunit Contact Group G. Manding S.Gehenot G.Manding SG Wagon Users B.Schmitt J.Fazik SG Ops S.Gehenot SG Quality S.Gehenot SG IT B.Schmitt GTE G.Manding S.Gehenot S.Nerdal J. Sundling G. Ferk DB E.Peetermans C. Biteau E.Peetermans H.Fikar RCA H.Pfeiffer RCA R.Wilke DB V.Yakunin Deployment activities and sector coordination EU Commission interface Common Components Development European production alliance Reliability and transparency Commercial structure of cooperation IMPORT: industrialisation of CT* Market issues USE-IT Joint activities with UIRR in Interunit Regular exchange with Freight Forwarders* Market Place Seminars (Barcelona 2-3 Nov) GCU Joint Committee Rest of RIV Commercial Model Use of wagons (CMU) Loading rules* Cross border process optimisation* Coordination with Infrastructure Supply chain security Operations TSI Dangerous goods* Management systems Business Excellence* TAF TSI RU Cluster RICS + Hermes (Messaging)* ISR, ORFEUS erail Freight and paperless * GTE: Landbridges and international corridors* Project ICOMOD* GRFC 7
8 UIC Special Group Xrail launches wagonload production alliances > Zurich, 18 February 2010: signing of alliance and press conference > Xrail: production alliance > For international wagonload business > Uniform production standards 8
9 Xrail features 9
10 The network will start small and be rolled out in stages across Europe 10
11 Agenda 2015 for Combined Traffic in Europe Efficient use of infrastructure and international coordiation (selected measures) 1. Path-saving production systems 2. Enhanced process organisation of rail traction Actions IM RU IO TO MoT EC Other More efficient use of infrastructure 3. Train and network capacity management systems 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 4. Application of best practices in terminal operation and management 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 n 1) 1) More infrastructure investments and international co-ordination 5. Regular nationwide and international coordination of terminal development 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) 11 Railway Industry n n Main Actor n Involved Party
12 I.M.P.O.R.T. - industrialising Combined Traffic I.M.P.O.R.T - improving the productivity of rail intermodal transport Integrate the recommendations of Agenda 2015 into a vision for industrialising intermodal services Improving productivity production models requirements for terminals / ---gateways / hubs business models / markets wagon productivity Running from July for months 12
13 The econfriendliness needs to be made tangible 100 tons of average goods from Berlin to Milano, road vs rail Neutral tool to demonstrate energy consumption and CO2 emissions of alternative transport modes for a specific transport request 13
14 Measuring GHG emissions and energy consumption with 14
15 Emission performance can be increased by using low CO electricity 15
16 JR Freight s HD300 Diesel Hybrid Locomotive 16
17 Intermodal city logistics based on rail Case Monoprix Transport to warehouse in Paris with SNCF Fret in the evening Distribution with gas-fueled trucks in the morning (project supported by Gas de France) Avoiding traffic jams on high-ways in the morning Already 1/3 of all goods migrated to rail based logistic chain 17
18 Environmental advantages need to be packaged into attractive products and marketing 18
19 Modal shift needs the right framework conditions Fair competition: Internalisation of external costs and earmarking resulting revenues Balancing infrastructure investments between different modes of transport, i.e. shift from road to rail End erosion of rail freight in CEEC by stopping crosssubsidies via track access charges (TAC) and public service obligations (PSO) Limit financial burden of interoperability (ERTMS, TAF TSI), noise reduction measures and other regulations Avoid disadvantages for rail through the Emission Trading Scheme 19
20 your source for information about rail freight 20
21 Get the full picture of rail freight around the world in Saint Petersburg: 21
22 Thank you for your attention! 22
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