Get your business rolling with innovative rail logistics solutions between China and Europe

Transcription

1 Get your business rolling with innovative rail logistics solutions between China and Europe Schenker AG Land Transport Rail & Forwarding February 2015

2 Agenda 1 Review and status quo 2 Product overview 3 Value Added Services 4 Benefits for the customers 5 Case studies 6 Back-up DB Schenker Rail & Forwarding February

3 Review DB Schenker s role as a pioneer on Trans-Eurasian corridor Track record DB Schenker China Train No. of trains 1 st train Beijing - Hamburg 2008 Test services Northern and Southern route 2010 First company trains Chongqing Duisburg Regular company trains Leipzig - Shenyang Regular trains east and westbound (CN-EU v.v.) Regular container shipments from China to CIS countries First regular multi-customer train Zhengzhou- Hamburg various services in place on Northern and Southern Route east- and westbound DB Schenker offers transport solutions using all available China Train products Until 2010 DB Schenker Rail & Forwarding February year

5 Product Overview - Routing Growing number of China Train products are used by DB Schenker Available regular intermodal services (03/2015) Routes: 1 Leipzig (DE) - Shenyang (CN) 2 Chongqing (CN) - Duisburg (DE) v.v. PL 4/5 BY UA KAZ RU 8 MN Zhengzhou (CN) Hamburg (DE) v.v. Chengdu (CN) Lodz (PL) Suzhou (CN) Warsaw (PL) v.v. Changsha (CN) Duisburg (DE) CN Wuhan (CN) Duisburg/Hamburg v.v. Brest (BYE) Zabaikalsk (RU) + v.v. Northern route 1435 mm normal gauge 1) Consisting of Russia, Kazakhstan and Belarus DB Schenker Rail & Forwarding February Southern route 1,500 km radius 1520 mm wide gauge Customs Union 1)

6 Product Overview - Westbound Overview on available public blocktrain services westbound Northern Route Southern Route Chongqing Duisburg (since 2011) Transit time terminal-terminal: 17 days Departure days: every Saturday, Monday and Thursday (plus two weekly trains in peak season) Wuhan Duisburg/Hamburg (Start CW14 in 2015) Transit time terminal-terminal : 16 days Departure day: Tuesday or Thursday (tba) Zhengzhou Hamburg (since July 2013) Transit time terminal-terminal : 17 days Departure days: every Friday and Wednesday (plus one weekly train in peak season) Suzhou Warsaw (since April 2014) Transit time terminal-terminal : 14 days Departure day: every Sunday Changsha Duisburg (pilot train January 2015) Transit time terminal-terminal : 18 days Departure day: Friday, (weekly departure expected from May 15) China Europe Blocktrains: connected domestic blocktrain combination from 16 terminals in China to Manzhouli/Zabaikalsk Brest Warsaw - Hamburg/Duisburg with several departures per week DB Schenker Rail & Forwarding February

7 Product Overview - Eastbound Overview on available public blocktrain services eastbound Southern Route Northern Route Duisburg Chongqing First train: trial runs in 2013 Transit time terminal-terminal: 17 days Frequency: 1 trains per week Hamburg/Duisburg Wuhan Transit time terminal-terminal: 17 days Frequency: 1 train per week Hamburg Zhengzhou Transit time terminal-terminal: 17 days Frequency: 2 trains per month Leipzig Shenyang Transit time terminal-terminal: 19 days Frequency: one train per week Warsaw - Suzhou Transit time terminal-terminal: 21 days Frequency: one train per week each Friday Europe China Blocktrains: connected domestic blocktrain combination from Hamburg/ Duisburg/ Warsaw Brest Zabaikalsk China (16 terminals) with several departures per week DB Schenker Rail & Forwarding I February

8 Product Overview - Scope Full scope of rail products is operated on the Trans Eurasian corridor Product Blocktrain (Company train for one or public train for multiple customers) Comment Available as multi-customer public train for different customers: min. 1 FEU (FCL) Top speed due to blocktrain priorization Available as company train for one customer volume requirement: FEU per train Singles containers/ Container groups Short booking deadlines Several departures per week Longer lead time due to train consolidation in open intermodal system of railways LCL services Consolidated LCL services on blocktrains e.g. from Suzhou and Chengdu to EU via Poland DB Schenker Rail & Forwarding February

9 Product Overview - Comparison Comparison of blocktrain operations vs. single container shipments through different public railway systems Single Wagon System Blocktrains S1 S3 A S2 S4 B A B Departures Shunting Minimum booking volume Examples Almost daily Several shunting operations along the route likely 1 container or railcar Most domestic shipments Shipments to Russia and Central Asia Fixed departures days (e.g. every Saturday) No shunting (only technical stops and transshipment at the border) 1 container or railcar China Europe blocktrains DB Schenker Rail & Forwarding February

