- Rail based transports between China and Europe. DB Schenker RLF Kelsterbach, June 28, 2012

Transcription

1 - Rail based transports between China and Europe DB Schenker RLF Kelsterbach, June 28, 2012

2 Agenda Introduction DB & DB Schenker China-Europe train activities Rail advantage DB Schenker advantage Our offer today Discussion 2

3 A rail freight company operating in Germany has become a global transportation and logistics group Until 2001 National rail freight network Today Global transportation and logistics network Acquisitions, organic growth 19.8 EUR bn 1 revenue 3.5 EUR bn revenue Rail freight network Primarily national services Solutions along the whole logistics chain Global network with intermodal services 1 as of: DB Mobility Logistics AG, Transport and Logistics division 3 approved (DB 2011)

4 Today around 95,000 employees represent DB Schenker worldwide in 130 countries DB Schenker locations and employees Europe (incl. Russia) approx. 71,500 employees Employees according to BU 34% 66% America approx. 9,200 employees Own locations Partners Near Middle East / Africa approx. 1,200 employees Asia-Pacific approx. 12,500 employees DB Schenker Logistics DB Schenker Rail Date: , FTEs DB Mobility Logistics AG, Transport and Logistics division 4 approved (DB 2011)

5 Global transport networks for all modes of transport strengthen the market position of DB Schenker Worldwide land, sea, and air transport networks Rail Freight No. 1 in Europe 1) Land transport No. 1 in Europe 2) Air No. 2 worldwide 3) Rail Freight Air Land transport Ocean CL/SCM Ocean No. 3 worldwide 4) CL/SCM No. 6 worldwide 5) Source: DB 1) according to tkm 2) according to revenue 3) according to t 4) according to TEU 5) according to revenue DB Mobility Logistics AG, Transport and Logistics division 5 approved (DB 2011)

6 In our network we move tons of freight - worldwide, 24 hours a day Rail freight transport 412 m t Transport volume p.a. = Twice as much as Germany s coal production in 2010 Air freight 1.1 m t Transport volume p.a. = Weight of 240,000 elephants Ocean freight 1.8 m TEU Transport volume p.a. = Length of a row of containers stretching from Hamburg to Shanghai HH SHA Land transport 95 m shipments p.a. = 2 shipments per second Contract logistics > 6.0 m m 2 of storage area = 1,100 football fields Source: DB ML AG, figures rounded 1) Twenty-foot Equivalent Unit DB Mobility Logistics AG, Transport and Logistics division 6 approved (DB 2011)

7 Agenda Introduction DB & DB Schenker China-Europe train activities Rail advantage DB Schenker advantage Our offer today Discussion 7

8 There are currently two main rail routes used by DB Schenker between China and Europe Overview of main rail routes ILLUSTRATIVE Explanation 1435 mm gauge RU 1520 mm gauge Gauge change PL 3 BY 1 1 Manzhouli (CN) - Zabaykalsk (RU) KAZ 2 MN 2 3 Alashankou (CN) - Dostyk (KAZ) Brest (BY) Malaszewicze (PL) CN = Northern Route (lead time: 26 days) 1 = Southern Route (lead time: 22 days) 1 1) Based on block trains 8

9 DB Schenker has been investigating regular China-Europe train services since 2007 service professionalization since 2011 Track record DB Schenker China Train Number of trains First train between Beijing and Hamburg 2007 Test services on Northern and Southern route in company trains run on a non-regular basis from Chongqing to Duisburg (IT products) Start of regular company train service (Automotive) on the Northern route from Leipzig to Shenyang (eastbound) Since March regular company trains run on westbound route on weekly basis Further trains planned on eastbound route Additional efforts to realize a multicustomer train on the Northern route from China to Europe Until Time 9

10 Case study: Chongqing Duisburg train for IT customer Operated since spring 2011, weekly service March 2012 Dedicated train for a customer from the IT industry with reliable door-to-door time of days 1 pilot train and 4 qualifying trains followed by 6 weekly trains in August / September in 2011 Regular weekly service since March

11 Case study: BMW trains Leipzig to Shenyang In operation since late 2011 Packing of containers with Completely Knocked Down (CKD) parts in new logistics center in Leipzig Block train transportation from Leipzig to Shenyang in North-Eastern China Capacity of 40 containers (40`) per block train Transportation time of 23 days (door to door) Use of 40 feet high cube containers Currently exclusive service for BMW Daily trains planned Approx. 40 containers per train Transportation time < 25 days 11

12 Agenda Introduction DB & DB Schenker China-Europe train activities Rail advantage DB Schenker advantage Our offer today Discussion 12

13 Customers chose from different transport modes according to their needs cost and time as major decision factors Available trade lanes Asia-Europe (lead times 1) ) Comparison of transport modes CN-EU Transsibirische Eisenbahn Trans-Siberian Railway (20 days) Cost USD/FEU Southern Route (16 days) Air Air route (4 days) Sea/Air Rail Sea Sea route (35 days) Sea route (45 days) Transit time Days 1) Terminal-to-terminal lead times 13

14 Rail is positioned between Ocean and Air offering customers an interesting alternative to traditional modes Comparison of transportation costs / lead time door-door One notebook from Chongqing The Netherlands Ocean Rail Ocean/Air Air USD / notebook 1.4 1) 4.3 1) 9 16 Lead Time 38 days 22 days 22 days 4 days Ocean Rail Rail offers a 16 day lead time advantage. However, price is three times that of ocean Air Rail Rail offers > 70 % price reduction. However, lead time is 18 days slower Ocean/ Air Rail Rail offers > 50 % price reduction with same lead time 1) Depends on number of units per 40 Ct Assumption here is units 14

