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Week 35 - August 2009

Week 35 - August 2009

(01) German mobility study shows little growth on the roads

(02) UITP meets the Swedish Council Presidency

(03) DB AG half-year results

(04) Two decisions on PKP Cargo

(05) VR Group results in the first half of year

(06) VR Group to start restructuring programme

(07) First GBRf sign a major new contract with Allport

(08) Logico wins extra business

(09) Stobart appoints DB Schenker Rail as provider

(10) Galileo applications for rail tested at Siemens’ Test Center

(11) DB Schenker Rail targets new markets

(12) RZD creates Directorates for Traction and Rolling Stock Repair

(13) RCA names new business development director

(14) Calendar

German mobility study shows little growth on the roads

Germany is distancing itself from the cliché of being a showcase country of car drivers. A large study on mobility in Germany covering the years 2002 — 2008 shows a remarkable turnaround in Germany’s transport usage towards more environmentally friendly types of vehicles. Judging by the number of journeys, Germans are switching to the bicycle (17% increase) or to the trains and the buses (14% increase). There are also more pedestrians in Germany, with the number of journeys on foot increasing by 6% from 2002 to 2008. However, whereas ecomobility (bicycle, public transport, pedestrian) enjoyed considerable growth, the number of journeys taken by car stagnated. If only car passengers are taken into account, disregarding drivers, then the actual number of journeys sank by 5%, according to the researchers from Infas and DLR, who were commissioned by the German Federal Transport Ministry.

Presenting the study in Bonn on 19 August, Wolfgang Hahn from the Federal Transport Ministry gave assurances that this data would be taken into account when making plans for future investments. Dirk Flege, managing director of the German Pro-Rail Alliance, welcomed the clear strategic repositioning. “It is expected that there will be no future growth in car traffic,” said Dirk Flege. He pointed to another conclusion reached by the 2008 study, which showed that the number of people who never travel by bus or train had dropped from 45% in 2002 to 42% in 2008. “Hardcore car drivers are slowly dying out,” He said. “The younger generation uses multiple modes of transport and is much more flexible in its choices.”

The greatest increase in openness towards public transport since 2002 was shown by people under 45. Only the actual ‘car-boomer’ generation clearly still prefers the car, according to the study. Only in the generation 75 and above did demand for public transport begin to increase again. The behavioural pattern of the younger generation was completely different. In the group of 18 — 24 year olds, the number of daily car users sank by 12% from the 2002 figure, while there was an increase in their use of public transport (5% more). In no other age group could the swing be so clearly seen, said Robert Follmer from Infas: “The car is no longer the fetish that it was for young people.”

The researchers confirmed that public transport has an enormous potential for growth, with 20% of the total population being open-minded towards buses and trains. For the Pro-Rail Alliance, the trend towards ecomobility shows that the current road-oriented transport policies do not satisfy citizens’ mobility needs. “Once the general election is over, a broad debate on a master plan, or blueprint, for passenger transport would help ascertain the real funding requirements for all modes of transport,” said Dirk Flege.

Initial interim reports on the as yet unpublished study ‘Mobility in Germany 2008/2009’ can be found at www.mobilitaet-in-deutschland.de

UITP meets the Swedish Council Presidency

During a meeting on 20 August with Åsa Torstensson the Swedish Minister and EU Council President responsible for Transport, Tony Depledge, Chairman of the UITP EU Committee emphasised the strong support of UITP (International Association of Public Transport)for the Swedish Presidency’s overarching priority towards an eco-efficient economy.

“Eco-efficiency in cities means community-focused growth that is more space and energy efficient” said Tony Depledge. “The current development model of cities is not viable; the severity of climate change and the looming prospect of peak oil mean that we can no longer delay. The European institutions must play a facilitating role to bring about a shift towards more sustainable urban transport patterns. This means enabling a change in personal mobility choices leading to modal shift towards public transport.”

Speaking about the proposal on passenger rights, currently under discussion in the Council, Tony Depledge underlined that “UITP Members are committed to customer focus ass an essential element in the development of high quality public transport. However, the passenger rights proposal under discussion ignores the specific characteristics of local and regional passenger transport by bus.”

For that reason, Tony Depledge proposed to bring the professional knowledge and advice of UITP into the current European decision-making process through the organization of regular meetings with the Council Presidency.