10 Product Overview - LCL services (1/2) LCL services from China to Europe Deconsolidation and clearance of LCL cargo at Malaszewicze Rail On-carriage truck Destination Origin Southern route Northern route Less than Container Load features: Operating on the Northern and Southern route Door-to-door lead time: days Frequency: weekly service Consolidation in warehouse Shanghai and Chengdu Deconsolidation in Malaszewicze and fast transit to Europe using DB Schenker groupage network DB Schenker Rail & Forwarding February

11 Product Overview - LCL services (2/2) Deconsolidation and on-carriage through groupage network ex Poland into Europe Deconsolidation network Export groupage lines: 5 departure / week 4 departure / week 3 departure / week 2 departure / week 1 departure / week DB Schenker Rail & Forwarding February

12 Product Overview - Rail-Air-Solution (1/2) Integrated Rail-Air service from China to Americas (1/2) Relation: from China via Europe / Rail-Air mode change / Destination South America Product specifics Product type Combined rail-air container shipments Rail-Air transshipment Bonded trucking rail station to air hub Customs transit and air-worth reloading at air hub Product platform Product offer Services DB Schenker China Rail Services and DB Schenker Jetcargo Single container 40 HC Optional: Temperature controlled services Container provision (included) Security / Smartbox (on request) Audited Supply Chain Security Air: 5 days Rail: days Door-Door time: days DB Schenker Rail & Forwarding February

13 Product Overview - Rail-Air-Solution (2/2) Integrated Rail-Air service from China to Americas (2/2) Relation: from China via Europe / Rail-Air mode change / Destination South America Operational specifics Documentation Similar to rail shipments: Documentation according SMGS requirements Documentation standards are available on request at DB Schenker Corporate Airfreight team Rail execution Air execution From door ex China up to rail terminal From rail terminal China to rail terminal in Europe in regular block trains with lead time of days On-carriage from rail terminal Europe (Hamburg, Duisburg) to air hub Screening, reloading, air freight and to-door delivery with DB Schenker Jetcargo service DB Schenker Rail & Forwarding February

15 VAS Security Concept DB SCHENKERsmartbox we are offering our proven security device DB SCHENKERsmartbox GPS Real Time Monitoring DB Schenker offers a proven and unique door-to-door security concept: Originally developed for Ocean Freight, but now also applied for rail logistics DB SCHENKERsmartbox offers: 24/7 Container monitoring along the complete rail route Highest level of transparency of the supply chain Real-time alert system Rapid response in case of open door alerts by local railway units and police Source: Udo Geisler Photographie DB Schenker Rail & Forwarding February

16 VAS Smartbox Security Process DB SCHENKERsmartbox provides full visibility Audited Security Concept 24/7 Monitoring & Intervention Monitored in real-time Door Movement Temperature Humidity Tilt Impact (Shock) Light Vibration DB Schenker Rail & Forwarding February

17 VAS Temperature controlled transports DB Schenker has explored several possible winter solutions and recommends to use insulated containers or reefers Insulated containers 40 containers with specially insulated floor, walls and ceiling Passive solution guarantees bland climate inside, even if the outside temperature is extreme Inside dimensions: length: 11,858mm; width: 2,094 mm; height: 2,518 mm Capacity: 18 iso pallets (1,000 x 1,200mm) Reefers 45 reefer container with diesel powered genset Active solution - allows to set temperature in a range between -25 C and 25 C for the whole trip Inside dimensions: length: 13,233mm; width: 2,437 mm; height: 2,437 mm Capacity: 26 iso pallets (1,000 x 1,200mm) DB Schenker Rail & Forwarding February

19 Benefits Lead time vs. costs Considering capital and freight costs Rail is the most economic option Example: freight & capital cost for High Value Goods Chengdu-Berlin door-door 1) Rail is the most economic option among the 3 transport modes, if freight and capital cost are considered Rail is superior to ocean. Whether rail or air should be used depends on time-cost preferences capital cost freight Example: Door-to-door transport of Notebooks Central China - the Netherlands Air 5 days Ocean 40 days Rail 20 days Ocean Rail 2) Sea-Air Air Door to Door 38 days 22 days 24 days 4 days USD/Notebook (freight only) ) USD/Container; 7% capital cost; 1 Container = 10,000kg, 2.0 Mio USD value of goods 2) Block train service DB Schenker Rail & Forwarding February

