Developing Multimodal Freight Transport Among The OIC ...€¦ · Multimodal Freight Transport...

2013-03-13 Chart 1

Developing Multimodal Freight Transport Among The OIC Member Countries

Rainer Mertel email: [email protected]

Samer Ghandour email: [email protected]

3rd Meeting of the COMCEC Transport Working Group Ankara – March 13th, 2013

mailto:[email protected]

mailto:[email protected]

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First Stage:

■ Identify the basic concept of MFT, its role in enhancing trade and factors affecting its success.

■ Investigate the latest trends in MFT in the world

Objectives

Multimodal Freight Transport (MFT) Study

Second Stage:

Identify the current status of MFT practices in the OIC Member States Determine the implementation barriers (political, legal, institutional,

fiscal, and physical infrastructure) for enhancing better utilization of MFT practices in the OIC Member States

Propose recommendations for improving MFT practices

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■ Overview on Rail Freight & MFT Services in OIC Member Countries

Agenda

■ Situation of MFT Services in OIC Member Countries

■ Main barriers for implementation of MFT Services

Arab Group Asian Group African Group

■ MFT good practice in OIC Member Countries

■ Recommendation for implementing MFT Services

2 1 3 4 5 6

■ Overview on MFT Services

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Two main MFT market segments

Overview on MFT services

Intermodal container hinterland transport: the transport of marine containers carrying inter-continental goods between seaports and inland locations arriving at or departing from seaports by an ocean journey. The intermodal chain of transport usually comprises of a rail (inland waterway) and road leg.

Continental intermodal transport: the transport of goods between land-based origins and destinations in a transport chain typically involving an initial road leg, a rail transport and a final road leg.

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Intermodal container hinterland transport

Domestic service

International service

Seaport Seaport terminal

Inland terminal

Inland terminal


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Unit for inter-continental trade: Freight Container (ISO Container)

Source: KombiConsult


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Continental intermodal transport

Domestic service

International service

Inland terminal

Inland terminal

Inland terminal


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Source: The Intermodal Container Web Page

Units for continental MFT: Domestic Container, Swap Body, Semi-trailer

Source: KombiConsult

Source: Kombiverkehr


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■ Overview on MFT Services in OIC Member Countries

Agenda






2 1 3 4 5 6


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Overview on MFT Services in OIC Member Countries

OIC Member Countries

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39 out of 57 OIC Member Countries with existing rail freight services

Overview on MFT Services in OIC Member Countries

2 1 3 4 5 6

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20 out of 57 OIC Member Countries with regular MFT services

Overview of MFT Services in OIC Member Countries

2 1 3 4 5 6

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Case studies of 23 OIC Member Countries

Overview of MFT Services in OIC Member Countries

2 1 3 4 5 6

15 countries with regular MFT services

8 countries without existing regular MFT services

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Agenda






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Situation of MFT Services in Arab Group Countries

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Djibouti

Egypt

Jordan

Morocco

Oman

Saudi Arabia

United Arab Emirates


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Main container seaports

At least one main container port per country

Largest port in area: Port Jebel Ali in Dubai (UAE) ~13.2 m TEU

No landlocked country


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Container throughput of main container ports

2010 2011 2012

Jebel Ali UAE - 13,000,000 13,270,000Jeddah Saudi Arabia 3,830,900 4,018,800 4,738,000Khor Fakkan UAE - 3,230,000 3,996,000Port Said Egypt 3,805,000 4,182,000 3,834,000Salalah Oman 3,482,400 3,200,700 3,620,000Tanger Med I Morocco 2,058,400 2,093,500 1,826,400Dammam Saudi Arabia 1,333,100 1,492,300 1,619,700Alexandria Egypt 1,375,500 1,358,000 1,434,500Damietta Egypt 1,191,500 929,400 -Casablanca Morocco 769,100 812,200 839,700Aqaba Jordan 605,700 705,600 817,400Doraleh Djibouti 399,200 688,500 728,500

Seaborne container throughput (TEU) Port Country


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Regular current MFT Services in Morocco and Saudi Arabia


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Ports of Casablanca & Tanger I in Morocco

Port of Dammam in Saudi Arabia

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Characteristics of regular MFT Services


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Characteristic Morocco Saudi Arabia

Geographic scope Domestic Domestic

Trade lanesCasablanca - TangerCasablanca - KenitraCasablanca - Marrakesh

Dammam - Riyadh

Type of MFT services Container hinterland Container hinterland

Rail production Dedicated MFT services Dedicated MFT services

Typical train capacity 55 - 70 TEU 200 TEU

Transport volume p.a. not available 470,000 TEU (2012)

Special features - Double-stack container trains

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Why no more MFT services in Arab Group Countries?


