photo: Archive/The Rise of Polish Players in the European Market of Intermodal Transport
Polish companies have been a dominant force in the European intermodal transport market, which is evident from Eurostat data, showing that they have been competitive with other European countries in this sector for many years. RPolish companies have been a dominant force in the European intermodal transport market, which is evident from Eurostat data, showing that they have been competitive with other European countries in this sector for many years. Road transport has been a major contributor to this success due to its significant role in the "first and last mile." However, the time has come for rail to play a more prominent role in intermodal transport.
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In 2021, there was an increase in international cargo transportation compared to 2020. Railroads transported 86.2 million tons of cargo and performed transport work of 24.8 billion ton-km. The Railway Transport Authority's market monitoring data indicates that most shippers have coped with the situation determined by the war in Ukraine. The decrease in the first half of 2021 from 330,000 to 307,000 TEUs is significant but not dramatic. However, compared to annual increases of 10% in the past, 8.5% at most is expected.
Intermodal transport is crucial for achieving the environmental goals set by the European Union. By shifting the transportation of goods from road to rail, the carbon footprint and external costs can be reduced. The EU aims to reduce greenhouse gas emissions from transportation by 60% by 2050, shift 30% of freight over 300 kilometres from roads to low-carbon modes, and reduce road transportation by 50% by 2050.
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Experts from the international consulting firm McKinsey have listed several key elements for the future of rail freight transportation. These include expanding connections on routes with significant freight potential, investing in infrastructure, and applying new business models by TSL market players. RailFreight.com has also identified five critical problems from the perspective of European intermodal transport, which must be addressed for the development of this type of transport. They include service integration, consistent communication about delays or impediments, and a wider list of principals, including entities outside industries that already use rail.
According to Marcin Witczak, President of Laude Smart Intermodal, the increase in the share of railroads in freight is largely due to the long-term development of containerization. He explained that the effects of implementing such a strategy can be seen in Germany and Austria and that cargo shippers understand that the future is intermodal. The Laude Company is aiming to increase its share of intermodal shipments between Poland and Germany and has invested in establishing a company there.
The Foreign Expansion Fund managed by PFR TFI supports Laude's expansion into the German market. The fund is a typical financial investor, and its decision to invest follows Polish entrepreneurs wherever they see opportunities to create a profitable business based on the organization's quality, financial performance, and stability of the country of investment.
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Intermodal transport is growing dynamically and shows great potential for development, especially internationally. Consistently increasing the presence in foreign markets is vital for success in this industry. While Germany is Poland's most important trading partner, many other countries offer attractive conditions for investors, such as those with clear, transparent regulations, tax breaks, access to qualified personnel, and large markets.