20 Benefit Rail/Ocean Comparison After adjusting for capital cost savings and time benefits Rail can become even more attractive Calculation scheme to compare prices for Rail and Ocean freight? The adjusted Rail Freight will be higher or lower than Ocean Freight depending on cargo value and customer time preference? Price Rail Freight Capital Cost Saving Time-to-market Adjusted Advantage Price Rail Freight Price Ocean Freight Capital Cost Savings Transported cargo is inventory that must be financed and therefore generates capital cost Especially for high value cargo capital cost can be substantial Time Benefits Market opportunities might be lost to competitors (lost sales) if goods arrive late Production might be negatively affected or even stopped if urgently needed input parts arrive late DB Schenker Rail & Forwarding February

21 Benefits Environmental Aspects Green : apart from economic advantages Rail offers the most environmentally friendly transport mode We break the correlation between CO 2 emissions and transport growth using our network Transport growth CO 2 emissions kg CO 2 / ton Source: GSL Rail Ocean Ocean +Air Source: Eco Transit tool DB Schenker Air 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 1) e.g. PM (particulate matter), NMHC (non-methane hydro carbons), SO2 (sulphur dioxide), NOx (nitrogen oxide) DB Schenker Rail & Forwarding February

22 Benefits Customer examples Lead time, inventory carrying costs and supply chain flexibility among most important reasons to switch to rail Main selling arguments Customer 1 Customer 2 Customer 3 CUSTOMER EXAMPLES Flexibility in terms of last mile delivery (land, barge, rail, short sea) to meet production schedules Stable lead times compared to increase unreliability of Ocean Freight Carriers Reduction of inventory carrying costs due to shorter lead time Customer 1: leading company in power and automation technologies Customer 2: global company in fire protection and security solutions Customer 3: world-famous producer of consumer electronics DB Schenker Rail & Forwarding February 2015 Primary reason was lead time reduction from 45 days door to door to 21 days for Southern route and 25 days on Northern route. Carrying cost of over $ 1 Mio of inventory outweighs the extra cost of rail vs sea - rail is approx. $ 9800 vs ocean less than $ 3000, so although sea is less than a third of the price this extra cost of rail is easily offset by the inventory carrying cost for 3 weeks 21 Supply chain flexibility and cost it gives them an alternate to air where ocean lead times are too long. This is useful for products which are not in short production but for which demand is still strong enough that the ocean lead-time cannot support but air is too expensive The ability to take individual containers space as opposed to full train was a big part of their decision as they need to protect their air capacity for New Product peaks and so cannot move entirely to rail Security We were able to demonstrate the high levels of security and monitoring throughout the transit

24 Case Studies - Industries Rail transports are suitable for many industries and can be integrated into customer s supply chains Hi-tech/Electronics Automotive Manufacturing Consumer Telecom Notebooks Chongqing-Duisburg block train CKD parts Leipzig-Shenyang company train Moulds & nuclear equipment Chengdu and Zhengzhou public trains Cosmetic products CN Russia/Central Asia by single wagon Telecom equipment Truck-Rail intermodal to Mongolia DB Schenker Rail & Forwarding February

25 Case Studies China to Brazil Case study: Rail-Air transport Chongqing to São Paulo for an European electronics manufacturer Challenge Customer has tested the DB Schenker rail solution from Europe to China and v.v. and was interested in a completely new transport solution from China to South America Cutting longer transit time on ocean as main objective Solution Customer benefits Integrated solution and combination of rail services ex China using regular block trains, pre-/on-carriage with trucking and air freight from Europe to South America New solution was implemented within 2 weeks due to excellent collaboration between different DB Schenker units Our product enables the customer to successfully serve the South American market from China Lead time, pricing and CO2-footprint are in a perfect balance Client: Key facts European electronics manufacturer Commodity: electronic components Route: Chongqing to Duisburg, on-carriage to Eurohub FRA, reloading and airfreight to VCP Lead time: 24 days (terminal-toterminal) DB Schenker Rail & Forwarding February

26 Case Studies Development of company trains Case study: regular block trains from Chongqing to Duisburg for a leading electronics customer Challenge Relocation of customer s production facilities from coastal areas to Chongqing Customer needs to find transport solution matching or surpassing the previous ocean lead time Up to 2011 no rail service available on the Southern route making DB Schenker a pioneer on this route Duisburg Solution Customer benefits Special trains with short booking timelines, specially designed sea-air solution Innovative security concept based on DB Schenker Smartbox Door-to-door lead-time reduction by days compared to previous ccean transport time to market advantage and capital-costs reduction High flexibility to accomodate additional transport volume high reliability in regard to delivery accuracy and safety Client: Key facts Origin city Destination city Trucking to the Netherlands Leading multinational electronics manufacturer Commodity: electronic goods Route: Chongqing to Duisburg ( km by rail), Chongqing on-carriage to the Netherlands Lead time: 22 days (door-door) Volume: FEU per train DB Schenker Rail & Forwarding February