No rail infrastructure for freight (Oman, UAE)

Rail line only for conventional rail freight traffic (Jordan)

Poor state of rail infrastructure (Djibouti, Egypt))

Lack of efficient rail access to key ports

Tough competition from road hauliers

Lack of regulatory framework ensuring fair/equal terms of competition between rail and road

2 1 3 4 5 6

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Development of container ports


2 1 3 4 5 6

Enlargement investment plans for virtually any major container port

Construction of new ports in process or planned

Increase of throughput capacity by 2030: 27 m TEU

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Main developments of rail infrastructure

Key rail infrastructure investments:

Set-up of GCC rail network including links to main container ports

Construction of Jordan rail network

Integration of networks by building missing links & cross-border lines

Rehabilitation of Djibouti rail network

Improvement of rail access of seaports


2 1 3 4 5 6

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Main developments of MFT services

Plans for establishing or extending MFT services in every country

MFT services considered as key target sector or one of the main rail freight markets: Clear focus on container hinterland services Both domestic and international MFT services Market potential for continental services in Middle East area

Construction of intermodal terminals

Construction of logistics centres

Procurement of state-of-the-art locomotives and intermodal wagons


2 1 3 4 5 6

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2 1 3 4 5 6

The future of MFT in Arab Group Countries

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Situation of MFT Services in Asian Group Countries

2 1 3 4 5 6

Afghanistan

Azerbaijan

Bangladesh

Iran

Indonesia

Kazakhstan

Kyrgyzstan

Malaysia

Turkey

Turkmenistan


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Largest port in area: Port Klang (Malaysia) with ~10 million TEU

Majority of ports linked to national rail network

Ferry rail container terminals in Azerbaijan, Kazakhstan and Turkmenistan

7 landlocked countries



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2010 2011 2012

Klang Malaysia 8,871,700 9,603, 900 10,001,500Tanjung Pelepas Malaysia 6,530,000 7,502,000 7,700,000Tanjung Priok Indonesia 4,714,900 5,649,100 6,200,000

Ambarli Turkey 2,540,000 2,686,000 3,097,500

Tanjung Perak Indonesia 3,030,000 2,643,500 2,849,100Shahid Rajaee Iran 2,592,500 2,839,300 2,317,600Chittagong Bangladesh 1,329,000 1,392,100 1,405,500Mersin Turkey 1,030,400 1,113,900 1,263,450Penang Malaysia 1,106,100 1,198,800 1,160,000Johor Malaysia 985,900 1,165,700 -Izmir Turkey 726,700 - 810,000

Port CountrySeaborne container throughput (TEU)


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Container throughput of main container seaports

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Regular current MFT Services

Azerbaijan

Bangladesh

Iran

Indonesia

Kazakhstan

Kyrgyzstan

Malaysia

Turkey

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CharacteristicAzerbaijan Iran Kazakhstan Turkey

Geographic scope International International DomesticInternational

DomesticInternational

main trade lanes Baku - Kazakhstan/ Georgia

Bandar Abbas - CIS countries China/ Europe/ RU/ CIS countries

Istanbul - Europe

Type of MFT services Continental Container hinterland Continental Container hinterlandContinental

Rail production Dedicated MFT services Dedicated MFT services Dedicated MFT servicesShuttle services

Dedicated MFT services

Typical train capacity - - 80 - 100 TEU -

Transport volume p.a. - 80,000 - 100,000 TEU

540,000 TEU 650,000 TEU

Western Part

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CharacteristicBangladesh Indonesia Malaysia

Geographic scope Domestic Domestic DomesticInternational

Trade lanes Chittagong - Dhaka Java region Penang - ThailandType of MFT services Container hinterland Container hinterland Container hinterlandRail production Dedicated MFT services Dedicated MFT services Dedicated MFT servicesTypical train capacity - 28 TEU -Transport volume p.a. 700,000 TEU - 250,000 TEU

Southeast Part

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Why no more MFT services in Asian Group Countries?


