Week 05 - February 2010

The Swiss rail freight operator SBB Cargo has presented the strategic directions for the development of the product range. The international full train service in trans-Alpine transit traffic will be spun off into a separate company with the aim to lower the production costs, thanks to streamlined structures. In the Swiss wagonload traffic, SBB Cargo plans to make its services more standardized and to integrate the offers closely with their customers in the future. The decisions on further implementation will be made in the course of the summer.

With the decision to separate and focus of the two businesses, Swiss Railways SBB has set the future strategic focus of its freight division. This creates the condition to improve the company's economical future, and hereby also satisfies the legitimate interests of the clients for a reliable, long-term partner. The implementation of the decisions for the further development of SBB Cargo will require significant steps to reduce costs and improve earnings.

In the Swiss wagonload traffic SBB Cargo will continue to offer a complete product portfolio for the transport of single wagons, wagon groups and block trains in Switzerland. The great strength of SBB Cargo is the dense network of strong logistical links with the major customers. This should in future be even better structured and expanded. The aim is to improve competitiveness through standardization and optimization targeted at the shippers networks with central nodes.

The search for sustainable solutions will need many individual meetings and take several years to complete. Wagonload traffic in Switzerland should achieve a positive result by the end of 2013, which also covers the necessary reinvestment in rolling stock and the financial burden. As the wagonload transport primarily strongly depends on import- and export traffic from/to Germany, Italy and France, this traffic is subject to bilateral cooperation agreements with DB AG, SNCF and other partners. Standards for quality and punctuality will be agreed upon, in order to ensure the competitiveness of this,.

SBB Cargo will in the future focus on the role as traction provider for the international full train services - particularly in the transport of containers and swap bodies on the north-south corridor between the North Sea ports and northern Italy.

In preparation for the independent development, it became clear that the business Wagonload traffic Switzerland and International should evolve structurally well as separated companies. The business International will soon be structurally simplified. The international arm of SBB Cargo is transferred into a separate company with the aim of cost control, streamlined processes and structures, and simple IT system. The location of the new company is still open.

Discussions are presently ongoing with the Swiss intermodal operator Hupac regarding participation in the new company. In addition, it is to be determined how the subsidiaries of SBB Cargo in Germany and Italy will be incorporated into the new company.

In the coming months, the various details will be worked out. Decisions regarding practical implementation are expected in the course of the summer.

The Polish organization Independent Rail Operators Federation has filed a complaint against Polish authorities with the European Commission. According to the Federation, Polish government granted public aid to PKP Cargo, Poland’s PKP Group subsidiary responsiblefor freight transport, under the form of a preferential treatment regarding infrastructure costs.

The new structure of track access charges in Poland was implemented in December 2009. The tariffs sparked protests already at its inception and left the Federation with no other option than seeking formal support in Brussels.

„Access charges have been significantly lowered for lighter trains’ providers. The latter are, however, mainly exploited by PKP Cargo. For this state-controlled company new tariffs bring more than a PLN 250 million savings which is a significant amount given the PKP Cargo financial standing. Independent rail operators operate more effective and eco-friendly trains. In a consequence, new tariffs harm their competitive position, heavily increasing costs with no economic rationale behind. Moreover, in our understanding, this situation is synonymous to a purely political influence in the free rail services market” — explains Rafał Milczarski, Independent Rail Operators Federation President and Freightliner PL CEO.

Rail operators point out that the new charges do not only constitute an abusive behaviour harming the market competition but also infringe also the EU law, and mainly the so-called First Railway Package. The First Package stipulates that track access charges must be reviewed respective of freight efficiency. According to the Federation, it is the opposite in Poland.

„The new charges give clear preference to “dispersed freight” services, i.e.: operating single or limited number of wagons. These kind of services are offered uniquely by PKP Cargo which is due to the existing inefficient punctual infrastructure as designed by PKP SA. In other words, independent operators cannot enter the dispersed freight services market as they are unable to challenge its dedicated operator PKP PLK from the PKP SA capital group. Given the numerous occasions on which the Infrastructure Ministry officials have commented on the need to support PKP Cargo as well as admitted the new track access charges are to aid light trains freight, we think preferential treatment awarded to a state company is at stake here.  — comments Krzysztof Sędzikowski, the Federation Member of the Board and CTL Logistics CEO.

