Development of cross-border rail freight transport in Central, Eastern and South Eastern Europe Marcin Foltyński Institute of Logistics and Warehousing, Poland Budapest, 11 & 12 June 2012 FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 1
Content Time of crisis the impacts on the transport market Current situation of the freight transport in Central/Southeast Europe FLAVIA project Measures of the FLAVIA project Future challenges and developments REAL-Bridge project FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 2
Quo vadis rail freight transport? Prejudices too expensive lacking capacities of the railway network outdated equipment suitable only for long-distances not flexible only bulk goods rigid and inefficient regulations FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 3
Time of crisis the impacts on the transport market decreasing transshipment volumes due to the economical crisis transport and logistics sector is effected more than other sectors broad impact due to an interlinked global economy after successful years in 2007 and 2008 (growth rates 7%) the turnover of the transport sector declined by 8% in 2009 (figures for Germany) most effected: automotive industry, engineering and metal working industry Result: unused capacities high personnel stock FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 4
Time of crisis the impacts on the transport market Various market actors are effected Inland terminals, Container transshipment in BILK Terminal Ports Container transshipment in Constanta harbor TEUs 2005 2006 2007 2008 2009 2010 Unloaded 391,075 525,209 708,906 696,634 288,717 279,782 Loaded 380,051 511,857 702,481 684,301 305,586 276,912 Total 771,126 1,037,066 1,411,387 1,380,935 594,303 556,694 Source: Annual Report, 2010 - National Company Maritime Ports Administration SA Constanta and Rail freight operators Transported volumes in tonnes Rail Cargo Austria and Rail Cargo Hungary Transported volumes in mil tonnes Source: bilkkombi.hu Source: railcargo.at FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 5
Current situation of the freight transport in Central/ Southeast Europe (1) Decline of the rail freight transport Changing modal split in favour of the road transport especially in East Europe BUT: in the short term the rail freight transport recovers slightly Source: Eurostat.eu Source: Eurostat.eu FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 6
Current situation of the freight transport in Central/ Southeast Europe (2) Increasing negative environmental effects by the transport sector Transport main energy cost driver of a logistics provider Source: Eurostat.eu climate protection treaties: White Paper 2011 EU environmental policy: Climate Action and Renewable Energy Package (2008) Kyoto-Protocol (1997) Source: Günthner (2008) FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 7
Current situation of the freight transport in Central/ Southeast Europe (3) Insufficient transport infrastructure Demand for modern transshipment facilities Lacking interoperability Existing capacities cannot be used due to various bottlenecks Revision process of the TEN-T- core network planned completion until year 2030 TEN-proposal of the European Commission, released October 2011 FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 8
Current situation of the freight transport in Central/ Southeast Europe (4) Human factors Missing awareness for rail freight transports Lacking rail know-how Organisational and administrative obstacles (cross-border procedures, licensing, competition) Cultural and linguistic barriers during transnational transports Different legislative regulations across Europe Source: PA/DPA FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 9
What is FLAVIA and what it is not? FLAVIA (Freight and Logistics Advancement in Central/South-East Europe Validation of trade and transport processes, Implementation of improvement actions, Application of co-coordinated structures): is a knowledge and best practice transfer project is a project to promote intermodal freight transport will establish co-operative structures in the corridor wants to encourage actors to use intermodal transport will prepare pre-feasibility studies fore new intermodal services along the corridor will discuss the extension of the corridor towards TRACECA and Black Sea region What is FLAVIA not?: FLAVIA is not a pure infrastructure improvement project. FLAVIA is focused on logistics processes, new and faster transport channels. FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 10
The FLAVIA corridor and other South-North projects F Involved countries at FLAVIA FLAVIA corridor Black Sea/ TRACECA corridor F F F F F F F Other South-North projects: SCANDRIA SoNorA FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 11
Project Partnership Science/research Associated Project Partners TUAS Wildau (LP) - DE University of Pardubice - CZ Technical University Kosice - SK University POLITEHNICA of Bucharest - RO Upper Austrian University LOGISTIKUM - AT Institute of Logistics and Warehousing - PL Administration Transport industries/ Associations Ministry of Economic of the Federal State Brandenburg - DE Regional Advisory and Information Centre Presov - SK GVZ Development Cooperation South West Saxony - DE Pro Rail Alliance - DE EXPRESS-INTERFRACHT - CZ Interport Servis SK Hungarian Logistics Association - HU FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 12
Measures of the FLAVIA project to strengthen the rail freight transport (1a) Analysis of technical, organisational and administrative bottlenecks Identifying capacity problems Analysing cross-border problems Identifying security risks for goods, rolling stock and transhipment Identifying missing terminals and missing rail liner services (via expert interviews) FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 13
Approaches of the FLAVIA project to strengthen the rail freight transport (1b) TEN-T recommendations from a logistics point of view FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 14
Approaches of the FLAVIA project to strengthen the rail freight transport (2) Establishing cooperative structures Founding pro rail alliances based on the model of the German Allianz pro Schiene e.v. Idea: Lobby organisation for the railway Promoting and taking the view of the railway in politics, public and industry In FLAVIA: New pro-rail alliances will be established in Poland, Austria and Romania FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 15
Approaches of the FLAVIA project to strengthen the rail freight transport (3) Developing an intermodal IT-routing tool calculating intermodal freight transport connections across Europe Underlying network consists of road, rail, inland waterway, short-sea shipping and ferry + 600 terminals Showing an optimal connection regarding time, trip length, costs and energy consumption FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 16
Approaches of the FLAVIA project to strengthen the rail freight transport (4) Promoting best practice examples Collection of 10 modal shift examples Each example presents a shipper which decided to shift transport volumes from truck to train Overall 7 brochures (1 per country) Marketing tool for the shippers Dissemination on events, conferences Positive feedback from European Commission Notable shippers: JYSK, CASTORAMA, KNAUF, SKODA, BLUM, PFEIFER & LANGEN FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 17
Approaches of the FLAVIA project to strengthen the rail freight transport (4) Promoting best practice examples Collection of 10 modal shift examples Each example presents a shipper which decided to shift transport volumes from truck to train Overall 7 brochures (1 per country) Marketing tool for the shippers Dissemination on events, conferences Positive feedback from European Commission Notable shippers: JYSK, CASTORAMA, KNAUF, SKODA, BLUM, PFEIFER & LANGEN FLAVIA Marcin Foltyński 11 & 12 June 2012 Page 18