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photo: Rob Dammers / Wikimedia Commons / CC-BY 2.0/Diesel locomotive, Ruisbroek, Belgium; illustrative photo
RAILTARGET brings you live coverage from today’s webinar on the UIC Fit for Freight – Presentation of the CT Report 2024, organized by UIC and UIRR, focusing on the findings of the 2024 Report on Combined Transport in Europe, delving into key trends, challenges, and opportunities in combined freight transport.
10:00 - 10:10 After an introduction word from Philip Van Den Bosch, Senior Freight Strategy Advisor at UIC, and Ralf-Charley Schultze, Director General of UIRR, Tobias Blätgen, Head of the Cologne Office, and Alexander Labinsky, Senior Consultant and Project Manager at SCI Verkehr, took the stage to introduce the 2024 Combined Transport Report.
11:10 - 11:20 Alexander Labinsky begins his presentation by diving into the findings of the 2024 Combined Transport Report. He explains that combined transport now accounts for more than half of all rail freight tonne-kilometers in six European countries, with Norway leading at 63%, followed closely by Switzerland at 60%. Labinsky points out that while combined transport is a major player in Southern Europe, countries like Spain, Italy, and Turkey still face limitations due to smaller market sizes. In contrast, Eastern Europe has been slower to adapt, as its rail systems were historically designed for bulk transport, such as coal, ores, and timber. However, he notes that integration into the European Single Market has gradually shifted the focus toward combined transport in the region.
Labinsky then moves onto the key takeaway: combined transport has been instrumental in keeping rail freight competitive with road transport, achieving over 40% growth since 2010—the highest among all transport modes. Without this surge, the non-road sector would have struggled to keep pace with the increasing dominance of road transport. He adds that combined transport uniquely blends the efficiency of small shipment logistics with the cost benefits of bulk transport, offering a compelling alternative to road-based freight for longer distances. This growth, he says, is critical as Europe transitions away from bulk-focused logistics and embraces more sustainable, multimodal solutions.
11:20 - 11:30 Labinsky discusses the role of combined transport in maintaining rail freight competitiveness saying it has been the fastest-growing segment, with a 42% increase in performance between 2010 and 2022, far outpacing other modes of transport. He notes that this growth has been crucial for ensuring rail freight remains a viable alternative to road transport, particularly as conventional rail and inland waterways have seen stagnation or declines.
He points out that without the expansion of combined transport, the non-road sector would have struggled to keep pace with the growing freight market, which has seen a 19% rise in road transport volumes during the same period. He also says how combined transport effectively bridges the gap between small shipment logistics and the cost benefits of bulk transport, offering a sustainable and efficient solution for long-distance freight.
11:30 - 11:40 Labinsky moves on to the analysis results of the development of combined transport volumes by segment. He explains that all unaccompanied combined transport segments grew between 2019 and 2022, with unaccompanied maritime transport dominating the market. This segment, which includes standardized sea containers transported between ports and hinterland hubs, accounted for nearly 80% of the total volume in 2022.
He says that unaccompanied continental transport, comprising semi-trailers and swap bodies, experienced faster growth than its maritime counterpart, reflecting an increasing demand for inland connectivity. However, accompanied continental transport, primarily used for transalpine connections, decreased, making up less than 1% of the market.
Moving on to cross-border combined transport corridors, Labinsky notes that one in four connections is transalpine, but corridors linking Central and Eastern Europe are becoming increasingly significant. He outlines that 66% of all combined transport trains operate within the Central region (Austria, Switzerland, and Germany), showcasing the vital role of the German market. Meanwhile, the East region (Czech Republic, Hungary, Poland, Slovakia) is rapidly growing, claiming 33% of train volumes. Labinsky also emphasizes ongoing efforts in the Iberian Peninsula, where Spain's rail infrastructure upgrades to standard gauge will enhance interconnectivity with the broader European network.