No rail network (Afghanistan)

Rail line mainly for conventional rail freight traffic (Turkmenistan, Kyrgyzstan)

Poor infrastructure condition (Pakistan)

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2 1 3 4 5 6


Construction of new ports in process or planned



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Set-up of TRACECA rail network including links to main container ports


Rehabilitation of rail network



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Establishment of international container block trains (Viking, ECO)

MFT services considered as key target sector or one of the main rail freight markets: Clear focus on container hinterland and continental services Both domestic and international MFT services


Construction of logistics centres

Procurement of state-of-the-art locomotives and intermodal wagons

Harmonization of consignment notes

Establishment of dedicated combined transport framework regulation


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2 1 3 4 5 6

The future of MFT in Asia Group Countries

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Situation of MFT Services in African Group Countries

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Burkina Faso

Ivory Coast

Niger

Nigeria

Senegal

Uganda


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At least one main container port per country (except landlocked countries)

Largest port in area: Lagos (Nigeria) with ~1.5 m TEU

5 landlocked countries

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Container throughput of main container seaports


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2010 2011 2012Lagos Nigeria 1,128,171 1,413,276 1,500,000 *)Abidjan Ivory Coast 561,535 546,417 633,917Dakar Senegal 349,231 415,592 401,803Lomé Togo 340,000 350,000 350,000 **)Cotonou Benin 316,700 334,800 348,200Douala Cameroon 290,000 340,000 340,000 **)San Pedro Ivory Coast 77,730 118,071 246,187Libreville Gabon 153,700 162,415 169,000Freetown Sierre Leone 50,000 75,000 75,000 **)* KombiConsult estimate** 2011

Port CountrySeaborne container throughput (TEU)

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2 1 3 4 5 6

Regular current MFT Services

Burkina Faso

Ivory Coast

Nigeria

Senegal

Uganda

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Characteristic Burkina Faso Ivory Coast Nigeria Senegal Uganda

Geographic scope International DomesticInternational

International International International

main trade lanes Ouagadougou - Abidjan

Abidjan - Bouake Abidjan - FerkessédougouAbidjan - Ouagadougo

Lagos - KadunaLagos - Kano

Dakar - Bamako

Mombasa - Kampala

Type of MFT services Container hinterland

Container hinterland Container hinterland

Container hinterland

Container hinterland

Rail production Dedicated MFT services

Dedicated MFT services Dedicated MFT services



Typical train capacity 12 - 14 TEU 12 - 14 TEU 40 TEU 50 TEU 10 - 12 TEUTransport volume p.a. - - - - -

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Why no more MFT services in African Group Countries?


No rail infrastructure (Niger)

Poor state of rail infrastructure

Ageing rolling stock

Lack of efficient rail access to key ports

Tough competition from road hauliers

Lack of regulatory framework ensuring fair/equal terms of competition between rail and road

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2 1 3 4 5 6



Construction of new ports


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Set-up of regional rail network including links to main container ports


Rehabilitation of rail network



2 1 3 4 5 6

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MFT services considered as key target sector or one of the main rail freight markets:

Clear focus on container hinterland services

Both domestic and international MFT services


Rehabilitation of locomotives and intermodal wagons


2 1 3 4 5 6

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2 1 3 4 5 6

The future of MFT in African Group Countries

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Agenda






2 1 3 4 5 6


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Main barriers for implementation of MFT Services

Main Barriers

Policy & Regulatory Framework

Infrastructure

Equipment technology

Market situation & operational

systems

Cross-border MFT

2 1 3 4 5 6

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2 1 3 4 5 6

Transport policy and regulatory framework

Lack of

recognition of

pivotal role of

MFT services for

enhancing trade

and integrating

country in global

supply chains

Priority of transport policy on road

Infrastructure investments mainly in roads

Negligence of rail infrastructure

Lack of fair & appropriate regulatory framework on MFT


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Infrastructure

2 1 3 4 5 6

Lack of rail access to ports and near-dock intermodal terminals: Extra costs for trucking service and double handling of containers

Poor state of rail network (if any): Low axle load, limited train weight and length Poor state of maintenance (track-bed, bridges, switches) causing speed

limits on many sections

Terminals with short and non-harmonized handling tracks

Lack of dedicated inland intermodal terminals Source: MoT Senegal, JOGMEC


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Infrastructure

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500 TEU

400 TEU

300 TEU

200 TEU

100 TEU

OIC EuropeSaudi Arabia

North America

Train capacity Cost per TEU

Lack of economies of scale


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2 1 3 4 5 6

The vicious circle of poor equipment technology

Ageing & badly maintained rolling stock

Low speed, frequent break-

downs

Blocking of of rail lines

Delays & suspension of services

Low performance; non-competitive

service level

Lack of financial resources


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Market situation, MFT operational systems

2 1 3 4 5 6

Short transport distances between ports and main origins/destinations of containers

