Infrastructure of Intermodal Transport March 18th/19th, 2010 in Bratislava Development Rail – Road Case Study: Railway Transports between Central Europe and Turkey

2008 was a very successful year for DB Schenker External revenues (€ bn) 19.3 EBIT (€ mn) 688 Employees ('000) 91.3 Rail Logistics Region West Region Central Region East Land Transport Intermodal Air/ Ocean Automotive Contract Logistics / SCM External revenues (€ bn) 4.65 (+19.2%) External revenues (€ bn) 14.68 (+4.7%) EBIT (€ mn) 307 EBIT (€ mn) 381 Employees (`000) 29.2 Employees (`000) 62.07 Employee figures: average no. of full-time employees Source: 2008 Annual Report Helmut Jerolitsch / bsz, 21.09.2018

DB Schenker railway traffic in South-East-Europe Railway traffic SEE 2009 3 (638) 4.600 to 1.500.000 to 30 (1.840) 38 Tonnage: 5.122.600 2.090.000 to (287) (108) CZ 1 Turnover: ~ € 123 Mio. 63.000 to SK Employees Rail: 128 AT 26 555.000 to (Employees total: 5.104) HU (1.235) 1 0 to (131) RO SI HR 6 239.000 to (136) 4 BA 72.000 to (97) RS 3 79.000 to (350) 1 BG 0 to (38) 2 MK 148.000 to (42) AL TR 2 GR 62.000 to (36) 11 310.000 to (166) Helmut Jerolitsch / bsz, 21.09.2018

Current Situation Modalsplit Helmut Jerolitsch / bsz, 21.09.2018

„Barriers / Difficulties“ in organising railway transports between Central Europe and Turkey Transport from Germany to Turkey (Corridor IV) across 5 borders across 6 countries with 6 railways undertakings Helmut Jerolitsch / bsz, 21.09.2018

Every chain is only as strong as its weakest link! „Barriers / Difficulties“ in organising railway transports between Central Europe and Turkey Different standards and understandings of service requirements by the railways: Technical standards Quality and availability of wagon equipment Services requirements Transparency (Tracking & Tracing) Competition & Pricing Forwarders resp. Rail Logistics Providers Every chain is only as strong as its weakest link! Helmut Jerolitsch / bsz, 21.09.2018

„Barriers / Difficulties“ in organising railway transports between Central Europe and Turkey Helmut Jerolitsch / bsz, 21.09.2018

„Barriers / Difficulties“ in organising railway transports between Central Europe and Turkey Consignee Shipper ● Sopron Kapikule Railway Siding Multimodal Terminal RailwayStation Number of Railway Sidings, excl. ports and transport/logistics company`s sidings: Germany: 2.950 (currently activ) Austria: 992 Turkey: 2 Greece: 15 (24 locations) Helmut Jerolitsch / bsz, 21.09.2018

● ● The F u t u r e „Barriers / Difficulties“ in organising railway transports between Central Europe and Turkey Consignee Shipper Multimodal Terminal Multimodal Terminal Railway Siding ● Sopron ● Kapikule Railway Siding RailwayStation RailwayStation Rail Ports Number of Railway Sidings, excl. ports and transport/logistics company`s sidings: Germany: 2.950 (currently activ) Austria: 992 Turkey: 2 Greece: 15 (24 locations) Helmut Jerolitsch / bsz, 21.09.2018

Railports in South-East-Europe Helmut Jerolitsch / bsz, 21.09.2018

Short term requirements for a successful development of railway transports to and from Turkey Competitive prices especially for Block Trains Availability of suitable wagons – as required Higher flexibility for pricing South/North Reliable and transparent transit times Tracking & Tracing Rail/road terminals (Rail Ports) Helmut Jerolitsch / bsz, 21.09.2018

Example of a successful train concept to Turkey Balcan Train 1997 - 2009 *) incl. Soptrain Helmut Jerolitsch / bsz, 21.09.2018

Example of a working train concept to Turkey Balcan Train 1997 - 2009 Reasons for the success of the Balcan Train: Competitive Block Train freight tariffs for forwarders Forwarders undertake large Block Train commitments …. and utilisation risks Utilisation of forwarder`s rail/road terminals for transhipment 300 rail sales specialists sell rail services „Door to Door“ „One Stop Shopping“ for Industry & Trade Helmut Jerolitsch / bsz, 21.09.2018

