EUROPEAN PARLIAMENT

WORKING DOCUMENT

LOGISTICS SYSTEMS IN COMBINED TRANSPORT

3743 EN 1-1998

This publication is available in the following languages:

FR EN

PUBLISHER: European Parliament Directorate-General for Research L-2929 Luxembourg

AUTHOR: Ineco - Madrid

SUPERVISOR: Franco Piodi Economic Affairs Division Tel.: (00352) 4300-24457 Fax : (00352) 434071

The views expressed in this document are those of the author.and do not necessarily reflect the official position of the European Parliament.

Reproduction and translation are authorized, except for commercial purposes, provided the source is acknowledged and the publisher is informed in advance and forwarded a copy.

Manuscript completed in November 1997.

Logistics systems in combined transport

CONTENTS

Page

Chapter I INTRODUCTION ...... 1

Chapter I1 INFRASTRUCTURES FOR COMBINED TRANSPORT ...... 6

1. The European transport networks ...... 6 2 . European Agreement on Important International Combined Transport Lines and related installations (AGTC) ...... 14 3 . Nodal infrastructures ...... 25

a) Freight villages ...... 25 b) Ports and port terminals ...... 33 c) Rail/port and roadrail terminals ...... 37

Chapter I11 COMBINED TRANSPORT TECHNIQUES AND PROBLEMS ARISING FROM THE DIMENSIONS OF INTERMODAL UNITS . . 56

1. Definitions and characteristics of combined transport techniques .... 56 2 . Technical and logistic aspects of palletization and containerization . . 68 3 . Impact of the introduction of IS0 series 2 containters on modes oftransport ...... 74

a) General aspects ...... 74 b) Sea transport ...... 76 c) Rail transport ...... 79 d) Road transport ...... 81 e) Transport by inland waterway ...... 83

4. Impact of large intermodal units ...... 84

a) Effects on railway infrastructure of the introduction of large containers ...... 84 b) Effects of large containers on terminals ...... 97 c) Effects of large containers on rolling stock ...... 102

5. Technical innovations ...... 105

a) Infrastructures: "freightways" and the American experience ...... 105 b) Terminals ...... 111 c) Rolling stock ...... 119

Chapter IV ORGANIZATION OF THE COMBINED TRANSPORT MARKET INEUROPE ...... 132

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Page

Chapter V INTEROPERABILITY. MANAGEMENT AND DATA- PROCESSING SYSTEMS FOR COMBINED TRANSPORT ...... 155

1. Rail interoperability in Europe ...... 155

a) Generic problems relating to rail interoperability ...... 156 b) Interoperability projects ...... 165

1. Projects by the European Rail Research Institute (ERRI) ...... 165 2 . DG XI11 projects and fourth R+D framework programme ..... 171 3 . Telematics applications in road transport ...... 174 4. Interport project ...... 176

2 . Organization and management of combined transport in Europe ... 177

a) Public and private management ...... 180 b) Marketing ...... 180 c) Quality of services ...... 182 d) Documentation management in combined transport ...... 183

3 . Data-processing systems in combined transport ...... 185

a) The Hermes network in Europe's railways ...... 185 b) System based on "Electronic Data Interchange" (EDI) ...... 191 c) The Intercom project ...... 194 d) Computer systems in terminals ...... 203

Chapter VI COMMUNITY LEGISLATION AND NATIONAL POLICIES FOR DEVELOPING COMBINED TRANSPORT ...... 206

1 . Community legislation and the European Union's railways policy . . 207

a) The White Paper ...... 207 b) Transport policy documents supporting combined transport ...... 209 c) Specific regulations on combined transport ...... 212

1. Competition rules ...... 212 2 . Financial aid ...... 215 3 . Transport network ...... 217

d) Community rules on road transport ...... 218 e) Rules governing maritime transport ...... 221 f) Rules governing inland waterways ...... 222

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2. Directive 9 1/440/EEC ...... 222 3 . From road transport to combined transport ...... 233 4. National policies on combined transport ...... 237

a) Importance of combined transport at national level ...... 237 b) Aid for combined transport ...... 238

1. Investment aid ...... 239 2 . Operational aid ...... 240 3 . Fiscal aid ...... 241 4 . Other aid measures ...... 242 5 . Other combined transport planning measures ...... 244

Chapter VI1 PASSENGER RAIWAIR INTERMODALITY AND THROUGH BOOKING OF JOURNEYS ...... 246

1 . Distribution in the air transport sector ...... 247

a) Computerized reservation systems ...... 247

1. General applications of computerized reservations systems .... 247 2. GDS systems currently in operation ...... 248 3 . GDS systems in Europe ...... 249

b) Economic aspects of GDS distribution ...... 253 c) Legal aspects ...... 254 d) Ticketing in air transport ...... 255 e) Air transport distribution through travel agencies ...... 256

1. Characteristics of air transport distribution through travel agencies ...... 256 2 . Economic aspects ...... 258 3. Legal aspects .code of conduct ...... 258

2 . Distribution in the rail transport sector ...... 259

a) Rail distribution ...... 259

1. The communications infrastructure linking the European railways ...... 260 2 . Characteristics of the rail CRS systems ...... 260 3 . Economic aspects of the CRS systems ...... 263

b) Marketing passenger rail transport ...... 263 c) Ticketing in rail transport ...... 265

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3 . Intermodality in passenger transport ...... 265

a) Rail/air intermodality in Europe ...... 265 b) Distribution in intermodal transport ...... 266

1. Technical aspects: connection methods ...... 266 2 . Economic aspects: the cost of connections ...... 269 3 . Connections between current systems ...... 270

c) Marketing intermodal tickets ...... 271

1. Distribution of intermodal tickets by travel agencies ...... 271 2 . Economic aspects of marketing intermodal tickets ...... 273

4. Trends in distributing and booking tickets ...... 274

a) Booking and sale of air. rail and intermodal tickets via the Internet ...... 274

1 . On-line sales ...... 276 2 . Economic aspects ...... 277 3 . Technical aspects ...... 278

b) Ticketing in the future: ticketless and chipcard systems ...... 279

1. Ticketless systems or electronic ticketing ...... 279 2 . Chipcards or smartcards ...... 279 3. Technical aspects of the ticketless and chipcard systems ...... 280 4 . Legal aspects of the ticketless and chipcard systems ...... 280 5. Psychological aspects of the ticketless and chipcard systems ... 281

c) The future of GDS systems ...... 282

d) The future of travel agencies ...... 283

1. Technical aspects ...... 285 2 . The European Union’s code of conduct ...... 285 3 . Economic aspects ...... 285

Chapter VI11 GUIDELINES AND RECOMMENDATIONS FOR THE DEVELOPMENT OF COMBINED TRANSPORT ..... 287

BIBLIOGRAPHY ...... 306

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Chapter I

INTRODUCTION

In the context of the European Union’s transport policy, the need is emerging to develop a system of transport which is compatible with the environment and with the concept of “sustainable” development.

Intermodality seeks to include all the relevant elements so that each can collaborate in the transport system according to its special features, and in the most effective way.

In intermodality, combined transport and interoperability are two basic stages in the process of coordinating the technologies specific to each element, which involves vehicles, goods handling facilities and intermodal loading units, as well as the infrastructures, operating systems and management methods that are required for transport services.

The European Parliament’s opinion on intermodality is contained in its resolution’ of 18 January 1994 on the future development of the common transport policy.

The present study was carried out in order to acquire a deeper understanding of the problems affecting combined transport in the European Union. It also leads to a series of recommendations designed to encourage the development of combined transport in the form of direct action allowing the standardization and harmonization of operating techniques and systems. The study relates essentially to the goods transport market, in particular intermodal transport “without intermediate loading”, but also includes a more specific discussion of integrated ticket sales and reservations for rail and air passenger transport.

According to the ECMT’ terminology, “combined transport” is defined as: “intermodal transport where the major part of the European journey is by rail, inland waterways or sea and any initial and/or final legs carried out by road are as short as possible”. “Intermodal transport” is then defined as:

“The movement of goods using several means of transport but in the same container, without intermediate loading. The container may be a road vehicle or an intermodal transport unit.”

OJ C 44, 14.2.1994 ECMT = European Conference of Ministers of Transport

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In this study, the various elements involving the basic means of transport covered by this definition are analysed and discussed, according to their importance and the interest they present for operators in the transport systems serving the interests of European organizations and of the Member States.

The combined transport techniques and loading units covered by the study are as follows:

Loading unitkechnique Definition

~ ~ ~~ ~~~ ~~ Container3 Box designed for the transport of goods, reinforced to enable stacking, and which can be transferred horizontally or vertically.

Swap body Unit designed for the transport of goods and used only for rail or road transport; generally not reinforced sufficiently to permit stacking. In most cases, can only be lifted from below.

Semi-trailer Vehicle designed to be coupled to a motor vehicle, such that part of the trailer rests on the motor vehicle and a substantial part of its weight and that of its load is supported by the vehicle.

Roiling road Transport of complete road vehicles on a low-loader wagon.

Dual mode Road semi-trailer capable of moving as such on rail tracks after (horizontal) transfer onto railway bogeys, and which can make up a complete train (block train).

The term “intermodal transport unit” (ITU) is used to designate containers, swap bodies and semi-trailers that are suitable for intermodal transport.

There are containers for transport by sea, land and air. In this study, only containers used for maritime and land transport are considered. Sea containers conform to IS0 standards and are of various sizes.

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There are other variants of these basic techniques, such as:

Articulated unit: semi-trailer coupled to a motor vehicle Road train: trailer coupled to a motor vehicle

The dimensions of containers and swap bodies differ according to the means of transport, and are currently undergoing changes in line with the trend towards the greater weights and larger sizes accepted nowadays for the sake of greater cost-effectiveness.

Chapter I1 of the study analyses the existing infrastructures established for the development of combined transport:

Rail and inland waterway infrastructure and networks Port terminals and roadrail terminals

For combined transport, the most important infrastructures are port terminals and railway networks and terminals. Indeed, one of the main markets involves sea containers which, after handling in the port, continue their journeys to or from the hinterland by road, rail or inland waterway.

The sea containers from third countries - in particular the American market - are tending to become larger, and are thus obliging port terminals to adapt in order to handle containers of up to 53 feet in length.

This phenomenon is not confined to ports but is also affecting rail networks, where problems of size are beginning to occur on certain routes at inland terminals and on railway wagons.

Chapter I1 also describes the trans-European transport networks and the European Combined Transport Agreement (AGCT), signed by most European states and drawn up by the UN Economic Commission for Europe.

Chapter I11 examines the various combined transport techniques in the European market and considers the effects of increasing the weight and dimensions of swap bodies and containers for rail and road transport, both at the points of origin and destination.

Particular attention is given to the various forms of loading allowed by container-carrying wagons, and the implications in terms of productivity and cost-effectiveness.

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The organization of the combined transport market is analysed in Chapter IV by identifying the agents and operators involved and their market share. In this context, the following groups of operators can be defined in the combined roadrail transport market in Europe and in the transport of sea containers carried partly on land:

International market National markets

Intercontainer Railway networks UIRR Other operators Other operators

Both Intercontainer and the UIRR, as well as the national railway networks, must be regarded as consolidated operators within the combined transport market.

Following Directive 91/40 - which is yet to be completely transposed into the legislation of all Member States - a number of new rail operators have recently appeared.

Examples are: ACI (SNCF + Railfreight) to operate with Eurotunnel, and NDX (NS + CSX) to operate between Rotterdam and Munich.

The directive in question is intended to encourage railway cooperation by affording the possibility of establishing international rail services on a new, pan-European scale.

The factors associated with concentration and alliances between enterprises are discussed here from both the legal and economic points of view.

Chapter V examines the interoperability and management of combined transport, in particular the specific requirements of transport, the forms of private and public management, insurance and so on, together with the present data-processing systems which facilitate the coordination, monitoring and control of goods at international level.

With regard to transport management, the technical problems which affect combined transport are the same as those affecting rail transport at European level.

The main problems identified are as follows:

differences in electricity voltage signalling differences the need to change drivers at frontiers different track gauges (Spain and Portugal) the question of clearance profile and axle load.

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The various regulations and laws that apply in EU Member States in relation to combined transport are set out in Chapter VI. This describes the national legislation applied by each country to road transport, which is both the main competitor of rail and at the same time its principal partner in combined transport.

The Community’s regulatory framework for combined transport is then described, together with the relevant national policies in force in each of the Community’s Member States.

Chapter VI1 presents a summary analysis of the options for passengers provided by intermodality, in particular for the air and rail transport sectors, where high-speed trains (HST) have now become an attractive alternative way to travel. In this part of the study, journey distribution and the integration of ticket sales and bookings through the Global Distribution System (GDS) will be considered.

In the final chapter, Chapter VIII, a list of conclusions and recommendations is discussed, together with the measures and actions that would enable combined transport to develop on the lines indicated in this study.

To provide a basis for this work, a number of questionnaires were completed by the following organizations:

Port authorities 25 Combined transport operators 50 Ministries of Transport 15 Transport centres 17 Air carriers 18

In all, 125 questionnaires were sent out. By 31 May 1997, a 37.6% response had been received.

In addition to the information received via the questionnaires, the study is based on a series of interviews carried out with combined transport operators, on various published articles dealing with combined transport by rail, sea or road, and on a wide range of documents: conferences, special seminars on intermodal transport, and administrative statistics provided by railways and ports. The bibliography of the documents used is included in the appropriate chapters.

