English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

Rail cost savings to "bite your hand off"

PRESS RELEASE

April, 28, 2015: Freight trains are now carrying more intermodal traffic, mainly fast-moving consumer goods, around the UK than coal. But more work is needed if rail operators are to wean more customers off road transport and "green" the supply chain.

Speaking at a seminar at the Multimodal Exhibition at the Brimingham NEC, Julian Worth, Director of Transworth Rail and Chairman of the Rail Freight Forum at the Chartered Institute of Transport & Logistics, said that when UK rail services were privatised 15 years ago, the main freight flows comprised heavy, low-value goods and FMCG was barely on the radar. He highlighted the "three Cs", cost, carbon and convenience, as the reasons for rail's change of direction.

He claimed goods could be transported from deep-sea ports to the so-called Golden Triangle in the West Midlands up to 40% more cheaply by rail than by road – "an order of cost saving for which most people would bite your hand off".

Every tonne moved by rail would generate 76% lower carbon emissions. "If you're looking to de-carbonise your supply chain, there's nothing more effective you can do," Worth said.

The convenience aspect was that a truck driver would have to offload and turn around inside two hours to pay his way, Worth added. "With a rail box, within reason, you can call it in when you want it."

Andrew Hemmings, Secretary of the Rail Freight Forum and a contributor to Network Rail's freight utilisation strategy, said, "We weren't far-sighted enough to see the decline in coal, or may have thought that biomass would be going [by rail] into the power stations instead. But the economics of the supermarkets have dictated the rise of boxes into national and regional distribution centres."

From the customer perspective, Tim Wray, General Manager of Multimodal Logistics, said he "struggled" to accept that rail transport to the Midlands could save him 40%. With the merchant haulage market offering him such low rates, rail was "not a cost-effective option," he said.

"Capacity when you need it is the issue. Huge vessels all arrive at same time, and coping with the volumes is difficult."

Rail infrastructure must improve and more lines should be electrified, Wray said. Shippers would make "huge savings" if electric trains didn't have to switch to diesel on route to Felixstowe, for example. The East Coast Main Line was not cleared for high-cube containers and transport was therefore cheaper by road.

Better wagon configurations were vital to a more efficient rail service, and Wray was unhappy about operators' continued use of 60ft wagons. "We need 45ft units, but you take it because you need the capacity."

Worth pointed out that the biggest cost of intermodal transport "isn't the rail bit, it's the on-cost of going the final 30 or 40 miles by road." By using a DC at Daventry - Tesco has already put in place, with Sainsbury set to follow – a container load of goods could be put on a dock loader for £30 or £40 against a cost of up to £100 "just to get out of the gate" by truck.

Tesco had taken out a further tranche of cost by using rail outbound from a national distribution centre to regional facilities in Barking and Tilbury, from where stores across the UK south-east are supplied.

Worth noted a generational shift in attitudes to rail. A former generation of transport managers were actively migrating to road, then came distribution directors who were "agnostic". Incoming supply chain managers now more aware of the need for sustainability and saw rail as a genuine option, though he could recall only one customer who had ever offered to pay more to be green.

Hemmings said freight facility grants had helped pump prime rail projects over a 20-year period but were currently only available in Scotland and Wales, not in England. However, EU funding was available to incentivise small and medium enterprises in eastern England to try rail, and 70 had converted some of their traffic.

