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Rail Freight Solutions for Greening Logistics 11th UIC Sustainability Conference Madrid, 16 June 2010 Oliver Sellnick, Director Freight UIC

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Page 1: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

Rail Freight Solutionsfor Greening Logistics

11th UIC Sustainability Conference

Madrid, 16 June 2010

Oliver Sellnick, Director Freight UIC

Page 2: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

2 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

Transportation is the only sector of the worldeconomy with growing CO2 emissions

Source: EEA 2007

What to do about the “dirty side” of globalization?

Projected changes in EU15 CO2 emissions from 1990 to2010 with existing policy measures

Page 3: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

3 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

Modal shift is the key element to curb the CO2emissions from transportation

Source: International Transport Forum

On average rail emits three to four times less CO2 than road

Global transport CO2 emissions by modal share, 2005

EU rail market share:•Passenger 7%•Freight 18%

Page 4: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

4 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

Railways have to continously improve their environ-mental performance and to offer attractive products

Potential strategies for reducing impact of transportation on global warming

Outside influenceof rail

Convincecustomer with

attractive services

Constant need toinnovate and

optimise

Page 5: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

5 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

Strong economic growth does not always haveto lead to a shift to road

>30% China /India growing

30% stable20-30% stilldeclining

5-20% stabilizingINTERMODAL

MARKETSHARE

Buildinfrastructure tosupport rapidgrowth

Attract capital tofinanceinfrastrutureexpansion

Stabilize volumeat sustainablelevel

Ensure long-termsurvival of sector

KEYCHALLENGES

Postive CFProfitableBreakeven toprofitable

Loss makingBOTTOM LINE

1.200 km> 2.000 km500 km350 kmAVERAGE

TRANSPORT

DISTANCE

-Shipping

-Road

-Road

-Rail

-Road

-Rail

-Road

-Barges

-Coastal shipping

-Increasingly rail

COMPETITION

China / IndiaNorth AmericaEastern EuropeWestern Europe

Page 6: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

6 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

Market situation in three major businesssegments in Europe

Page 7: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

7 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

CombinedTraffic

GTC

E.Peetermans

IMPORT:indus-trialisationof CT*

Marketissues

USE-IT

Jointactivitieswith UIRRin Interunit

UIC FREIGHT FORUM Chairman – Ferdinand Schmidt - CEO RCA

QualityMgm.

SGQuality

H.PfeifferRCA

Dangerousgoods*

Managementsystems

BusinessExcellence*

WagonUsers

SGWagonUsers

E.Peetermans

GCU JointCommittee

Rest of RIV

CommercialModel Useof wagons(CMU)

Loadingrules*

SingleWagon Load

G. FerkDB

Europeanproductionalliance

Reliability andtransparency

Commercialstructure ofcooperation

IFC Interunit

FreightForwarders

ContactGroup

C. Biteau

Regularexchangewith FreightForwarders*

Market PlaceSeminars(Barcelona 2-3 Nov)

S.Gehenot

InformationTechnology

SGIT

R.WilkeDB

TAF TSI RUCluster

RICS +Hermes(Messaging)*

ISR,ORFEUS

eRail Freightandpaperless *

B.Schmitt

FreightOps.

SGOps

H.FikarRCA

Cross borderprocessoptimisation*

Coordinationwith Infra-structure

Supply chainsecurity

OperationsTSI

S.Gehenot S.GehenotB.Schmitt

J.FazikG. Manding G.Manding

TAF TSIImplem.

SGOps

J. Sundling

Deploymentactivities andsectorcoordination

EUCommissioninterface

CommonComponentsDevelopment

J.Lutz

EU TAF TSI

GlobalFreight

GTE

V.Yakunin

GTE:Landbridgesand inter-nationalcorridors*

ProjectICOMOD*

GRFC

G.MandingS.GehenotS.Nerdal

GLOBAL

UIC – a universal platform for cooperation in freight

www.RailFreightPortal.com

Page 8: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

8 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

> Zurich, 18 February2010: signing of allianceand press conference

> Xrail: production alliance

> For internationalwagonload business

> Uniform productionstandards

UIC Special Group Xrail launcheswagonload production alliances

Page 9: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

9 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

Xrail features

Page 10: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

10 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

The network will start small and berolled out in stages across Europe

Page 11: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

Agenda 2015 for Combined Traffic in Europe

Efficient use of infrastructureand international coordiation

(selected measures)

1. Path-saving productionsystems

2. Enhanced processorganisation of rail traction

3. Train and network capacitymanagement systems

4. Application of bestpractices in terminaloperation and management

5. Regular nationwide andinternational coordinationof terminal development

Actions IM RU IO TO MoT EC Other

Employment of infrastructure-efficient, train path-saving railproduction systems □ nApplication of incentives in infrastructure access charging systems n □ □ □

Improvement of punctuality of rail traction services nEnhanced process organization of rail traction services □ n □

Advanced train and network capacity management systems □ nImplementation of longer and/or heavier trains including minorinfrastructure adaptations □ n □ □

1)

Increased wagon axle loads n □ □ □1)

Best practices in terminal operation and management □ □ □ n

Implementation of ongoing and envisaged rail network investments n □ □

International agreement on “Achilles’ heels” removal programme □ □ □ □ nRealization of ongoing and envisaged terminal investments andintermodal hub programme □ □ □ n □Standardized process for international co-ordination of CT terminaldevelopment □ □ □ □ n

1)Railway Industry ■ Main Actor □ Involved Party

More infrastructure investments and international co-ordination

More efficient use of infrastructure

Page 12: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

12 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

I.M.P.O.R.T. - industrialising Combined Traffic

Integrate the recommendations ofAgenda 2015 into a vision forindustrialising intermodal services

Improving productivity

production models

requirements for terminals /---gateways / hubs

business models / markets

wagon productivity

Running from July for 10-12 months

I.M.P.O.R.T - improving theproductivity of rail intermodaltransport

Page 13: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

13 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

The econfriendliness needs to be made “tangible”

Neutral tool to demonstrate energy consumption and CO2 emissions ofalternative transport modes for a specific transport request

100 tons of average goods from Berlin to Milano, road vs rail

Page 14: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

14 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

Measuring GHG emissions and energyconsumption with www.EcoTransIT.org

Page 15: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

15 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

Emission performance can be increased byusing „low CO electricity“

Page 16: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

16 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

JR Freight‘s HD300 Diesel Hybrid Locomotive

Page 17: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

17 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

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 supportedby Gas de France)

Avoiding traffic jams on high-ways in the morning

Already 1/3 of all goods migrated to rail based logistic chain

Page 18: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

18 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

Environmental advantages need to be packagedinto attractive products and marketing

Page 19: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

19 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

− Fair competition: Internalisation of external costs andearmarking resulting revenues

− Balancing infrastructure investments between differentmodes of transport, i.e. shift from road to rail

− End erosion of rail freight in CEEC by stopping cross-subsidies via track access charges (TAC) and publicservice obligations (PSO)

− Limit financial burden of interoperability (ERTMS, TAFTSI), noise reduction measures and other regulations

− Avoid disadvantages for rail through the EmissionTrading Scheme

Modal shift needs the right frameworkconditions

Page 20: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

20 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

www.RailFreightPortal.com – your source forinformation about rail freight

Page 21: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

21 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

Get the full picture of rail freight around theworld in Saint Petersburg: www.uic-grfc.org

Page 22: Rail Freight Solutions for Greening Logistics · 2010. 6. 23. · 11 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 / Agenda 2015 for Combined Traffic

22 Freight / Oliver Sellnick / 11th UIC Sustainability Conference / 16 June 2010 /

Thank you for your attention!