Conference on sustainable freight transport in sensitive areas 27/28 October 2004, Vienna
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1 Conference on sustainable freight transport in sensitive areas 27/28 October 2004, Vienna Part 3: Frameworks and good practices How to scan the potential for modal shift? Results from the SPIN project Martin Ruesch, Rapp Trans AG, Zürich, Switzerland
2 Content The SPIN project and approach SPIN Toolbox overview SPIN Toolbox application and results Conclusions and recommendations Further information Slide 2
3 The SPIN project SPIN = Scanning the Potential for Intermodal Transport RTD-Activity within the 5th FP co-financed by DG TREN (EC), BBW and Canton Zürich (Switzerland) Duration of 2 years ( ) Consortium of 8 Contractors lead by NEA (NL) Slide 3
4 SPIN background Negative impact of road freight transport, especially in sensitive areas European and national Transport Policy in favour of intermodal transport, support focus on the supply side Barriers and opportunities for modal shift are often very specific to supply chains and to the individual situation of the shipper Many shippers are not aware of the possibilities of intermodal transport The Interrelation between logistics and intermodal transport are not well known Slide 4
5 SPIN approach and objectives SPIN is an active demand side approach Identifying and assessing modal shift opportunities Taking into account the individual situation of a shipper Creating awareness for intermodal transport Objectives to develop a toolbox for the assessment of the potential for a modal shift towards intermodal transport to apply the toolbox on business level to identify main opportunities and main barriers (incl. interrelation between intermodal transport and logistics) to apply the toolbox on macro level in order to assess the potential for a modal shift on EU-level to enhance the awareness for intermodal transport Slide 5
6 Spin Toolbox Overview Quick Scan: to assess the general feasibility of intermodal transport of a (target) user on the basis of its transport profile Advanced Scan: to provide a realistic assessment on the potential of intermodal transport for a (target) users doorto-door transport chain in terms of costs and time requirements Macro Scan: to provide a spatial assessment in terms of service quantities and qualities also taking into account policy measures SPIN-Toolbox Company level (Bild Folie 7 aus Präsentation kanton ZH) Quick Scan Advanced Scan Modal shift on company level Aggregated spatial level Macro Scan Modal shift on regional/national/ international level Slide 6
7 Role of the SPIN Toolbox in the consulting process Analysis of Logistics and Transport Structure / General Potential Identification of Transport Services/Alternatives & Framework Conditions Analysis of Transport Alternatives and Effects Assessment of Potential for Modal Shift / Opportunities and Barriers Conclusions and Recommendations / Implementation Steps Quick Scan Advanced Scan Macro Scan SPIN Tool Box Slide 7
8 Quick Scan application Internet based Intermodal profile scanner Input Corridor Specification: Hinterland, SSS or continental transport chains Country matrix on service quality Main profile parameters Kind of goods to be transported Transport distance Frequency Quality requirements Logistical requirements Output: Standardised recommendations and follow up steps Slide 8
9 Examples of Quick Scan Results (117 Scans within 98 companies) 38% of the companies got a positive advice, which means that intermodal transport could be a valuable option to road transport 48% of the companies would accept modal shift if quality and price of a transport are equal or better than road transport 30% of the companies consider intermodal transport as environmental friendly 95% of the companies have time-sensitive logistics schemes 24% of the companies would accept changes in their logistics schemes if lower price counterbalance possible additional logistics cost Slide 9
10 Advanced Scan Application Identification of potential for modal shift and assessment for door-todoor services Cost and quality parameters OUTPUT - Results Identification of Additional Analysis Modal Shift Opportunities + Route search routine on an intermodal network Comparing different transport chains Chain with best performance will be selected according to routing criterion (e.g. time, cost) Consultancy Process Corridor specification Transport chain specification and selection Door-to-Door cost calculation Client Company: OBJECTIVE and PROBLEM DEFINITION INPUT Information from the company Slide 10
11 Advanced Scan Layout Door-to-Door specification Graphical presentation Network layer selection Cost calculation Slide 11
12 14 Case studies within SPIN with industrial partners 57 % logistics services providers and 43 % shippers Different intermodal opportunities Long and medium-distance cases CS 11 CS 12 CS 1 Current transport mode of the investigated routes mainly road transport CS 14 CS 14 CS 14 CS 2 CS 13 CS 13 CS 4, CS 5, CS 6 CS 9 European and main corridor coverage CS 7, 8, 10 Slide 12
