europe example of optimization of rail transports ppi baltimore october 30, 2013 mats erkén 1

EUROPE

Example of optimization of rail transports

PPI BaltimoreOctober 30, 2013

Mats Erkén

1

ScandFibre LogisticsFounded year 2000. Initiative to reduce logistic costs and improve reliability on rail. Now 3rd 5-year period.

• 4 companies / 10 mills in Sweden

• Total production 4,5 million tons– Rail: 40%– Sea 35%– Road 25%

Cost structure – Swedish Paper MillDelivery to Central Europe (= main market)

36%

17%11%

8%

7%

6%

4%4%

7%

Wood raw materialsPersonnelFreight to customersChemichalsDepriciationServices purchasedOther inputEnergyOther

3

Rail 11 System

4

Antwerp

Irun

Perpignan

Dijon

Woippy

Dortmund

Kehl

Milano

Modena

Berlin

Maschen

Austria

Serbia

Hungary

Malmö

Hallsberg

• Volume paper:2 mio ton

• Wagon fleet:1.500

• Wagons paper30.000/y

• Train departures: 300 / wk

• Terminal stops:60

• Return filling rate 55%

5

Challenges

• Market privatized, but oligopolistic structure

• Different standards between countries

• Own fixed trains vs. draining single wagon systems

• Infrastructure bottlenecks and disturbances

6

Opportunities

• Sulphur Emission / vessel cost aspects -> increased demand ?

• Intermodal

• Environmental discussion

Conclusion

• Possible to save logistic costs by pooling volumes and utilize return cargo – hard work needed…

• Growing interest for rail transports

• Delivery reliability has improved, but still issues

7

Mill Rail Terminal Return cargo