News

Irish Rail: trials of longer trains

In 2013 Intermodality was asked by Irish Rail to carry out a review of its rail freight business which, much like British Rail’s 30 years previously, had been in decline for several years. Working closely with Irish Rail staff at all levels, we helped identify opportunities to grow the business once more. One of the key recommendations made in our 2014 report was to move towards operating longer freight trains to help improve efficiency and competitiveness.

Irish Rail set to work undertaking a series of technical studies to determine the capabilities of traction, rolling stock, track and signalling to accommodate longer trains. This has now borne fruit, with test runs of longer timber and intermodal trains, the latter increasing train length by 50% from 18 to 27 wagons, the longest ever operated on the network.

We are delighted to see Irish Rail’s freight business achieve a turnaround in traffic over the last few years, this latest development another sign of an increasingly positive, proactive approach to growing traffic and contributing to reductions in lorry traffic and emissions.

For more information on Irish Rail’s freight business, click here

Intermodality presents industry award to Morrisons

Today the Freight Transport Association (FTA) hosted its annual Logistics Carbon Reduction Scheme (LCRS) conference and awards event. LCRS is a voluntary industry-led approach, led by the FTA, to reduce carbon emissions from freight transport by recording and reporting reductions in CO2 emissions.

Intermodality again formed part of the the judging panel for the 2015 LCRS awards, took part in one of the workshops at the event, and has once more sponsored one of the 5 awards, for Excellence in Modal Shift, recognising the company which has made the greatest achievement in switching freight from road to rail, inland waterway or maritime transport.

Presenting the award to Steve Gate, Transport Operations Manager for Wm Morrison Supermarkets, Intermodality Managing Director Nick Gallop said:

“This award goes to a company that is making significant use of rail. The company developed the initiative, not only because of its commitment to cost-effective logistics solutions, but also to support its Corporate Responsibility strategy to lowe emissions.

The company has worked closely with its rail service providers to make this achievement – in 2012 the company moved an average of 30 lorry loads a week by rail which in 2013 increased to 50 loads per week. And progress hasn’t stopped there – in 2014 traffic further increased to 60 loads a week, with each load saving around 950km in lorry mileage.

This is an impressive initiative and I’m therefore delighted to present the Excellence in modal shift award to Morrisons.”

European Commission: report on Combined Transport

The European Commission DG-MOVE has published a major report on the Combined Transport (intermodal) sector in Europe, the result of a year-long study by a consultancy consortium featuring KombiConsult, Intermodality, Planco and Gruppo Clas.

The report’s executive summary pulls no punches in outlining the challenges and opportunities for using intermodal and multimodal freight transport in Europe, stating:

“Whilst it is unlikely that anyone would disagree with the aims and objectives of the Transport White Paper of 2011, its hope that the performance of supply chains will be optimised and become economically attractive for shippers, remains elusive…The hope would be that, by now, CT would already be addressing the issues outlined in the White Paper, with world-class services continuing to attract customers on the basis of a major (almost dominant) share of freight traffic in Europe over road haulage.

This is very much the case with the North American CT industry, which has seen a dramatic turnaround in fortunes since the 1980’s, transforming a virtually bankrupt and dysfunctional rail sector into a key player in the overland freight market, where legislation is now focussed on limiting its scope for market dominance, rather than to try and stimulate the market to make more use of it.

The opposite applies in the EU. Here, the CT industry has been around for as long as in North America, and the liberalisation of the rail sector from the 1990’s onwards was anticipated by policy-makers to achieve a similar transformation. Twenty years have passed since “open access” liberalisation appeared, and whilst the EU’s CT industry would hopefully by now have been similarly mature and as successful as in North America, it instead appears at times to remain in adolescence and, at worse, at risk of heading for obsolescence.

At present, CT has achieved a market share equivalent to 12% of total road freight, and 9% of all surface freight. To set this further in context, rail freight has a 22% share of the combined volume of road and rail freight – almost half the share achieved in North America.