13 Case Study: Modal Shift on the Corridor Netherlands-Romania (Wim Bosman) Wim Bosman: large Dutch logistics service povider Transport profile today: 20 truck loads per week from the Netherlands to Romania (postilion system with dutch and romanian drivers) Intermodal Transport profile: ICF connection to long leading times (more than 4 days) Kombiverkehr via Duisburg to Bucarest or Arad Own service using pocket wagons Results (per week): Cost reduction: 20 to 30% 15 to 20 semitrailers could be shifted from road to intermodal transport Reduction of about 750 to 1000 truck trips or 2 mio. vehicle km / a Slide 13
14 Case Study: Modal Shift of Wincanton Wincanton: leading logistics service provider Transport Profile: Total transport volume per month: tonnes Number of destinations: 409 Number of countries: 29 Number of load units per month: Results (per month): around 990 units from 1960 could be shifted to intermodal transport modes (50%) Cost savings about Euro per month (6.4 %) truck km per month could be saved Employment of additional 16 full loaded trains Slide 14
15 Case study: Cham Paper Group (CH) Cham Paper Group: Special paper manufacturing company tons of paper a year ( t in Switzerland) Transport Profile Cham (CH)-Vaassen (NL) 4800 t per year Truck Transport/leading time 15 hours Costs: Euro per truck load Intermodal Transport Profile Cham (CH)-Vaassen (NL) Via Aarau and Cologne or Hagen / leading time 17 to 19 hours (acceptable for the shipper) Costs: Euro per truck load Results (per year): Cost reduction: 15% 3600 t per year could be shifted 150 truck trips or vehicle km Slide 15
16 Case study: Cham Paper Group (CH) Influence of LKW Maut Alternative transport options: costs after introduction of LKW Maut in Germany 1000 Road cost increase about 8% Costs [ ] Additional costs [ ] LKW Maut Germany Costs [ ] Intermodal is even more competitive Road Combined transport: V1 Combined transport: V2 Combined transport: V3 Alternatives V1: Cham (via main-haul Aarau/Basel Cologne) to Vaassen V2: Cham (via main-haul Basel Hagen) to Vaassen V3: Cham (via main-haul Basel Duisburg) to Vaassen Slide 16
17 Summary of results over all case studies In 50% of the transport cases modal shift seems to be suitable From 11 CS with the objective to investigate modal shift opportunities In 4 CS 100% can be shifted In 1 CS 70% can be shifted In 4 CS 50% can be shifted Positive preconditions for modal shift High quality intermodal services and terminal network Road pricing / Heavy vehicle fees Night driving bans for trucks Control of driving and resting times for road transport But also barriers are existing (too long leading times, logistical constraints, insufficient quality level, etc.) Slide 17
18 Macro Scan Application Assessment of the competitive position of intermodal transport compared to road Cost ratios Corridor 4 > to to to 80 < 70 Estimation of modal shift potential between two regions based on freight demand matrices and Modal- Split-Functions Rotterdam Calculation of leading times and cost for connections beween subregions within the catchment area of a terminal Milano Influence of policy measures can be taken into account Slide 18
19 Macro Scan results: Corridor Berlin-Venice Low difference in leading times Cost ratios Corridor 1 > to to to 95 < 90 For most of the connections between the regions intemodal transport is competitive (cost ratio below 100% with acceptable leading times) Berlin The situation improves, e.g. if Railway speed increases LKW-Maut Germany is implemented Directive on working hours is implemented Verona Slide 19
20 Size of the market for different competitive positions > 200 km road > 400 km road distance distance Volume Volume (x 1000 (x 1000 tons) Share tons) Share CT as fast as road and cost level below 90% ,1% ,5% CT Less than 1 day slower cost level below 80% ,2% ,0% CT 1-2 days slower and costs level below 80% ,0% ,3% CT Cost about equal and slower ,2% ,8% CT Cost higher ,5% ,4% ,0% ,0% Slide 20
21 Conclusions and Recommendations SPIN supports companies and policy makers in identifying and assessing modal shift opportunities SPIN has increased awareness for intermodal options, but until now only for a small number of companies A combined supply and demand driven approach is suitable to realize modal shift Taking more seriously into account the individual situation of the shipper Creating suitable framework conditions (road pricing, 48 h working time regulation, railway liberalisation, improving intermodal infrastructure etc.) Building up new intermodal services There is a potential for modal shift, which can contribute to a more sustainable freight transport More promotion actions are needed on European and national level Slide 21
22 Further Information SPIN Homepage Martin Ruesch, Rapp Trans AG, Zurich Phone: +41 (0) Slide 22
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