ScandFibre Logistics. Rail conquers sea? Mats Erkén Baltic Shipping Days. Oct 30th, 2012

Transcription

1 ScandFibre Logistics Rail conquers sea? Mats Erkén Baltic Shipping Days Oct 30th, 2012

2 ScandFibre Logistics - Owners / Partners 20 % each 10 plants total 2

3 History Phase 1 - Rail Phase 2 - Rail 99/07 7 mills Phase 3 - Rail 11 5 mills 10 mills 3

4 Transport types - Swedish Export 2010 Pulp & paper Sawn timber Lastbil Järnväg 18% Järnväg 10% 1% 36% 64% Fartyg 72% Total 13,3 million ton Source: Trafikanalys och Trafikverket Fartyg Total 6,0 million ton Lastbil

5 Infrastructure Development Rail - Sweden Higher focus on freight traffic issues Prio of bottlenecks before new capacity 20 billion SEK until 2021 Longer and higher load trains Corridor strategy when new investments Preparation for increased capacity

6 Motivation Owners for ScandFibre (phase 3) Logistics costs Cost efficiency with size Risk minimization with rail with upcoming IMO taxes Reduced cost /distances secondary transport Increase delivery reliability - rail Regular and frequent departures Own control by own professional organization Environmental / customer aspects Potential to build value 6

7 Environmental effect rail vs. truck 1 train / 20 wagons = tons 52 trucks = tons = 1 train per week 1 train per week all year: -140 tons of CO tons CO2 35

8 Upcoming taxes & costs on transports Rail system charges Sweden > 2021 stepwise 0.6 -> 2,0 billion / year IMO cost impact + 1,4 billion SEK billion SEK Start 2015, yearly cost increase Source: Trafikverket Sjöfartsverket 8

9 Rail 11 System - Scandinavia 10 plants in Sweden 2 million tons Daily departures Karlsborg Piteå Dynäs Ånge Iggesund Gävle Hallstavik Frövi Grums Hallsberg Braviken Skärblacka Göteborg Malmö

10 Rail 11 System - Continental Europe Ånge Major hubs in Germany Fixed departures from hubs to regional areas Hallsberg Göteborg Malmö Lübeck Hamburg Bremen Berlin Gohfeld Dortmund Neuss Antwerpen Dresden Köln Decin Woippy Dijon Kehl Wien Basel Milano Köln Irun Nürnberg Torino Modena Kehl Wien Perpignan Gävle Norrköping

11 Rail11 System - Figures Volume North -> South 2,0 Mton Wagons from Scandinavia return loaded (36%) Terminals 50 Average lead-time 5,5 days Turnover Employees 110 million EUR 33 11

12 Suppliers and Train Operators

13 Return freights key for cost reduction Partner Smurfit Kappa Hoya W NE Ontime Logistics Customer From to Goods Hoya SE, DK, NO Paper (Testliner) Wagons/ Turnover year k /y Modena SE, DK, NO Pasta, Olive Oil, Tomatoes, etc Essinge Rail Kehl SE Industrial parts, Cognac etc Innocenti Milano SE Pasta, Olive Oil, Tomatoes, etc Innocenti W NE Milano SE Furniture Captrain W NE Woippy SE Chemical wagons to Södra Pulp mills Wibax Berlin SE Salt ( road) Essinge Rail Berlin SE Beverages etc Essinge Rail Modena SE Industrial parts, olive oil etc

14 Example mill strategy z Combination different transport types Mill x now 1-3 years Boat 50% decrease Rail 30% increase Truck 20% stable / decrease Rail y North Sea Link Medeterian Route Rail UK Townsend Hook Terneuzen BeNeLux Bremen Düsseldorf Paris = Vessel Terminals Vienna Dijom = Customers Italy Barcelona Alicante 14

15 Volumes 2012 Share (%) railway transports among owners Rail / Sea / Truck 2012: 2015 scenario: 40/40/20 60/25/15 Owner 1 Owner 2 Owner 3 Owner 4 Owner 5 Total Total volume kton Share SFL % 50% 13% 58% 80% 33% Railway /SFL kton %

16 Success factors Rail 11 system Coordinate fixed capacity with volume fluctuations 3 month & 2 weeks rolling forecasts Competence logistics and IT-systems Sales return freights Disturbances infrastructure Wagon repairs, snow

17 Experiences Rail 11 system High interest, BOD strategy is often rail Few suppliers challenge's Importance IT system Mental difference (old) rail culture and paper industry Proactivity Customer needs Quality

18 Summary - Rail conquers sea? Most important KPI s are cost and delivery reliability By pooling volumes, rail systems can be built with high reliability and reduced costs Upcoming IMO charges and improved rail reliability has increases rail interest for pulp & paper industry There will always be a symbiosis with different transport types, but the share in-between could change Capacity on rail will improve Probability reasonably high that rail will increase share vs. sea. 18

19 ScandFibre Logistics Questions?