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Chapter I1

INFRASTRUCTURES FOR COMBINED TRANSPORT

1. The European transport networks

This chapter deals with the transport networks, in particular the rail network, which is the most important in the context of combined transport, and with the modem forms of infrastructure: seaports, inland ports and roadrail terminals. The infrastructures are key elements for the development of transport and have been recognized as such by the European institutions, which incorporated the “Trans-Europeannetworks” into Title XI1 of the Treaty on European Union (Articles 129b, 129c and 129d) to enable these to be established and developed in the areas of transport, telecommunications and energy, and to promote the interconnection and interoperability of national networks as well as access to them.

With a view to achieving these objectives, Article 129c of the Treaty on European Union provides for the following:

- guidelines covering the priorities and broad lines of measures, and to identify projects of common interest;

- any measures necessary to ensure the interoperability of the networks, in particular in the field of technical standards;

- support for the financial efforts made by the Member States for projects of common interest, particularly through:

- feasibility studies - loan guarantees - interest rate subsidies - financial contributions to the Cohesion Funds.

To reinforce the viability of these projects, the Member States - in liaison with the Commission - are to coordinate among themselves the policies pursued at national level. Similarly, the Commission may cooperate with third countries to promote projects of mutual interest and to ensure the interoperability of networks. In this context, Switzerland would be a transit country for routes between Italy and Germany, and those between France and Austria.

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Finally, Article 129d provides for the Council to adopt the guidelines referred to in Article 129c, in accordance with the procedure laid down in Article 189d. In its resolution (A3-0390193) of 18 January 1994 on the future development of the common transport policy (OJ C 44 of 14 February 1994, p. 53), the European Parliament expressed the following views concerning combined transport:

Combined transport is regarded as the central objective of the CTP, this being the only means of restoring balance in modal distribution, in which road transport is currently the over-dominant mode.

The construction of infrastructure and other measures designed to improve the operation of the transport system are important activities that require financial assistance from the Council.

The Commission and the Member States are called upon to promote measures in support of combined transport to increase interoperability between modes of transport.

Priority should be given to modal interface systems, missing links, bottlenecks in international transport links, the connection of outlying areas and technical interoperability and harmonization.

Absolute priority must be given to environmentally less harmful modes of transport, for example shipping, inland waterway transport and rail networks.

Combined transport should be defined as a mode of transport in its own right as a basis for establishing new rules of competition and cooperation between companies operating in the transport system. In particular, the Commission is called upon to set up forms of support for the following:

- terminals - loading systems - information systems - the creation of new intermodal companies - the use of seaports and inland ports as natural terminals for intermodal transport.

The use of maritime and rail transport for bulk quantities should be promoted.

With a view to implementing Article 129 of the Treaty on European Union, Common Position (EC) No 22/95 (OJ C 331 of 8 December 1995) on Community guidelines for the development of the trans-European transport network was adopted. This text duly became European Parliament and Council Decision (EC) No 1692/96 of 23 July 1996, published in the Official Journal on 9 September 1996. The document establishes the following transport networks:

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- road network - rail network - inland waterway network and inland waterway ports - seaports - airports - combined transport network - shipping management and information network - air traffic control network - positioning and navigation network.

It will be seen that one section is specific to the combined transport network, comprising railways and inland waterways; another section deals with seaports in addition to the other networks.

The combined transport network is based on the patterns of rail and inland waterway transport. In the case of the rail combined transport network, a series of standard routes derived from national rail links have been selected which, taken together, constitute a trans-European network that covers the European Union’s fifteen Member States. As regards the inland waterway network to be integrated into the combined transport network, this is much less extensive and ambitious than its railway counterpart, given that it involves the natural features of rivers and canals.

The next two pages show diagrams of the combined transport network.

As a general rule, all improvement projects involving the rail and inland waterway networks and which coincide with the plans for the combined transport network therefore relate to that network, since besides the inherent practical difficulties it faces, combined transport is affected by the general problems characteristic of railways and inland waterways, such as: different operating techniques, saturation and congestion in certain corridors, gauge size and, more generally, the usual problems associated with the operation of railways and resulting from the lack of harmonization in the working methods of national rail administrations. These differences need to be resolved by technical and commercial cooperation, such as the creation of transnational operators, an approach which will be analysed below in the chapter on the organization of the market.

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Logistics systems in combined transport

While Common Position 22/95 describes the various “single-mode’’ networks, in terms of combined transport, the author takes the view that integration of the rail and maritime modes must be seen as necessary, firstly by resolving the problems of the sedrail interface and then, as a secondary measure, dealing with those of the raillinland waterway interface, given that this is currently of less importance.

The key elements of the seahaillinland waterway network can be defined as the following infrastructures:

seaports

- port container terminals - rail terminals associated with ports

rail network

- main routes - roadhail terminals

inland waterway and inland port network

- main routes - inland port/rail terminals.

Combined transport necessarily involves initial and final legs which must take place by road, for which reason, at the various infrastructure points, this latter mode is not seen as crucially important; generally speaking, port and rail infrastructures present no problems of accessibility by road, and where these do exist, they will be of minor significance.

The types of projects of common interest in the combined transport network are likely to be as follows:

creation and equipment of rail or waterway infrastructures which are technically feasible and economically viable for the transport of intermodal loading units;

creation or adaptation of transshipment centres between overland modes, including the installation of fixed or mobile transshipment equipment;

adaptation of port zones to develop or improve transshipment between two modes among sea/rail/inland waterwaykoad;

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special rail transport equipment for use in combined transport, in particular where the creation of the infrastructure so requires and where the operators involved can benefit from it without discrimination.

Generally speaking, seaport projects can also be considered where they are of a type that will benefit the combined transport network, for example:

- access to ports by sea or waterway - port infrastructures, such as container terminals - land-based infrastructures in ports - access by land to ports directly included in the trans-European transport network or in a multimodal transport system.

As regards the network of inland waterways and inland ports, all infrastructure projects which relate to the following are deemed to be of common interest:

- access to ports by water - port infrastructures and other transport infrastructures in the port area - communications between the port and the trans-European transport network - transshipment centres, container terminals and road transfer.

Ports must be located throughout the network of waterways. Any infrastructure project may be deemed to be of common interest if it relates to technical and data-processing equipment which is of use for traffic management in the network. The waterway network is in need of restructuring, particularly as regards the following rivers: Rhine-Danube-Rh6ne, Sa6ne-Seine, Oise-Schelde-Meuse-Elbe-Oder-Po, and the Mittelland-Kiel and Salman canals. The bottlenecks are as follows:

Riverkana1 Number

Danube ...... 4 Elbe ...... 2 Mittelland ...... 2 Schelde ...... 3 Main ...... 1 Po ...... 1 Meuse ...... 1 Moselle ...... 1

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2. European Agreement on Important International Combined Transport Lines and related installations (AGTC)

Prior to the trans-European transport network (TEN), the UN Economic Commission for Europe drew up the AGTC in February 1991, based on the same thinking as the TEN:

- facilitation of international trade in freight; - the damaging effects on the environment that would result from increased demand for international freight, if transported by road; - establishment of a legal framework to develop combined transport and infrastructure services, within a coordinated plan and on the basis of parameters and performance standards agreed at international level.

The most striking aspects of the AGTC are the following:

The criteria for inclusion in the Agreement on Important International Combined Transport Lines and related installations are as follows:

- network: railway lines currently used for the regular international combined transport of containers, swap bodies and semi-trailers;

- related installations: combined transport terminals, nodal points, wagon interchange stations, frontier stations, track gauge changing points and ports with important transport links.

The agreement has been opened for signature by individual states and will be submitted for ratification, acceptance and approval. At present the states which have signed and ratified the agreement are: ...

The AGTC thus covers all the European countries, and not just those of the European Union.

The international combined transport network consists of the railway lines listed in Annex I of the Agreement and the related installations mentioned in Annex 11. Annex I11 lays down the technical specifications to be met by both new and existing lines. Annex IV sets out the parameters and minimum standards which are applicable to combined transport trains and related installations.

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Although the main lines of all the European countries are included in the network, this does not necessarily mean that the states are party to the agreement or intend to become so in the future. Annex I lists the railway lines in the following countries: Portugal, Spain, Ireland, United Kingdom, France, the Netherlands, Belgium, Luxembourg, Germany, Switzerland, Italy, Norway, Sweden, Denmark, Austria, Poland, the Czech and Slovak Republics, Hungary, Yugoslavia, Greece, Romania, Bulgaria, Finland, the former USSR countries and Turkey.

The installations which are defined as important for international combined transport (Annex I1 of the Agreement) include:

A. Terminals B. Frontier points C. Track gauge changing points D. Linkdports for transshipment vessels.

A. Important terminals for international combined transport

Country Terminals Country Terminals

Austria 6 Netherlands 4 Belgium 6 Norway 1 Bulgaria 8 Poland 11 Czech and Slovak Republics 15 Portugal 4 Denmark 4 Romania 4 Finland 1 Spain 7 France 17 Sweden 4 Germany 38 Switzerland 9 Greece 2 Turkey 6 Ireland 1 EX-USSR 4 Italy 18 United Kingdom 17 Luxembourg 1 Yugoslavia 5

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B. Important frontier points

Bordering countries Frontiers

Spain - Portugal 2 Spain - France 2 Ireland - Northern Ireland 2 Ireland - United Kingdom 1 United Kingdom - France 3 United Kingdom - Belgium 1 France - Italy 2 France - Switzerland 1 Switzerland - Italy 3 France - Germany 3 France - Luxembourg 1 France - Belgium 3 Belgium - Netherlands 1 Netherlands - Germany 3 Germany - Belgium 1 Belgium - Luxembourg 1 Germany - Switzerland 1 Germany - Denmark 2 Germany - Austria 3 Switzerland - Austria 3 Austria - Italy 2 Sweden - Denmark 2 Sweden - Germany 3

This list does not include all frontier points, however, since this would mean adding all the frontiers with Eastern European countries such as Poland, the Czech and Slovak Republics, Yugoslavia and Hungary.

Railway stations at frontiers are organized in two ways:

- double stations, one in each country - one common station on the frontier.

In terms of railway use, common stations are the more attractive because they are rationalized, the number of operations is kept to a minimum, and transit times are thus reduced.

However, the restructuring of cross-border rail transits where double stations are currently in use will require major investment.

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_.

I. War Formoso(CP) - Fucnks de Onoro (RENFE) 2. Marvao (CP) - Valencia de Alcanlara (RENFE) 3. lrun (RENFE) - llcndayc (SNCF) 4. I'orl nou (R1iNFK)- Ccrbhc (SNCF) 5. Duhlin (CIE) - llolyhcad (RR) 6. I)undslk (CIE) - Ncwry (NIR) l. Dover (IIR) -Calais (SNCF) - Dunkcrque (SNCF) - Ooslcndc (SNCR) 8. Ilar\\ich (IIR) - Zccbrugge (SNCB) 9. Mcnlon (SNCF) - Vcntimiglia (FS) IO. Mudanc (SNCF) - Dnrdonccchia (FS) I I. Drip (SRR-CIT) - Domodossola (FS) 12. DBlc (SNCI') - Rase1 (SDB-CFF) 13. Slrachourg (SNCF) - Kchl (DR) 14. lurbach (SNCI') - Ssarbrtlckcn(DD) 15. Apach (SNCF) - Pod (DD) 16. Thiunvillc (SNCF) - Rcltembourg (Cpl.) 17. kignics (SNCF) - QuCvy (SNCR) 18. Jeumonl(SNCF) - Erquclinncs (SNCD) IY. 'Tourcoing (SNCI:) - Mouscron (SNCR) 20. Roosendaal (NS) - lissen (SNCD) 21. Emmerich (DBMS) 22. Venlo (NSIDD) 21. Bad Dcnthcim (DDMS) 24. Montzen (SNCD) - Aachen (DR) 25. Stcrpenich (SNCB) - Klcinbcllingcn (CFL) 26. Ilasrl (I)RISRR-CFF) 27. Flcnsburg (DD) - Padborg (DSD) 2% I'ullgardcn - (DD) L Rddby (CSI)) Schirtldinp (l)R) - Chch (CSI))

29. l'IIL1IIII (1~11/01111) Ill. S~~l~hurp(I)Il/OIIIl) 31. Klllslcin (l)ll/Ollll) 32. ~~ll~h~~s~~~l.~~:~~/(~~~n) 33. I.llino (Sllll.CFl~/l~S) 14. Chiwu (Sllll-Cl+~/l~S) 35. Ilrullncro (I'SIOllll) 36. I'urvisio (IS) - Arnuldrlcin (OlID) 37. Charlollenbcrg (NSWSJ) 3% Kornsjn (NSIIISI)

19. Ilelsinghnrg W-Kobnnovn (I)SII) 411. 'I'rcllchorg (SI)- Sassnilz (UR) 41. (iolegorg (SI) - Frcdcrikhsum (DSII) 42. Malml)(SJ)- TravcmUnde (Iln) 41. Gcdscn DSII) - Rosmck 44. 'Tornio (SJNR) 45. llanko (VWI)Il) c Logistics systems in combined transport

Annexed to the Agreement is a list of the frontier crossing points that are important for international combined transport.