The Federation has announced it will continue campaigning for further EU engagement in monitoring the state of competitiveness in the Polish rail market. The Independent Rail Operators Federation is an alliance of independent freight services providers in Poland. Federation campaigns for creating a fully competitive rail freight market. Its members include CTL Logistics Sp. z o.o., Freightliner PL Sp. z o.o., LOTOS Kolej Sp. z o.o., Pol-Miedź Trans Sp. z o.o., PTK Holding S.A. and Rail Polska Sp. z o.o.

The association of European Rail Infrastructure Managers (EIM) used the occasion of the European Railway Award 2010 to present its newly published 2009 Annual Report to an audience of leading figures from the rail industry and European politics, including European Transport Commissioner Antonio Tajani.

The annual report outlines the achievements the association has made over the past year, while working to promote the interests of Europe’s rail infrastructure managers in the face of the economic crisis and the climate challenge. In addition, the report attempts to put a spotlight on employees of member companies — the people who are essential to the efficient running of the railway network. Making use of pictures and quotes, the report illustrates the daily work of infrastructure managers.

Michael Robson, EIM Secretary General, said, “As this Annual Report shows, 2009 was a year of change for EIM, with the European elections bringing in an influx of new blood to the European Parliament and the establishment of a new European Commission while the adoption of the Lisbon treaty will change the way decisions are taken in Europe. At the same time, EIM itself has undergone a process of change, particularly in regards to our relations with the other rail sector organisations.”

The annual report also outlines the main challenges that EIM will face in 2010. Building up a relationship with the new European Commission while pushing for action on measures such as the recast of the First Railway Package and the Future of Transport will be key tasks. In addition, there will be a shift in the focus of EIM with more effort being put into helping its members deliver better customer service through a wide range of activities including the creation of a network to share best practice becoming an important pillar of the association. “If 2009 was a year of changes, 2010 will be the year in which we work to take advantage of these changes to improve our working methods, build new relationships with our partners in industry and politics and to push forward with the realisation of our vision of an open, sustainable, customer focussed and efficient rail network for Europe,” Michael Robson said.

An electronic copy of the EIM 2009 Annual Report is available through this link.

In the crisis year of 2009, Hupac recorded a two-figure drop in traffic for the first time in its’ over forty-year history. The volume of road consignments transported fell by 13,5% to 607.284 road consignments (some 1,2 million TEU). The Shuttle Net accounted for 98% thereof with 597.286 consignments (1.194.572 TEU), down 12,9%, and the rolling highway accounted for close to 10.000 consignments or close to 20.000 TEU, down 39,5%. The transalpine volumes reached 406.946 consignments (813.892 TEU), down 13,6%, although there was a 52,3% increase in the transalpine volumes via Austria from 13.843 to 21.082 assignments (42.164 TEU).

Read more on the focus article through this link.

Vossloh has completed the acquisition of rail services companies. On 5 February the closing of the sale and transfer agreement covering the corresponding companies of the Stahlberg-Roensch Group, Seevetal near Hamburg, as well as LOG Logistikgesellschaft Gleisbau mbH and ISB Instandhaltungssysteme Bahn GmbH of the Hannover-based Contrack Group was done. Prior to this, the due diligence had been completed to satisfaction; Vossloh’s Supervisory Board and the antitrust authorities had given their approval. The deal will take retroactive economic effect as of January 1, 2010.

As a consequence Vossloh AG has successfully expanded its business to include a new Rail Services business unit. The acquisitions cover seven German locations specializing in complex solutions for the welding and preventive maintenance of rails as well as the related logistics.

The intermodal operators present on the Polish market have a new competitor in the Polish independent rail operator, CTL Logistics, which until now only has been a carrier transporting containers for other operators. On 28 January CTL representatives announced intensive concentration on building its connections network and transportation of containers on international routes.