The economic wealth of Europe is mainly created in urban areas which often face high congestion and pollution levels. Approximately 7% of this wealth is wasted on the external costs of accidents, congestion, health and environmental damage linked to transport.

Urban, suburban and regional public transport networks offer attractive mobility solutions as a basis for sound economic development while reducing congestion, accidents, climate change and local pollution.

In addition, those networks represent an essential link in enabling good accessibility for all to the different functions of the city (employment, education, health, leisure, retailing, etc) while securing social inclusion. In the European Union we estimate that public transport operators offer 1.200.000 direct jobs and studies suggest that every direct job in public transport is linked to 2-2,5 jobs in other sectors of the economy.

DB AG half-year results

On 20 August the CEO Rüdiger Grube of the German Railways (DB AG) presented the six months results for the first time. The global economic and financial crisis has impacted heavily on Deutsche Bahn and stopped the company’s years of growth. Revenues fell sharply in the transport and logistics segment in the first half of 2009, while passenger transport figures remained stable, and the total number of passengers even increased. During the presentation of the first six months results, Rüdiger Grube stated: “It will take several years before we return to the volume levels we posted in the record-breaking years of 2007/2008. For this reason we will have to cut our structural costs, optimize processes and develop new areas of business.” DB has already launched massive internal countermeasures via its reACT09 program, which aims to achieve savings in addition to introducing measures to enhance the company’s future viability and competitiveness. In this context Rüdiger Grube clearly stated that: “Customers can be sure that we will not save when it comes to service, and definitely not cut costs wherever safety is involved.”

As a further result of the crisis, the DB CEO announced the start of a consolidation phase. Following the expansion seen in past years, the time has come to sustainably restructure the diverse acquisitions that were made. This kind of consolidation phase is the prerequisite to return to growth in the future. Dr. Grube noted that current negotiations with train manufacturers was another central task. The manufacturers have to finally resolve the problems that have arisen. It is unacceptable that DB is held solely responsible for the costs and consequences of dysfunctional products.

DB AG’s revenues fell by 14% in the first half of 2009 in comparison to the same year-ago period from EUR 16,6 billion to EUR 14,3 billion. Adjusted earnings before interest and taxes (adjusted EBIT) decreased from EUR 1,4 billion to EUR 671 million (-52,6%).

The number of persons employed by Deutsche Bahn AG on June 30, 2009 was nearly 237.000, or about 4.000 less than a year ago. In comparison to the figure for the first six months of 2008, net debt was reduced by an additional EUR 622 million to EUR 15,3 billion. CFO Diethelm Sack: “Currently it is still not clear if the economy has hit bottom and when it will be able to sustainably move upwards again. Detailed forecasts regarding the future course of business cannot be made in this kind of unique situation.

Despite the partially reduced long-distance offers due to ICE axle problems, the passenger transport segment once again posted higher numbers of passengers in the first half of 2009: more persons than ever before travelled by DB trains as the number rose to 958 million. In comparison to the same year-ago period, this figure represents 16,8 million more passengers, or an increase of 1,8%. Volumes sold remained practically unchanged with 37,3 billion passenger-km. However, a slight decline of 1,5% was noted in the number of passengers posted by the bus transport segment. During the first half of 2009, DB buses transported 392 million passengers or 5,8 million less than in the same year-ago period. Volumes sold fell by 59 million passenger -km, or 1,3% in comparison to the same year-ago period, to 4,6 billion passenger-km.

The volume of freight transported by rail in the freight transport sector fell by 51,5 million tons from the comparable same year-ago figure to 145 million tons, or 26,2% less than in the first six month of 2008. Volumes sold fell in the same period by 25,3%, for a decrease of about 15 billion ton-km to 44,3 billion ton-km. The freight forwarding and logistics segment also posted lower performance as the number of shipments in European land transport fell from 37,3 million to 34,4 million, or 7,9% less. The volume of air freight shipments contracted by 173.000 tons to 456.300 tons, or 27,5% less. During the same period the volume of ocean freight shipments fell by 70.000 TEU to 650.100 TEU, or 9,8% lower.

Development posted by the business units varied widely in the first half of 2009. While the largest decreases in revenues were noted for DB Schenker Rail (-26,3%) and DB Schenker Logistics (-24,8%), four business units recorded gains: DB Netze Energy (a gain of 12,4%), DB Netze Stations (a gain of 9,1%), DB Bahn Urban (a gain of 4,9%) and DB Bahn Regional (a gain of 1,3%).

