CONTENT OF PRESENTATION

Transcription

1 SHIPPING COMPANIES INVOLVEMENT IN RAIL TRANSPORT Inland Rail Strategy and Operations for CMA-CGM in Europe

2 CONTENT OF PRESENTATION Shipping companies involvement in RAIL transportation Introduction CMA-CGM Intermodal transport: strategic part of our portfolio Why rail transport, our objectives Development matrix Conclusions

3 Shipping companies involvement in RAIL transportation Introduction CMA-CGM Joop Mijland Intermodal & Inland Operations Europe

4 Key figures CMA-CGM Turnover 10 Volumes 10 Vessels Services Staff worldwide Staff France Offices worldwide Ports of call 14.3 billion US $ 9 million TEUS 393* 155* 17,200* 4,000* 650* 400* * March 1st, 2011 Ranking : 3 rd TITLE worldwide [CAPITAL LETTERS ONLY]

5 Containers Carried 8,900 7,900 9, In thousands of TEUS 7, , , , , ,615 1,900 2, Source: CMA CGM Datas

6 3. Intermodal Europe network Areas covered per Intermodal & Logistics Service center (ILS): 1. France (FRA) 2. Benelux & Rhine Valley (BLX) 3. Germany & Central Europe (GCE) 4. Great-Britain (GB) 5. Northern & Central Italy (ITA) 6. Spain (IBE) 7. Adriatic & Central Europe (ACE) 8. Scandinavia (SCA) 9. Russia (RUS) Areas under investigation: 10. Turkey, Baltic States, Greece, Finland, Ireland, Portugal

7 Shipping companies involvement in RAIL transportation Intermodal transport: strategic part of our portfolio

8 A group dedicated to complementary transport means with interconnected network SHIPPING PORT ACTIVITY INTERMODAL SUPPORT ACTIVITIES PORTSYNERGY France CRUISES NFTI

9 What do our customers require? What are the key service components our customers are looking for? Most customers are cost-oriented The cost of transport is the most relevant criterion for the modal choice It is also the most sensitive variable: one of the main challenges for (intermodal) transport operators to keep their market share is to provide transport services at competitive rates The most regular users of (intermodal) transport are cost oriented companies. They choose for a certain (intermodal) transport solution because of the tariff structure of their origin-destination relations

10 What do our customers require? What are the key service components our customers are looking for? Service criteria for Customers:

11 The actors in the global supply chain: who plays a role, and what is the added value? (report LOGIQ) This report states 23 actors that are involved in the logistics chain, namely: terminal operator Port Authority stevedoring company small shipper large forwarder small forwarder large road haulier small road haulier Railways large shipping line/agent small shipping line/agent national ministries EU labor unions port owners local authority large shipper intermodal operator railways intermodal operator inland waterway operator coastal shipping operator ferry operator retailer

12 The actors in the global supply chain: who plays a role, and what is the added value? Role of Logistics actors Interviews with customers and logistics/intermodal companies: Most important Why? The shipping line The forwarder Control over cargo Handling the volumes

13 The actors in the global supply chain: who plays a role, and what is the added value? Why Carrier Haulage (vs Merchant Haulage) Best cost Frequency of services, connect to call Reliability, total chain control Balancing Equipment flows Balancing Transport modes Partnering in inland Transportation: to operate at best cost possible to handle increased volumes to streamline information flows, efficiency and service towards our customers Enhancing trust amongst partners improves efficiency

14 Shipping companies involvement in RAIL transportation Why rail transport?

15 Intermodal Europe approach Intermodal strategy: the only good reasons to maximize Carrier Haulage: Offer door-to-door solution to our Customers (even ramp-to-ramp) Best price thanks to massified volumes Best quality Extra revenue => supports further developments Environment + Mobility + Congestion Manage empty flows, focus on imbalances, reduce overall cost for our customers, avoid empty trips

16 Intermodal Europe approach RAIL Network developments: Transport review Top 40 operators (including RLE) cover 90% of the rail volume BARGE Top 18 operators cover 80% of the total barge volume TRUCK Top 52 truckers cover 67% of the truck volume, all getting at least TEUs each or more The point-to locations are spread across Europe. As example: we use 39 rail operators to connect inland points. With each of them we book at least teu 2011: CMA-CGM will transport about 300,000 TEU per rail under carrier haulage