This is then the fundamental challenge facing CT: most policy-makers wish to see it play a much greater role in addressing the freight-related issues of transport in the EU; many end users would like to see it become much more commercially attractive; but relatively few customers actually use it, and often without any great enthusiasm…

There is no doubt that CT should be capable of significant growth in the years ahead. The extent to which the various CT stakeholders and actors can realise this growth will be conditioned by various factors, most of which relate to current challenges, which can be grouped into the following broad categories:

  • Service providers that still fail to recognise, adopt or improve on the performance benchmarks, or continuous innovation, established by the road haulage industry. Unreliable, unpredictable, inflexible, slow and expensive services, which by their very nature introduce extra risks associated with multiple transport modes and interchanges between them, is unlikely to attract, retain and grow the customer base to any great extent in the face of a road haulage industry which remains agile, aggressive and responsive in spite of its own set of challenges;
  • Failure of rail industry liberalisation to achieve the intended full separation of track from trains, with the breakup of former state-controlled monopolies. A large part of the rail and intermodal freight industry is now controlled by DB / Schenker and SNCF / Geodis, state-funded transport conglomerates each much larger and dominant than before the liberalisation process started, and both seemingly intent on preventing any further liberalisation of the rail industry;
  • Much of the EU’s rail and inland waterway networks are not capable of handling the type of CT traffic which operators and users would like to carry on it…Securing planning consent for new CT terminals may take years due to ponderous national planning processes, compounded by local “environmental” protestors. Solutions are available but funding is constrained and lead times may be extended;
  • The lack of electronic ICT infrastructure…In such a modern ICT-driven world, it is wholly unacceptable for some CT services to still involve the manual re-keying of data between modes and operators, based on hand-delivered or faxed documentation, or for end users to find it challenging to obtain real-time information on services, rates or even the location of their load units. Road haulage is moving forward in this area, the CT sector needs to as well;
  • Commercial and public policy towards use of CT can only ever be as good as the data it relies on. This study has highlighted the very poor quality and depth of data on freight moved by CT services, which at present prevents any forensic analysis of existing activity, or the opportunities to enhance and expand that activity.”

In terms of the 1992 Directive on Combined Transport, the report notes:

“…Some parts of the CT Directive have inevitably been overtaken by wider events, outside and within the CT sector, creating a need to revise or remove parts of the text accordingly. Other parts of the CT Directive have, as will often occur with legislation applied individually in multiple Member States, either not been transposed at all, or only in part, or been subject to various interpretations which, in some cases, may actually depart from the original objectives. This creates a greater administrative burden for CT operators and users managing services across multiple Member States (and in some third countries as well), where the rules at each end may be very differently interpreted and applied.

Yet, the CT Directive still retains a relevant role to play in establishing (or reaffirming) core principles in support of CT, whether with long-established or recent-accession Member States. There is no question that the CT Directive (possibly in an updated form) should be retained as part of the wider promotion of CT within EU transport policy. The majority of stakeholders agree with the need for the CT Directive in supporting CT, as well as the need for it to adapt and improve to support CT in future.

The key lesson learnt here is the need to achieve a delicate balance between, on the one hand, imposing a rigid pan-European “one size fits all” Directive, and on the other, a profusion of different interpretations of the CT Directive which then hinder its overall objectives…harmonising the application of the key provisions of the CT Directive across MS may be material to achieving further breakthroughs in making CT a more mainstream offer.”

In conclusion, the report sets out a way forward for the CT sector:

“…This report sets out a CT sector capable of making a major contribution to commercial and public policy objectives in the coming years. The European Commission has a critical role to play in co-ordinating investment in TEN-T and other cross-border initiatives that will over time suitably enhance the CT infrastructure networks. Alongside this, the CT Directive (with scope for updating and refinement) remains an important and relevant piece of legislation for promoting CT at Member State level. Member States then have a valuable role to play in implementing and enhancing the provisions of the CT Directive and related EU / national policies in support of CT.

Yet all the above measures will count for nothing without radical and real change within the CT sector itself which, in return for continuing to receive scarce public resources (and end user goodwill) on which to build the business, needs to adopt the practices and standards of logistics service providers. The CT sector should then build on these benchmarks, as far as possible, to evolve to a point where (as in North America) support is no longer necessary.

