Market Needs for Scandinavian Rail Logistics Company
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1 Market Needs for Scandinavian Rail Logistics Company Stockholm, Sweden ScandFibre Logistics Fredrik Öjdemark 1
2 The Company - Owners 10 Pulp & Paper plants in Sweden 2
3 Swedish Exports and Pulp & Paper exports per transport mode 16% Total exports Sweden: 28 million tons 46% P&P industry 13 million tons 16% / 2,5 million tons on rail 11% ScandFibre Logistics 70% of rail transports of finished products P&P 73% Rail Truck Vessel
4 ScandFibre Logistics History.. and future mills Purchasing no operations mills Block trains Sweden more operations mills Rail 11 full control of system Next system? 4
5 Cost structure Swedish Pulp & Paper Mill Delivery to Central Europe (= main market) 7% 6% 8% 4% 4% 7% Wood raw materials Personnel 11% 17% 36% Freight to customers Chemichals Depriciation Services purchased Other input Energy Other 5
6 ScandFibre Owners - Paper Industry Shipment of finished goods from mill (4,5 million tons) 35% 100% terminal 25% 20% terminal 80% direct 40% 90% terminal 10% direct 6
7 Rail 11 system Ktons per year Focus on owners products from paper mills Own sales force for return sales to optimize cost Combining block trains and single wagon load Volume paper: 1,9 mton 150 Maschen Wagon fleet: Wagons paper /y Train departures: 300 / wk Dortmund Terminal stops: Return filling rate 55% 300 8
8 Backload customers Consumer Industry - lead time and reliability 9
9 The SFL corridor Sweden-Denmark-Germany-Italy Rail 11 Issue Non-coherent standards between countries Complicated time table process Uncertain ERTMS (ECTS) implementation Consequence Complex rotation of locos and extra costs Difficult to get maximum length/weight paths (PaP!) Increased costs/disturbances in long term contracts Independent marshaling yards Difficult to use different operators along the corridor Coordination between infrastructure owners Condition of infrastructure Difficulty in running across borders works, reschedule Trust in rail? 10
10 The SFL corridor Sweden-Denmark-Germany-Italy Rail 11 Issue Shorter train length than rest of the corridor 630 m Sweden (750 m strd?) 835 m Denmark 750 m rest of Europe Need for double tracks Hallsberg-Malmö Complicated process for time table slots Brake tables Consequence More trains, less capacity Need for shunting before going to Europe Difficult to find optimal time slots on the corridor Rail systems not as flexible as needed increasing costs Lower speed longer lead times/less capacity more loc- drivers higher costs 11
11 The SFL corridor Sweden-Denmark-Germany-Italy Rail 11 Issue Need for double tracks through Denmark Firm plan for Ringsted Fehmarn Complicated process to use same driver across borders Germany to Denmark Consequence Risk for total collapse of rail transports pushing volume from rail Uncertainty of project increases costs in long term agreements Increased costs 12
12 The SFL corridor Sweden-Denmark-Germany-Italy Rail 11 Issue Access to long tracks /hubs/shunting yards and stations Noise regulations on brakes Consequence Difficult to start new bigger projects Increased costs 13
13 Needs for the corridor Sweden-Denmark-Germany-Italy Rail 11 Issue Opening dates of border crossing Chiasso Condition of last mile tracks Train length and tonnage limited Consequence Difficult to get enough capacity during bank holidays Many derailments Less capacity increased number shuntings 14
14 RailNetEurope One-stop-shop How could/should ScandFibre use this? Should ScandFibre book our own paths? 15
15 Opportunities More volumes are available if cost and reliability/trust for rail system is improved More volume northbound in reloads Environmental discussion = Green Image Intermodal Better cooperation vessel / rail / truck Sulphur Emission / vessel cost aspects -> increased demand? 16
16 Key Words No change no future Reliability keep your promise Costs customer pays our salary Proactive take initiatives, do not wait Team work use owners and suppliers High Quality 17
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