Intermodal Transport Network Development Key Observations and Recommendations from Cefic Report 2014

Brussels, July 2014

Theo Zwygers

Cefic SIG Logistics

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Intermodal transport is a key enabler towards

more sustainable logistics

The EC Transport Whitepaper “Roadmap to a Single European Transport Area - Towards a competitive and resource efficient transport system” is highlighting the importance of:

“ developing a ‘core network’ of strategic corridors which is capable of carrying large and consolidated volumes of freight with high efficiency and low emissions thanks to the extensive use of more efficient modes in multimodal combinations”.

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To achieve more sustainable logistics a

significant modal shift is required

One of the most prominent targets in this context is the EU’s ambition to shift 30% of road freight over 300 km to other modes such as rail or waterborne transport by 2030, and more than 50% by 2050.

The EU recognizes that this will require the development ofappropriate infrastructure, concluding that efforts should focus on:

• completion of missing links

• upgrading of existing infrastructure

• development of multimodal terminals

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The chemical industry has already captured

the majority of intermodal opportunities

Chemical companies are finding it difficult to further increase modal shift without jeopardizing service levels finding themselves constrained by:

limited train capacities

lack of reliable services

congested terminals

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To support the EU’s ambitious plan a Cefic

Issue Team was formed

Objectives

• Assessing current and future intermodal transport needs (identifying

major volume flows)

• Highlighting current and expected capacity bottlenecks

• Identifying needs for investment in intermodal infrastructure

• Demonstrating the commitment of the chemical industry and its service

providers to further increase the share of intermodal transport

Composition

Chemical companies and logistics service providers supported by SGKV

(Studiengesellschaft Kombinierter Verkehr)

The issue team’s findings and recommendations are summarizedin the Cefic report “Intermodal Transport Network Development”as well as in a separate Cefic position paper

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Current intermodal transport volumes are concentrated on well known corridors

Source: SGKV / Cefic – based on a survey conducted amongst 13 chemical producers

The average share of intermodal volumes of chemical goods originating from Germany is

56 %, from Benelux 54 % and from Italy 63 %, compared to France with only 15 %

intermodal volume share

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Only limited potential for volume growth in intermodal transport along existing main corridors

Source: SGKV / Cefic – based on a survey conducted amongst 13 chemical producers

• Significant growth potential only noticeable ex France and Germany

OriginTotal Volumes

2011 (1000 t/a)

Total

Intermodal

Volumes 2011

(1000 t/a)

Avg.

Intermodal

Share (%)

Potential

Intermodal

Volumes 2020

(1000 t/a)

Potential

Intermodal

Increase (%)

FRANCE 2.095 333 15 371 11

GERMANY 2.885 1.196 56 1.503 32

GB 625 425 69 427 1

ITALY 298 123 63 125 1

BENELUX 2.020 1.117 54 1.149 2

POLAND 70 10 11 10 0

SPAIN 114 78 63 82 3

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Potential growth in intermodal transport if obstacles and bottlenecks would be removed

Source: SGKV / Cefic – based on a survey conducted amongst 13 chemical producers

The chemical producers identified 1.4 million tons (on top of current 8,2 million tons)

that could be shifted towards intermodal transport on existing and new corridors

(increase with 17%) if all requirements would be met.

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European White Paper objective of 30% intermodal transport shift

42%

33%

25%

Reaching the goal of shifting 30 % of road

transport over 300 km (Chemical Industry)

Yes, possible Possible, but with much effort

Rather impossible Impossible

7%

79%

14%

Reaching the goal of shifting 30 % of road

transport over 300 km (Logistics Service

Providers)

Yes, possible

Possible, but with much effort

Rather impossible

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Main obstacles for using more intermodal transport

in order of importance

Main obstacles

High cost compared to road transport

Missing intermodal connections

Insufficient frequency or capacity of intermodal connections

Insufficient or missing last mile solutions

Insufficient or missing terminal infrastructure

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Recommendations on how to increase the

intermodal share 1/3

Current challenges Recommendations

Reliability intermodal services To be competitive on-time reliability must be

comparable to road transport.

Customer orientation Better availability detailed status information of

every transport operation would lead to a

higher acceptance of intermodal alternatives.

Costs in many cases too high

versus alternative modes

Efficiency increases of intermodal transport

need to be further explored, e.g. the possibility

of heavier and longer trains. In this context,

authorized weights of up to 48 tonnes for

intermodal road transport need to be

considered.

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Challenges and recommendations 2/3

Current challenges Recommendations

Insufficient frequency or capacity of

existing intermodal connections

Major terminals along the axes between

Benelux / Germany and Northern Italy need

more capacity to deal with additional

volumes, avoiding waiting times and late

deliveries. New terminals are also needed

to further develop routes to CEE and

Russia.

Missing intermodal connections In particular in France and Spain.

Intermodal operators and logistics service

providers need to optimise the intermodal

solutions to their customers, increase

collaboration to enable new intermodal

connections.

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Challenges and recommendations 3/3

Current challenges Recommendations

Lack of seamless cross-border

operations

Cross-border approach in the development

of intermodal solutions. Further

harmonization in organisational, technical

and legal matters. Influence of national

interests need to be reduced.

Last mile (on-carriage trucking)

solutions insufficient or missing

More collaboration between logistics

service providers is required to jointly

develop the missing last mile solutions,

e.g. by sharing service partners or

bundling volumes to justify investments.

Missing focus on barge transport Intermodal barge transport requires

stronger consideration. Is today limited to

dedicated solutions for specific single

transport chains or to connection with

deep sea ports.

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Required regulatory changes

To improve European inter-operability also requires a number ofregulatory changes:

• Open Intermodal market: Further liberalization, more competition

• EU-wide technical rail standards: EU wide framework. Consistenttechnical parameters and equipment certification (e.g. gauges, trainlengths, total train weight, weight of wagons, security, noise, etc.)

• Harmonised dangerous goods regulations across EU

• Harmonized customs regulations: Documentation harmonization,paperless green corridors, short sea harmonized with intermodal road,rail and barges

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Chemical companies’ commitment

To support the further development of intermodal transport solutions,chemical companies should:

• provide intermodal transport operators, terminals and traction

providers with more visibility about additional transport demand

• participate in strategic planning discussions, e.g. via round table

meetings, jointly exploring opportunities for further modal shift

• engage in more horizontal collaboration, bundling demand of multiplechemical companies and shippers from other industries.