C. Important track gauge changing points for international combined transport

Most national railway networks operate with the UIC gauge width (1.435 m). The only exceptions are Portugal, Spain, Finland and the former USSR. The following track gauge changing points can therefore be identified in the international combined transport network:

Frontiers Countries

Irun - Hendaye Spain - France Port Bou - Cerbere Spain - France Hanko Finland Terespol - Brest Poland - ex-USSR Przemysl - Mosttiska Poland - ex-USSR Cierna - Cop Slovak Rep. - ex-USSR Zahony - Cop Hungary - ex-USSR Iasi - Ungeny Romania - ex-USSR

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D. Route/ports for transshipment vessels forming part of the international combined transport network

Route/ports Countries

Holyhead - Dublin United Kingdom - Ireland Calais - Dover France - United Kingdom Ostend - Dover Belgium - United Kingdom Dunkirk - Dover France - United Kingdom Stranraer - Lame Belgium - United Kingdom Zeebrugge - Harwich Belgium - United Kingdom Zeebrugge - Dover Belgium - United Kingdom Puttgarden - Rordby Germany - Denmark Copenhagen - Helsingborg Denmark - Sweden Lubeck - Travemiinde - Hanko Germany - Finland Gedser - Rostock (Wamemunde) Denmark - Germany Goteborg - Frederikshaven Sweden - Denmark Malmo - Travemiinde Sweden - Germany Trelleborg - Sassnitz Sweden - Germany Helsinki - Stockholm Finland - Sweden Turku - Stockholm Finland - Sweden

This list only covers the routes between EU Member States.

The technical specifications laid down for the AGTC network must be regarded as targets to be achieved through national plans for railway development, and can be divided into two categories:

Existing lines and new lines

For existing lines, the technical quality required is lower because of the difficulties involved and the scale of the investment that would be entailed.

For new lines, however, the specifications laid down have to be respected.

The technical requirements relate to the following parameters:

- number of tracks - vehicle clearance profile - minimum speed - permitted axle load - minimum usable length of sidings.

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Number of tracks

The AGTC lines must offer a high capacity and it is therefore appropriate for them to be double- tracked.

Vehicle clearance profile

The AGTC specifies a minimum clearance profile for international combined transport lines. New lines must conform to clearance profile C.l of the UIC. The UIC (International Union of Railways) clearance profile allows the transport of:

- road vehicles: lorries and trailers, articulated vehicles, tractor units and semi-trailers conforming to the European road haulage clearance profile (4 m in height and 2.50 m wide) on special wagons whose loading platform is 60 cm above the level of the rails;

- road semi-trailers 2.50 m wide and 4 m high on pocket wagons;

- IS0 containers 2.44 m wide and 2.90 m high on ordinary flatcars;

- swap bodies 2.50 m wide on ordinary flatcars;

- containers or swap bodies 2.60 m wide and 2.90 m high on appropriate wagons.

However, on existing tracks it is necessary to adopt UIC clearance profile B, which allows the transport of:

- IS0 containers (2.44 m wide and 2.90 m high) on container-carrying flatcars whose loading platform is 1.18 m above rail level;

- swap bodies 2.50 m wide and 2.60 m high on normal wagons (loading platform at a height of 1.246 m);

- semi-trailers on pocket wagons;

- containers or swap bodies 2.60 m wide and 2.90 m high on special wagons with a low loading platform.

Most existing international combined transport lines conform to UIC clearance profile B, and therefore do not generally require major investment.

- 21 - PE 167.055 Logistics systems in combined transport

Minimum speed

The minimum speed required is 100 km/h for existing lines and 120 km/h for new lines. This too is a target to be achieved in the case of existing lines.

Permitted axle load

There are two cases, depending on the speed: for 100 km/h, the axle load may be 20 t for both new and existing lines; for 120 kmh, the axle load may be 22.5 t.

Minimum usable length of sidings

Sidings must be available for trains 600 m long on existing lines and for trains 750 m long in the case of new lines.

To ensure the efficiency of international combined transport services, railway infrastructures and services are required to provide the following:

timetables showing regular services;

safe and punctual transport;

simple documentation and formalities, with accurate and reliable information;

the capacity to transport standard loading units which can be carried in international road transport, taking account of future developments in the weight and dimensions of intermodal loading units;

absolute priority for the movement of trains involved in international combined transport:

sufficient margin in timetabling to avoid delays.

- 22 - PE 167.055 Logistics systems in combined transport

By the year 2000, trains used for international combined transport will be required to possess the following characteristics:

Train traffic - Year 2000 International combined transport

Minimum speed ...... 120 km/h Train length ...... 750 m Train weight ...... 1500 t Axle load ...... for speed 120 km/h: 20 t ...... for speed l00 km/h 22.5 t

For the related installations, the following conditions are laid down:

Terminals:

- the time between the deadline for receipt of freight and the departure of the train, or between the train’s arrival and the unloading of its wagons, to be limited to 1 hour;

- the delivery of loading units to be limited to 20 minutes for each road vehicle;

- there must be easy and rapid access by road, with clear signposting in the European network.

At intermediate stations, stops must be limited and sufficient sidings must be available for waiting trains.

Changeover areas for groups of wagons:

Combined transport should be carried out by direct trains where possible. If this is not economically feasible, the stops necessary for the operations to be carried out should be no longer than 30 minutes each.

Frontier crossing points:

Stopping at frontiers is not recommended, but if this is unavoidable, the stop should be limited to a maximum of 30 minutes; stops for administrative purposes should be deferred to a point inside the country.

Track gauge changing points:

Quick and economical facilities should be put in place, with sufficient capacity to ensure that stops do not last long.

- 23 - PE 167.055 Logistics systems in combined transport

For rail journeys in which a maritime connection is involved, the following conditions are laid down:

- maximum stopping time in ports - 1 hour - coordinated timetabling of ships and trains - rapid loading and unloading.