In the first stage of the strategy, CTL plans launching trains from Hamburg and Bremerhaven to partners’ terminals in Warsaw, Sosnowiec, Katy Wroclawskie and to CTL’s own terminal in Piotrkow Trybunalski. Subsequently, domestic connections from Gdansk/Gdynia ports and international connections from ARA ports shall be launched. Last step will be starting-up of intermodal transportation through Poland’s eastern border. These connections will be based on CTL’s own terminals in Piotrkow Trybunalski and Bruzgi.

„The intermodal market has been growing dynamically. It is estimated, that up to 2015 it shall grow almost 6% annually. First of all transport of containers from Asia to Europe has a huge potential. Additionally in the current market situation it is a good time to prepare strategic partnerships with ports, intermodal terminals — thanks to that we do not need to bear the cost of investing in the infrastructure”, commented Krzysztof Sedzikowski, CTL Logistics’ President of the Board.

As CTL’s representatives point out, the company already gained experience in accomplishing such projects, but the role of intermodal operator mainly based on collecting orders straight from the clients is new to them.

Artur Pielech, Vicepresident of the Board, Director of Trade and Marketing, stipulated that the Company’s main competitive advantage is uniting roles of the carrier and the operator. „It is beneficial for our clients, because we realize the transportation with our own rolling-stock. The whole process, from A to Z, is accomplished by ourselves, we do not need to use other carriers’ services. Thanks to that we can offer better conditions and be more flexible.  Furthermore, we operate also on the German market and are able to cross the Polish-German boarder without changing the locomotives. It gives us advantage of speed and in such transport time is of great importance.” — he added.

Apart from transporting of containers by rail, CTL shall offer terminal service in partner and owned terminals, delivery of a container to the client and custom service.

Every year, the International Rail Transport Committee (CIT) organises the “Berner Tage” on international rail transport law. Both the last event, in February 2009, and the event this year have focussed on the conflicts between the differing legal systems which apply to the rail mode.

Read more in the focus article through this link

The Swiss intermodal operator Hupac is opening a new transhipment terminal in the port of Antwerpen. The facility has the capacity to handle 12 train pairs each day and helps to further shift freight traffic from road to rail. The construction was completed on time despite the economic crisis.

The HTA Hupac Terminal Antwerpen is very close to the area of the port of Antwerpen previously used by Hupac. The facility consists of a check-in area and a transhipment module with five craneable tracks as well as a number of traffic and parking lanes. Twelve 620 m long trains can be handled each day, which corresponds to a loading capacity of 600 road consignments per day. In the initial phase, the HTA will handle five train pairs per day to Basel/Aarau and Busto Arsizio. The facility is owned by Belgian company Hupac Intermodal BVBA. The investment was EUR 22 million and was partly financed by the Swiss Federation.

The terminal is an important prerequisite for the further development of combined transport, emphasised Hans-Jörg Bertschi, chairman of the board of Hupac, at the opening ceremony on 26^th January in Antwerpen, which was also attended by the transport minister for Flanders, Hilde Crevits. “Green logistics is a reality, despite the economic crisis,” said Hans-Jörg Bertschi. “Companies that want to switch to environmentally friendly combined transport can now count on sufficient capacity and proven quality in the Antwerp area.”

The new terminal is a central hub in Hupac’s Europe-wide network. It serves both marine transport and continental transport for industries based in the port area. The facility is open to all rail operators and thus makes a significant contribution towards opening up the rail freight market. Competition creates dynamics within the world of rail and ensures attractive offers, thus convincing the transport sector of the strengths of combined transport, according to Bertschi. “We have a dream: to get long-distance transport in Europe onto the rails thanks to open rail markets by the year 2020. The HTA Hupac Terminal Antwerpen is a strategic resource for the implementation of our Vision 2020.”

Through a joint venture operated by their intermodal subsidiaries in Germany, the port logistics groups EUROGATE and HHLA intend to set up full-service hinterland terminals and depots for container traffic from and to German seaports.