Visions The pressure on road traffic will continue to increase Non-stop Block Train concepts without interruption of the transport at borders …. between multifunctional Rail Ports „Classic Railways“ have to take on new roles Private train operators become increasingly important Increasing importance of multimodal concepts & solutions Helmut Jerolitsch / bsz, 21.09.2018

LIB - Index (Cargo and Passenger) On Schedule Quelle: BRUSSELS NEWS n° 16/2007 - Liberalisierungsindex Bahn 2007 Helmut Jerolitsch / bsz, 21.09.2018

LIB - Index (Cargo and Passenger) Quelle: BRUSSELS NEWS n° 16/2007 – Liberalisierungsindex Bahn 2007 Helmut Jerolitsch / bsz, 21.09.2018

Public RUs become less important 2008: 41,9 Mio ton - 6,0% 2008: 44,4 Mio ton - 10,3 % 2008: 17,6 Mio ton -12,8 % Quelle: UIC Helmut Jerolitsch / bsz, 21.09.2018

Austria 16,8 % other RU over 10 other RU 83,2 % RCA Helmut Jerolitsch / bsz, 21.09.2018

Hungary ~ 20 % other RU over 10 other RU ~80 % MAV Cargo Helmut Jerolitsch / bsz, 21.09.2018

Romania 33,3 % other RU over 10 other RU 66,6 % CFR MARFA Helmut Jerolitsch / bsz, 21.09.2018

Bulgaria 8,5 % other RU under 10 other RU 91,5 % BDZ Helmut Jerolitsch / bsz, 21.09.2018

Requirements for the Future What do we need in order to realise these visions: Railways ready to work constructively on new concepts across national borders Otherwise: there will be no alternative to private rail operators A complete new multifunctional and multimodal terminal infrastructure at the transport interfaces Specialised „Rail Logistics Providers“ with a pan-European network – as partner of the railways Helmut Jerolitsch / bsz, 21.09.2018

Megatrends as a challenge The megatrends within the automotive logistics sector – A challenge for the railways Automotive Rail Quelle: SAR GmbH Deutschland / Herr Baerbock, 02/2010 Megatrends as a challenge for the railways Needed guidelines to capture the market “Just in time” and “Just in sequence” production also over 3.000 kilometres distance Quality as a matter of course Reliable train shuttles Punctuality before speed Strong competition between Short sea, Truck and Rail Competitive pricing, based on market prices Flexibility to follow the marked Continuous trend to Mega-Trailer or Jumbo-Swapbodies Specialised infrastructure in the terminals Special wagons with higher costs Helmut Jerolitsch / bsz, 21.09.2018

To achieve this, certain specific prerequisites must be fulfilled Automotive Rail Development of “Intermodal stations / Rail ports / Rail villages” To be competitive to a direct truck transport a short pre- / on-carriage is a must Multi functional intermodal terminals, including Rail crane for all types of equipment (also Mega-Swap bodies, Megatrailers and so on) Capacity for a temporary storage / parking of swap-bodies, trailers, etc. Customs office Security Expandability Reliable resources Infrastructure (tracks, shunting yards) Locomotives (quality and quantity) Wagons Staff Communication and information Permanent information flow (7 days / week – 24 hours / day) Interfaces to connect the different data systems Standardised tracking and tracings tools Quelle: SAR GmbH Deutschland / Herr Baerbock, 02/2010 Helmut Jerolitsch / bsz, 21.09.2018

Intermodal (Swap bodies and trailers) – a growing trend within the railways Automotive Rail “Rola” rolling road  Flexibility (switch between rail and road)  Same equipment on road and rail – Capital commitment – Labour costs – Special wagon necessary – Wagon is not multifunctional Swap bodies  Capital commitment  Labour costs  Multifunctional wagon (Containers, Swap bodies) – Less flexibility (special equipment needed) – Not same equipment on road and rail  Capital commitment  Labour costs  Multifunctional wagon (Containers, Swap bodies, trailers )  Flexibility (switch between rail and road)  Same equipment on road and rail – Less payload – Wagon costs 13,6 Meter Megatrailer Quelle: SAR GmbH Deutschland / Herr Baerbock, 02/2010 Helmut Jerolitsch / bsz, 21.09.2018

Thank you for your attention! SCHENKER & CO AG Rail Logistics and Forwarding Taborstraße 95, 1200 Vienna - Austria Telefon: +43 (5) 7686-215900 Fax: +43 (5) 7686-215909 helmut.jerolitsch@schenker.at www.schenker.at Helmut Jerolitsch / bsz, 21.09.2018