The two major schemes within the European combined transport network are as follows:

~~~ European Union ...... European Combined Transport Network (ECTN)

UN Economic Commission for Europe ...... AGTC Agreement

In both schemes, main routes and a network of terminals are established; these are defined only in the case of the AGTC, which presents certain qualitative differences since the AGTC covers not only the EU Member States but also third countries, and in particular countries in Eastern Europe. The AGTC combines the maritime and rail modes and establishes links between seaports and roadhail terminals which are important nodal points for network interconnection. However, the AGTC agreement does not cover waterways, while these are included in the scope of Decision (EC) No 1692/96.

Alongside the legal framework represented by the European Union’s ECTN and the UN’s AGTC Agreement, there is currently a European structure consisting of the national railway networks and Intercontainer which operates at international level as a “holding company” for international operators. Intercontainer functions within a network covering a series of European routes and using the networks of terminals managed by public or private national operators. Chapter 111, which deals with the organization of the market, gives an account of Intercontainer’s activities. At this stage, it is important to bear in mind that it operates as a network which for the most part uses 50 terminals out of the 1100 or so that currently exist in Europe.

Besides Intercontainer, the UIRR4 operates at European level. This consists of a number of national companies with mixed publidprivate capital which operate exclusively in the field of roadhail transport. Like Intercontainer, the UIRR uses terminals which will be examined later in this report.

4 Union Internationale Railmoute (International Union of Combined Roadmail Transport Companies)

- 24 - PE 167.055 Logistics systems in combined transport

3. Nodal infrastructures

a) Freight villages

At European level, there is also a European network of freight logistics centres belonging to Europlatforms, also known as the European Association of “Freight Villages”.

A “Freight Village” is a zone in which operations take place relating to the transport, logistics and distribution of goods at national and international level, and in which several operators are present, ranging from owners to distributors. In general terms, and in accordance with the rules of competition, “Freight Villages” offer access to all companies in the sector and are equipped to provide public services. With a view to promoting intermodal transport, “Freight Villages” are designed to make their services available to various modes of transport (road, rail, maritime, air and inland waterway).

There are some 40 “Freight Villages” in Europe which have joined together in the “Europlatforms”association and which have been operating internationally since February 1995, although they were originally national in scope.

In April 1996 the “Freight Villages” were distributed as follows:

Country Freight Villages

France ...... 13 Italy ...... 10 Spain ...... 10 United Kingdom ...... 3 Denmark...... 5

Total ...... 41

Of all the transport centres, 66% have intermodal terminals equipped for the combined transport of containers.

In this Europlatforms association, it is striking that there are no “Freight Villages” in countries as important as Germany, the Netherlands or Belgium, which otherwise have excellent and very large installations.

For that reason, Europlatforms is only a small part of the transport system in Europe.

Several types of logistics centres are being developed in the Member States (logistic service areas, logistic hubs, Freight Villages, Interporti, Giiterverkehrszentren), which have a bearing on combined transport and the distribution of goods.

- 25 - PE 167.055 Logistics systems in combined transport

However, as we have already seen, there is no single way of dealing with transport, which involves all of the following:

- road transport centres - combined transport terminals - logistic areas - seaports and inland ports.

In this context, the German Government has suggested to the European Commission that “Giiterverkehrszentren”could be regarded as elements of the trans-European transport network.

Combined transport, however, which has until now been using conventional terminals, has its own market, albeit with a limited demand at present. It may be concluded from this that the operations taking place at transport centres are not totally different from one another, but that the volume of demand is greater when goods distribution functions are added in areas close to centres of consumption.

A discussion is currently taking place in Europe on the value of transport nodes in the trans- European transport network, with a view to including in the latter nodal infrastructures such as intermodal logistic hubs, combined transport terminals and ports. It is clear that some ports and certain inland roadhail terminals should be in the ECTN, but it is more debatable whether to include logistics centres, which in many cases are set up as part of local and regional initiatives, or by private companies.

The main objectives of intermodal logistics centres are as follows:

- to encourage combined transport; - to promote regional economic activity; - local distribution and planning.

The possible integration of intermodal logistics centres into the tram-European combined transport network depends on the potential for combined transport and on the criteria for efficiency within the European network.

There are no national policies on logistics centres in the Netherlands, the United Kingdom and Spain, while those in Italy, Germany and France are very different from each other. For example, in Italy the “Interporti” are the main combined transport nodes, whereas in Germany the logistics centres are supplementary to the network of combined transport terminals. In the case of France, the integration of intermodal logistics centres and combined transport terminals is unclear.

Besides the “Freight Villages” included in the Europlatforms association, there are other forms of transport centres in Europe. A plan of their locations is presented on the following pages.

- 26 - PE 167.055

.

LogisUcs platforms h France .

Road haulage pratforrn 0 Several sites - Moforways

..

0 km 200

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Inland terminals :

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SOURCE: EUROPEAN CENTRE FOR INFRASTRUCTURE STUDIES I Logistics systems in combined transport b) Ports and port terminals

Sections 4 and 5 (Articles 11 and 12) of European Parliament and Council Decision (EC) No 1692/96 of 23 July 1996 on Community guidelines for the development of the trans- European transport network relate to the “Inland waterway network and inland waterway ports” (Article 11) and “Seaports” (Article 12).

Inland waterway ports are the points of interconnection between the waterways and other modes of transport, and form part of the network in the same way that seaports are the nodal infrastructures for ocean-going transport and “feeder” or “short sea shipping” services.

Annex I11 to Decision (EC) No 1692/96 lists 14 priority projects for the European Union relating to rail, road and air transport, but there is no mention or appearance of ports here except in the case of project No 5:

Combined transport, conventional railway: Betuwe line - Rotterdam - NL/D frontier (Rhine- Ruhr) where the port of Rotterdam is mentioned briefly as a railway infrastructure.

The decision does not include a definition of the seaports network and, in a statement, the Commission undertakes to present a proposal in 1997, after consulting the various interested parties and Member States. This proposal on seaport projects will be on the same lines as that concerning airports under Section 6, in other words it will define the selection criteria for seaports of common interest and their special features, within a plan designed to benefit from existing capacity, develop new capacities and improve or construct new forms of access.

The European Commission has carried out a number of studies on maritime transport in the Member States, analysing four regions - the Baltic, the North Sea, the Atlantic and the Mediterranean - in order to examine their inclusion in the trans-European transport network.

In terms of combined transport, attention should be focused on the movement of containers, since the other combined transport techniques - dual mode, semi-trailer, rolling road and swap bodies - play an insignificant part or none at all in the maritime sector.

- 33 - PE 167.055 Logistics systems in combined transport

The trend in container traffic in Europe is as follows:

YEAR TEU (103)

1980 11 481 1994 30 279 2000 43 015 2005 59 982

Source: Ocean Shipping Consultants

In 1995, the activity of the main European ports in terms of container movement was as follows:

Container traffic (1 03)

Port Activity Port Activity Rotterdam 4 789 Valencia 640 Hamburg 2 900 Geneva 615 Antwerp 2 329 Piraeus 590 Felixstowe 1 924 Zeebrugge 555 Bremen 1 530 Marsaxlokk 514 Algeciras 1 134 Marseilles 500 La Spezia 965 Livorno (Leghorn) 424 Le Havre 920 Goteborg 400 Barcelona 685 Liverpool 379 Southampton 683

In principle, the criteria for including seaports in the trans-European combined transport network should be as follows, in the author’s opinion:

- 34- PE 167.055 r'ORTS MARITltdltS ET TERMINAUX PORTUAIRES Logistics systems in combined transport

- strategic location of the port on main international routes; - sufficient volume of demand for traffic, with capacity geared to handling of containers; - existence of special container handling terminals and connection by road and rail to land- based transport networks.

The proposal to integrate seaports into the trans-European network is to be drawn up after consulting the Member States, so that the planning of both port works and overland rail and road links can be taken into account.

For this reason, the author considers it important to define the “Europort network” on the basis of a ranking which would depend on the present condition of the ports and their future prospects in the light of national planning, always bearing in mind the criteria of common interest.

Geographical position in relation to the main ocean trades and the major industrial and commercial centres is a factor that determines which ports are best equipped to be hubs, since this has implications for low distribution costs and economies of scale by virtue of a strong hinterland.

This factor is ultimately of vital importance in the strategy of major shipping companies such as Sea Land-Nedlloyd-Maersk, which are currently building super-large container carriers - of 6000 TEU - in order to improve the return on their investments and maximize profits. On certain ocean trades, strategic alliances are now being established between shipowners for the joint use of vessels and, in some cases, of port terminals as well.

The chapter on combined transport techniques analyses the problem of the worldwide tendency to increase the length of sea containers. At this stage, the problem will merely be mentioned, since intermodality requires technical harmonization to increase the efficiency of the transport system.

In fact, modification of the standards would mean the premature obsolescence of a large proportion of the current fleet, because in most cases it would be cheaper to build a new ship than to refit existing vessels.

Most of the current fleet and terminal equipment is designed for the transport and handling of sea containers of between 20 and 40 feet in length.

At present, there are national differences in the road transport of 45-foot containers, with pressure being brought to bear to generalize their use.

The COST 315 action, analysed later in this study, examines the transport problems created by the introduction of second-generation (series 2) IS0 containers (49 feet) on overland routes and at transshipment terminals

In any event, it will be the attitude of major users that will determine future standards.

- 36 - PE 167.055 Logistics systems in combined transport

c) Rail/port and roadrail terminals

In the European Union, there are some 1100 terminals at which railways used by rail operators for combined transport are present, including Intercontainer as the principal European “holding company” besides the UIRR.

Normally, the terminals are managed by the railway administrations either directly or through one of their companies, such as the Compagnie Nouvelle de Conteneurs (CNC) belonging to SNCF, Transfracht for DB, Italcontainer for FS, or UN combined transport for RENFE.

There are also other railway terminals linked to seaport or inland port terminals which are managed either by the port authority itself or the railway administrations. Finally, other terminals are privately owned and managed by their own private operators.

Of the 1100 terminals in Europe, 780 are in the EU and Switzerland. These can be broken down as follows:

Terminals

Railway administrations 642 Railwayport 85 Private 53

Total 780

Among the dense network of terminals in Europe, only some are of real interest, either because they are located at a seaport, in a strategic geographical position for the concentration and distribution of traffic, or at frontiers where axles have to be changed or frontiers with third countries.

In fact, Intercontainer has selected 46 of these terminals as an integral part of its main terminal network, and has established all its European services around this key framework.

- 37 - PE 167.055 Logistics systems in combined transport

The table below shows the distribution by country of terminals and those in the main network together with the figures for the line/terminal ratios, so as to indicate the density of the terminal network.

Density of the combined transport terminal network

The total and main terminals are used by the European international operator Intercontainer.

- 38 - PE 167.055 l RESEAU DES TERMINAUX PRlNClPAUX INTERCONTAINER Termlnaux Autriche Terminals dstemich Terminals Austris Terminall Austria

\ \ \ \ /\

0 Weir 0 Strrsmalchen (Sleindorf)

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I SOURCE: INTERCONTAINER Terminaux Terminals BPa9n Terminals Spanler Terminall SpagnaSpain

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c

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0 Manchester

.

0 Birmmgham

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l

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SOURCE: INTERCOSTAINER Termlnaux Terminals Luxembourg Terminals Luxemburp Termlnali Luxembug krssemburgo

0 Luxembourg (Bettembourg)

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termlnaux -7 Termlnalr termlnalr PortupatPortugal Termlnall Portugal Portogallo

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I I

I SOURCE: INTERCONTAINER Logistics systems in combined transport

Chapter I11

COMBINED TRANSPORT TECHNIQUES AND PROBLEMS ARISING FROM THE DIMENSIONS OF INTERMODAL UNITS

1. Definitions and characteristics of combined transport techniques

In this chapter, the various combined transport techniques covered by this study are defined, namely:

- containers - swap bodies - semi-trailers - rolling road - dual mode together with the characteristics relating to the dimensions involved and methods of loading onto wagons.

Much of the chapter is devoted to an analysis of the likely implications of the introduction of new container sizes - IS0 series 2 - for various elements of the transport system:

- infrastructure (clearance profiles) - rolling stock (wagons) - equipment at terminals - barges and ships.

Finally, there is a qualitative assessment of the impact on combined intermodal transport and an account of innovative trends and new projects currently under way in the market: large container ships, automated terminals for handling intermodal units, low-loader wagons, “rail freightways” and plans to construct base tunnels through the Alps to increase the clearance profile and allow the transit of more heavily loaded trains.

Characteristics and dimensions of containers

A container can be any type of special box for transporting goods which is reinforced, stackable horizontally and vertically, and has the following characteristics:

- strong enough to withstand modal transfer and transportation by different modes;

- 56 - PE 167.055 Logistics systems in combined transport

- designed to carry goods without intermediate loading, i.e. the goods change mode but not container:

- their internal volume is at least 1 m3, although containers of this size account for a very small proportion of combined transport, in which large containers with a volume in excess of 3 m3 are more usual;

- they are generally rectangular in shape, but other special types such as tanker bodies, refrigerator bodies, insulated bodies, etc. also exist.

There are two different types of IS0 series 1 containers: 20’ and 40’.

IS0 series 1 40’ containers

The characteristics of these are as follows:

External dimensions: Length - 12.192 m (40’) Width - 2.438 m (8’) Height - 2.438 m (8’)

Internal dimensions: Length - 11.998 m Width - 2.330 m Height - 2.330 m

Tare: 3t Maximum permitted weight: 30.48 t Weight/volume ratio: 411 kg/m3

IS0 series 1 20’ containers

The characteristics of these are as follows:

External dimensions: Length - 6.058 m (20’) Width - 2.438 m (8’) Height - 2.438 m (8’)

Internal dimensions: Length - 5.867 m Width - 2.330 m Height - 2.330 m

Tare: 2t Maximum permitted weight: 20.32 t Weight/volume ratio: 670 kg/m3

- 57 - PE 167.055 Logistics systems in combined transport

IS0 series 2 containers. These are large containers belonging to an additional series; as with the series 1 containers, two length options are available: 49’ and 24.5’.

IS0 series 2 49’ containers

The characteristics of these are as follows:

External dimensions: Length - 14.90 m (49’) Width - 2.59 m (8.5’) Height - 2.59 m (8.5’)

Internal dimensions: Length - 14.57 m Width - 2.48 m Height - 2.48 m

Maximum permitted weight: 30.48 t Weightholume ratio: 3 12 kg/m3

As with IS0 series 1 containers, there is also a “high cube” option with a height of 2.9 m (9.5’) and a lower weight/volume ratio (276 kg/m3).

IS0 series 2 24.5 containers

The characteristics of these are as follows:

External dimensions: Length - 7.43 m (24.5’) Width - 2.59 m (8.5’) Height - 2.59 m (8.5’)

Internal dimensions: Length - 7.264 m Width - 2.48 m Height - 2.48 m

Maximum permitted weight: 20.32 t Weightholume ratio: 408 kg/m3

- 58 - PE 167.055 Logistics systems in combined transport

"Super High Cube" Containers