Two decisions on PKP Cargo

The Polish Office of Competition and Consumer Protection (OCCP) has decided to give PKP Cargo a fine of over PLN 60 million for discriminating contracting parties, plus an order to immediately change the practice in one case and a decision finding no anticompetitive practices in another — these are the outcomes of the OCCP’s antitrust investigations against PKP Cargo

PKP Cargo provides cargo transportation services on the territory of Poland and abroad. The company is the third largest rail carrier in Europe and the second largest in the European Union. Until 2001 it had a monopolistic position on the Polish market being the only entity providing services of this type. Currently, despite of formal liberalisation of the market, PKP Cargo still holds a dominant position: in 2008 it handled over 70% of all rail transport in Poland. Moreover, the company’s belonging to the PKP capital group, which provided comprehensive railway transportation services and railway infrastructure management, provides PKP Cargo with a significant economic, logistic, organisational and technical advantage over other railway freight providers. Under the Polish law, it is not forbidden to have a dominant market position, however, practices leading a dominant company to use its market power in a way that harms competition are unlawful.

The OCCP has just finished two proceedings initiated based on information obtained from enterprises operating on the railway freight services market. In the first case, the motion for action was submitted by CTL Logistics, PKP Cargo’s competitor. CTL Logistics accused the monopolist of restricting competition by refusing to conclude special agreements with enterprises recognised as its competitors.

The materials collected in the course of the proceedings proved that PKP Cargo has been using its market power to impose onerous cooperation terms on several of its contracting parties. The company provides carriage services based on general terms, i.e. general freight agreements concluded at cargo booking offices, and based on special terms connected with offering the contracting parties attractive discounts. PKP Cargo claims that both forms of cooperation are available to all its customers on equal basis. However, according to the company’s policy, an enterprise recognised as its competitor as regards transporting a given type of cargo, can only sign an agreement based on general rules. Consequently, some enterprises are deprived of the possibility to do business on more advantageous terms.

PKP Cargo’s policies may lead to unequal treatment of two contracting parties, despite the fact that they both order the shipment of an identical quantity of identical goods, on the same route and using the same draft of cars: if one of them uses PKP Cargo services only and the other transports the goods on its own, the first one could benefit from better terms, of which the other could be deprived, despite the fact that the actual costs incurred by PKP Cargo would be identical. This practice affects PKP Cargo’s competitors, who could reduce its market power, take over part of its customers or force it to lower its prices.

In the OCCP’s view the system is not based on objective economic criteria, but aims at limiting the operations of other carriers and preventing new entities from entering the market.

More beneficial cooperation terms have also not been available to companies which are not PKP Cargo’s competitors, but belongs to the same group as an enterprise recognised as PKP Cargo’s rival. Such a practice is an unjustified interference in the operations of independent entities: by imposing such contract terms, the monopolist has also been limiting the economic freedom of companies having no agreement with PKP Cargo and infringing their right to choose the sphere of their activity freely.

This decision was given an order of immediate enforceability as in the Office’s assessment, further application of the policies in question may lead to irreversible changes on the market.

The company was also fined with over PLN 60 million. The amount of the fine was influenced by the fact that PKP Cargo had been punished by the OCCP several times before for infringing competition law, including for applying similar practices. In its decision of 2004 the OCCP concluded that the company abused its dominant position by imposing onerous cooperation terms in its long-term contracts and fined it with PLN 40 million. This decision is now final and binding; in 2008 the company began to pay the fine due.

The second of the two most recent investigations against PKP Cargo was launched upon the motion of Sped-Pro and aimed at checking whether using different models of cooperation with its customers, i.e. based on general terms, special terms or long-term agreements, PKP Cargo has been differentiating between its contracting parties despite identical — in Sped-Pro’s opinion — scope of services provided. The OCCP did not find the practices applied by PKP Cargo in this case to be restricting competition. The Office concluded that the cooperation system did not discriminate the contracting parties, and the price differentiation (different discounts) offered within individual cooperation models was economically justified.

Both decisions are not yet legally binding, as the company may appeal to the Court of Competition and Consumer Protection.