More News

Written on 18/11/2017, 22:25
crowley-supports-puerto-rico-power-restorationSAN JUAN, PR: November 17, 2017. Puerto Rico's Electric Power Authority director Ricardo Ramos resigned today as the government acknowledged that only...
Written on 18/11/2017, 16:13
emirates-skycargo-signs-ecommerce-mouDUBAI: 18 November, 2017. Emirates SkyCargo has signed an MoU with Dubai CommerCity (DCC) – a free zone dedicated to eCommerce in the MENA...
Written on 17/11/2017, 23:08
qantas-plans-mustard-power-for-trans-pacificSYDNEY: November 18, 2017. Qantas is to operate the world's first bio-fuel B787-9 flight between Melbourne and Los Angeles next year based on Brassica...
Written on 17/11/2017, 20:43
yusen-buys-tibbett-logistics-in-romaniaWOODFORD GREEN, UK: November 17, 2017. The Keswick Enterprises Group is selling its Romanian Tibbett Logistics subsidiary to Amsterdam-based Yusen...
Written on 17/11/2017, 19:33
walmart-and-j-b-hunt-to-test-teslaLOWELL, AR: November 17, 2017. U.S. logistics company J.B. Hunt Transport Services has made multiple reservations at US$5,000 each for new Tesla 'Semi'...
Written on 14/11/2017, 17:49
port-record-prompts-savannah-rail-expansionSAVANNAH, GA: November 13, 2017. The Georgia Ports Authority (GPA) has approved a further US$42.27 million for its US$128 million Mason Mega Rail...
Written on 13/11/2017, 22:01
freightweek-news-update-week-46ASHBY-DE-LA-ZOUCH, UK: November 16, 2017. CEVA Logistics has added to its investment in pharmaceutical logistics with the opening of a fully refurbished...
Written on 13/11/2017, 20:56
amerijet-adds-to-sales-network-and-b767-fleetMIAMI: November 13, 2017. Amerijet International is due to take delivery of another B767-300 from Cargo Aircraft Management, a subsidiary of the...
Written on 10/11/2017, 21:36
turkish-cargo-q3-revenue-jumps-40-percentISTANBUL: November 09, 2017. Turkish Airlines has reported Q3 revenue of US$3.6 billion, an operating profit of US$1.07 billion and a net profit of...
Written on 10/11/2017, 18:00
ironhorse-joins-fedex-on-mexico-borderSANTA TERESA, NM: November 08, 2017. Ironhorse Resources, parent company of five shortlline U.S. railroads including the Santa Teresa Southern Railroad...
Written on 09/11/2017, 22:02
four-logistics-hubs-for-heathrow-s-third-runwayLONDON HEATHROW: November 08, 2017. In anticipation of government approval to build its third runway, Heathrow has published a list of 65 so-called...
Written on 09/11/2017, 01:25
fedex-signs-atr-freighter-orderTOULOUSE, November 08, 2017. FedEx Express has signed a contract with ATR to purchase 30 ATR 72-600F freighters plus 20 options. The price was not...
Written on 08/11/2017, 20:04
astral-aviation-working-for-africa-s-progressABIDJAN/NAIROBI: November 08, 2017. The Green Climate Fund (GCF), set up as a result of the UN Paris Agreement, has partnered with the African Development...
Written on 07/11/2017, 22:53
maersk-maneuvers-for-logistics-management-futureCOPENHAGEN: November 07, 2017. A.P. Møller – Mærsk has reported a 14 percent rise in Q3 revenue to US$8 billion; EBITDA earnings of US$978 million; and...
Written on 07/11/2017, 21:34
lng-to-power-cma-cgm-orderMARSEILLE: November 07, 2017. CMA CGM says its order for nine 22,000 TEU containerships with the first due for delivery in 2020 will be powered by...
Written on 07/11/2017, 20:22
ups-joins-blockchain-allianceATLANTA: November 07, 2017. UPS has joined the Blockchain in Trucking Alliance (BiTA), a forum for the development of blockchain technology standards and...
Written on 06/11/2017, 20:46
freightweek-news-update-week-45DUBAI: November 12, 2017. Emirates has ordered 40 B787-10 aircraft valued at US$15.1 billion (AED 55.4 billion) for delivery beginning in 2022. Read...
Written on 03/11/2017, 22:27
turkish-cargo-benefits-from-envirotainer-accreditationSAN FRANCISCO, November 01, 2017. The Bio Supply Management Alliance (BSMA), a community of supply chain professionals in the biotech, biopharma, and...
Written on 03/11/2017, 21:16
etihad-to-cancel-dallas-serviceABU DHABI: November 02, 2017. Following American Airlines' decision to end code share agreements with Qatar Airways and Etihad Airways next year, Etihad...
Written on 03/11/2017, 14:37
new-crowley-link-between-north-carolina-and-central-americaWILMINGTON, NC: November 02, 2017. Crowley Maritime will begin a weekly, fixed-day, FCL and LCL service from the Port of Wilmington to Guatemala and...

- powered by Quickchilli.com -