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1
The Future Prospects For Intermodal Transport On Rail In
Scandinavia
Bjarne Ivar Wist
Director Strategy and information
2
CargoNet
 Our train replaces more than 600.000 transports
on road with average transport length of more than
500 km.
 91% delivered within 15 minutes in 2012.
 Over 50 % market share of the main routes in
Norway.
 450 meter trains.
 Average speed 70 km / h.
 High frequency.
 Two lines in Sweden - partly owned subsidiary
Real Rail AB.
 Our system trains are designed for industrial
customers.
 Turnover: approximately NOK 1,100 million
 Number of employees: approximately 570
3
Great opportunities for intermodal transportation
 CargoNet have experienced how close strategic partnership with our
largest customers generates growth – focus on “high value cargo”.
 Since we ended the wagonload business back in 2003, we have had
more than 80% growth in intermodal traffic.
 More than 70% of the volumes of the largest fright forwarders in Norway
are transported on an intermodal rail shuttle.
 CargoNet and rail transport has a market share of over 50% of the total
transport market on the main transport corridors.
4
A high market share means increased standards for
punctuality and coordination throughout the value chain
 New customers with new and more demanding expectations.
 Competing more directly with road transport.
 Handling transfer from one transport mode to another.
 Focus on capital utilization has until resent years, not been the most
important for railway companies – intermodal transportation has been a
key factor for changing focus.
5
Reduced punctuality and regularity - the infrastructure is not
developed in line with customers requirements
 Reduced transport time on the roads - construction completed faster than
the rail network.
 In recent years its only built a few terminals for rail - old terminals do not
satisfy the customers or the railway companies requirements.
 There are many good projects under development, but progress is too
slow.
6
The challenge – how to cope with low margins and
infrastructure problems
 Focusing on equipment utilization – transport times and concepts.
 Stronger commitment from the customers – both parts have to take risks.
 Dedicated products and concepts – fish transportation.
 Low margins leave no room for more companies to make money in the
same value chain – how do we deal with the terminals?
 Today we focus too much on the limitations, and too little on those
customers who want a strategic partnership.
7
The new agenda
 In our role as intermodal operator we have the opportunity to challenge
through genuine cross-border products - focus on transport corridors.
 Challenge the infrastructure managers.
 Challenge the technical barriers.
 Challenge the limitations of unions.
 By doing so we earn the trust of our customers.
8
The best solution
 Intermodal solutions provides the best utilization of the infrastructure.
 Intermodal solutions provide the best social benefits of infrastructure.
 Intermodal solutions will help to build confidence in the railway transport.
 My experience is that intermodal solutions also represent the lowest
transaction costs between the customers and the railway.
9
Thank you for your attention

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Scandinavian Rail Development 2013 - Bjarne Ivar Wist

  • 1. 1 The Future Prospects For Intermodal Transport On Rail In Scandinavia Bjarne Ivar Wist Director Strategy and information
  • 2. 2 CargoNet  Our train replaces more than 600.000 transports on road with average transport length of more than 500 km.  91% delivered within 15 minutes in 2012.  Over 50 % market share of the main routes in Norway.  450 meter trains.  Average speed 70 km / h.  High frequency.  Two lines in Sweden - partly owned subsidiary Real Rail AB.  Our system trains are designed for industrial customers.  Turnover: approximately NOK 1,100 million  Number of employees: approximately 570
  • 3. 3 Great opportunities for intermodal transportation  CargoNet have experienced how close strategic partnership with our largest customers generates growth – focus on “high value cargo”.  Since we ended the wagonload business back in 2003, we have had more than 80% growth in intermodal traffic.  More than 70% of the volumes of the largest fright forwarders in Norway are transported on an intermodal rail shuttle.  CargoNet and rail transport has a market share of over 50% of the total transport market on the main transport corridors.
  • 4. 4 A high market share means increased standards for punctuality and coordination throughout the value chain  New customers with new and more demanding expectations.  Competing more directly with road transport.  Handling transfer from one transport mode to another.  Focus on capital utilization has until resent years, not been the most important for railway companies – intermodal transportation has been a key factor for changing focus.
  • 5. 5 Reduced punctuality and regularity - the infrastructure is not developed in line with customers requirements  Reduced transport time on the roads - construction completed faster than the rail network.  In recent years its only built a few terminals for rail - old terminals do not satisfy the customers or the railway companies requirements.  There are many good projects under development, but progress is too slow.
  • 6. 6 The challenge – how to cope with low margins and infrastructure problems  Focusing on equipment utilization – transport times and concepts.  Stronger commitment from the customers – both parts have to take risks.  Dedicated products and concepts – fish transportation.  Low margins leave no room for more companies to make money in the same value chain – how do we deal with the terminals?  Today we focus too much on the limitations, and too little on those customers who want a strategic partnership.
  • 7. 7 The new agenda  In our role as intermodal operator we have the opportunity to challenge through genuine cross-border products - focus on transport corridors.  Challenge the infrastructure managers.  Challenge the technical barriers.  Challenge the limitations of unions.  By doing so we earn the trust of our customers.
  • 8. 8 The best solution  Intermodal solutions provides the best utilization of the infrastructure.  Intermodal solutions provide the best social benefits of infrastructure.  Intermodal solutions will help to build confidence in the railway transport.  My experience is that intermodal solutions also represent the lowest transaction costs between the customers and the railway.
  • 9. 9 Thank you for your attention