These containers, which are not subject to IS0 standards, are very large and have variable dimensions:

Super High Cubes

Length - 45' = 13.72 m Length - 48' = 14.64 m Length - 53' = 16.10 m

Containers of 48' and 53' are very widely used for transport in North America, whereas in Europe the 45' container is the largest size in use.

Characteristics and dimensions of swap bodies

A swap body is defined as a semi-trailer with no chassis or wheels. It is a box whose maximum dimensions are compatible with the standards for road and rail transport; it serves as the road vehicle's body when attached, and is loaded onto a flatcar for transportation by rail. Swap bodies only made their appearance in the transport market because sea containers were unsuitable for the conditions and maximum permitted weights on roads, in addition to being lighter and offering better fuel economy.

Swap bodies are an exclusively land-based technique, given that they cannot be carried by sea, their construction being too weak to allow them to be stacked. They were built and designed for carrying goods within Europe.

The dimensions of swap bodies vary considerably - between 6.25 m and 12.5 m long, with five different models -but the most commonly used version is 7.15 m in length and 2.50 m in width and height. Over 65% of the European market uses this type of swap body because of its internal dimensions - 2.44 m x 2.44 m - which precisely match those of the EU's "European pallets".

There are prototypes of swap bodies measuring 45' in length by 2.55 m (width) and 3.30 (height), which will probably come into commercial use during 1997 for the transport of Renault parts between its factories in Spain and France. Transfesa (Spain) is currently building between 200 and 300 units based on these prototypes.

These swap bodies will be loaded onto wagons already being manufactured by TAFESA and capable of carrying two 45' bodies - with interchangeable axles (22.5 t/axle) - at a speed of 120 kmh, which means a 40% saving by comparison with Intercontainer's "Megawagon".

- 59 - PE 167.055 Logistics systems in combined transport

With this new equipment, it is possible to look forward to a very substantial increase in productivity, which would be tantamount to a reduction in transport prices.

Characteristics and dimensions of semi-trailers

This is a combined transport technique - for roadrail - which consists of putting the trailer part of a tractor/trailer combination on a railway flatcar, the difference between a swap body and a semi-trailer being that the latter retains its rear axles.

The dimensions of semi-trailers are laid down in road transport legislation, which is different in each Member State of the European Union.

A preliminary agreement - not yet incorporated into in European legislation - has recently been concluded on weights and dimensions in road transport. The aim is to arrive ultimately at a standard semi-trailer for the whole of Europe which is 16.15 m long, 2.55 m wide and 4 m high and has a maximum gross weight of 44 t, with exceptions for certain countries such as Denmark and Finland (48 t), the Netherlands (50 t) and Switzerland (56 t).

In the chapter on national legislation and policies, we shall be dealing in detail with the effect on combined transport of the differences in national law, given that the problem revolves around the position adopted by countries where the maximum permitted gross weight is less than 44 t, for example Austria, Germany and Spain, and also Switzerland which, while not a Community country, is nevertheless geographically surrounded by Community countries and therefore has a considerable influence on transit traffic.

The rolling road technique is a very specialized form of combined transport exclusive to roadhail. The system essentially consists of transporting lorries, tractor units and trailers on low- loader railway wagons to achieve sufficient vehicle clearances to be able to move freely by rail.

This system is particularly suitable where natural barriers need to be overcome and is widely used in Switzerland and Austria to cross the Alps, as well as by Eurotunnel to pass under the English Channel. The system is very simple: lorries drive on and off via front or side loading ramps, the latter being a more recent development and making for greater efficiency at terminals because of the speed of loading and unloading. This technique requires very precise planning, since the placing of the road vehicles must be calculated so as to achieve a proper distribution of the load on the axles of the rail wagons.

The diameter of the wheels on low-loader wagons is 380 mm - as against the 920 mm on normal wagons - and the track clearance of the load platforms ranges between 415 and 435 mm.

- 60 - PE 167.055 Logistics systems in combined transport

Dual mode technique

This technique, which has only recently appeared in Europe, consists of a reinforced semi-trailer for use on roads, but specially adapted to be able to rest on railway bogeys. In this way, a simple horizontal manoeuvre can change the mode of transport from road to rail, and vice versa. To make up a train, the rear part of each semi-trailer rests directly on an intermediate bogey and the forward part on the semi-trailer in front of it, joined together by a ball-type coupling. Each end of the train is provided with special bogeys equipped with buffers.

Given that it is supported directly on bogeys and not carried on a lorry, the floor is of much sturdier construction and therefore has a greater tare.

This is a technique imported to Europe from the United States, and several prototypes have been developed since its introduction:

Prototypes of dual mode transport systems

Make Country Bogeys Semi-trailer

Semi-rail France Renafer Fruehauf Roadrailer France Arbel Trouillet Rail trailer France Sambre et Meuse Kaiser Carrobimodale Italy Breda Bartoletti Trailertrain United Kingdom Tiger Transtrailer Spain Tafesa Coda-E Netherlands Talbot Ackerman Trailerzug Germany Sambre et Meuse Ackerman

Of these various prototypes, only the following have received UIC approval and certification:

Approved dual mode systems

Dual mode system Country

TRANSTRAILER SPAIN'3) KOMBIRAILER") FRANCE and GERMANY ROADRAILER FRANCE'^)

(1) System combining Semi-rail and Kombitrailer (2) Under licence from the American company Road Railer, with Arbel bogeys (3) Built by Tafesa

- 61 - PE 167.055 Logistics systems in combined transport

The Spanish-made Transtrailer system is the only one to have interchangeable axles, designed to fit all rail gauges both in the Iberian Peninsula and Russia; although it is possible to change the semi-trailer, it is more economical and quicker to change axles. The dual mode system qualifies for Community assistance and is also included in the European Commission’s PACT programmes.

The following are among the most attractive features of the dual mode system:

- Payload: All the systems allow for a payload of between 27 and 29.7 t, which means that, in terms of competitiveness, it is close to the semi-trailer used in road haulage.

- Speed: The dual mode system allows for 22 t per axle and a speed of 120 km/h. However, there are problems in raising the speed to 140 M,since this would mean reducing the axle load to 18 t/axle.

- Transshipment time: This is a crucial factor as regards competitiveness in road transport. Experience shows that the handling time is approximately 15 minutes for a complete operation carried out by a single person. The modal transfer operation is extremely efficient, given that the tractor unit itself hooks up the vehicle to another similar one resting on a bogey.

- Technical details are as follows:

- Maximum permitted weight: 40 t (44 t for combined transport) - Tare of semi-trailer: 9.5 t - Payload: 24.5 t - Usable volume: 86 m3 - Load: 33 pallets 800 X 1200 26 pallets 1000 X 1200

The net tonne/gross tonne ratio is better than in other combined transport systems such as rolling road, swap body or semi-trailer on pocket wagon. Indeed, tests have been carried out which show that the dual mode system would have an advantage of 6 tonnes over the swap body, 10 tonnes over the semi-trailer, and 19 tonnes over the rolling road.

- 62 - PE 167.055 Schkma de fonctionnement et de formation d'une rame bimodale Representation des 3 techniques bimodales testkes en France :

Arrivke de l'ensemble tracteur + semi-remorque pres du bogie Relevage de la barre anti-encastrement de la semi-remorque (en temps masquk)

1

Mise a niveau de l'arriere de la semi-remorque gr& a la suspension a grand dkbattement

Relevage des roues de la semi-remorque pour dkgagement du gabarit inftrieur

Mise au sol des bkquilles + dCverrouillage selette tracteur

Adjonction d'un bogie intermediaire - Mise a niveau de l'arriere de la semi-remorque

Recul de la semi-remorque sur le bogie Verrouillage arrikre de la semi-remorque Recul et verrouillage avant de la semi-remorque precedente

Dttelage du tracteur - Mise a niveau de la partie avant de la semi-remorque

Source : REVUE GEN6RALE DES CHEMINS DE FER . "" . -. . .. "" . _" " - " . - - - 1 ,""' l

2 e-

.4 4-

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X 0 Logistics systems in combined transport

Moreover, the ratio of usable length to space occupied per train is better in the dual mode system, since the length is reduced from 16.50 m in the present system to 14 m in the dual mode system. For a 750 m train, this means an increase in payload of 116 t.

This increased productivity is very important for saturated rail routes and for terminals where expansion presents difficulties.

On top of this economic advantage, there is the very American ease of handling (horizontal), which does away with the need to invest in cranes and gantries; terminals can manage with smaller areas and require a smaller labour force to operate them.

However, the dual mode combination of bogey + semi-trailer will have to consider its pricing to be able to make headway against similar road transport equipment which is in direct competition with it, since the outlay required is higher than that of its competitor. In the final analysis, from a logistic point of view, the dual mode system will be able to compete effectively against swap bodies, containers and semi-trailers, its costs being 5 to 10% lower because of savings in capital investment and in the running costs of terminals.

The "Maxibox",an adaptation of the 45'x 2.55 m X 3.30 m swap body to the Transtrailer dual mode system, is currently undergoing trials.

Because of the technical difficulties involved in coupling them to conventional trains, the dual mode system is best suited to running in complete train sets. Consequently, it is most suitable for transporting goods over long distances and on routes of between 2 000 and 3 000 km, i.e. for international goods traffic within Europe.

According to the surveys conducted among UIRR combined transport operators, the dual mode system could eventually capture some 25% of the European combined transport market.

- 66 - PE 167.055 Weights and dimensions of combined transport systems

Length Height Width (m) I (m) External I Internal I External I Internal I Tare I MPW‘” I 6.058 5.867 2.438 I 2.33 I 2.438 I 2.33 I 2 I 20.32 I IS0 1 12.192 1 1.998 2.438 I 2.33 I 2.438 I 2.37 I 3 I 30.48 container 12.192 11.998 2.9 I 2.76 I 2.438 I 2.33 high cube 24.5’ 7.264 2.59 2.48 2.59 2.48 2.5 20.32 IS0 2 14.9 14.57 2.59 2.48 2.59 2.48 3.5 30.48 container 2.9 2.76 2.59 2.48 high49’ cube I 14.9 I 14.57 Swap body 7.15 7.00 2.5 I 2.44 I 2.5 I 2.44 I 1.8 I 13 I Serni-traiIer‘2’ 13.6 41 I 7.4 I 44 I

~~ Rolling road‘2’ 41 I 2.55 I Dual mode I 13.6 I 2.6 I I 2.5 I I 9.5 I 44 I

(1) Maximum permitted weight (2) Maximum permitted dimensions

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2. Technical and logistic aspects of palletization and containerization

European industry uses loading units based on standard 1000 X 1200 mm and 800 X 1200 mm pallets which conform to the international standard IS0 6780, for which reason European transport operators have adopted a packing module of 400 X 600 mm, designed to fit the dimensions of the loading units as well as the necessary handling equipment.

This standard needs to be observed in Europe, but not in the United States or Japan, where pallets are also used. Given the differences in the dimensions and standards involved, and the fact that space is not used efficiently since the containers are of different sizes and because the pallets are rarely returned, it has become the accepted view that the handling of palletized loads would not be an attractive proposition for sea transport, which has resulted in the need for all goods to be repacked.

The position of different industrial sectors on the use of standardized pallets varies even more widely since it depends on the type of goods concerned; it is clear, however, that the use of standardized pallets will increase in the future, not least in sea transport.

On ocean trades, it is mainly IS0 containers that are used, but goods are subject to different degrees of palletization, for which reason containers are normally stored and the contents re- stowed onto standard pallets for transport inland by rail or road. On the other hand, certain kinds of exported goods do not need to be palletized. As the picture on the next page shows, IS0 series 1 containers do not lend themselves to being loaded efficiently when using palletized loading units; this is why, as part of the process of adapting to an increasingly globalized economy, it will very probably become mandatory for loading units and international transport practice to be brought into line, which will mean using containers designed for the transportation of standard-sized pallets.

In point of fact, the situation within the European Union has been resolved, because the transport operators have introduced the European container, which takes account of pallet sizes in order to ensure a better fit. The main changes have been in the width and internal dimensions (2.44 m), for more efficient pallet loading. This is the reason why in Europe we have ocean containers and European containers alongside one another, with the latter using 2.44 m wide loading material in order to compete with road haulage. It also explains why IS0 series 1 containers are not greatly used for overland transport within Europe and why, apart from the economic drawbacks of IS0 containers which have been used to carry goods inland having to return empty to a seaport, it is difficult to find a return load for them within the European Union because it is not clear whether or not it will meet the logistic requirements. It is common for combined transport trains to return to the port carrying empty IS0 containers.

- 68 - PE 167.055 CONTENEUR IS0 Sene I

6.058 mm

5.061 mm 4

l 2 3 4 5 'l l

Unite de chargement : 800 x 1.200 mm Espace entre unites de chargement : IO mm

CONTENEUR IS0 Sene I

12.192 mm 11.998 mm

12 3 4 5 6 7 8 9 l0111213 14 , -i' 2.330 TI

Unite de chargement : 800 x 1.200 mm Espace entre unites de chargement : 10 mm Logistics systems in combined transport

In short, land-based transport operators are finding themselves with IS0 series 1 (20’ and 40’) sea containers and European sea containers (whose width has been modified to 2.44 m) which have different logistic requirements in terms of the palletization of loads.

The introduction of IS0 series 2 containers (49’ and 24.5’) for use in international trade, besides giving rise to problems associated with their external dimensions - the implications for terminals, ships, rolling stock and road transport, which will be analysed in due course - also makes it necessary for the internal dimensions to be modified in order to derive the full advantage from palletized loads.

The increased dimensions - IS0 series 2 - are justified by the need to transport greater volumes, but it should be remembered that increasing the unit loading while the weight remains the same as for IS0 series 1 containers, i.e. 20.32 t for 20’ and 24.5’ containers and 30.48 t for 40’ and 49’ containers, means a reduction in the weight/volume ratio. The growing imports of light goods in international trade might justify the introduction of the IS0 series 2 containers, but what remains to be seen is whether the cost of these new 49’ units will be offset by the few instances in which their use actually generates a profit.

As things stand at present, 49’ containers cannot be carried by road in Europe, which represents an obvious restriction for combined transport, since this relies on road haulage for the initial andor final leg of the journey.

The introduction of IS0 series 2 24.5’ containers - whose internal dimensions are designed to offer greater profitability when using standardized pallets - would be more appropriate, given that this would improve the productivity of road haulage and therefore of combined transport, assuming that there is a market for light goods.

The diagrams on the following pages show the arrangement of standardized pallets in IS0 series 2 49’ and 24.5’ containers.

- 70 - PE 167.055 CONTENEUR IS0 Serie 2 (Longueur 14,94 m)

14.570 mm

Longueur interieur : 14.765 mm (minimum) Longueur interieur : 2.460 mm (minimum) c Espace entre unites de chargement : 10 mm

~ UNITE DE CHARGEMW : 800 X 1.200 CONTENEUR EUROPEEN CHARGE AVEC UNITES DE CHARGEMENT PALETISEES

E E 0 0 2 0 9 S cy

UNITEDE CHARGEMENT : 800 x 1.200

Espace entre unites de chargement : 10 mm

E E a, zm I Logistics systems in combined transport

The weights and dimensions of containers affect various elements of the transport system at several levels:

Dimension Impact

Length - Terminals: - Storage capacity - Handling by gantry crane - Rolling stock: - Transport capacity - Road: - Legal restrictions on movements of 49’ containers

Width - Rolling stock: - Restrictions on 49’ containers - Road: - Restricted to 2.50 m - Efficiency of loads palletized to fit internal dimensions

Height - Rolling stock: restricted vehicle clearance, tunnel and catenary

Weight - Rolling stock: distribution of payload over axles

The 2.44 m internal width of the European containers provides a good basis for palletized loading, but only when the pallets conform exactly to the standard dimensions. Any protuberances, projections or overhangs of any kind would jeopardize loading efficiency.

According to logistics experts on the European Committee for Standardization (CEN), it would be preferable to increase the width to 2.46 or 2.48 m simply in order to optimize load handling, which implies that the external dimensions of the container, swap body or road vehicle would have to be 2.55 m.