VR Group results in the first half of year

The restructuring of Finnish heavy industry and the global recession continue to have a strong impact on the net result of VR Group and especially of its freight services. Carryings have been 30% lower in the first six months than last year. VR Group recorded a net profit in the second quarter of EUR 2,8 million, while the net result for the half year was a loss of EUR 15 million.

“The rapid and apparently permanent change in heavy industry in particular has had a direct impact on VR Group. The volume of carryings has continued to decline in July. It is clear that VR must also be able to respond better to the changing needs of customers,” says Mikael Aro, President and CEO of VR Group.

In the second quarter, freight carryings in rail and road services together were 30,3% lower than last year. Traffic to and from Russia, an important business for VR, has slowed down very significantly. During the second quarter import and export carryings by rail fell 43,3%. In the January-June period the decline was 41,4%. The sharpest fall was in forest industry imports.

Domestic rail carryings declined 25,3% in the second quarter. The figure for the first six months was a fall of 22,7%. In road services, the volume of carryings fell 34,1% in the second quarter. Carryings fell 33,1% in the first half of the year.

VR’s second quarter net result was also weakened by a one-day stoppage by personnel and by the derailment of a freight train in the Toijala marshalling yard in June. Together they caused VR a loss of income of some EUR 5 million.

“VR plays an important role as the backbone of Finland’s freight transport system. In this changing situation we have to identify the transport system that will best support economic growth, for our customers and for the country,” states Mikael Aro.

VR Group’s net result for the whole year is forecast to be, in the best case, slightly positive, but it will be clearly weaker than last year. Net profit for last year was M€ 74.

“The work of adjusting costs and enhancing operations continues, and measures to achieve savings in 2009 have been agreed with personnel. We are also looking for new sources of income. We are continuing to develop one-stop services for freight transport and taking measures to obtain new carryings and expand our offering,” says Mikael Aro.

VR Group recorded a net turnover of EUR 344 million (EUR 383,9 million) in the second quarter and EUR 651 million (EUR 719 million) for the first six months of the year. The operating result was EUR 3 million (EUR 13,9 million) in the second quarter and EUR -15,1 million (EUR 19.4 million) from the beginning of the year. VR Group had a net profit of EUR 2,8 million in the second quarter and a net loss of EUR -15 million for the first six months. The net profit for the second quarter last year was EUR 10,9 million and the cumulative net profit for the first six months was EUR 15,6 million. The stoppage by personnel in the second quarter and the freight train accident in Toijala caused VR a loss of income of some EUR 5 million.

The weak figures for net turnover and net result compared to the previous year are due to the decline in transport volumes, in freight services in particular but also in rail passenger services. The net result for the first part of the year is usually weaker than for the rest of the year due to seasonal fluctuation in the operating result for track maintenance and construction. Easter came in the first quarter last year, and this makes it somewhat more difficult to compare the net result with last year’s figure. There are no one-time items that would adversely affect comparability between the second quarter and the corresponding period in the previous year.

VR Group to start restructuring programme

The Finnish VR Group is launching an extensive restructuring programme aiming to respond to the sudden and partially permanent changes in the market. The economic recession and structural changes in the industry have substantially cut freight volumes. In addition to this, the group structure is to be reshaped to support the restructuring programme.

— Structural changes in Finnish heavy industry, in particular the forest sector, have reduced demand for freight services. The industry's structural changes are thought to be permanent. We aim to better meet the new requirements of our customers, VR Group's President and CEO Mikael Aro says.

At first, the restructuring programme will focus at restructuring and improving the efficiency of logistics operations. Passenger services will also start several programmes aiming to improve the customer travel experience and meet different needs of passengers. The restructuring programme starts immediately and will take two to three years to complete. With the programme the company seeks a €100 million increase in Group profitability annually. Achieving the objective requires cost savings and new business growth opportunities.

— We need prompt actions to safeguard the whole transport system and ensure Finland's competitiveness. Therefore our aim is to develop VR Group responsibly on a long-term basis together with the employees and employee organisations. These measures aim to safeguard the future of the Group and assure growth opportunities, President and CEO Mikael Aro emphasizes.

The VR Group will be reorganized to simplify the company structure and to support the restructuring programme. The new VR will be structured more clearly around the customer segments, which will support the transformation and enable future growth. The new VR Group consists of five divisions: Passenger Services, Logistics, Corporate Services, VR-Track Ltd and Russia and International Business.