Hamburger Hafen und Logistik AG (HHLA) and EUROGATE Group aim to jointly build up a terminal network for container handling in Germany. The Federal Cartel Office (FCO) has now given the green light for this project. HHLA Intermodal GmbH and EUROGATE Intermodal GmbH, the two groups’ hinterland companies, each have a 50 percent stake in the venture. In the start-up phase the joint venture will be developing schemes for terminals, considering potential locations, constructing facilities with integrated depots, and where appropriate promoting it further. The aim is to achieve a sustained improvement in the operational parameters for maritime transport and logistics chains in the hinterland of German seaports.

Sebastian Jürgens, HHLA Executive Board member for the Intermodal and Logistics segments:“In providing better and more intelligent links with the hinterland, with our project we shall be boosting the competitiveness of German seaports. That is wholly in tune with the German government’s national port strategy.”

Emanuel Schiffer, Chairman of EUROGATE Management:“We want to extend the high standards of quality of German seaports to the hinterland terminals as well. HHLA Intermodal and EUROGATE Intermodal are here making available their expertise to improve maritime logistics chains, with the entire logistics sector profiting from that.”

Whereas existing hinterland terminals are primarily designed to meet the requirements of continental services, the full-service hinterland terminals will be designed especially for the present and future needs of the growing volume of container services in global transport chains. With their integrated depots, the facilities will also offer storage capacities in immediate proximity to target markets.

With spaces for container storage and rail sidings and offering such services as container repair, the planned terminals match the requirements of the operators of combined services. For instance, they will improve the prerequisites for forming more efficient shuttle systems by rail between the seaport and the hinterland terminal. Integrated information chains facilitate improved coordination of production processes in the seaports and in the hinterland. That represents a further step in the ‘industrialization of the transport chain’, with improved utilization of existing infrastructure.

Higher quality and performance capacity at hinterland terminals will not only facilitate successful handling of growth in volumes, but will also offer a strong incentive for switching traffic from road to rail. An intermodal chain offering the best carrier for each stage of the journey also has substantial ecological advantages.

The European Railway Award 2010 was presented on 3 February to former Spanish Prime Minister Felipe González for political achievements and to former Deutsche Bahn Board Member Roland Heinisch for technical achievements. Since 2007, the European rail sector has honoured outstanding achievements in the development of competitive and environmentally sustainable rail transport.

Read more in the focus article through this link.

Mauro Moretti, Chief Executive of the Italian railways Ferrovie dello Stato (FS), was unanimously re-elected as Chairman of the Community of European Railway and Infrastructure Companies (CER) on 4 February. Meeting in Brussels, the CER General Assembly also confirmed the newly composed CER Management Committee and welcomed the private freight and passenger operator OKD Doprava from the Czech Republic as the 74th member of CER.

CER Chairman Mauro Moretti, who has been in this position since January 2009, and the CER Management Committee take office for a two-year term ending in December 2011. New members of the 14-strong CER Management Committee are János Berényi, Chief Executive of the Hungarian rail association Hungrail, and Kaido Simmermann, Chief Executive of Latvian railways EVR. Roger Cobbe, Chief Executive of private passenger operator Arriva and representative of the British rail passenger operator association ATOC, was elected as a new CER Vice-Chairman alongside Jan Komárek, Director General of the Czech infrastructure manager SŽDC and Andrzej Wach, President and Chief Executive of Polish railways PKP.

After thanking the 73 delegates of the General Assembly for their renewed confidence in his work, Mauro Moretti stated the main goals for his term to be achieved in the coming two years: “The railways and transport infrastructures need to play a major role in the European Union’s 2020 strategy and the upcoming white paper on transport. An appropriate funding for common rail projects must be ensured through Trans-European Transport Network (TEN-T) and Structural Funds. We furthermore have to work towards the elimination of national market barriers and proactively support the Single European Transport Area proposed by European Commission Vice-President Siim Kallas. At the same time, the recast of European railway legislation should guarantee proper compensation to railway companies for their public service obligations and adequate financing of rail infrastructure.”