If the IS0 series 2 container is introduced, which has an external width of 2.59 m, this requirement would be fulfilled, but only with an internal width of 2.46 or 2.48 m. Any greater width would run counter to European logistics, given that if goods are to be prevented from shifting during operations, any spaces left empty in the container would have to be completely filled with some form of packing.

A study has been carried out on the impact on transport economics of the different methods of loading container-carrying wagons.

- 73 - PE 167.055 Logistics systems in combined transport

With a 60’ wagon, there are two possible ways of loading IS0 series 1 containers:

A. 3 containers of 20’ B. 1 container of 20’ and 1 container of 40’

The same 60’ wagon enables IS0 series 2 containers to be loaded in two ways:

C. 1 container of 49’’ D. 2 containers of 24.5’.

The methods of loading IS0 series 2 containers involve higher costs - of the order of 8.5% - because the unit load capacity of the train is reduced; the same train with the same characteristics would in fact need an extra wagon. Whatever savings may be gained through more efficient handling at the terminals, this would not justify the increase in transport costs.

3. Impact of the introduction of IS0 series 2 containers on modes of transport a) General aspects

On the initiative of the IS0 TC 104 Committee, new larger containers - IS0 series 2 - have been proposed on the grounds of technical efficiency. The sizes of IS0 series 2 containers are:

49’ x 8.5’ x 9.5’ 24.5’ x 8.5’ x 9.5’

Some organizations have suggested container lengths of 50’ and 25’’ which would be psychologically more acceptable than 49’ and 24.5’. Such containers are better suited to the dimensions of the commonly used pallet sizes - 1200 x 1000 mm and 1200 x 800 mm - thereby improving the internal layout, helping intermodal transport to be more competitive and adapting the container size to the downward trend in high-density loading.

Increasing container dimensions has an economic and technical impact in that it necessitates changes to the infrastructures and equipment at container handling terminals, which in turn will have an impact on the carrying capacity of the mode of transport affected, i.e. on operating costs.

The integration of the economy implies a high degree of interaction, which has an influence on the transport sector: ports, roads, railways and inland waterways. However, these effects vary considerably depending on the geographical/economic zone to which they apply.

- 74 - PE 167.055 Logistics systems in combined transport

In countries like the United States and Canada, the conversion work needed to adapt infrastructures is minimal; moreover, they are mostly operating with larger containers. The level of palletization is high, and road and rail compete with each other under similar conditions, which means that the use of large containers is a real factor in competition and a way of increasing the efficiency of intermodal transport. However, the countries of the European Union are in a different position, since despite the fact that containerization is already widespread and the trend is towards a further increase, there are arguments against allowing large containers to become standardized:

- the benefits of increasing the size of containers do not outweigh the costs of modifications to plant and equipment;

- the increased productivity will not offset the negative effects within the logistics system;

- it would benefit countries generating substantial intermodal traffic, to the detriment of other countries having only transit traffic.

It may be argued that, in the long term, the introduction of large containers would produce positive effects in Europe, but for the moment, one essential condition is still lacking: road and rail need to be competing with each other on equal terms.

The increase in container sizes is an excellent move from the point of view of economy of scale in transport. This is a view shared by everyone involved in intermodal transport, and the large containers will be better able to meet the requirements of intermodal transport than the 20’ and 40’ IS0 series 1 containers. It is important to exploit this advantage in a way that is most appropriate to the intermodal system, for example by introducing technical regulations aimed at harmonizing and ensuring the compatibility of intermodal transport by sealroadrail.

Two distinct trends are discernible in the world: the first in the United States and Europe - with the lead being taken by the United States and Canada - which are in favour of the introduction of new and larger containers; the second in Japan and the countries of the Pacific rim, where pallet sizes are better suited to the 20’ and 40’ IS0 series 1 containers.

However, the general trend for the future is best illustrated by the following points:

- all countries are in the process of improving their systems of intermodal transport;

- countries such as Japan are also tending to introduce IS0 series 2 containers in order to increase their railways’ share of container traffic;

- however, the question of when is the best time to introduce the IS0 series 2 containers is not an easy one to answer, given the need to technically amortize the equipment and rolling stock currently in service.

- 75 - PE 167.055 Logistics systems in combined transport

The most important points concerning the introduction of IS0 series 2 containers are as follows:

- generally speaking, the 49’ and 24.5’ containers offer greater competitiveness for the railways, but the railway companies, being in severe financial difficulties, cannot contemplate the required outlay, which is why they are unable to adopt aggressive policies to improve their productivity and continue to set their prices by reference to those offered by the road transport operators:

- if internodal - combined - transport wishes to develop a policy of being more competitive, it will have to look to private financing to secure the necessary investment in larger containers.

Given that most railways are currently in the public sector, it is hard to see IS0 series 2 containers operating on a door-to-door basis within the next ten years.

The longer lengths of containers (49’) will create problems at the terminals, both in terms of their handling equipment and their storage capacity, and especially in terms of rail transport capacity, because container-carrying wagons are not designed for these dimensions, which will lead to a disruption of the traffic flow.

The main problem in all sectors, however, lies in the half-foot difference in the width, entailing as it does the need for structural alterations to ships, terminals and railways. b) Sea transport

The sea transport market, as far as container transport is concerned, is administered by consortia and conferences of transport lines that operate on shipping routes. It is generally true to say that a country’s level of development has no bearing on the technical aspects of sea transport, since the latter is controlled by the major shipowners, who take responsibility for ensuring that both ships and port terminals are technically modified, and also because the ports, due to the fierce competition, adjust to technical advances relatively quickly.

The problems identified as being associated with the introduction of IS0 series 2 containers are as follows:

Effects on ships

0 The majority of container vessels are designed to take IS0 series 1 containers, for which reason any other type of container would present difficulties, given that it would necessitate the modification of ships’ holds.

There is less of a problem with adapting to IS0 series 2 containers in terms of on-deck loading, although it would entail fitting new anchorage points and a loss of capacity. A very careful case-by-case analysis is therefore needed to quantify the costs and benefits.

- 76 - PE 167.055 Logistics systems in combined transport

All new vessels being built by shipowners are designed to take both types of containers simultaneously, since there is bound to be a long period when both IS0 series will be in use together.

The fact that both types will be in use simultaneously makes it essential to have a very accurate computer system for management of loading, so as to plan and manage transport movements efficiently and derive the maximum economic benefit.

0 RORO vessels give rise to inherent safety problems because of the increased distance between axles on lorries and semi-trailers.

Moreover, vehicle lifts, having been designed to take a maximum length of 13.6 m, will not be able to accommodate the new containers.

Effects on port terminals

0 Most port terminals have modem handling equipment capable of coping with containers that do not conform to IS0 standards.

Various types of container-handling equipment - including Post-Panamax cranes - are discussed elsewhere in this study.

The operational problems to which IS0 series 2 49’ containers would give rise differ widely because they depend on the layout of the terminal itself and on the characteristics of each type of gantry crane designed specifically for each port. The problems are characterized by a general slowing-down of operations and by the possibility that the IS0 series 2 49’ containers will not be able to pass between the gantry supports.

The solutions suggested for dealing with these problems range from possible modification of the lifting gear by fitting stretcher-bars of different lengths to the purchasing of new cranes.

According to information from a specialist manufacturer of large gantry cranes, the cost of modification would be around 20% of the cost of the initial investment.

Whichever is ultimately decided upon - acquisition or modification - it would be necessary to adapt at least one gantry crane at each port terminal. The cost of purchasing a new crane is estimated at around ECU 3 million, while modifying an existing crane would cost around ECU 0.6 m. Another point to be considered regarding the port terminals is the coexistence of IS0 series 1 and 2 containers, which complicates management of the storage areas, possibly making it necessary to reorganize these so as to keep the two types of containers separate, for reasons both of safety and practical efficiency.

- 77 - PE 167.055 Logistics systems in combined transport

STRETCHER-BAR CAPABLE OF HANDLING CONTAINERS OF DIFFERENT CAPACITIES

53’ I 45’ 40’ 20’ 20’ 40’ 45’ I 53’ 49’ 49’ n

n R

c Source : GRANDES CONTENEDORE~

Operational effects

Shipowners have different views concerning the introduction of IS0 series 2 containers, according to the route and sector involved. The majority of shipowners, apart from those in the United States and Canada, anticipate reductions in efficiency and substantial costs, whilst a few are in favour of introducing the new containers because of the incompatibility of European palletization systems with IS0 series 1 containers.

Given that the new IS0 series 2 containers do not involve any increase in the maximum permitted weight, many operators feel that transport prices would be unaffected by the introduction of the new containers; what they are saying, in other words, is that they expect their costs to rise, but not their profits.

That is the reason why the change of system would need to be carried out gradually, given that modifications to installations before they have been amortized would involve extremely high costs.

- 78 - PE 167.055 Logistics systems in combined transport

In fact, shipping lines that work with the United States are transporting sea containers larger than the IS0 series 1 containers, and in some cases have created a 2.44 m container which is adapted to European palletization systems but is still a long way short of the 2.59 m of IS0 series 2 containers.

A further problem, which has not yet been sufficiently investigated, lies in transport routes to islands, as in the case of Spain, Italy, Greece and Portugal, where RO/RO vessels are in use; in very many cases, because of the local road infrastructure, only 20’ containers are being carried.

c) Rail transport

Combined transport on the European railway network is governed by the International Union of Railways (UIC) and subject to its regulatory framework. UIC regulations specify a maximum width of 2.50 m, as against the 2.59 m of IS0 series 2 containers. As a result, the impact of introducing IS0 series 2 containers on European rail transport can be described in terms of the effect this will have on the infrastructures, terminals and wagons of railway authorities and operators.

Since the problem of the impact of vehicle clearance profiles is dealt with in depth elsewhere in this study, we shall confine ourselves here to a purely qualitative analysis.

Effects on infrastructures

The fundamental problem regarding infrastructures is vehicle clearance profiles in tunnels, given that IS0 containers can only be loaded onto special low-loader wagons with small wheels. There are also further problems on the United Kingdom network, which has the smallest vehicle clearance profile in Europe. When discussing European rail networks, it is interesting to look at the North American model, where critical restrictions are not determined by topography, as is generally the case in Europe; also, because of the deregulation of dimensions, it is possible to transport wagons with IS0 series 2 containers stacked two high.

Europe, which has an extremely dense rail network and a high quality of infrastructure, has seen rail services declining in importance in favour of road transport over the past 20 years, but because of the increasing congestion, attempts are being made to encourage the use of rail through the system of combined transport.

The AGTC network, as described earlier in this study, needs to update its regulations to cover IS0 series 2 containers, since the transport of intermodal units larger than 2.50 m means reducing the heights at the corners to take account of tunnel arches; this amounts to saying that IS0 series 2 containers cannot be carried on all those lines along which 2.50 m containers are able to pass freely at present.

- 79 - PE 167.055 Logistics systems in combined transport

In conclusion, the transporting of IS0 series 2 containers within Europe requires meticulous planning and very often the use of low-loader wagons, as is currently the case in the Alps with the Brenner and Lotsberg tunnels.

Effects on rail terminals

In general terms, rail terminals operate in the same way throughout Europe, and all of them can handle IS0 series 1 containers of 40’ carrying a maximum weight of 30.5 t. However, IS0 series 2 containers could create serious problems; since the distance between crane supports is limited, it would be necessary to fit stretcher-bars similar to those already mentioned in connection with port terminals.

The cost of modifying a major roadrail terminal is estimated at ECU 150 000, assuming it is technically viable in the first place. Since each terminal was designed taking site requirements and restrictions into account, it is in fact difficult to evaluate precisely which of these terminals lend themselves to being modified and which would need to be entirely replaced.

Leaving aside the question of the suitability of existing gantry cranes, it would also be necessary to reorganize the management of the terminals: the storage, transit and intermodal transfer areas would be affected, given that the swap bodies and containers handled in the terminals would be different.

Effects on rolling stock

Combined transport networks and operators who have invested in equipment designed to handle IS0 series 1 containers are concerned about the introduction of IS0 series 2 containers because of the two types of effect which these will produce.

- The majority of European rail operators have wagons designed for 20’ and 40’ modules and have recently equipped themselves to handle 45’ swap bodies; this is why, if IS0 series 2 containers are introduced, it will be necessary to modify the existing wagons or acquire a new type of wagon, since otherwise the productivity of the rolling stock will be reduced.

- The other problem concerns the need to transport intermodal units of different sizes, which will simply add to the diversification that exists already.

In countries where the rolling stock is still of recent vintage, this is likely to cause serious financial problems.

- 80 - ’ PE 167.055 Logistics systems in combined transport d) Road transport

Effects on infrastructures

The introduction of IS0 series 2 containers with a greater loading volume but the same permitted weight (30.48 t for the 40’ and 49’ containers, 20.32 t for the 20’ and 24.5’ versions) presents both technical and safety problems for road transport, in the case of the 49’ containers because of the restriction which applies on length. The most important points to make in terms of road transport are as follows:

- the risk of the new containers exceeding maximum permitted weights because the increased volume could lead to overloading;

- the risk of unstable loads when carrying a variety of products. This risk is greater than with 40’ containers:

- the variable effect on countries, depending on the road situation. They will be restricted to certain routes and their use will be severely limited on islands and on single-track roads:

- road safety problems when vehicles are being manoeuvred, and difficulties at depots;

- vehicle clearance problems. The majority of roads have been constructed for a maximum height of 4 m. From a technical standpoint, main roads are capable of accommodating vehicle widths of up to 2.60 m. In certain cases, it will be necessary to modify vehicle equipment or use alternative routes;

- on roads less than 7 m wide there could be safety problems, as in the case of Switzerland.

Effects on terminals

The problems affecting road terminals are the same as those for roadrail terminals and arise from the handling of units that require lifting gear and the need to store 20’, 40’ and 49’ units simultaneously, making it necessary to stack these in separate areas.

Effects on commercial operations

The use of units with a larger volume has the following implications for road transport:

- Road transport units are not suitable for hauling these larger containers. For example, semi-trailers for 20’ containers are unsuitable for IS0 series 2 40’ containers; they could only load a 24.5’ container, which would mean a substantial loss of efficiency and capacity. The only solution would be to restructure the lorry fleet.

- 81 - PE 167.055 Logistics systems in combined transport

- The use of larger units does not necessarily mean a reduction in the number of movements; this would only be the case if the units were loaded to their maximum capacity (in terms of both weight and volume). Moreover, it should be borne in mind that the market for bulky goods has decreased and these intermodal units may only be partially used.