VR Group's all logistics operations: VR Cargo, Transpoint Oy Ab, Transpoint Cargo Oy and Transpoint International will form the VR Group Logistics division. VR Cargo and Transpoint Oy Ab will continue to operate as common carriers. All Transpoint companies continue operations as separate companies. The bus services of Pohjolan Liikenne will become part of the Passenger Services division but continue to operate as separate companies.

In the near future, all finance, IT and human resource services will be provided at the Group level. The new organization takes effect on 1 January 2010 at the latest but the management system of the new organization will be implemented immediately.

— Even though the organization undergoes a transformation the cornerstones of VR's business operations remain the same. VR is a state-owned company whose main mission is to provide passenger and freight services and build and maintain the rail network. New processes and a customer-oriented approach are essential for future growth, President and CEO Mikael Aro says.

A streamlined and customer-oriented organization aims to improve the service level and facilitates finding new sources of revenue.

VR Group Board of Management is reshaped to match the new Group structure. In addition to President and CEO Mikael Aro the Board includes Senior Vice President, Passenger Services Antti Jaatinen, Senior Vice President, Corporate Development Rolf Jansson, Senior Vice President, Human Resources Timo Koskinen, Senior Vice President, Russia and International Business Päivi Minkkinen, Senior Vice President, Finance Heli Ollila, Senior Vice President, Corporate Services Pertti Saarela, Managing Director, VR-Track Ltd Teuvo Sivunen, Senior Vice President, Logistics Erik Söderholm and Senior Vice President, Corporate Communications Hanna von Wendt. The new Management Board commenced its work on 20 August 2009.

First GBRf sign a major new contract with Allport

The British rail freight haulier First GBRailfreight (GBRf) has signed a new 12 month rolling contract with independent freight forwarder Allport, for the carriage of containers from the Port of Felixstowe to Birmingham Intermodal Freight Terminal (BIFT) at Birch Coppice Business Park in North Warwickshire and to Doncaster Europort freight terminal.

The BIFT service has been made possible by extending the route of First GBRf’s existing “common user” service, which currently runs from Felixstowe to Hams Hall in Birmingham, and increasing its capacity to 26 wagons, making this the longest train out of the Port of Felixstowe. 

The modified service commenced on 10 August  and operates daily from Felixstowe, with a commitment to move the equivalent of 300 lorry journeys a week, including high cube allocations on both services. It marks the first time First GBRf have carried goods to the BIFT inland terminal.

Ashley Stower, Head of Business Development and Marketing said: “At First GBRf we are renowned for finding innovative solutions to problems for our customers, so when Allport were having issues with a lack of capacity for high cube containers we were able to step in and help.”

Kevin Witmore, Allport’s Operations Director, said, "We are encouraging customers, when appropriate, to utilise high cube containers because we believe that they provide a cost effective alternative to standard ISO boxes and lessen the environmental impact of each freight kilo carried. We anticipate that demand from Felixstowe, already picking up, will continue to grow in the medium term, so the increased capacity we have secured with the First GBRf deal means that we can help ease congestion by transferring more freight to rail."

Logico wins extra business

The British rail freight operator Freightliner’s trading division Logico have launched a new service from Southampton to BIFT (Birmingham Intermodal Freight Terminal) on behalf of Allport, the UK’s leading independent freight forwarder. Commencing on 10 August, this is the 12th daily service that Freightliner operate from Southampton, to destinations in Birmingham, Cardiff, Coatbridge, Daventry, Doncaster, Leeds, Liverpool and Manchester.

Adam Cunliffe, Managing Director, Freightliner Ltd, commented; “The commencement of the Southampton to BIFT service on behalf of Allport extends our already comprehensive network coverage across the UK.  We look forward to providing Allport with the same exceptional service levels which all our customers receive. In addition to increasing our service offering to the Midlands, this daily train has additional capacity available for intermodal customers.”

Kevin Witmore, Allport Operations Director, added; “We look forward to building a long lasting partnership with Freightliner and Logico. Over half of our container deliveries have been transferred to rail, and we continue to work with the rail industry to develop strategic solutions as an alternative to road transport

Stobart appoints DB Schenker Rail as provider

On 14 August Stobart Rail, part of the Stobart Group, one of the UK's leading providers of multimodal transport and logistics services, announced that it has appointed DB Schenker Rail (UK) Ltd as its main provider of rail freight services.