Referring to the European Commission’s plans of decarbonising transport, Mauro Moretti made clear: “The internationalisation of external costs for all transport modes and effective and sustainable mobility must be realised as soon as possible on European level. We need a better integration of the various transport modes, privileging those with the smallest environmental impact, not least to shift heavy traffic from European roads to rail. The railways’ own 2020 objective supports the Commission objective of decarbonisation: we aim for a 30% reduction of our specific CO2 emissions by 2020, a goal to which railway companies and suppliers will contribute by providing more efficient products.”

Alain Thauvette has been appointed head of Region Rest of DB Schenker Rail, the rail freight operators of Deutsche Bahn, with effect from February 1. Concurrently he is appointed CEO of DB Schenker Rail UK, who serves as a member of the Management Board of DB Schenker Rail, and President of Euro Cargo Rail France (ECR), the French subsidiary of DB Schenker Rail. The Region West, which will be managed under the responsibility of Thauvette, also includes the companies Transfesa and ECR Spain.

Alain Thauvette, 54, currently serving as Managing Director ECR will take over both these positions from Keith Heller, who is about to retire. In 2004, Heller was appointed Chief Executive Officer of English Welsh Scottish Railways Ltd. (EWS - now DB Schenker Rail UK), the largest rail freight company in the United Kingdom. In 2007, it was taken over by DB. It was Heller who entrusted Franco-Canadian rail manager Alain Thauvette with setting up ECR in France. With a market share of approx. ten percent, the company is now one of the major rail freight operators in France.

"Despite the difficult economic situation and fiercely competitive market environment, Alain Thauvette soon put the start-up company ECR on the right track for lasting success. By entrusting him with the management of Region West, we are clearly demonstrating our great confidence in the management skills, entrepreneurial creativity and extensive international experience of this colleague," said Alexander Hedderich, CEO of DB Schenker Rail.

Karl-Friedrich Rausch, the Deutsche Bahn Management Board Member for Transportation and Logistics, thanked Keith Heller for his untiring and successful commitment to developing the DB Schenker Rail European network: "Keith Heller has proved his management quality throughout both good and bad times and is one of our best. For the benefit of business he played an essential role in opening the European rail freight market." Hedderich also thanked Heller for the good cooperation. "In more than 40 years of work in the railway business, which Keith Heller began with Canadian National in 1966, he has acquired unique expertise. We are delighted that we shall continue to have access to that wealth of experience, as Keith Heller has agreed to assist DB Schenker Rail in the capacity of an advisor in the future."

The board of the British infrastructure manager Network Rail is set to see further additions this week as two new non-executive directors are appointed - David Higgins and Graham Eccles.

David Higgins is a successful chief executive, civil engineer and project manager with over 20 years of experience in leading roles including:

·         currently the chief executive of the Olympic Delivery Authority

·         former chief executive of English Partnerships (2003-2005)

·         ex-chief executive of Lend Lease (1995-2002)

Graham Eccles is a vastly experienced career railway manager with almost 45 years of operating, managing and directing Britain's railway. His career includes:

·         deputy chairman of London Midland

·         former chairman of the South East strategic health authority (2006-2009)

·         board member of Stagecoach Group plc, chairman and managing director of South West Trains and co-chairman of Virgin Rail Group Ltd

Announcing the appointments, Network Rail’s chairman, Rick Haythornthwaite, said: “Strengthening and enhancing the board has been one of my priorities since joining the company. David and Graham bring a host of skills, experience and expertise with them that will be of great value to the company as it faces the challenges of the next five years and beyond."

A current non-executive director, Chris Green, has also announced that he will not be standing for re-election at the company's AGM in July.

Commenting on Chris' forthcoming departure Rick Haythornthwaite said: "Chris has been an invaluable member of the board. His knowledge and experience of the railways have served the company well and I wish him all the best for the future."

On 27 January, the British Transport Secretary Andrew Adonis announced the appointment of Sir Brian Briscoe as the new Chairman of HS2, the company established by the Government to advise on the development of high-speed rail services between London and Scotland.

