KNEG - Resultatkonferens 2013 Stockholm. Samverkan mellan aktörer Effektiva & Hållbara intermodala transporter

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1 KNEG - Resultatkonferens 2013 Stockholm Samverkan mellan aktörer Effektiva & Hållbara intermodala transporter

2 Volvo Group Trucks Does a manufacturer of commercial vehicles develop intermodal solutions and utilize different modes of transport?

3 European challenge The transport sector is crucial to the competitiveness of the EU. We need a long-term plan about how to develop sustainable and efficient transport. Volvo is in favour of strengthening and combining all the different modes of transport.. Leif Johansson, Former CEO, Volvo Group

4 Strategical backbones Intermodal highways Background Strategical decision within the Volvo Group to use different modes of transport in order to secure capacity, competitiveness and sustainability. Eurobridge Short Sea concept connecting Sweden<> Belgium Train 8 Rail concept connecting Sweden<>Belgium Göteborg Malmö Hallsberg Umeå Stockholm Älmhult Olofström Viking Rail Rail concept connecting Sweden<>Germany Gent Hannover Kornwestheim = Volvo final assembly plants = Volvo component plants = Consolida5on points [rail]

5 Train 8 Existing logistics concept Volvo Cars Olofström à Volvo Cars Gothenburg 10 trains/week to/from Gothenburg 50 SGNSS wagons, 150 containers per day 316 km, 6 hrs transport time Volvo Cars Olofström à Volvo Cars Gent 12 trains/week to/from Gent (combined in Älmhult/VTC) 40 SGNSS wagons, 102 containers per day 1300 km, 24 hrs transport time Volvo Trucks Umeå à Volvo Trucks Gothenburg 5 trains/week to/from Gothenburg 10 Multipurpose wagons, 120 cabins per day 983 km, 20 hrs transport time, sequence of cabins Re-loading of finished vehicles Gothenburg à Umeå Volvo Trucks Umeå à Volvo Trucks Gent 12 trains/week to/from Gent (combined in Älmhult/VCC) 12 Multipurpose wagons, 144 cabins per day 1 Mega-Twin wagon, 2 mega trailers per day 2500 km, 48 hrs (56 hrs) trp time, sequence of cabins

6 Viking Rail Existing logistics concept Developed Implemented October 2008 ~40% of Volvo Group & Volvo Cars volumes from Germany to Sweden transferred from road to rail Block train: Hannover <> Gothenburg 1 block train per day to/from Gothenburg 18 Mega-Twin wagons, 36 mega trailers/day 1074 km, 18 hrs transport time Single wagons: Kornwestheim <> Hannover 1 train per day to/from Hannover 6 Mega-Twin wagons,12 mega trailers/day 498 km, 6 hrs transport time Automotive RailNet used [combined with production material for the Daimler Group]

7 CO2 savings - Train 8 & Viking Rail vs road The annual CO2 saving in using rail set ups Train8 and Viking Rail equals driving around the earth 74 times CO 2 Total CO2 saving kg Driving 30 km to work times... CO 2.. or a yearly consumption of household electricity for villas Road setup kg CO2 Viking Rail and Train kg CO2 Note: CO2 savings are on an annual level and calculated on volume base for 2013 Compiled by Eva Kristoffersen, Quality & Environment Improvement Manager

8 Collaboration; Viking Rail Develop an intermodal solution between Germany<>Sweden Challenge/Opportunity Volvo Group s objective: Develop an intermodal solution between Germany and Sweden in 2006 Solve imbalance in Volvo Group s flow (15% in return flows) in order to create positive business case Solution Volvo Group invited potential road carriers for pre- and on-carriage to a partnership Volvo Group is selling trailer slots SB to Ewals & Rhenus Northbound: 100% Volvo cargo Southbound: 15% Volvo cargo and 75% 3rd party cargo Result Annual CO2 saving: ton per year Intermodal solution implemented 2008 Volvo Group transferred ~40% of the total Inbound volume from Germany to Sweden from road to rail Nominated road carriers could develop an intermodal strategy/product for third party customers

9 Collaboration; Train 8 Reduce imbalances in the domestic transport corridor Challenge/Opportunity Volvo Group; Empty transportation Gothenburg à Umeå Autolink; Empty transportation Umeå à Gothenburg Same wagon type used by both parties Solution Cooperation established 2013 between Volvo Group, Autolink and Green Cargo Re-loading of finished vehicles from Gotheburg to Umeå Volvo Groups Multipurpose wagons used Result Annual CO2 saving: 357 ton per year Increased wagon utilization northbound by +20% Reduced transportation costs Increased utilization at Volvo Groups combi terminal Reduced lead-time [Autolink/OEMs] Increased punctuality [Autolink/OEMs] Reduced financial risk [Autolink/OEMs]

10 Collaboration; Train 8 and Viking Rail Securing high quality, punctuality and deviation handling Challenge/Opportunities Keep Volvo cargo on rail by securing high quality, punctuality and deviation handling in the international transport corridor Solution Partner meetings are held 2-3 times per year Agenda topics (exampels): Punctuality follow-up Deviation process, Back-up solutions Volvo Desk, Information flow, Quality handbook Web based track & trace, GPS & RFID Root cause analysis for delays & improvement areas Result Keep annual CO2 saving: ton per year Improved quality & punctuality Improved collaboration & communication Improved deviation process & internal processes Creates responsibility and commitment Infrastructure managers

11 Success factors [Volvo Group experience] Collaboration à Efficient & Sustainable intermodal solutions Develop a long term sourcing strategy, i.e contract length, size of carrier company, asset owner, forwarder etc Involve carriers early in the development of your supply chain - commercial and operational Create an open, honest and transparent dialogue with carriers & collaboration partners Collaborate with OEMs, forwarders or carriers in order to find the necessary volumes, balances and frequencies that secure your needs and mimimize empty running Collaborate with partners/customers with different leadtime demands which can be combined in the same set-up Create business models where all parties share opportunities and risks Explain the background and reasons for your needs/demands for all involved parties it creates commitment, responsibility and understanding of effects in case of deviations à OEMs and carriers need to work together in order to secure high filling degree, share filling degree risks and achieve daily frequency

12 The EIA Intermodal Award, Best integration of intermodalism into a shippers logistics chain [Eurobridge & Train 8] The Big Transport & Logistics Award, Innovation of the year - Railfreight [Viking Rail] Bra-Miljöval, 2006 Klimatintyg, [Volvo domestic rail set-ups] Thank you for your attention!

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