Dr. Stane Božičnik Tomislav Letnik. University of Maribor, Faculty of Civil Engineering, SLOVENIA
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1 Dr. Stane Božičnik Tomislav Letnik University of Maribor, Faculty of Civil Engineering, SLOVENIA 18th International Sympozium EURO Zel 2010 Žilina, Slovakia
2 The rail freight market trends USA EU EU 15:EU12 railway systems performances The existing rail freight paradigm The freight market needs The system supporting the new rail freight paradigm Train Innovative transhipment solutions Free access to the vacant rail infrastructure The market niches for the new co modal solution Conclusions 2
3 Lessons learned from the US Rail Freight System liberalization process: In spite of some differences between the EU and US rail freight systems Basic US rail freight market development trends may be taken into account The Staggers Rail Act adopted 1980 = liberalisation free prices, mergers etc. Today four large railway companies a combined share of 80 % of the US rail freight market
4 General trend (Europe): increase in volume of transported goods, strong preferences for road transport, constant decrease of relative importance of rail freight. 4
5 Capital and Debt Of Railways in Central and Eastern European Countries 5
6 EU 15 : EU12 debt levels Old ( EU 15) EU member states relatively better financial situation than (EU 12) new member states Development of Debt Levels in EU12 and EU15 (Index 1995=100)
7 EU 15: EU 12 investments in EXISTING infrastructure
8 EU 15: EU 12 investments in NEW infrastructure
9 Rail s Response to Falling Revenues Concentration on mass production in the corridors, losing economies of scale on non corridor lines slimming of non corridor lines costs reduction losing new market opportunities. 9
10 large volumes of low value goods, long distances (over 500 km), fixed schedules, long trains(about 1800 tons, shunting and marshalling required), powerful locomotives (front power), relatively slow freight trains 10
11 large investments (large cargo volume corridors) large shunting areas for classical terminals large specialized terminals for intermodal transport etc. 11
12 Door to door services Smaller quantities More frequent deliveries Shorter delivery time windows JIT deliveries: Lean manufacturing, Minimum stock (management policy...) Flexibility, Availability, Reliability Low risk... 12
13 Rail freight market POTENTIAL VS actual performance over 500 km, Intermodal over 700 km Milion tons >1000 kms Source:: EUROSTAT (2006) 13
14 and EU Transport policy: First Railway Package (Directive 91/440),separating: Rail infrastructure from the Rail transport providers Second Railway Package (In 2002) Opening the entire European rail infrastructure network for rail transport services (2007) Third Railway package Interoperability 14
15 and EU Transport policy: Liberalization of rail transport market (after liberalization of the road transport market): competition of rail freight service providers through free access to the railway infrastructure, De monopolisation of national railway systems... hope for better efficiency, hope for productivity increase BUT NO CHANGE IN BASIC CO MODAL TECHNOLOGY!!!! 15
16 Market niches (intermodal transport): valuable goods, perishable goods, small consignments (also SMEs!), shorter distances Feeder lines Regional and local transport, urban transport Small (new) member states e.g. Slovenia, Lithuania, Slovakia, Latvia, Estonia, Czech republic, Economies of scale (traditional rail freight paradigm??? short distances, small quantities!) Relative abundant rail infrastructure available 16
17 The New Rail Freight Paradigm! Innovative train concept: Competitive with road vehicles performance Comparable with road vehicle costs Innovative transhipment technologies 17
18 What in needed? Free access to the vacant rail infrastructure Equal train running priority of: Passenger trains and Freight transport (JIT, valuable and time sensitive goods) Approved vehicles available on demand of customers (Standardised vehicles) 18
19 The TRAIN Ideal technological solution: a combination of the truck (high flexibility) on the rail (mass production), which is: self propelled, fast moving railway truck bi directional formation, with automatic coupling solutions... 19
20 The TRAIN Small Co modal train unit Capacity 1 3 TEU Speed km/h (..depending of available infrastructure) Diesel / electric drive traction motors on each axle. Driving cabs on both ends (avoids shunting, marshalling) 20
21 Innovative transhipment equipment Horizontal transshipment need for further development some solutions already available: 21
22 Innovative transhipment technologies On train and/or the truck: to be developed! 22
23 Innovative transhipment technologies Flexibility: transhipment along the whole railway network (sidings, free tracks) All the tracks: a mobile co modal terminal Short transhipment process: 5 10 minutes Low investment costs (EUR ) Short distances... 23
24 Free Access to The Vacant Railway Infrastructure Software solutions for the on line time table setting is already available! Free dynamic access to vaccant rail infrastructure is needed In new member states relative abandant rail infrastructure still available! 24
25 Possible Transport Concepts Single "truck train" unit (sidings, feeder services) Several "truck train" units together trunk lines Passenger train + "truck train" unit 25
26 New innovative rail freight solutions Short distances (pick up and delivery) Traditional rail freight paradigm Trains T Long houl New innovative rail freight solutions Short distances (pick up and delivery) 26
27 Rail freight system economics depends on full train (Block train) Single wagon and intermodal transport are NOT PROFITABLE! 70% of Block train require last mile single wagon production services The suggested new paradigm offers some optimal solutions! 27
28 No doubt that the EU rail transport market liberalisation packages will bring development dynamics to the rail freight markets. The railway systems of the EU15 (old member states) have because of their relative better economic position better starting position on the single EU rail freight market In a few decades similar monopolistic market situation as in the US is realistically expected
29 The strategic perspectives of the railway systems of the (small) new member states are the following: Bankruptcy or, they may become: Local partners of the big pan European logistics (transport) providers Transport providers on the: local feeder rail freight lines, first and last mile deliveries, city logistics, (small shipments on short distances etc). With the suggested»truck train«solution Local passenger train providers (Long distance fast train lines will be covered by the big fast train pan European operators)
30 The suggested new co modal solution offers: Survival opportunity for the rail companies in the (new) small member states: Available predominantely smal quantities, short distances local (feeder) services providers for the big transnational rail freight operators Still available realativlely abandant rail infrastrusture in the new member states (historical reasons) 30
31 The suggested co modal solution offers: access to the new profitable rail freight market niches (short distances, small quantities, valuable goods.feeder lines, sidings, city logistics ) More rail feight transport green co modal solution Increases profitability of the rail freight operations Increases quality of the co modal transport flexibility, availability Supports the existing rail freight paradigm 31
32 It would be also advisable that rail transport companies of the old and new member states stick together and find (develop) together the optimal innovative rail freight transport solution suitable for their strategic development needs! Start cooperation (specialisation) among themselves in order to survive the monopolisation development trends. University of Maribor is willing to take over the initiative!
33 Thank you for your kind attention! mb.si mb.si mb.si/tec/ 33
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