27 Case Studies China to Kazakhstan Case study: cosmetics shipments from China to Kazakhstan Challenge Customer used to transport by ocean freight to Europe and then by rail/truck to Kazakhstan Small volume from individual suppliers cannot support FCL shipments Solution Consolidation of shipments from several suppliers at a central location in Guangzhou and Shanghai Organization of rail shipments, either direct or via short-sea connection to Lianyungang Client: Global skin and body care company Customer benefits Reduction of transit time by more than 25 days and reduction in transportation cost Based on the success of the product customer has started to ship goods from the U.S. using our rail service via Lianyungang Key facts Commodity: cosmetics Route: Shanghai and Guangzhou, both CN, to Almaty, KAZ Lead time: 24 days ex Shanghai, 28 days ex Guangzhou (terminalto-terminal) Volume: 50 FEU/year DB Schenker Rail & Forwarding February

28 Case Studies China to Russia Case study: Qingdao to Moscow rail transport for an European component manufacturer Challenge Customer has transferred production from Europe to China and therefore requires a completely new transport solution Customer has no previous experience with China Russia shipments and the respective paperwork Solution New solution was implemented within 2 weeks Client: European component manufacturer Customer benefits Our product enables the customer to successfully serve the Russian market from China Comprehensive consulting was provided via documentation to ensure smooth customs clearance Key facts Commodity: components for subway wagons Route: Qingdao, CN to Moscow, RU Lead time: 28 days (terminal-toterminal) DB Schenker Rail & Forwarding February

29 Case Studies Germany to China Case study: regular train service for a prestigious car manufacturer from Leipzig to Shenyang Challenge Customer requires faster transit time than provided by ocean freight Coordination of more than ten involved partners (thereof 5 railway companies) necessary Solution Volume: up to 42 FEU containers per train Departure: regular twice weekly service Client: Leading car manufacturer Customer benefits Lead-time reduction of 50% compared to ocean freight High reliability both in lead time and capacity High flexibility with regard to changing transport demand (provision of up to 5 trains per week in peek months) Key facts Commodity: Automotive parts (CKD) Route: Leipzig and Wackersdorf, both in DE, to Shenyang, CN Lead time: 23 days DB Schenker Rail & Forwarding February

30 Summary Advantages of the DB Schenker Eurasian train products at a glance Speed Much faster than ocean freight China Train Costs Less expensive than air freight and ocean/air-product Environment Environmentally most friendly transport mode DB Schenker 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 DB Schenker Rail & Forwarding February

32 Product Option Sea plus Rail Sea plus rail products complete our portfolio to Russia DB Schenker rail network covering main cities in Far East and Russia Explanation Examples Shanghai- Moscow Moscow Shanghai- Moscow KZ RU Shanghai Moscow Rail Mode Full Rail Sea + Rail Rail + Truck Lead Time (Door-Terminal) Product Brest/Mala 28 days 35 days 20 days single container direct single container direct Novosibirsk block train/truck via Brest / Mala 2 MN Vostochny Nakhodka Tianjin Yingkou CN Taiyuan Chengdu 1 Chongqing Zhengzhou Guangzhou KR Busan Shenzhen Shanghai JP Tokio Transshipment and transit customs clearance/ Gauge Change mm normal gauge 1520 mm wide gauge Customs Union Manzhouli (CN) - Zabaykalsk (RU) border Alashankou (CN)- Dostyk (KZ) border Sea-Rail intermodal transfer Sea Rail (single wagon) Rail (Block train )+ Truck DB Schenker Rail & Forwarding February

33 Benefits Local Presence China Go West Strategy of Chinese Economy: despite focus in the East we follow our customers to Central and Western China DB Schenker in China More than 45 years in Hong Kong & China Offices in 62 cities 5 Rail / RLF Teams Over 5,000 logistics specialists More than 89 warehouses 1) 781,500 m² warehouse area 1) Class A licensed international freight forwarding company Operational expertise container loading, transport documents, routing options, etc. Close ties to China Railway CRCT, CRIMT, Local Railway stations, Terminal JV CR Intermodal 1) Includes air freight, ocean freight and contract logistics warehouses DB Schenker Rail & Forwarding February 2015 Present RLF offices Future office 32

34 E2E solution for customers DB Schenker takes the responsibility end to end including the integration of all key processes 1 Train scheduling/ booking + coordination 5 Import customs/ oncarriage process from terminal E2E Management 2 Pre-shipment Notification Process 4 Main run - Monitoring/Reporting/ Incident Mgmt. 3 Pre-carriage process to terminal DB Schenker Rail & Forwarding February

35 The Eurasian Landbridge: Bridging Nations and Economies Thank you for your attention! DB Schenker Rail & Forwarding February