ScandFibre Logistics
Rail conquers sea?
Mats Erkén
Baltic Shipping Days
Oct 30th, 2012
ScandFibre Logistics - Owners / Partners
20 % each
10 plants total
2
History
• 2000-2005
Phase 1 - Rail 99
• 2006-2010
Phase 2 - Rail 99/07 7 mills
• 2011 - 2016 Phase 3 - Rail 11
5 mills
10 mills
3
Transport types - Swedish Export 2010
Pulp & paper
Sawn timber
Lastbil
Järnväg
18%
Järnväg
10%
1%
36%
64%
Fartyg
72%
Total 13,3 million ton
Source: Trafikanalys och Trafikverket
Fartyg
Total
6,0 million ton
Lastbil
Infrastructure Development Rail - Sweden
• Higher focus on freight traffic issues
• Prio of bottlenecks before new capacity
–
20 billion SEK until 2021
• Longer and higher load trains
• Corridor strategy when new investments
Preparation for increased capacity
Motivation Owners for ScandFibre (phase 3)
• Logistics costs
–
–
–
Cost efficiency with size
Risk minimization with rail with upcoming IMO taxes
Reduced cost /distances secondary transport
• Increase delivery reliability - rail
–
–
Regular and frequent departures
Own control by own professional organization
• Environmental / customer aspects
• Potential to build value
6
Environmental effect – rail vs. truck
1 train / 20 wagons = 1.300 tons
52 trucks = 1.300 tons
=
• 1 train per week
• 1 train per week all year:
-140 tons of CO2
-7.000 tons CO2
35
Upcoming taxes & costs on transports
• Rail system charges Sweden
–
–
2013 -> 2021 stepwise
0.6 -> 2,0 billion / year
• IMO cost impact
–
+ 1,4 billion SEK
+ 13-26 billion SEK
Start 2015, yearly cost increase
Source: Trafikverket
Sjöfartsverket
8
Rail 11 System - Scandinavia
•
•
•
10 plants in Sweden
2 million tons
Daily departures
Karlsborg
Piteå
Dynäs
Ånge
Iggesund
Gävle
Hallstavik
Frövi
Grums
Hallsberg
Braviken
Skärblacka
Göteborg
Malmö
Rail 11 System - Continental Europe
Ånge
•
•
Major hubs in Germany
Fixed departures from hubs
to regional areas
Hallsberg
Göteborg
Malmö
Lübeck
Hamburg
Bremen
Berlin
Gohfeld
Dortmund
Neuss
Antwerpen
Dresden
Köln
Decin
Woippy
Dijon
Kehl
Wien
Basel
Milano
Köln
Irun
Nürnberg
Torino
Modena
Kehl
Wien
Perpignan
Gävle
Norrköping
Rail11 System - Figures
• Volume North -> South
2,0 Mton
• Wagons from Scandinavia 33.000
return loaded
12.000 (36%)
• Terminals
50
• Average lead-time
5,5 days
• Turnover
• Employees
110 million EUR
33
11
Suppliers and Train Operators
Return freights – key for cost reduction
Partner
Smurfit Kappa Hoya
W
NE
Ontime Logistics
Customer
From
to
Goods
Hoya
SE, DK, NO
Paper (Testliner)
Wagons/ Turnover
year
k€/y
1800
3300
Modena SE, DK, NO Pasta, Olive Oil, Tomatoes, etc 1000
1700
Essinge Rail
Kehl
SE
Industrial parts, Cognac etc
1250
1300
Innocenti
Milano
SE
Pasta, Olive Oil, Tomatoes, etc
800
1300
Innocenti
W
NE
Milano
SE
Furniture
500
1000
Captrain
W
NE
Woippy
SE
Chemical wagons to Södra Pulp
mills
400
1000
Wibax
Berlin
SE
Salt ( road)
500
900
Essinge Rail
Berlin
SE
Beverages etc
600
800
Essinge Rail
Modena
SE
Industrial parts, olive oil etc
500
750
13
Example – mill strategy
z
Combination different transport types
Mill x
now 1-3 years
Boat 50% decrease
Rail
30% increase
Truck 20% stable / decrease
Rail
y
North Sea Link
Medeterian Route
Rail
UK
Townsend Hook
Terneuzen BeNeLux
Bremen
Düsseldorf
Paris
= Vessel Terminals
Vienna
Dijom
= Customers
Italy
Barcelona
Alicante
14
Volumes 2012
Share (%) railway transports among owners
Rail / Sea / Truck 2012:
2015 scenario:
40/40/20 60/25/15
Owner 1
Owner 2
Owner 3
Owner 4
Owner 5
Total
Total volume
kton
1 400
1 550
1 200
250
600
Share SFL
%
50%
13%
58%
80%
33%
Railway /SFL
kton
700
200
700
200
200
5 000
40%
2 000
15
Success factors – Rail 11 system
•
Coordinate fixed capacity with volume fluctuations
•
3 month & 2 weeks rolling forecasts
•
Competence logistics and IT-systems
•
Sales return freights
•
Disturbances infrastructure
•
Wagon repairs, snow
Experiences – Rail 11 system
• High interest , BOD strategy is often rail
• Few suppliers – challenge's…
• Importance IT system
• Mental difference (old) rail
culture and paper industry
–
–
–
Proactivity
Customer needs
Quality
Summary - Rail conquers sea?
• Most important KPI’s are cost and delivery reliability
• By pooling volumes, rail systems can be built with high
reliability and reduced costs
• Upcoming IMO charges and improved rail reliability has
increases rail interest for pulp & paper industry
• There will always be a symbiosis with different transport
types, but the share in-between could change
• Capacity on rail will improve
Probability reasonably high that rail will
increase share vs. sea.
18
ScandFibre Logistics
Questions ?