This new contract for domestic rail services within the UK will enable a further step change in the Stobart Group's multimodal aspirations and complements the recent collaboration between the two companies on temperature controlled intermodal services from Spain.

DB Schenker will assume responsibility for all of Stobart Rail's existing rail freight operations in the UK and will work closely with Stobart Rail to deliver further movement of goods from road to rail with its enhanced national network.

The new arrangement will also see electric locomotives being used for the first time on Stobart's service from the Midlands to Scotland. DB Schenker's Class 92 electric locomotives enable CO2 reductions of 30%, compared to diesel locomotives, and will deliver an annual carbon saving of 7,500 tonnes on Stobart's existing traffic.

Stobart Group's CEO Andrew Tinkler said: "Firstly, I wish to express my gratitude to Direct Rail Services for their service and support over the years in operating the rail service. The move from DRS was not a reflection on either service or performance and was simply due to the rapid expansion of the business and move into Europe following the recent collaboration with DB Schenker Rail (UK) Ltd. These are both exciting and challenging times and by using electric locomotives where possible, we and our customers will ensure we further reduce our carbon emissions."

DB Schenker Rail CEO Keith Heller said: "Through our nationwide and European coverage we are able to provide a network of rail freight services that meets the current and future growth requirements of Stobart Rail. This, combined with DB Schenker's commitment to use electric locomotives, enables both companies to widen the use of rail freight by the customers of Stobart Rail and supports the Government's priorities as part of the Low Carbon Transition Plan."

Galileo applications for rail tested at Siemens’ Test Center

In the future, trains are to be equipped with systems that work with positioning information that is provided by satellite. This will be made possible by “Galileo”, the European satellite navigation system, which is to be simulated from 2010 onwards at the rolling stock Test and Validation Center operated by Siemens Mobility in Wegberg-Wildenrath, Germany. A test area for satellite-based navigation for rail systems is already being set up there which will enable tests to be carried out under real conditions before the Galileo system actually goes into operation. By doing so, Siemens is supporting the future-oriented “railGATE” project that is being conducted by RWTH Aachen University and sponsored by the space agency of the German Aerospace Center (DLR) with funds provided by the Federal Ministry of Economics and Technology (BMWi). With testing slated to begin in 2010, Galileo is due to enter operation in 2013.

In the future, trains are to be equipped with systems that work with positioning information that is provided by satellite. This will be made possible by “Galileo”, the European satellite navigation system, which is to be simulated from 2010 onwards at the rolling stock Test and Validation Center operated by Siemens Mobility in Wegberg-Wildenrath, Germany.

Satellite navigation has not yet gained a foothold in the field of automatic train control (ATC), which involves a considerable level of technical complexity and necessitates a high degree of reliability due to the exceptionally high safety requirements. The main reasons for this are the unreliable positioning function of current GNSS (Global Navigation Satellite Systems) such as GPS (Global Positioning System) and the lack of integrity information and an operating guarantee. Galileo, the future satellite navigation system of the European Union, is intended to provide a remedy to this situation.

The “railGATE” project was started in order to give potential users in the field of rail transportation the opportunity to test innovative applications before the real Galileo signal is available. The aim is to explore potential applications for the future Galileo satellite system in rail-bound transportation and to make it even more reliable in future. A test environment is being created on the 35-hectare site of the world’s most modern test and validation center for rolling stock in Wegberg-Wildenrath, which is owned and operated by Siemens. Eight signal generators — called pseudolites — will be mounted on top of 50-meter-high transmission masts and soon transmitting Galileo signals within a locally restricted area.

Trains fitted with receiving devices will be able to receive signals from the nearby pseudolites. This means that positioning system applications for rail transportation, such as for automatic marshalling or for train tracking, can be tested without danger on 28 km of track. In contrast to public railway lines, the tracks in Wegberg-Wildenrath can be used to carry out these tests without having to take into account or interfere with public railway operations. Other advantages of the test and validation center are its location in a wooded area and the existing infrastructure. Therefore, the Galileo system can be tested in different receiving situations, such as on a free section of track, in a forest or in the depot.

The “railGATE” project is an initiative of RWTH Aachen University and is being sponsored by the DLR with funds from the Federal Ministry of Economics and Technology. “railGATE” is one of two Galileo test fields comprising the joint project GALILEOabove (above being a German acronym which stands for “application center for ground transportation”).

