1. 1 Global Rail Freight Expansion needs, plans and initiatives A European Shippers’ Perspective Nicolette van der Jagt Secretary General European Shippers’ Council New Delhi, India, 22-24 March 2007

2. AGENDA  European Shippers’ Council  What the customer requires  Global Logistics trends  Barriers/Problems  Solutions  Way forward

3. ESC National organisations representing interests of shippers Cargo owners as users of freight transport services in all modes of freight transport  These are manufacturing industries that are producing goods for consumption in the single market and beyond

4. WHAT SHIPPERS REQUIRE  Profitable and sustainable trade and industry through efficient logistics by: –QUALITY: reliabilty and punctuality –Competitive pricing –Door to door solutions –Focus on efficient supply chains/not on intermodality per se  Rail Specific  Transit time equal to road transport  Cost close or beating road transport costs

5. INDUSTRY TRENDS  Fierce global competition  Quality and adding value in transport most important but also focus on costs  Sourcing from the best supplier: globalisation  Outsourcing  Logistics becomes part of the production process

6. Ever larger containerships……

7. INDUSTRY TRENDS Reducing inventory Reducing depots/sites/warehousing Reducing empty mileage Improved agility and cost: shortened logistics cycle time due to short product life cycles and value of goods Improved reliability

8. CONFLICT! Environmental pressures Local emissions Noise Social Regulation: Working Time Safety & Security Reducing inventory Reducing depots/ sites/ warehousing Reducing empty mileage Improved agility and cost Improved reliability

9. SITUATION TODAY  Rail preferred mode of transport for -High quantity of cargo -Dangerous goods  Road freight is under pressure  Inland waterways and SSS often not located to the plant/warehouse.

10. RAIL FREIGHT SEGMENTS FULL TRAINCoal Steel Construction ~ 35%Competition from Inland waterways SINGLE WAGONCHEMICALS VEHICLES MACHINERY ~ 50%Focus on road Market entry difficult for newcomers INTERMODALFINISHED/ CONTAINERISED CARGO ~ 15%Focus on Road Container transport booming

11. BUT SUFFERING FROM:  Lack of customer orientation  Monopolies  Weak logistics integration  Priority given to passenger transport  Absence of transnational corridors (except Rotterdam-Genua corridor)  No real open access to infrastructure (

12. RAIL FREIGHT IN EUROPE  Prices for rail freight are rising  Singe wagon load:  Prices high  Quality is down  Difficult to offer for newcomers  Difficult for customers to launch their own rail company

13. SOLUTIONS?  Continue to open up the Rail Market/More effective enforcement  Improve Quality of Service!  Increase European wide railway strategies and a business oriented corridor appraoch  Increase in road tolls is no solution: increasing freight logistics costs is harmfull for EU competitiveness (compare 12% of GNP compared to 8,5% in US)

14. A POSITIVE SCENARIO  No more monopolies  Real open acces to rail infrastructure  No non-commercial stops at boarders

15. EUROPE RAILFREIGHT NETWORK CONCEPT … and then to Russia and China … and then to Russia and China

16. A POSITIVE SCENARIO  Railway could take a part of the market share In a few years train may be running smoothly between Europe and Asia. -Sea route is approx 10 days longer  CHALLENGE in overcoming capacity problems and costs disadvantages

17. A positive scenario possible if:  Improved communication between all the supply chain  Measuring the performance  Demand/Customer driven transport providers: New products/service culture

18. MEASURE PERFORMANCE Standard measures of performance –Air freight –Short-sea –Rail freight? If you cannot measure it you cannot manage it PLUS… Cross-sector/modal comparisons Sign of maturity, responsibility, quality management!

19. CHANGE CAN TAKE TIME  Liner Shipping -20 years for change! “The man who moved a mountain is the one who started moving away a small stone” (Chinese verb)