Sir Brian, who will take up his appointment in February, will succeed Sir David Rowlands, who steps down next month as planned. Sir Brian joined the HS2 Board in February 2009 as a non-executive Director and has previously held the posts of Chief Executive of the Local Government Association and Chair of the Independent Transport Commissions for Cambridge and Reading, as well as sitting on the Boards of Visit England and the Town and Country Planning Association.

Andrew Adonis said: "This is an exciting time to be involved in the development of high-speed rail in the UK. I am currently studying HS2's report closely and will announce how we plan to take high speed rail forward by the end of March.

“I firmly believe that high-speed rail can transform transport in this country for the better - it has real potential to regenerate and reinvigorate. I am sure that Sir Brian will build on Sir David Rowlands' excellent work and I wish Sir David all the best for the future."

Sir Brian Briscoe said:  “It is a privilege to be able to take forward this exciting challenge of high-speed rail for the UK and to help build on the excellent work of the team in HS2 so ably led over the past year by David Rowlands."

HS2's report was delivered to the Government in December 2009. The report presents a detailed route plan for the first stage of a north-south high-speed line, from London to the West Midlands, as well as options for extending high-speed services, and high speed lines, to destinations further north, including the North West, the East Midlands, Yorkshire, the North East and Scotland.

·         9-11 February 2010 in Istanbul (TR): Turkey’s annual meeting for the region’s rail sector EurasiaRail 2010offers the opportunity to gain expert insight, network and strategise with Turkish rail experts from around the world and development authorities in Turkey. EurasiaRail 2010is set to be bigger, better and even more strategic than our 2009 event, adding a pre-conference Light Rail briefing day tailored for Turkish municipalities and light rail developers. Additionally we will also be adding a series of strategic post-conference workshops tackling the biggest challenges facing the Turkish rail industry such as funding and project management. Meet regional leaders and the international heavyweights develop the latest ground-breaking projects in Turkey. Further information is available through this link .

·         15 — 17 March 2010 in Madrid (ES): Marketforce and the ASI’s 15th Annual “The Future of European Rail”conference will take place in Madrid on 16th & 17th March 2010. Building on the success of the last 15 years, we have decided to introduce a third day on “The Future of High-Speed Rail”and this will take place on 15th March 2010. Whilst delivering excellent networking opportunities, industry leading speakers will consider the following crucial issues; How can operators capitalise on competition and what challenges does it bring?; Which countries provide ideal markets for expansion?; How can regulation support growth and modal shift?;Positioning the freight sector for recovery and future growth; How can an infrastructure network for the 21st century be created?; Moving towards a sustainable, environmentally friendly transport network; Managing and financing large high-speed projects; Increasing high-speed’s reach: challenging the airlines; and What lessons can be learnt from high-speed projects from across Europe? You can find the agenda and further information through this link.

·         20 March in Malmö (SE): The European Passengers' Federation holds the 8th Annual General Meeting and Conference. The theme this year is centred on the way in which cross-border cooperation and regional initiatives are improving public transport for passengers in Scandinavia. The Öresund bridge links Greater Copenhagen and Greater Malmö in an example of good cooperation. The two major cities are linked by a high frequency international rail service, awarded after competitive tender, which has already achieved excellent results. In Sweden itself public transport operators and politicians also have united in the goal of doubling public transport by 2020. The new transport policy of increasing opportunities for competition may pave the way for greater passenger influence in future; passengers are best placed to determine what can make public transport more appealing to potential users. Inevitably, the new arrangements have attracted some critics but they have also generated praise. The conference programme provides an opportunity to hear from different sides in the debate - consumers as well as transport planners. EPF's annual conference will draw participants from all over Europe to Malmö, and Vice President Kallas, the EU's recently nominated Transport Commissioner, has been invited to make his inaugural keynote address to the conference. Participants will have the opportunity to engage with some of Europe's leading policy makers as they explore the prospects for increased investment in sustainable mobility and the ways in which European initiatives in the fields of ticketing, smart cards and the application of state of the art telematics can help public transport become easier to use. In recent years EPF has established itself as an authoritative voice for passengers in European policy making. The EPF annual conference provides participants with a privileged opportunity to shape the future of public transport provision for Europe's passengers. More details can be found on the website at www.epf.eu .

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