11:40 - 11:50 Tobias Blätgen, Head of the Cologne Office at SCI Verkehr, steps up to present insights from the RNE data sample on combined transport train punctuality and delays. He begins by highlighting that 80% of combined transport trains arrive within 15 minutes of their scheduled time, with the United Kingdom achieving the highest punctuality at 87%. Blätgen notes that less crowded networks and stricter timetable discipline in countries like France and the UK contribute to better punctuality compared to Germany, where leniency at points of origin affects the rate, which stands below 60%.
He then talks about the impact of delays, revealing that in a single week of September 2023, over 300 trains faced severe delays of more than an hour, significantly affecting the reliability of CT connections for clients. He emphasizes that delays are highly variable depending on the connection. For example, on the Koper (Slovenia) to Karlsdorf (Austria) route, over 50% of trains were delayed by more than 60 minutes, whereas the Le Boulou (France) to Bettembourg (Luxembourg) route saw punctual arrivals within 15 minutes for all trains.
11:50 - 12:05 Alexander Labinsky takes the stage again to provide insights into the financial growth of combined transport and its future potential. He begins by pointing out that rail carriers' revenues from combined transport trains increased by 33% between 2018 and 2022, driven primarily by higher prices for transport services rather than sheer volume growth. Labinsky explains that factors such as rising energy costs, inflation, and increased track access charges contributed to this revenue growth. Germany leads the market, generating EUR 2.45 billion in 2022, far ahead of Italy (EUR 508 million) and France (EUR 473 million).
He then moves on to the market development and influencing factors for combined transport, outlining key short-term challenges, including EU legislation updates, rolling stock availability, and cost structures. Mid-term factors such as climate change, driver shortages, and road transport electrification also pose challenges. Long-term, he notes that infrastructure capacity, reduced load sizes, and international development projects, such as the New Silk Road, will shape the market's future.
Labinsky shares a forecast for combined transport by rail, predicting a steady annual growth rate of 3% until 2040. He highlights that by 2040, the market is expected to grow by two-thirds compared to 2023 levels. Continental transport, in particular, is projected to nearly double by 2040, driven by the expansion of networks in key markets like Spain, France, and Poland.
12:05 - 12:15 Herald Reisinger, CIO and CFO at RailNetEurope (RNE), delivers the keynote, focusing on the growing complexity of combined transport and its evolving nature. He notes that as more partners join the sector, managing this complexity has become more challenging but also mentions that advancements in technology and coordination are helping address these challenges more effectively. Reisinger says that the rail sector is transitioning from a national, manual, and annual-based system to a more European, digital, and flexible approach.
He also explains that a more complex system requires better data availability and cooperation, stressing the importance of implementing improved data-sharing concepts and enabling all stakeholders to access necessary information seamlessly. He references the Rotterdam Declaration, which calls for full data transparency among all transport players. However, Reisinger points out that further integration of combined transport within European systems, like the Train Information System, is still needed to fully realize these goals.
Turning to ongoing developments, Reisinger mentions the new Capacity Regulation, which the European Commission is pushing forward. This aims to improve coordination of Temporary Capacity Restrictions (TCRs) and facilitate easier capacity allocation, ensuring more efficient access to rail capacity across Europe. Reisinger points out the need for collective efforts to address these bottlenecks, ultimately fostering a more streamlined and resilient combined transport system.
12:15 - 12:30 Ralf-Charley Schultze, Director General of UIRR, concludes the webinar by discussing the legislative framework shaping combined transport and the proposed updates to the Combined Transport Directive. He says that current EU legislative processes, including revisions to the Combined Transport Directive, Weights and Dimensions Directive, and TEN-T Guidelines, will significantly influence the sector in the coming years.
Schultze elaborates on the proposed definition for combined transport, pointing out that the revised directive introduces criteria based on external cost calculations. To qualify as combined transport, operations must reduce external costs by at least 40% compared to unimodal road transport. Schultze stresses the importance of ensuring this new definition is cost-effective, straightforward, and does not create additional burdens for the sector. Recommendations include using digital exchange platforms, as outlined by the eFTI Regulation, to streamline the process and maintain clarity.
This concludes the 'UIC Fit for Freight – Presentation of the CT Report 2024' webinar. Thank you for tuning in with RAILTARGET for the live coverage.