Whether due to a lack of funding for the outdated rail network, route closures or rising costs – combined transport (CT) is currently grappling with a number of problems. However, Niels Riedel, Head of Sales at Eurogate Intermodal, and Philipp Best, Head of Sales at TFG Transfracht, see more rays of hope than dark clouds on the horizon.
Credits: istockphoto.com, Eurogate Intermodal, TFG Transfracht 2022
“The state of the German rail network is below par.”
Niels Riedel, Head of Sales at Eurogate Intermodal
NIELS RIEDEL: At Eurogate Intermodal, we’re not seeing a downward trend in maritime combined transport. Despite the general economic weakness, we’re currently experiencing very good capacity utilisation, particularly in the import sector. Of course, we’re keeping a close eye on market developments and adapting our services flexibly.
PHILIPP BEST: We continue to maintain our positive growth expectations – our figures at TFG also confirm this. Our business is developing well. Nevertheless, we mustn’t forget the economic fluctuations of recent years. Events such as the Covid-19 pandemic, the war in Ukraine and the energy crisis have had a huge impact on global supply chains – and are still having an effect today. Then there are other challenges, such as rising costs, persistent or growing price pressure and the increasing shortage of skilled labour, which affect the entire industry. Despite these difficult conditions, we’re succeeding in maintaining and continuously expanding our range of services in our AlbatrosExpress network. An example is our successful link to the JadeWeserPort with daily departures to and from 25 terminals in the German-speaking region.
LOGISTICS PILOT: Are infrastructure problems and high energy costs, particularly in rail-based transport, the biggest problems facing CT?
RIEDEL: The state of the German rail network is currently below par, which is why measures and a new government package have been launched. We assume that the infrastructural challenges and their effects will be with us for the next few years. By contrast, after their rapid increase in 2022, energy costs have now become more predictable and are no longer the main cost driver. The current one is track prices. What we need is better predictability for the coming years – ideally with binding details on rising track prices.
BEST: Volatile transport volumes and business fluctuations, in particular, are among the challenges that will accompany CT in the long term and will continue to do so in the future. Here, it’s crucial to maintain a high level of flexibility and fast response times. Our nationwide train network, intelligent landing flow bundling and the integration of lorries as a mode of transport allow us to manage this very well. Digitalisation also plays a major role – it’s made a significant contribution to improving efficiency and transparency in logistics processes.
RIEDEL: Route closures are a significant business risk for us. Not only do they lead to longer journey times, they also cause significantly higher costs, for example additional track access charges, increased energy consumption and longer locomotive and personnel deployment times. As a rule, we don’t pass these additional costs on to our customers. We communicate possible impacts, such as delays or train cancellations, to our customers openly and as early as we can. The cost risks increase but we can only offset them via the market to a limited extent. This means even more precise planning and close dialogue with everyone involved.
BEST: Proactive and transparent customer communication is hugely important in the event of disruptions. We use several channels for this. On the one hand, we email our customers on our TFG-Info platform. On the other, the protected customer area of our website has a live ticker. In addition to reporting faults, we also always provide possible alternatives we can offer at short notice. Our dense network and close cooperation with partners and suppliers enable us to react flexibly to disruptions, for example by implementing diversions, using alternative terminals or deploying additional lorry capacity.
LOGISTICS PILOT: What should politics do to enable CT to grow? What has priority?
RIEDEL: From our standpoint, there’s only one thing CT needs – reliability! Stable products can only be developed for the market if we can build on reliable framework conditions, for example concerning track utilisation fees, network access or long-term infrastructure planning. Access to the network must be organised fairly, and the conditions for the rendering of services must be improved. Unfortunately, we are currently experiencing the opposite. The increasing transfer of risk to the operators, for example through stricter penalty regulations for the non-usage of routes, is making it harder to develop new products. People are less willing to take risks, and innovation is slowing down. If politicians want CT to grow, these barriers must be removed. Regardless of this, at EGIM we’re continuing to press ahead with the development of optimised solutions.
BEST: Politics have already charted a significant course. Secured long-term funding for the modernisation and expansion of the rail infrastructure is essential. The course taken with corridor refurbishments promises considerable improvements in the medium to long term. Another focus should be on simplifying and speeding up authorisation procedures. (bre)
“Proactive and transparent customer communication is hugely important in the event of disruptions.”
Philipp Best, Head of Sales at TFG Transfracht