The White Paper concludes that a transformation of the European transport system will only be possible through a combination of manifold initiatives at all levels. For this study and its appraisal of the CT sector, we concur with this conclusion.”

A copy of the report can be found here.

Second rail freight pilot into Central London

Following yesterday’s presentation on express freight to the 22nd Rail Freight Group conference, Intermodality matched words with action by sponsoring last night’s test train by Colas Rail for TNT Express from Rugby to Euston.

TNT delivered cages of products for customers Staples and Bristan into Colas Rail’s Rugby depot, taking only 20 minutes to transfer from road to rail. The train left Rugby to cover the 82 miles direct to Euston station, arriving on time at 02:38. Filmed by camera crews from ITV and TNT, within an hour the cages were transhipped from train into a fleet of waiting TNT electric and low-emission trucks and vans, the road and rail vehicles being clear of the station by 03:49.

Nick Gallop, Director of Intermodality, congratulated TNT, Colas Rail and Network Rail on another successful demonstration of rail’s potential for high-speed, low-carbon deliveries into the heart of towns and cities:

“This trial has more than ever laid to rest the myths about rail freight and urban logistics – the overnight train ran to time, achieved a faster transit than by road, used an otherwise deserted main line station as a freight interchange, and significantly reduced emissions in the process. I am delighted that our sponsorship helped make it happen, reflecting our commitment to raise awareness and promote further innovation in the rail freight sector.”

Intermodality presents industry award to Tesco

Today the Freight Transport Association (FTA) hosted its annual Logistics Carbon Reduction Scheme (LCRS) conference and awards event. LCRS is a voluntary industry-led approach, led by the FTA, to reduce carbon emissions from freight transport by recording and reporting reductions in CO2 emissions.

Intermodality formed part of the the judging panel for the 2013 LCRS awards and this year was invited by FTA to sponsor one of the 5 awards – the award for Breakthrough in Modal Shift, recognising the company which has made the greatest achievement in switching freight from road to rail, inland waterway or maritime transport.

Presenting the award to Caroline Sindrey, Group Distribution Environmental Manager for Tesco, Intermodality Managing Director Nick Gallop said:

“I am pleased to be here today to present the Breakthrough in Modal Shift award, sponsored by Intermodality.

This Awards goes to a company that is making significant use of rail transport. Working closely with rail service providers and suppliers, and having a dedicated rail account manager, has enabled this company to operate five trains running six days a week. Fifty per cent of product is delivered from its rail-linked national grocery distribution centre in Daventry, to other regional distribution centres and stores. This takes significant mileage off the road network, saving carbon emissions.

There are also steps for the company to move goods by short-sea shipping. By transporting goods from Poland direct to Teeside, this completely removes the need for road transport in the UK for these products. Trains and short-sea journeys have therefore saved over 5.5 million road miles. This is an impressive case of modal shift to reduce carbon emissions and I’m delighted to present this award to Tesco.”

Industry award for Eddie Stobart

Intermodality’s Managing Director Nick Gallop today collected first prize for the EIT’s Rail Freight Customer Challenge on behalf of Eddie Stobart for their winning “Stobart Express” initiative.

The Enabling Innovation Team (EIT) was established by the the railway industry and Government to accelerate innovation in the GB railway, to focus on moving business solutions and technologies from prototype through to demonstration and implementation.

The 2013 Rail Customer Experience Competition was aimed at bringing innovation to customer experience in the rail industry, to significantly improve the rail experience for passengers and freight customers. EIT aimed to provide a glimpse into the future – showcasing innovative solutions that could transform the rail customer’s experience. By bringing together rail and non-rail sectors, the event sought to facilitate knowledge exchange and draw new talent into the GB rail industry.

After a two-month submission period, 16 finalists were chosen to go on to pitch their innovations at the Final Live Event in London on September 17th, 2013. Finalists competed for a total purse of £300,000 in cash prizes, plus the opportunity to bid for funding from a total investment pool of £700,000.