DB Schenker Rail targets new markets

DB Schenker Rail (UK) Ltd, Britain's largest rail freight operator, has unveiled a new wagon that will target bulk commodities that must be kept dry during transit, converting traffic from the road network to the railway. In developing the wagon, DB Schenker plans to introduce new rail freight services for customers in the power generation, construction, grain and forest products sectors.

In particular, the wagon is aimed at supporting power generators in their move to introduce biomass and other alternative fuels for energy generation. It will also enable the movement of fly ash from power stations. To date, the railway has carried marginal flows of dry bulk cargo, with specialist wagons owned by customers in these sectors. The lack of suitable multi-purpose wagons in the market has been a barrier to rail freight growth in this sector.

DB Schenker forecasts that through industry use of the new wagon, it will be able to open this market and generate additional rail freight tonnage. In addition to biomass and fly ash, other materials that could be conveyed include cement, grain and sand. The wagon will enable significant modal shift from road to rail to occur and also assist in supporting the Government's priorities as part of the low carbon economy.

The new wagons have been developed to meet the high standards and needs of the dry bulk sector and represent the biggest move in the market for the movement of dry bulk products by rail in Britain for many years. The ability to protect the cargo is central to the design of the wagon, which is secure and water tight.  The wagon therefore meets the key customer requirements of avoiding water ingress.

The wagon is already approved to run on the rail network in Britain, is fast, operating up to 75mph (120 km/h) and has a haulage capacity of 74,5 tonnes per wagon. The wagon is also efficient to load, taking less than two minutes to open or close. In addition, the design of the wagon cover ensures that the loading gauge on the rail network is maintained at all times, even while product is being loaded. The wagon has been created through the work of DB Schenker with support from its subsidiary company Engineering Support Group, based in Derby, and Harsh Ltd, based in York.

RZD creates Directorates for Traction and Rolling Stock Repair

In July the Board of the Russian Railways (RZD) approved the creation of the Directorate for Traction and the Directorate for Traction Rolling Stock Repair in the form of affiliated companies, on the basis of the Company’s Locomotive Facilities Department. Both Directorates’ structures formation will be finalised by the middle of 2010.

Reorganization of the locomotive complex in Russia is taking place within the framework of the governmental order about structural reform on the railway transport issued on 18.05.2001 and internal RZD’s documentation which provide improvements to the company management system and divides its activities into two spheres — operational and repairs. It will create a three-level management system, as stated in the Program of the Structural Reform in Railway Transport, and it will ensure the effectiveness of the RZD Holding Group.

The Directorate for Traction will maintain the number of locomotives and locomotive crews to match planned traffic and cargo; it will also provide traffic safety. This Directorate will have a locomotive park (passenger, cargo and those for technical purposes), training and recreation equipment for locomotive crews and traction electric laboratories. This affiliated company will include 15 road traction Directorates and 135 operational locomotive depots. The Directorate for Traction will remain integrated in a single technological process of passenger and cargo transport.

The Directorate for Traction Rolling Stock Repair will provide technical service, current and major repairs to locomotives which belong to the Directorate for Traction, and will also provide traffic safety. This Directorate will receive relevant properties, technical service points and depots. This affiliated company will include 15 road traction repair Directorates and 110 depots.

RCA names new business development director

The Austrian rail freight operator Rail Cargo Austria (RCA) is strengthening its position in Romania by naming Gratian Calin as director of business developments. Gratian Calin, the director general of the state-owned Romania railway CFR Marfa from December 2008 to July 2009, has shouldered his new task with immediate effect. He is in charge of RCA’s business developments in the entire Black Sea region. Gratian Calin is highly respected in the railway world, thanks to his wealth of experience in the rail freight haulage sector.

