Dry Ports / Logistic Platforms:

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1 Dry Ports / Logistic Platforms: essential tools for developing combined transport & transcontinental rail freight Bangkok, 18 March 2014 UNESCAP Dr. Miklós Kopp, Director Freight at UIC

2 Global trade is growing and fuels the need for transportation: global logistics has to fit with local logistics Globalisation fuels economic growth Transportation / Logistics enable globalisation Economic growth requires even stronger growth of transportation

3 Rail can be used to support the transportation required by globalisation: combined transport is part of the logistics solution Segments Commodities Share of volume Competitive environment Full Train Coal, Steel Construction materials ~ 35 % Traditionally barge Competition Focus of intra-modal rail competition Price decline Single Wagon Load Chemicals Focus of road competition Paper and pulp ~ 50 % Complex production process, high barriers to entry Intermodal Finished goods Strong road competition Containerized goods ~ 15 % Subsidized in several geographies

4 Steady increase for combined transport volumes in Europe Mill Gross Tons UIC has a dedicated structure: The Combined Transport Group DIOMIS: CT volume forecast Average annual growth of +7% M +36% +3% % +5% M : DIOMIS Situation Report : DIOMIS Situation Report Forecast 2009 Forecast : initial forecast 2015: Revised forecast (Impact of the recession!) 2018

5 Unaccompanied Combined Transport Volumes, : new record high with 18 Mio TEU TEU carried by CT market segment, 2011 CT market segment Continental Maritime Total (TEU) Domestic CT International CT Total CT Domestic Continental Domestic Maritime International Continental International Maritime CT market segment Continental Maritime Total /2009 Domestic CT 3,010 3,863 6,442 7,065 9,452 10,928 15,6% International CT 3,708 4,678 2,416 2,511 6,124 7,189 17,4% Total CT 6,718 8,541 8,858 9,576 15,576 18,117 16,3% Maritime/hinterland continues to keep its leading position with a share of 53% yet slight decline vs Domestic maritime still largest market segment Continental witnessed strongest growth rate Source: UIC 2012 Report on Combined Transport in Europe by KombiConsult

6 Unaccompanied Combined Transport Volumes Goods moved in international CT in Europe since 1988 Growth 2011/1988: + 450% Source: UIC 2012 Report on Combined Transport in Europe by KombiConsult

7 Rail s share of hinterland container transport, 2011 FI P T E S IE D K G 27% Felix % B 11.2 % % stow N Bremerhav Southampto 40% e 12.5% Rotterda L en n 5.7% m Zeebrugge D Antwerpen E Le Havre L U 10.7% Barcelona F R 8.5% Marseille N O C H 22.6% Trieste 23.9% 27.6% Genova La Spezia 21.6% Livorno 43% S E Göteborg % Hambu rg C Z A 61% T Koper SI H R 19.4% IT Ancona 5.2% Napoli 28.7% Gioia Tauro 16.0% 22% R 5% U Gdynia Gdansk B A Taranto P L S K H U A L R S M K G R L T E E L V B Y R O B G R U U A M D T R Total container hinterland volume Rail s share of container hinterland volume According to worldwide logistics provider: Europe remains the first market for logistics services in the world 65% of European exports are for Europe Strong demand for intermodal solutions (maritime & continental) : potential to further develop hinterland offer out of ports Source: UIC 2012 Report on Combined Transport in Europe by KombiConsult

8 OVERALL TRENDS Increasing container carriers size: TEU today Congestion restrains storage and marshalling possibilities Limited inland connections capacity by all modes Delays appear in the supply chains Customer demand according to road Punctuality For many customers punctuality is more important than the actual transit time Reliability Continuous compliance of guaranteed capacities Frequency Increasing reliability by frequently departures 2011 HHLA Intermodal GmbH Flexibility Density Price- Performance Security Information source Ability to respond to varying volumes Dense hinterland network Competitiveness to direct road transport Avoiding damages or theft Seamless bi-directional IT-process of booking, order processing, billing as well as tracking and tracing

9 Top terminal areas and seaport-related terminals 9

10 Need to build an infra- & operator-efficient CT network Industrialized production multi-frequency shuttle & direct services between key economic areas small- and medium-size areas served by shuttle via gateway/hub high level of interconnectivity at hubs Etc. Inland transport area Sea and ferry port transport areas Rotterdam Hannover Duisburg Wroclaw Leipzig Neuss Katowice Köln Genk Praha Lille Nürnberg Le Havre Ludwigshafen Wien Paris Wels Singen München Salzburg Basel Budapest Graz 50 CT trains/day Ljubljana Lyon Milano Verona Novara Padova Trieste/Koper Avignon Genova Bologna Pamplona Perpignan Marseille Zaragoza Roma Bari Madrid Barcelona Antwerpen Zeebrügge Bremerhaven Wilhelmshaven Gdynia Lübeck Rostock Livorno La Spezia Hamburg Poznan Warszawa Napoli Tarragona Taranto Lisboa Valencia Gioia Tauro 10 Existing international hubs Catania

11 TIGER PROJECT The concept is to create an inland dry port linked to the maritime port by efficient shuttle trains The Rail link carries long trains created either in one port or resulting from the bundling of two trains coming from two ports The dry port is a freight village including an intermodal terminal, a marshalling yard or a hub, a conventional terminal and a logitics area. From this dry port trains depart serving the hinterland Demonstrator at Munich Riem for Hamburg and at Rivalta Scrivia for Genova are in progress

12 ITALY: a network of Interporti Scattered production areas Economy struggling: need for efficient and cost effective distribution solutions Reorganization of rail services: hub & spoke -Hubs: Milano, Cervignano, Bologna -Emergence & organization of INTERPORTI 12 Source: UIR 2012

13 SPAIN : Intermodality key for serving the hinterland Barcelona - Zaragoza Bordeaux Paris Antwerp Lyon Toulouse Vitoria Burgos Noaín Leixoes Arrúbal Perpignan Zaragoza Lleida Madrid 300 km Tarragona Lisboa Entrocamento 600 km Ludwigshafen Strasbourg Genova Livorno Barcelona Roma (Civitavecchia) Aims of the rail strategy Further develop the hinterland use of Zaragoza, this is even more needed as ships getting bigger Secure commitment from large volumes and big customers Improve the competitiveness of corridors Provide add-on services: empty storage, container repairs etc. TangerMed Tunis Source: Port of Barcelona, GRFC 2012

14 Luxembourg: General context in terms of multimodal development Central location Important international transit Attractive frame for creating logistical activities Important neighbor markets Intersection of major rail and road corridors Few industries, Few local volumes Opportunity to stop flows Limited capacity for developing organic huge rail volume Need for Luxembourg specific solutions Need to create value for money solutions answering to the main pains of rail QUALITY FLEXIBILITY CUSTOMER SERVICE COSTS EFFICIENCY Source: CFLMM, GRFC 2012

15 When East meets West: Global flows need regional distribution For rail to be fully competitive with other transport modes like deep-sea shipping in Asian European transports it is vital to have regional distribution networks at hand. Global supply-chains do not end/begin in a major European hub. There is need for distribution/collection of cargo at the door of our European costumers. This means that a reliable network is needed to feed and de-feed the big international rail hubs. 15

16 To exploit the huge market potential, Eurasian rail services need to be improved significantly along key levers 16

17 17

18 The GRFC tries to encourage greater exchange on a global level among all stakeholders 18

19 Thank you for your attention

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