ScandFibre pres Scanmed RFC 140626

Market Needs for Scandinavian
Rail Logistics Company
Stockholm, Sweden
2014-06-26
ScandFibre Logistics
Fredrik Öjdemark
1
The Company - Owners
10 Pulp & Paper
plants in Sweden
2
Swedish Exports and Pulp & Paper exports per
transport mode
16%
• Total exports Sweden:
– 28 million tons
11%
• 46% P&P industry
– 13 million tons
– 16% / 2,5 million tons on rail
• ScandFibre Logistics
– 70% of rail transports of
finished products P&P
73%
Rail
Truck
Vessel
ScandFibre Logistics – History….. and future
2000-2005 –
5 mills
Purchasing –
no operations
2006-2010
7 mills
Block trains Sweden –
more operations
2011-2016
10 mills
Rail 11 –
full control of system
2017-2021
Next system ?
4
Cost structure – Swedish Pulp & Paper Mill
Delivery to Central Europe (= main market)
4%
4%
7%
Wood raw materials
Personnel
6%
36%
Freight to customers
Chemichals
7%
Depriciation
Services purchased
8%
Other input
Energy
11%
17%
Other
5
ScandFibre Owners - Paper Industry
Shipment of finished goods from mill (4,5 million tons)
• 35%
• 25%
100% terminal
20% terminal
80% direct
90% terminal
• 40%
10% direct
6
Ktons per year
Rail 11 – system
• Focus on owners’ products
from paper mills
• Own sales force for return
sales to optimize cost
• Combining block trains and
single wagon load
•
•
•
•
•
•
Volume paper:
Wagon fleet:
Wagons paper
Train departures:
Terminal stops:
Return filling rate
1,9 mton
1.600
30.000/y
300 / wk
40
55%
600
Maschen
150
Dortmund
200
350
100
150
300
8
Backload customers
Consumer Industry - lead time and reliability
9
Rail 11
The “SFL corridor”
Sweden-Denmark-Germany-Italy
Issue
Consequence
Non-coherent standards
between countries
Complex rotation of locos and
extra costs
Complicated time table
process
Difficult to get maximum
length/weight paths (PaP!)
Uncertain ERTMS (ECTS)
implementation
Increased costs/disturbances
in long term contracts
Independent marshaling yards
Difficult to use different
operators along the corridor
Coordination between
infrastructure owners
Difficulty in running across
borders – works, reschedule
Condition of infrastructure
“Trust in rail?”
10
Rail 11
The “SFL corridor”
Sweden-Denmark-Germany-Italy
Issue
Consequence
Shorter train length than rest
of the corridor
• 630 m Sweden (750 m strd?)
• 835 m Denmark
• 750 m rest of Europe
More trains, less capacity
Need for shunting before
going to Europe
Need for double tracks
Hallsberg-Malmö
Difficult to find optimal time
slots on the corridor
Complicated process for time
table slots
Rail systems not as flexible as
needed – increasing costs
Brake tables
Lower speed – longer lead
times/less capacity – more
loc- drivers – higher costs
11
Rail 11
The “SFL corridor”
Sweden-Denmark-Germany-Italy
Issue
Consequence
Need for double tracks
through Denmark
Risk for total collapse of
rail transports – pushing
volume from rail
Firm plan for Ringsted –
Fehmarn
Uncertainty of project
increases costs in long
term agreements
Complicated process to
use same driver across
borders Germany to
Denmark
Increased costs
12
Rail 11
The “SFL corridor”
Sweden-Denmark-Germany-Italy
Issue
Consequence
Access to long tracks
/hubs/shunting yards and
stations
Difficult to start new
bigger projects
Noise regulations on
brakes
Increased costs
13
Needs for the corridor
Rail 11
Sweden-Denmark-Germany-Italy
Issue
Consequence
Opening dates of border
crossing Chiasso
Difficult to get enough
capacity during bank
holidays
Condition of last mile
tracks
Many derailments
Train length and tonnage
limited
Less capacity – increased
number shuntings
14
RailNetEurope – One-stop-shop
• How could/should ScandFibre use this?
• Should ScandFibre book our own paths?
15
Opportunities
• More volumes are available – if cost and
reliability/trust for rail system is improved
• More volume northbound in reloads
• Environmental discussion = Green Image
• Intermodal
– Better cooperation vessel / rail / truck
• Sulphur Emission / vessel cost aspects ->
increased demand ?
16
Key Words
•
•
•
•
•
•
No change – no future
Reliability – keep your promise
Costs – customer pays our salary
Proactive – take initiatives, do not wait
Team work – use owners and suppliers
High Quality
17