17 Intermodal Europe approach Container Rail operations in Europe: Traction providers: DB, SNCF, RCA, B-Logistics, Rail operators: RLE, Transfracht, Polzug, Metrans, Kombiverkehr, Necos, Optimodal, Users: Deepsea (shipping lines), shortsea (continental traffic)

18 Intermodal Europe approach Rail operations in Europe: Commercial contract (per slot) Committed volumes (used/non used) Blocktrains What do we miss: - Integration of developments from all parties (the network) - Integration of potential volumes

19 Intermodal Europe approach Network developments (internal / external): Internal: listen, understand, translate into products, react Lines / Agencies / Global Accounts / Systems Intermodal teams External: follow-up on network developments, review services/products, benchmark (including tactics and operations from competitors), translate into optimal solutions Customers / Vendors => Instruct preferred routes / solutions (commercial Intermodal)

20 Intermodal Europe approach There are over 100 hubs in Europe in use, of which Duisburg is one (but an important one). This has to do with the spread of customers, choosing of the lowest cost solution and customerpreferred solutions. This is sometimes in conflict with the rationalization of hubs/massification of flows Cost is most important driver for a customer to select CH Massification could lead to lower cost (e.g. with blocktrains to key hubs), but could also result in higher truck cost (due to lower network coverage)

21 Extension of the Scope of Intermodal Business 1 st train in India Algiers To Algeria To India To Syria Block train management through a co-operation signed with SNTF the Algerian public railways CY. Block train management through a co-operation with CONDOR the Indian Public railways CY. Through a co-operation agreement signed in 2006 with Syrian Transport Ministry

22 Rail and barges in Europe: a strategic development Gdynia Liverpool Cardiff Manchester Birmingham Felixstowe Tilbury Zeebrugge Bremerhaven Rotterdam Duisburg Antwerp Hamburg Poznan Warsaw Southampton Le Havre Dourges Ludwigshafen Prague Gliwice Paris Strasbourg Stuttgart Munich Basel Salzburg Wien Sopron Bratislava Budapest Bordeaux Clermont Ferrand Lyon Genoa Milano Padova Triestes / Koper Bradu De Sus Bucarest Constanza TITLE [CAPITAL ToulouseLETTERS ONLY] Marseilles Fos Livorno Barge Rail Link shuttles Combined Rail / Barge Service Partners Rail services Development Rail

23 Shipping companies involvement in RAIL transportation Development matrix

24 Development Matrix Situation analysis: Customer requirements Existing and potential volumes Current offer(s), existing products Competitors review Business location(s) and market opportunities Lines impact or conditions, vessel rotation Proposal: Technical study with in-house vendors expertise (RLE, RSC, Progeco, LTI) Financial study Strategy to apply with alternatives evaluation Potential for further business extension

25 Development Matrix Vendors involvement and role: Vendor objectives: in-house vendors or 3 rd party? Partnership profile and capabilities Definition of common objectives Process review Project implementation: Concrete and realistic timeframe definition Technical review: transport & logistics operations, capacity, schedules Processes: documentation, customs, invoicing, EDI, KPI Internal and external marketing: selling points, tools, connections, commercial intermodal aspects Multi port concept via consolidation hub, or direct connection??

26 Development Matrix Market rates and Marketing Target for first next step Target for later stages Procurement phase Risk factor: +/- Global business trend, volume developments Competitors reaction, response other providers Customer potential and changes Other project s specificity Imbalances (equipment and transport means) Volumes, volumes! Heavy impact on avg cost

27 SHIPPING COMPANIES INVOLVEMENT IN RAIL TRANSPORT Conclusions: - Rail transportation is extremely important for CMA-CGM - At CMA-CGM we have thorough knowledge of the railbusiness - Future: more focus on developing preferred routes, based on rail connections - Inland hubs need to be efficiently connected - Developments with rail operators should be more transparent - Measurement of ecological impact - Cost drives the mode-shift

28 Face today s and tomorrow s challenges using the intermodal creativity Thank you for your attention!