15 Apart from economic advantages Rail offers the most environmentally friendly transport mode Example: Door-to-Door transport from Beijing to Duisburg CO 2 -Emission kg CO 2 / ton From an environmental perspective Rail transport is the preferred choice for shipments between China and Europe Rail is not only the most ecological mode of transport in terms of CO2 emission but also regarding other pollutants 1) Rail service between China and Europe makes sense from an environmental as well as a business perspective Rail Ocean Ocean+Air Air 1) e.g. PM (particulate matter), NMHC (non-methane hydro carbons), SO2 (sulphur dioxide), NOx (nitrogen oxide) Source: Eco Transit tool DB Schenker 15

16 Agenda Introduction DB & DB Schenker China-Europe train activities Rail advantage DB Schenker advantage Our offer today Discussion DB Schenker June

17 DB Schenker is in an excellent position to develop rail services from China to Europe and vice versa Vast distribution network by rail and truck Excellent relationship with railway operators Outstanding operational expertise Well-established block train system in Europe Pre- & on-carriage by truck feasible in China and Europe based on dense branch network Participation in railway conferences (CN/EU land bridge) Three joint ventures with China and Russian Railway TEL ( RU) CRIntermodal ( CN) YuXinOu ( CN, RU) Deep operational insights regarding booking, container provisioning and customs Comprehensive security concept from container loading to unloading destination 17

18 Our joint venture CRIntermodal provides us with direct access to a large terminal network in China Terminal locations Terminals (as of October 2011) Planned Terminals Urumqi Lanzhou Chengdu Xi'an Beijing Chongqing Tianjin Shenyang Zhengzhou Wuhan Harbin Dalian Qingdao Shanghai Ningbo Offers intermodal container transportation in China 5 shareholders that combine local and overseas expertise in transport and logistics (CRCT, NWS Holding, CIMC, Luck Glory and Deutsche Bahn) 9 terminals already completed, 9 more planned) Kunming Guangzhou Shenzhen Source: CUIRC China, DB Intermodal Services 2010, DB Schenker Logistics China

19 Agenda Introduction DB & DB Schenker China-Europe train activities Rail advantage DB Schenker advantage Our offer today Discussion 19

20 In rail transportation there are two transport modes: Single wagon and block train transportation Comparison single wagon versus block train Single Wagon Block Train Key feature Container is transported in several trains from shunting station to shunting station longer breaks and detours likely Container is transported in a single train without unnecessary stops and on the shortest route Advantages Booking of a single container possible Departure possible every day Short transit time with high reliability Lower price per container than single wagon Disadvantages Long transit time with low reliability Higher price per container than block train Minimum of 41 x 40 containers required Low frequency (e.g. perhaps only once per week) Fixed departure dates 20

21 Currently we offer single wagons and company block trains multi-customer trains are still under development Product Availability Comments Single Wagon Available (for CN-EU only on Northern route) Single containers or container groups do not have prioritized transit as complete block train Company Train (Block train for one customer) Available Block train consisting of at least FEU containers from one customer Multi-customer Train (block train for several customers) X Not yet available Block train consisting of at least FEU containers carrying volume of several customers 21

22 All along the route, the respective railways have a vast set of modern security measures in place Overview of selected security measure along the route Modern terminal facilities with qualified staff Terminal areas are fenced in The railway police are mostly located directly at the terminals The terminal and station areas are under video surveillance Entry to the terminal only for customs, railway stuff or with authorization (identification card) The cargo on the terminal territory is guarded by the local railway police and security personnel Armed guards partially on the train, in terminal and stations DB Schenker June

23 Temperature can affect cargo safety - sensitive goods require a solid winter solution for year-round transport Brest Ost PL BY RU Ilezk KAZ Often, temperature sensitive goods transported Duisburg Dostyk Minimum Chongqing Chengdutemperatures Kazakzhstan Dostyk -35 Beskol -40 Karaganda-Sort. -43 Kandyagach -45 Aktobe -48 Russia Ilezk-1-40 Orenburg -37 Kinel -30 Rusaevka Penz. Park -28 Kustarevka -29 Rybnoe -28 Bekasovo -27 MN Vjazma CN -27 B Smolensk -26 Belorussia Krasnoe -25 Orsha-C -23 Baranovichi-C -22 Brest Ost -23 Extreme low temperatures on the route from China via Kazakhstan and CIS during the winter months Winter container solution required to avoid the temperature falling below - 20 C DB Schenker is actively working on a winter solution and already well advanced 23

24 Advantages of the DB Schenker China train product at a glance Speed Much faster than Ocean freight China train Costs Less expensive than Air freight & Sea-Air products Environment Environmentally most friendly transport mode DB Schenker China train key success factors DB Schenker Excellent relationship with railway operators along the route Well-established distribution system in China and Europe Outstanding operational expertise based on past and current solutions Foto: Rüdiger Nehmzow 24

25 SMGS Waybill for test container from 2007 Progress in paper work has been made since then 25

26 Agenda Introduction DB & DB Schenker China-Europe train activities Rail advantage DB Schenker advantage Our offer today Discussion 26

27 Rail A new product for DB Schenker in China with large potential 27