Inefficient rail operations impede capture of market shares

Lack of consolidation centres (dry ports, ICDs) in economic centres with good road and rail access

Tough competition with road haulage: Overloading Infringement of working time limits Corruption

Although often more cost-efficient than road MFT services are not selected


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Situation of cross-border MFT services

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Break-of-gauge between adjacent countries owing to “heritage” of different track gauges raises costs and transit time

Extensive border crossing processes (checks and controls) jeopardize competitiveness


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Agenda






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Good practice in and lessons learnt from MFT services

Transport policy and regulatory framework

Governments across all Groups have set up programmes for developing MFT services thus recognizing its role for enhancing the economy

Public-Private-Partnerships (Jordan, Iran, Malaysia, Nigeria, Senegal, Turkey, and UAE)

Authorization of privately-owned MFT service providers though using state railway for traction (e.g. Azerbaijan, Kazakhstan, Turkey, Uganda)

Turkey‘s transport policy goes even further: Development of specific regulatory framework on intermodal services Financial aid for start-up of services Competition on rail freight services by separating rail infra management Establishment of dedicated department at MfT

2 1 3 4 5 6

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Heavy rail infrastructure investments in process or on the horizon, preparing for state-of-the-art rail technology and interoperable systems (Arab and Asian Group)

Double-stack container trains (Saudi Arabia, GCC)

Rehabilitation and modernization of poorly maintained lines, signalling systems or operation control centres (African and Asian Group)

Rehabilitation of existing rolling stock (eg African Group)

Construction of rail access to container ports is in focus of many OIC countries

Good practice in and lessons learnt from MFT services 2 1 3 4 5 6

Rail infrastructure and rolling stock

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Dedicated intermodal block trains across all countries shows that railways have recognized the critical function of efficient production systems for competitiveness with road haulage

Operation of intermodal shuttle trains on short distances in the hinterland of ports appear to be cost-effective if managed properly (Bangladesh, Malaysia, Indonesia, Nigeria)

High-frequency container hinterland services (Saudi Arabia, Bangladesh)



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Fast cross-border container trains between Malaysia and Thailand based on Joint Traffic Agreement and customs clearance within 3 hrs

Harmonization of consignment notes (CIM/SMGS) especially for intermodal transport between Asia and Europe

Bilateral & multilateral agreements to pioneer MFT services (eg. TRACECA, ECO, Viking)

Operation of a single railway on international corridors avoiding border crossing processes between railways (Kenya/Uganda, Senegal/Mali, Ivory Coast/Burkina Faso)


Cross-border MFT services

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Agenda





■ Recommendations for implementing MFT Services

2 1 3 4 5 6


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Results and conclusions

Recommendations for implementing MFT services

Clear evidence on implementation barriers

Identification of a range of good practice actions and instruments , public and private actors have gathered knowledge on MFT

However, two critical actions are missing: OIC Member States lack of disseminating and exchanging good practice;

this study may contribute to raise the awareness The intermodal stakeholders are not used or not familiar with applying

the whole arsenal of effective solutions but only some discreet measures. This prevents them from relishing the fruits of a full-blown MFT system.

With respect to key success factors displayed in Stage 1-Report the following catalogue of suggestions shall help to establish more and more competitive MFT services

2 1 3 4 5 6

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Recommendations for implementing MFT services

Policy, regulatory framework

Infrastructure and rolling stock

MFT services and operations

Cross-border MFT services

• Terms of competition between modes

• Shift of priority of budget to rail/MFT

• Dedicated regulatory framework for MFT as if a single mode

• State finance of public terminals

• Establish competition between MFT service providers

• MFT department in Ministry as signal

• Quality infrastructure

• Efficient operation technologies

• Efficient and reliable rolling stock

• Good rail access to ports including near-dock terminals

• Harmonized layouts and parameters for MFT terminals

• Reduction of technical and operational inter-faces (eg. Shunting)

• Employment of standard train sets

• Coordinated planning of MFT services

• Set-up of MFT services with key clients

• Integration of MFT into supply chains

• Training of hauliers for pick-up/delivery

• Ensure interoperable rail infrastructure

• If break-of-gauge, shift wagonload to MFT services

• Reduction of border stops by transfer of checks & controls to inland terminals

• Bilateral/multilateral agreements

Efficient, competitive & sustainable MFT Services

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THANK YOU

KombiConsult - Advisors To The Intermodal World

Developing Multimodal Freight Transport Among The OIC ...€¦ · Multimodal Freight Transport...

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