RAIL: A VERY CAPITAL INTENSIVE BUSINESS SPECTRUM FINAL CONFERENCE Innovation and Opportunities for Rail Freight in the 21st Century PARIS UIC HEADQUARTERS APRIL 8th 2015 Franco Castagnetti, April 8th, 2015

RAIL: A VERY CAPITAL INTENSIVE BUSINESS Rail Freight industrialization to reduce operating costs Industrialization via the nodes on TEN-T corridors in traffic attraction zones Investments in network + bottlenecks corrections are paramount Co-modal Governance for corridors management, cross border, space planning ICT Technology and rolling stock technology evolution to lead the step change on innovative business model for Market uptake Franco Castagnetti, April 8th, 2015

AS IS PICTURE 2012 COMPARED TO 2050 OBJECTIVES The needed actions for achieving the objectives to start immediately. Change of approach to rail freight industrialization necessary. Franco Castagnetti, April 8th, 2015

MACRO CATEGORIES FOR RAIL FREIGHT INDUSTRIALIZATION SYMBOL RAIL MKT SHARE SIZE OF MKT GROWING POTENTIAL CUSTOMERS GROUP Raw Materials, Steel, Forest, Minerals-Refractory High Very Large % to growth Heavy Ind.+LSP Plastic, Chemicals, Process Ind., Piping, Recycle Medium Shippers+LSP Fast Consumer, Toilet Very Small Very High LSP+Multimodal Durable, Appliances Automotive + Components LSP+Outsourcers Grocery, Wine & Spirit, Food Small Flour + Cereals Large Shippers + LSP Paper + Waste Construction, Furniture, Toys, Household Water + Soft Drinks + Milk Temp. Controlled Negligible Ports Traffic industrialized Franco Castagnetti, April 8th, 2015

MACRO CATEGORIES FOR LDHV GOODS SYMBOL RAIL MKT SHARE SIZE OF MKT GROWING POTENTIAL CUSTOMERS GROUP DISTRIBUTION CHANNEL Computers, Screens Negligible Large High Shippers + LSP Brown goods, Televisions Electronic, Smartphones, Tablets Very Large Very High LSP + Distr. Channel Electric equipment E-commerce, Parcels Healthcare + Pharmaceuticals Fashion goods, Leather and Shoes LSP Tobacco Precision tools + Technology devices Glass objects + Glasses Ornaments, Accessories LSP + 4PL Franco Castagnetti, April 8th, 2015

COMPARISON Ton vs. Ton/Km MKT SHARE OVER LONG DISTANCES 11% of Tonnage over long distance transportation - 1000 km baseline IS EQUAL TO 56% of Ton/Km traffic Source: ACEA 2011 This means that a modal shift to rail of 5-6% of long distance cargo signifies a very high percentage of Ton/Km for shift to rail objectives. Franco Castagnetti, April 8th, 2015

TIGER PROJECT NEW RAIL ACCESSIBILITY VIA DRY PORTS Hamburg & Bremerhaven NewOpera proved this to be possible in three separate projects: TIGER MARATHON SPIDER PLUS Genova Franco Castagnetti, April 8th, 2015

TOTAL COST REDUCTION UP TO -30% MARATHON PROJECT TRAFFIC INDUSTRALIZATION REDUCES COSTS GENERATING CAPACITY ON THE EXISTING NETWORK ONE DRIVER FOR UP TO TWICE THE PAYLOAD UP TO 40% LESS NETWORK CAPACITY PER TON 5% LESS ENERGY CONSUMPTION PER TON TOTAL COST REDUCTION UP TO -30% MARATHON TRAIN 1524 mt 72 wagons 4036 Tons Franco Castagnetti, April 8th, 2015

SPIDER PLUS PROJECT 2050 % INTRA EU TRAFFIC SUITABLE FOR RAIL FREIGHT INDUSTRALIZATION MACRO-CATEGORIES Raw materials, Steel, Minerals Plastic, Chemicals, Process Fast consumer Durable, Appliances Automotive, Components Food, Grocery, Beverage Flour, Cereals Paper, Waste Construction, Furniture, Household Water, Soft drinks, Milk Temperature controlled Maritime traffic via seaports not included in the statistics Franco Castagnetti, April 8th, 2015

SPIDER PLUS PROJECT CORE NETWORK NODES THEIR ACCESSIBILITY IN THE TRAFFIC ATTRACTION ZONES Franco Castagnetti, April 8th, 2015

THANK YOU FOR YOUR ATTENTION CONCLUSIVE REMARKS By NEWOPERA www.newopera.org THANK YOU FOR YOUR ATTENTION FRANCO CASTAGNETTI franco.castagnetti@newopera.org Franco Castagnetti, April 8th, 2015