Calendar

·         27 September — 2 Octoberin Båstad (SE): The 19th International Railway Safety Conference 2009 (IRSC). The IRSC provides a forum for an in-depth exchange of experience and lessons for improving rail safety and is exclusively devoted to rail safety issues. Participants are senior people with responsibility in rail safety management and mostly include industry representatives, safety regulators, investigation agencies and rail unions. Delegates to the conferences are typically expected to offer to present papers, or, failing that, to chair one of the sessions. They are also expected to participate in the question and answer sessions, which are very interesting in their own right. The diverse mix of experts who attend results in many thought provoking and challenging ideas, as well as an in-depth understanding of a range of problems, which are useful reference tools for any of the participants. Regular attendees at the IRSC benefit by developing strong working networks that give the added advantage when safety issues arise and advice or guidance is required. The IRSC therefore makes a very important contribution to the ongoing improvement of rail safety management and performance around the world. The conference will be held in English, German, French and Japanese and will be interpreted between these languages. Further information on the conference and the accompanying programme can be found through this link.

·         6-8 October in Jönköping (SE): Elmia Nordic Rail and Elmia Future Transport conference and exhibition. High speed train is the theme for this year's head seminar, which begins with international experience from for example Spain and France. The second part focuses on the thoughts and aspirations of the Nordic countries. In the panel debate questioned including Directors General of the Nordic infrastructure managers and Gunnar Malm, the government's high-speed investigators together with representatives of operators, industry and business community about its vision of high-speed in the Nordic countries.Elmia Nordic Rail also offer a lot of interesting specialized seminars in 22 different themes and about 40 exhibitor seminars. A novelty this year is an international summit organized by the Railway Gazette International "The Sustainable Railway ', October 6-7. At Elmia Nordic Rail you can meet both politicians and business people and have a good chance to make new important contacts. Rail issues are more topical than ever, with major rail investments in the Nordic countries. The need for rapid and efficient transport is growing and development is driven by the accelerating climate change. Undoubtedly, the railways are of central importance in the future.Future Transport Award is a new price where good examples and examples are highlighted. The winner will be presented at Nordic Rail buffet October 7. Further information is available through this link. The English version of the Conference programme is available through this link.

·         6-8 October in Bucharest (RO): The 4th edition of the Romanian Railway Days Summit organised by Club Feroviar, the Romanian Railway Industry Association and Club Metropolitan. The summit will have as main topic "Building a railway business environment in Central and Eastern Europe" and it will include panel discussions on the opportunities, projects as well as methods to overcome the institutional and technical obstacles that hinder the development of the European railway system. In 2010, several projects with a value of over EUR 3 Billion will be elaborated for the Romanian railways and, following the financing of the European Commission and the European Central Bank, a further EUR 20 Billion will be allocated for project development in Central and Eastern Europe. Join the over 200 regional and European leaders which participate to the Romanian Railway Days Summit 2009 to access the latest information and offers on the market and to actively participate to the panel discussions specially conceived to treat the main challenges in the railway business environment. The main topics of the conference are; Implications of the national and European legislation on the railway business environment; Building the European single freight market; European railway corridors — support for business development; Re-dimensioning infrastructure management activities — manager partnerships forms — industry; Upgrading the technical and management elements of the railway infrastructure in order to increase the attractiveness of the railway business environment; Protecting critical infrastructures — increasing the attractiveness of the railway transport system; The liberalisation of the European railway passenger transport market — opportunities and threats for railway operators; Building a door-to-door transport system — railway obligation; The role of rolling stock in optimising railway transport costs; The role of research and development in ensuring the competitive advantage; Ensuring interconnectivity with other long-distance means of transport — the way to an increased urban public transport attractiveness; The role of the underground networks in urban mobility; Building urban railway transport networks; Increasing the rolling stock attractiveness and energy efficiency. Further information on the Romanian Railway Days Summit can be found through this link.

·         21-23 January 2010 in Zürich: International railway conference IT10.rail — Mastering Interfaces in Railway Operation and Planning. The third edition of a noted series of rail conferences in Zurich, its organisers are motivated by the success of the previous events in 2005 and 2008, which attracted about 300 experts and decision-makers each. The Swiss Federal Institute of Technology (ETH) in Zurich will again be the venue. Four Swiss organisations are collectively organising the three-day international conference: ETH's Institute for Transport Planning and Systems, SMA und Partner AG and OpenTrack Railway Technology GmbH all based in Zürich and systransis AG of Zug. IT10.rail will focus on the challenges of the various interfaces in the railway system: Key issues will be on communication with customers, interaction among actors during planning phases and interfaces in operations and in the context of ETCS/ERTMS. The three-day event will include; a colloquium with workshops; a symposium; and a technical excursion. Up-to-date information on the conference is available at http://www.it10rail.ch.

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