- The sectoral markets which could provide bulky loads suited to the dimensions of the containers are very variable, which only serves to exacerbate the problem.

- Ultimately, the benefits expected apply only partially to the market and may be offset by the additional costs due to handling at terminals, equipment, lorry fleets, etc.

- IS0 series 2 24.5’ containers offer greater advantages than 49’ containers, the impact of which is greater. There is a trend towards increased height and width, but the problem of the 49’ length seems to present an obstacle that is difficult to surmount.

- If restrictions are to be placed on dimensions for road transport and not for rail, the trend could move in favour of combined transport, with containers that would be acceptable for transportation both by rail and road. This would create problems in terms of competition, which is at the heart of the discussions on the question of weights and dimensions in road transport.

This issue is dealt with in greater depth in another chapter of this study concerning Community legislation and national policies on combined transport.

The use of IS0 series 2 24.5’ containers in road transport does not present the same problems as that of the 49’ version; as an alternative to the 20’ and 40’ units, its market share would be considerable, and it would become an attractive proposition if the maximum permitted weight could be increased from 24 t to 30.48 t.

Unlike the 49’ container, legislation does allow the transport by road of 7.43 m containers (15 t per container). There are two drawbacks, however:

- we are not certain of being technically able to achieve these loading levels;

- containers are currently being transported as semi-trailers (40’ x 20’ x 20’), and transporting two 7.43 m containers would require the use of “road trains”, which would involve changes to the lorry fleet.

- 82 - PE 167.055 Logistics systems in combined transport e) Transport by inland waterway

The restrictions on transport by inland waterway are of a technical nature, such as the depth of rivers and canals, the size of locks and traffic safety, but there are no actual legal restrictions. From an economic viewpoint, the operation and movement of containers comes down to the availability of corridors which generate a sufficient volume of traffic and link ports to industrial areas. The inland waterway network in Europe is dealt with in Chapter 11, and is based essentially around the Rhine-Danube system.

There are a whole range of technical restrictions on the transportation of IS0 series 2 containers, the main one being that barges on inland waterways are designed to carry IS0 series 1 containers.

The problems are as follows:

- The use of IS0 series 2 containers on the vessels currently in service would mean a loss of transport efficiency and therefore a decline in performance and productivity.

- It is extremely complicated - if not virtually impossible - to modify existing vessels by increasing their capacity, since there are restrictions involving locks, canals and the capacity of inland waterways.

- Another important factor is the height of bridges, which is why the different heights of IS0 series 2 containers would reduce the transport capacity.

- On the European inland waterway network, which carries an average of 650 000 TEU each year, the average capacity of a self-propelled barge is 200 TEU and that of a self- propelled barge + towed barge 350 TEU.

- To be competitive, the 220 TEU self-propelled barges need to be stacked with containers four high, and that is often too high to pass under bridges. This is a question of adapting the infrastructure, which is why it is recommended that a minimum height of 7 m should be laid down for all major waterways.

- For waterway terminals, the problems are the same as those affecting seaport and roadrail terminals, i.e. they relate to the management and storage of different sizes of containers and the need to modify lifting gear.

The effects of introducing IS0 series 2 containers on the various modes of transport can be summarized as follows:

- The diversification of container sizes - compared with the present situation - and the increase in their size does not imply that IS0 series 1 containers, European containers and swap bodies are going to disappear. It does imply additional costs, which in some

- 83 - PE 167.055 Logistics systems in combined transport

cases will be offset by the fact that there is greater choice. The increased costs derive from the capacity lost because of the need to adapt rolling stock, lorry fleets, ships, and canal and river banks to the new dimensions, and from the need to reorganize the management and storage of containers.

The IS0 is currently working on a stackable swap body which can be used for transport by sea or inland waterway, seeking to strike a balance between the needs of sea transport (robust) and inland waterway (lighter), and which will also be suitable for transport by road or rail: the ultimate aim is to establish a standardized “universal container” or “stackable swap body”.

4. Impact of large intermodal units a) Effects on railway infrastructure of the introduction of large containers

The major consequence of the introduction of larger containers and swap bodies in the railway network relates to vehicle clearance profiles, and especially tunnels. The clearance profile of a load is determined by the characteristics of the load and the item of rolling stock in question; given the wide-ranging nature of these two variables, it first needs to be established whether the infrastructures are suited to the new dimensions, with any current restrictions being identified.

Just as there are different rail gauges, so there are also different load clearance profiles, depending on the distance between tracks (in the case of double tracks), the gauge and tunnels and other features such as bridges, stations, etc. In view of the wide range of clearance profiles developing on each network, the UIC adopted a load clearance profile called the Passe Partout International (PPI) in 1913, reproducing the continental profile and the restrictions applicable on the French SNCF lines, but excluding lines in the United Kingdom.

Modifications have subsequently been made, generally based on extensions and proposed by the French, German and Italian railways, because of the ever-growing number of exceptional loads that required a case-by-case approach.

With the appearance in Europe in 1966 of the large IS0 series 1 sea containers and, at the same time, that of swap bodies - with different dimensions so that they matched the size of European pallets - problems of meeting vehicle clearance profiles started to arise. The 8’ high containers fell within the PPI clearance profile, whereas the 8’6” and 8’6%” containers used by the “Sea Land” company required a higher clearance.

Later, with the appearance of a wide variety of containers and swap bodies - to meet the requirements of demand for goods transport (transport economics and reduced density of goods) - it became necessary to modify rail clearance profiles and to take steps to accommodate the 2.9 m high “High Cubes”. The only networks which allow this type of container are DB (Germany), DSB (Denmark), VR (Finland) and SJ (Sweden).

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The early 1980s saw the introduction of “Super High Cubes” onto the American market; these were 2.61 m wide, 2.90 m high and up to 63’ long, although the 49’ length became the standard (IS0 series 2). The same period saw the introduction of semi-trailers with heights of 3.90 m and 4.00 m.

The limitations of roads for the transporting of containers, swap bodies and semi-trailers will be discussed in Chapter VI, but it can already be indicated here that widths of up to 2.60 m have been made permissible in road transport (refrigerated lorries).

In order to allow the movement of large containers and standard-size semi-trailers, the UIC has defined vehicle clearance profiles A, B and C to cater for larger dimensions than the old PPI.

Vehicle clearance profile A: Can be used on all network lines

Vehicle clearance profile B: Includes profile A and is intended for a coherent and extended network of lines

Vehicle clearance profile C: Includes profiles A and B and is envisaged for new lines and major renovations

Vehicle clearance profile B+: Defined by SNCF in 1985 to enable containers and swap bodies 2.60 m wide and semi-trailers up to 3.90 m high to use the major routes

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STATIC VEHICLE CLEARANCE PROFILES GA, GB, AND GC REFERENCE CONTOURS

-I

SOURCE FICHE I575 UIC 506

Ll

- 86 - PE 167.055 Logistics systems in combined transport

The principal characteristics and loading options for vehicle clearance profiles A, B, B+ and C are as follows:

~~ ~ Width of Max. uprights height Loading Loading options for vehicle clearance Width Height profile

A 3.15 m 4.32 m Standard large containers on standard container- 8’ 8’6” carrying wagon (floor height: 1.18 m) (2.44 m) (2.61 m) Specialized semi-trailers on pocket wagon 2.50 m 3.57 m B 3.15 m 4.32 m “High Cubes” On standard 8’ 9’6” container-carrying wagon Swap bodies 2.50 m 2.90 m Semi-trailers On low-loader pocket 2.50 m 3.80 m wagon (0.28 m)

B+ - Super High Cubes 8’6%” 9’6” (2.60 m) (2.90 m) Swap bodies 2.60 m 3.00 m Road semi-trailer (on low-loader pocket wagon) 2.60 m 3.90 m C 3.15 m 4.65 m All types of large containers and swap bodies 2.60 m 4.00 m Semi-trailers and lorries with a road clearance profile (on low-loader wagons)

The various clearance profiles having been explained, the effect on overland container and swap body traffic can now be considered, given that sea containers account for too small a market share in continental road and rail transport.

The following pages - compiled on the basis of information on the combined transport market supplied by Intercontainer, the largest European rail operator - indicate the restrictions on the movement of containers and swap bodies.

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The following general points can be made regarding the restrictions on movement:

COUNTRY LOADING OPTIONS AND RESTRICTIONS

GERMANY IS0 series 1 containers with the “High Cube” option can circulate freely AUSTRIA through the majority of the rail network. SWEDEN DENMARK On some routes in Germany, there are restrictions relating to the smallest FINLAND types of swap body.

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BELGIUM “High Cubes” can circulate freely, except on the route from Aulnoye NETHERLANDS (France) to Liege.

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SPAIN IS0 series 1 20’ and 40’ containers and 45’ swap bodies can circulate freely. Spain does not allow the “High Cubes” option.

PORTUGAL There are two restrictions: - height limit of 2.99 m for swap bodies 2.50 m wide - height limit of 2.99 m for swap bodies 2.60 m wide

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FRANCE “High Cubes” can be transported on normal container-carrying wagons, swap bodies and semi-trailers on low-loader pocket wagons (clearance profile B).

LUXEMBOURG Principal routes are being adapted for clearance profile B’ (“Super High Cubes” and swap bodies 3 m in height).

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ITALY In the Padania region (northern Italy), IS0 series 1 20’ and 40’ containers and 45’ swap bodies can circulate freely. However the “High Cube” option is not permitted. To the south of Bologna, along the coast, the movement of swap bodies with a height of 2.77 m is permitted. Interior lines have more restrictions, with a maximum height of 2.677 m.

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UNITED KINGDOM The height limit is 2.77 m, except on the Bristol to London line, IRELAND where it is 2.677 m.

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GREECE There are three main lines, each with different restrictions: - Salonika - Athens: height restricted to 2.677 m. - Salonika - Macedonia: everything up to "High Cube" allowed. - Salonika - Bulgaria: height limit of 2.9 m and width limit of 2.55 m

',. ",

- 96 - PE 167.055 Logistics systems in combined transport b) Effects of large containers on terminals

Because of the differences that exist between the equipment found at port terminals on the one hand and roadrail terminals on the other, this section is divided into two parts.

Roadrail terminals

The analysis of the effects of IS0 series 2 containers (49’ and 24.5’) is entirely hypothetical, given that the movement of 49’ containers is not yet authorized in Europe and that at the present time they are not handled on the European market. Sea containers of 45’ are also as yet fairly uncommon, although the same does not apply to swap bodies.

The trend is now increasingly towards the widespread use of 45’ containers and “High Cube” swap bodies. A qualitative study has been carried out of their impact on the European roadrail terminals at which Intercontainer operates, which is introducing larger intermodal units.

It is reasonable to suggest that the main impact is being felt in the area of equipment (gantry cranes) and the use and management of terminals.

Effects on equipment: 98% of European roadrail terminals are equipped with gantry cranes designed to move 30.48 t, which is the maximum permitted weight for large IS0 series 1 and 2 containers. In terms of weight, therefore, there do not appear to be any significant problems.

When it comes to the dimensions, however, and in particular the length, the problems are virtually universal, since it is impossible to handle IS0 series 2 49’ containers. On the other hand, it is possible to handle 45’ swap bodies and containers by a simple modification to the lifting gear.

According to information supplied by Intercontainer in its guide to terminals, there are no gantry cranes capable of dealing with 45’ units.

To be able to handle 49’ containers, modifications would have to be carried out to virtually the entire stock of handling equipment, representing an enormous outlay on the part of the operators, which might well not be offset by the small market share that IS0 series 2 49’ containers would possess, at least to begin with.

The cost of modifying a gantry crane is put at 20% of its initial cost of around ECU 900 000.

However, the issue of modifying equipment is also linked to the economic factor and the technical conditions which exist at each terminal, since any restructuring of the terminals would pose its own set of problems.

If one gantry crane in each of the 50 terminals of the main network used by Intercontainer were to be modified, the investment required would amount to ECU 9 million.

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A further problem arises with the modification of wagons to enable them to take the new containers and swap bodies, which would mean extending the length of trains and, where necessary, altering the tracks.

The last effect is a result of having different sizes of intermodal units in use at the same time. With containers and swap bodies increasing in size, it will become necessary to reorganize the storage areas to take account of “Just in time” or “Zero storage” techniques; in either case the implications are by no means negligible.

This will also entail problems of organization and management at the terminals, making it necessary to separate containers according to their size for the dual purposes of optimizing storage conditions and eliminating the confusion that would be generated by mixed storage. For the terminal to function smoothly, it will be necessary to have appropriate data-processing facilities to ensure the best possible organization and management of the terminal.

It would be helpful to standardize the dynamic characteristics of wagons, since the coexistence of wagons designed for 100-120 and 140 km/h creates an additional difficulty. Here the solution lies in introducing automatic wagon identification, which will be analysed in Chapter V (Volume 11) of this study.

All combined transport techniques involving horizontal transfer within the terminals, such as the dual mode, rolling road or “multicradle” systems that do not require vertical movement, would remain unaffected by the equipment.

Effects on port marine terminals

With the introduction of 45’ sea containers, changes are now taking place in the maritime container transport market.

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In the port of Rotterdam, for example, Europe’s largest container port, the distribution in 1996 was as follows:

Size %

I 29’ 1 413 796 44.5 30’-39’ 44 831 1.4 40’-44’ 1 701 191 53.5 2 45’ 19 211 0.6

TOTAL 3 179 029 100

TEU 4 935 615 “

As the table shows, by far the largest proportion (98%) is accounted for by 20’ and 40’ containers.

In 1995, Rotterdam handled 11 392 containers of 45’ and in 1996 the figure rose to 19 211, representing an increase over the previous year of 31.5%.

However, the proportion is still very small by comparison with IS0 series 1 containers.

At the same time, the popularity of the 20’ container - though currently accounting for a substantial share - is exhibiting a downward trend; for example, in 1995 its share was 47% and in 1996 it was 44.5%, the difference being taken up by the 45’ containers.

The most popular unit is the 40’ container, with 53.5% at Rotterdam, increasing by 6.1% between 1995 and 1996. This is why it is difficult to replace the IS0 series 1 containers, despite the economic importance of larger containers to the United States.

This situation is reinforced by the state of the European market for 49’ containers, with road transport being ruled out by legislation, and the technical and economic difficulties which they would entail for operators.

According to information from the manufacturers of PACECO port cranes, virtually none of the European ports are handling 45’ containers, Rotterdam being an exception because of the size of its port facilities.

Generally speaking, the equipment used to handle 40’ containers can be used for handling 45’ containers, though sometimes with difficulty because of the wind, which means that productivity is reduced because more time than usual is taken.

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The investments made by the ports in equipment are tending towards the acquisition of high- capacity cranes to handle 45’ containers. When it comes to port equipment, a distinctions is drawn between fixed or gantry cranes and mobile cranes.

Mobile cranes - or straddle carriers - are cranes running on pneumatic tyres that are capable of moving automatically at a speed of 24 M,and in general have a load capacity of 40 t. Each straddle canier costs around ECU 600 000, and they are not normally suitable for handling IS0 series 2 49’ containers.

