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EUROPE Example of optimization of rail transports PPI Baltimore October 30, 2013 Mats Erkén

EUROPE Example of optimization of rail transports PPI Baltimore October 30, 2013 Mats Erkén. ScandFibre Logistics Founded year 2000. Initiative to reduce logistic costs and improve reliability on rail. Now 3 rd 5-year period. 4 companies / 10 mills in Sweden Total production 4,5 million tons

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EUROPE Example of optimization of rail transports PPI Baltimore October 30, 2013 Mats Erkén

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  1. EUROPEExample of optimization of rail transportsPPI BaltimoreOctober 30, 2013Mats Erkén

  2. ScandFibre LogisticsFounded year 2000. Initiative to reduce logistic costs and improve reliability on rail. Now 3rd 5-year period. • 4 companies / 10 mills in Sweden • Total production 4,5 million tons • Rail: 40% • Sea 35% • Road 25%

  3. Cost structure – Swedish Paper MillDelivery to Central Europe (= main market)

  4. Rail 11 System • Volume paper: 2 mio ton • Wagon fleet: 1.500 • Wagons paper30.000/y • Train departures: 300 / wk • Terminal stops: 60 • Return filling rate 55% Hallsberg Malmö Maschen Antwerp Berlin Dortmund Woippy Kehl Austria Hungary Dijon Milano Irun Serbia Modena Perpignan

  5. Challenges • Market privatized, but oligopolistic structure • Different standards between countries • Own fixed trains vs. draining single wagon systems • Infrastructure bottlenecks and disturbances

  6. Opportunities • Intermodal • Environmental discussion • Sulphur Emission / vessel cost aspects -> increased demand ?

  7. Conclusion • Possible to save logistic costs by pooling volumes and utilize return cargo – hard work needed… • Growing interest for rail transports • Delivery reliability has improved, but still issues Mill Rail Terminal Return cargo

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