The Stobart Express project aims to build on work already in hand to return express freight services to the rail network as a mainstream offer in combination with “last mile” delivery services in urban areas, to providing an intermodal high-speed, low-carbon logistics service able to address modern next-day / same-day national deliveries for e-commerce and home shopping. At the heart of the innovation proposal is the creation of mini “swap pods”, providing a self-contained intermodal load unit for smaller deliveries, capable of being carried within larger existing swap bodies (Stobart has a fleet of several hundred) as well as on smaller local delivery vehicles.

Having made the final shortlist of 4 projects in the Rail Freight Customer Challenge, the judges awarded Eddie Stobart first prize, providing critical start-up funding to develop the “swap pod” system to prototype stage and with scope to pitch for further funding if required.

Intermodality’s Nick Gallop managed the submission of the competition bid in a very short timescale and attended the competition event to pitch to the audience and separately to the judging panel in a private “Dragon’s Den” session during the day. After collecting the award, Nick noted:

“The award of funding is gratefully received, as an invaluable next step for the logistics industry to bettert exploit rail’s unique qualities of high-speed and direct access into towns and cities. Combined with local deliveries in smaller low-emission road vehicles, Stobart Express can meet the challenge of sustainable urban logistics for the e-commerce era. On behalf of Eddie Stobart I would like to thank the judges for selecting the project as one of the prize-winning entries.”

SITA SUEZ: on track for £2bn waste contracts

Intermodality client SITA UK has been selected as preferred bidder for the 30-year £1.18 billion resource recovery contract with Merseyside Recycling and Waste Authority (MWRA), and the 25-year £900 million West London Waste Authority (WLWA) 25-year residual waste contract. Both contracts will put rail freight at the heart of the new operation, generating 3 new daily train services between transfer stations and energy-from-waste facilities.

Merseyside Contract

SITA SEMBCORP UK, a consortium led by SITA UK, with Sembcorp Utilities UK and I-Environment, will manage over 430,000 tonnes of residual household waste each year from Merseyside and Halton. It includes the design, build, finance and operation of two key facilities which both have planning permission in place: a rail loading waste transfer station in Merseyside and a new purpose-built energy-from-waste facility in Teesside. Total capital investment for the two facilities will be around £250 million. Both key facilities are expected to be operational by 2016.

The rail loading waste transfer station will be developed at an existing rail-linked warehouse in Knowsley Industrial Estate. From here, waste will be transported by rail to the new 450,000 tonnes per year energy-from-waste facility, which will be developed on a rail linked site at Wilton International – a 2,000 acre industrial estate managed by Sembcorp Utilities UK near Redcar on Teesside. Two trains per day are expected to operate between the sites, creating a trans-Pennine intermodal rail service which may in time help stimulate other third-party intermodal traffic along the corridor.

West London contract

A consortium led by SITA UK, Lloyds Banking Group and ITOCHU Corporation, will manage up to 300,000 tonnes of residual household waste each year from the West London Boroughs of Brent, Ealing, Harrow, Hillingdon, Hounslow and Richmond-upon-Thames. The waste collected from over 1.4 million residents will be managed in a new energy-from-waste facility in Severnside, South Gloucestershire and transported by rail from West London. Compared to the current waste treatment this will save over 83,000 tonnes of CO2 emissions each year, which is more than two million tonnes over the duration of the contract.

SITA UK will take over the operation of two rail-linked waste transfer stations in West London. The new rail-linked energy-from-waste facility, which will be called the Severnside Energy Recovery Centre (SERC), already has planning permission. This facility will produce enough electricity to power the equivalent of approximately 50,000 homes and could also supply hot water to local businesses, further improving its environmental performance.

The total capital investment in the new facility is over £240 million. A total of 53 permanent jobs will be created at SERC with around 200 jobs being created during its construction.

Support from Intermodality

Intermodality has worked alongside SITA to help with development of the rail services component of both bid submissions to the Waste Authorities. We are delighted that SITA has secured both major contracts, the strength of the rail component reflecting the close support provided by Network Rail, DB Schenker Rail UK, Potter Logistics and Sembcorp.