Research contributions to intermodal bridging and new rail freight services between Nordic Countries and Central Euro

1. Research contributions to intermodal bridging and new rail freight services between Nordic Countries and Central Europe Round table discussion seminar Baltic Sea region transport Vilnius, May 9 2008 Jardar Andersen Institute of Transport Economics, Norway © Institute of Transport Economics

2. Outline • Institute of Transport Economics • Former projects: concepts/results • Polcorridor • REORIENT • Cooperation industry-research • RETRACK • RAILRIDE • Concluding remarks © Institute of Transport Economics

3. Institute of Transport Economics (TOI) • Norwegian centre for transport research • Private, independent foundation, 60-70 researchers • Multidisciplinary, all aspects of transport • High activity on EU-funded research • Large projects within international logistics © Institute of Transport Economics

4. The Polcorridor project (2002-2006) • “Create a new freight transport corridor that will link the Nordic region with South-Eastern Europe” • Part of EUREKA LOGCHAIN • Coordinated by TOI, partners from Sweden, Finland, Lithuania, Poland, Czech Republic and Italy • Researchers, train and ferry operators, ports… NORTHERN FEEDER NETWORK GDYNIA GDANSK SWINOUJSCIE SZCZECIN HUBS VIENNA SOUTHERN FEEDER NETWORK © Institute of Transport Economics

5. Polcorridor: Results • Original idea • Explore and define attractive concept (market assessment, technical/operational feasibility, economic/financial feasibility) • Communicate to stakeholders • Run piloting programme • Changed to a feasibility study • Cooperation problems between companies • “Too early” • Important follow-ups • Business-to-business after the project ended • New research for EU © Institute of Transport Economics

6. REORIENT: Implementing change in the European Railway System • EU 6FP project – 6 Mill €, 2005-2007 • 7 partners, 11 subcontractors • Assess progress in implementation of new EU rail legislation & impact from legislation on market behaviour • EUs first infrastructure package • Access rights for international freight services • Separation of accounts for passenger and freight operations • Separation of transport operations from infrastructure management © Institute of Transport Economics

7. REORIENT Corridor and Hinterland Countries • North: • Sweden, Norway • and FinlandCentral: • Poland • Czech Republic • Slovakia • Austria • Hungary • South: • Bulgaria • Romania • Slovenia • Italy • Croatia • Bosnia/Herzegovina • Serbia/Montenegro • Macedonia • Albania • Greece • Turkey © Institute of Transport Economics

8. Differences between countries in implementation of EU directives REORIENT Implementation conditions and barriers Economic and social benefits Barriers to seamless flow Environmental issues Business model alternatives Market assessment Relation between deregulation and market dynamics Assessment criteria for investors Countermeasures to overcome barriers Social support for rail freight Service quality requirements and gaps between expected and delivered quality © Institute of Transport Economics

9. Barriers to seamless freight flow • Manifestations of barriers primarily operational, but barriers often rooted in administrative or political factors Market • Quasi-monopolies of incumbents • Incomplete access to terminal resources Organisational • Limitations of current business models • Border agreements for incumbents only Technical • Lack of technical interoperability • Transfer point problems dominate © Institute of Transport Economics

10. Barriers and remedies for different stakeholders © Institute of Transport Economics

11. Demand analyses for rail and road-based freight supply solutions in 12 European countries THE RAIL ROUTES ANDTEN-T CORRIDORS THE TRUCK ROUTES © Institute of Transport Economics

12. Importance-satisfaction gapsfor high-importance quality factors Truck shipments Rail shipments © Institute of Transport Economics

13. Rail – Truck comparison Underperforming rail service elements Satisfactory rail service elements • Origin-destination transit time • Availability of tracing/tracking services • Information promptness on cargo under shipment and after arrival • Reliability of service • Environmental friendliness • Frequency of service • Equipment free on time for loading/unloading • Suitability of Load Carrying Units for commodity carried © Institute of Transport Economics

14. Rail Expansion into Road Freight Market Expansion to road market requires that rail undertakings: • Possess good knowledge of service qualities required by shippers of truck-only high-value cargo • Have flatcars for transfer of inter-modal load carrying units, i.e., containers, swap-bodies and semi-trailers • Possess cash for in-house financing of capacity expansion orattract financial investors by offering higher yields from deregulated rail business than other sectors do. All needed in concert and accompanied by good timing © Institute of Transport Economics

15. RETRACK (2007-2011) © Institute of Transport Economics

16. RAILRIDE (proposed this week) © Institute of Transport Economics

17. Concluding remarks • Polcorridor: research-initiated assessment – problems with cooperation between rail companies • A potential identified – several interested businesses • In-depth rail assessment in REORIENT • Support for actual operations in RETRACK and RAILRIDE  Fruitful cooperation between researchers and industrial partners © Institute of Transport Economics

18. Thank you for your attention! jan@toi.no Tel +47 22 57 38 40 www.toi.no © Institute of Transport Economics