Gantry cranes have undergone considerable development; the current models are categorized as the fourth generation. The Super-Post-Panamax cranes have a greater capacity than the Post- Panamax models, which are used for ships that are too wide to pass through the Panama Canal.

First- and second-generation gantry cranes cannot be used for IS0 series 2 containers because of problems with clearance profiles and construction.

On the other hand, cranes of the third generation - the Post-Panamax models - have a 32 m boom and are capable of working on vessels that are 12 containers wide. They are suitable for handling 45’ containers, but will need to be modified to handle IS0 series 2 49’ containers.

The demand for Post-Panamax cranes in Europe stood at 70 units in 1995, to be installed over the period 1995-1998 and broken down by country as follows:

Post-Panamax cranes, 1995

~~ Country Cranes

Austria 1 Belgium 13 Denmark 1 Finland 4 France 2 Germany 10 Italy 18 Spain 11 Netherlands 4 United Kingdom 6

Total 70

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The prospects are that Super-Post-Panamax cranes will be installed for ships of 6000 TEU or more with a capacity of 18 containers across; these cranes have a reach of over 48 m, whereas the standard Post-Panamax models only have a reach of between 44 and 48 m.

The following table shows the world distribution of cranes, broken down by size:

Type Cranes in service Demand Demand Total 1994 1995-1996 1997-1998 Panamax 1401 96 13 1510 (< 44 m)

Standard Post-Panamax 292 87 12 391 44-48 m

Super Post-Panamax 43 75 64 182 >48m

Not known 17 TOTAL 1753 258 89 2100

Source: Containerization International Yearbook, 1996

Whether or not to modify an existing crane for a greater capacity is a complex decision, given the high cost: a new crane represents an outlay of ECU 3.125 million; modification, assuming it is technically feasible, costs 30% of that figure (ECU 950 000). It is therefore important to carry out an economic analysis in which the working life of the equipment, the investment, amortization and profitability based on market share are all taken into consideration.

Super-Post-Panamax cranes have 50 m booms capable of servicing boats carrying 19 containers across.

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c) Effects of large containers on rolling stock

The introduction of new containers, swap bodies or larger units is causing a serious problem for European railways, given that the many different units in everyday use and needing to be accommodated on the existing fleet of wagons is already creating complications.

The following page shows the normal loading of two DB wagons of 18 400 and 16 100 mm designed to take IS0 series 1 20’ and 40’ containers and 7.15 m and 7.82 m swap bodies respectively.

It is clear that in the first case, loading an IS0 series 2 49’ container leads to a loss of efficiency and therefore of productivity. In the case of the swap bodies and the IS0 series 2 24.5’ container, there are hardly any problems, since the existing flatcars can be used without any loss of capacity.

In 1996, Intercontainer’s stock of flat wagons for carrying containers and swap bodies was as follows:

Intercontainer wagons in service - 1996

Dimensions 40’ 60’ 80’ 90’ 100’ Pocket Total

Number 1814 3101 699 69 604 200 6487

% 2.8 47.8 10.8 1.0 0.3 3.1 100

It is technically possible to modify wagons to take larger sizes, and a wagon manufacturer has therefore been contacted to find out the investment required for such a conversion.

It is estimated that it would cost ECU 25 000 to convert a 40’ wagon and a 50’ wagon to be able to carry two IS0 series 2 24.5’ containers or one IS0 series 2 49’ container.

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PLAN DE CHARGEMENT POUR WAGON DE 18,40 m

CLnteneur IS0 de 49’ I I 1 Conteneur IS0 Conteneur IS0 de 40’ I 1 de20’ I I II I

1 00‘ lo 0

PLAN DE CHARGEMENT POUR WAGON DE 16,18 m

Caisse mobile de 7,15 m Caisse mobile de 7’15 m I I I I Conteneur de 24’5’ II Conteneur de 24,s’ I

l Caisse mobile de 7’82 m Caisse mobile de 7’82 m I III I JI Longueur de chargement 16.100 mm I 1 00‘ lo 0

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In the case of a wagon like the 100’ model, it would be necessary to make up two 40’ wagons and the total cost of conversion would be ECU 56 250.

The following table shows the calculation of the investment cost involved in converting some or all of the fleet of 40’ and 50’ wagons:

Units converted cost (5%) (million ECU)

10 4.3 30 12.9 50 21.5 70 30.1 100 43.1

The conversion can be carried out from existing flat wagons or conventional box cars.

The cost of a brand new flat wagon is around ECU 75 000, so the question comes down to an economic calculation of profitability, based on working life, the services involved and the profits that could be expected from increasing the unit load carried by each wagon.

It is as well to bear in mind that in the short term, it will be very difficult to introduce IS0 series 2 49’ containers into Europe because of the serious technical and economic problems which this entails. However, IS0 series 2 24.5’ containers are an option, together with 45’ containers and swap bodies.

The cost was then calculated of modifying a train of 1500 tonnes gross weight - equivalent to one carrying a 1000 t payload of goods - by converting the wagons from 40’ to 49’. A 1000 t train of 40’ wagons consists of 33 wagons, which would mean a cost of ECU 825 000 for converting it to a train of 49’ wagons. Since IS0 series 2 49’ containers cannot be loaded in the same way as IS0 series 1 40’ containers, it would be advantageous to use the increased load volume, estimated at 38%’ in order to maximize profits.

The same calculation was performed for changing from 40’ to 100’ wagons by converting two 40’ wagons into one of 100’.

In this case, the cost for a train carrying a 1000 t payload is ECU 900 000 per train.

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5. Technical innovations a) Infrastructures: “freightways” and the American experience

SNCF has developed a proposal for a “freightway” based on the rolling road technique which could also carry stacked containers in the same way as in the United States and Canada.

France is currently facing the prospect of a rapid growth in transit traffic, which by the year 2000 will produce problems of infrastructure capacity on many saturated stretches of the main north-south routes, leading also to a sense of insecurity on the part of road users because of the heavy goods vehicles.

Moreover, combined roadrail transport does not offer adequate scope for road traffic, because all it would take is for a few undertakings to join in for this method to become saturated. The capacity of the railway infrastructures around Lyons and Paris is also already saturated, which is further limiting the development of their potential.

For these reasons, the Goods Division of SNCF has been considering the alternative of a new rail line which could offer rolling road services alongside the road network in order to combat the growing dominance of road transport in terms of carrying goods.

Characteristics of the new “freightway” rail line

- Line specially designed for goods traffic and accessible to all types of trains - High-productivity specialized equipment - Load clearance profile (4.70 m) allowing loading of all types of lorries on normal wagons and stacked containers on low-loader wagons - Maximum speed of 160 km/h, with exceptions of 120 km/h - Load per axle of 30 t, with a possible variant of 22.5 t - Long trains (1500 to 2250 m) - Rolling road services to be offered with reversible train sets - Side loading to facilitate fast transshipment at terminals.

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The freightway market in France

This is envisaged as a principal route linking northern France with the Mediterranean region and five centres close to road interchanges for links to major conurbations:

- south of Lille for northern France and the Benelux countries - east of Paris for the Paris region - near Dijon for the junction between transit corridors - east of Lyons to feed into the corridors serving the alpine regions - close to Avignon for services along the Rh6ne and the motorways towards the Mediterranean and Spain.

In addition, account has been taken of the connections with the Channel Tunnel and also with Italy via the Frkjus tunnel.

Characteristics of the new infrastructure

The clearance profile should allow for rolling road services for vehicles up to 4.20 m high, without any specifications being laid down as regards the height of the loading platform or the diameter of the wagon wheels.

The new line, which can be used by trains from the conventional network, would help to solve the problems of saturation with a route including the existing corridors, especially in the RhBne valley. Various possible routes have been surveyed. The following ambitious specifications are seen as desirable:

- Load per axle: 22.5 t to 30 t - Maximum speed: 120 to 160 km/h - Gradient: 15 to 25% - Clearance profile: Double container - rolling road.

Freightway services

Rolling stock

The train composition and characteristics which could be offered by a freightway service are as follows:

- Length: 750 m - Locomotive at the front - Fixed train set allowing 35 HGVs to be side-loaded - Service coach for lorry drivers - Remote-controlled locomotive at the rear of the train - Capacity for assembling 2 or 3 fixed train sets.

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Operating conditions

The operation of the freightway service has been studied on the basis of a system of shuttles for each route, with four levels of traffic, price and frequency and using 1500 m trains.

In each case, the daily distance travelled by each train set ranges between 1100 and 1200 km, with an annual distance travelled in excess of 300 000 km.

The process of loading or unloading a train carrying 70 lorries takes 30 minutes, so that provided no maintenance operations are required, there is a one-hour cycle for loading and unloading.

The cost of a terminal allowing two trains to be processed in an hour (departure - arrival) is estimated at FRF 240 million.

Socio-economic benefits of the project

The usefulness of the project to society can be assessed on the basis of the following criteria or advantages:

- profits earned by the operator;

- economic benefits for hauliers and users when the savings in time and driving time are greater than the price paid;

- improved use of road infrastructure with better distribution of capacity between light and heavy vehicles, reducing investment costs and saturation;

- reduction in pollution and noise;

- savings in space, with less land needing to be occupied by trains.

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The American experience

The fact that Europe and North America have not standardized their combined transport techniques is due to historical and topographical reasons.

In Europe, there are many more restrictions relating to combined transport than in the United States or Canada. It is possible to make up trains with twice the volume of European trains, providing real incentives for using combined transport. Transportation of “double containers” or stacked containers is commonplace in North America, but at present impossible in Europe. Stacked containers were used for the first time on the continent in Canada in 1991.

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“Double container” trains use less fuel than the lorries that would be needed to transport the entire load over a long distance; in this way, greater productivity and profitability are achieved than with conventional trains, and indeed better than that offered by road transport. Since 1995, nearly all of CN’s container traffic has been carried using stacked containers.

The wagons used for this “Five Pack” technique could not be used on European rail routes. These wagons carry 48’ containers, i.e. larger than the 40’ sea containers, but they are low- loader wagons. CN has plans to increase the vehicle clearance profile so as to be able to carry containers 9.5’ high.

Iron Highway

In the United States and Canada, the railways are in the process of developing a project known as “Iron Highway” involving routes of approximately 500 km from Chicago to Detroit and Montreal to Toronto, with a view to capturing the traffic in the goods transport sector between 500 and 1000 km, which represents an important long-distance market in the United States and Canada.

Using this technique, it is possible to carry containers, swap bodies, entire lorries and semi- trailers at the same time.

In the middle of the train set there is a drop-side wagon, with a clearance from ground to loading platform of 30.5 cm, for loading and unloading lorries. Other internodal units are transshipped using fixed or mobile cranes. With this system, the loading and unloading times are reduced.

Combining individual elements from each technique makes it possible to create a system that brings together all the best features, so that the advantages they offer are blended into the best possible technique.

The Iron Highway is a continuous articulated platform with a cab unit at each end providing the traction. The three-phase alternating current is generated in the cabs and fed to the electric motors which power the first and last five load axles underneath the platform.

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SystCrne de chargernent en terminal Logistics systems in combined transport b) Terminals

In a combined transport system, terminals are of vital importance, and for this reason operators devote considerable effort to developing terminals which minimize transshipment times and facilitate loading and unloading.

Two projects are currently under development: the Transmann project of German railways (DB) and the Commutor project of the French railways (SNCF).

The Transmann project

In planning its new combined transport terminals, DB is aiming to cater for both national and international traffic.

In 1996, DB began work on building or extending seven terminals (Berlin-Grobbeeinen, Leipzig, Cologne, Kornwestheim, Karlsruhe, Basle and Erfurt).

The terminals are designed using a standardized modular construction to allow expansion as demand increases.

The basic format of these installations is as follows:

- length of usable track: 700 m - transshipment tracks passing beneath gantry cranes: 4 - access tracks: 1 - sidings: 3

Some terminals would be modified to receive stacked containers, swap bodies and semi-trailers.

The technological innovation lies in the fact that electric locomotives can use the transshipment tracks, since the catenary is equipped with an overvoltage system. A new form of structure will be tested at the Erfurt terminal.

One intermodal terminal module with 3 gantry cranes can handle 700 intermodal units per day.

DB has plans to develop new terminals equipped with the “Transmann” system at Rostock, Magdeburg, Glauchau, Regensburg and Frankfurt during 1997.

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The Commutor project

The Commutor ( or “fast transshipment”) project was the result of a discussion within SNCF based on the conclusions of an analysis of the performance of goods trains carrying containers.

These trains generally take a long time to arrive at their destination, especially if they require intermediate sorting (marshalling).

The approach to remedying this situation should in principle be based on dealing separately with the container itself and its transportation, with the use of fixed train sets which avoid the need to sort wagons in the marshalling yards.

In 1987, SNCF’s research arm drew up tender specifications for the type of installation required.

The type of installation in question consists of a single incoming track capable of receiving three sets of wagons an hour, each of which would have a stopover time of 15 minutes. This time would be used to load and unload 30 swap bodies.

The concept of fast transshipment is based on three principles:

1. The goods will be transported in a variety of mobile units (swap bodies, containers, etc.).

2. The virtually simultaneous unloading of the mobile units from the entire train, which assumes that a large number of handling units can work on different parts of the train at the same time.

3. The use of fixed train sets which can park in specially designed terminals.

Commutor envisages the construction of three types of installations or stations.

Commutor 1, a fast transshipment station responsible only for handling swap-bodieskontainers in transit to or from its own area.

Commutor 2, for transfers between trains as well as for local traffic.

Commutor 3, a standard terminal site.

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Characteristics of the Commutor system

The “Automation and technology” approach is based on the following:

- 9 “type A” travelling gantry cranes, moving parallel to the track, for transshipment of swap bodieskontainers;

- 9 “type B” gantry cranes for moving swap bodieskontainers at ground level, with transshipment onto shuttle trucks running parallel to the track and to a temporary storage area;

18 transfer points for the movement of swap bodieskontainers from gantry crane A to gantry crane B and shuttle trucks;

- 18 motorized shuttle trucks for transporting swap bodies/containers to other areas, to be loaded onto other wagons.

An alternative is the Technicatome approach:

- 36 transshipment cranes, one to deal with each wagon simultaneously and with a travel perpendicular to the track;

transshipment tracks (main and for manoeuvring) with a retractable catenary (30 or more) ;

- tracks for motorized trucks in the storage area. Two parallel tracks in principle, one for each direction;

- 20 motorized trucks:

- 350 storage positions.

- 113 - PE 167.055 CONFIGURATION DUNE STATION COMMUTOR DE TRANSBORDEMENT SOLUTION TECHNICATONE

ZONE STOCKAGEDE

Q

PORTIQUE DE 36 TRANSBORDEURS CONFIGURATION DUNE STATION COMMUTOR DE TRANSBORDEMENT (solution automatisme et technique)

ACCES DES CLIENTS 1 U """"

+ POllriOULjB " I L"""!

""""""" """ CHARIOTS B I _. """"""_ 1- ~. --- CHARIOTS A I l t I VOIES DE CHARIOTE - NAVETTES) P

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1 MODULE ...... x 9 ...... = 1 TERMINAL Logistics systems in combined transport

Operation of a Commutor terminal

A Commutor station typically works as follows:

- a 36-wagon train comes to a halt on a transshipment track;

- the catenary is disengaged, since the tracks running through the station are electrified;

- the gantry cranes used for handling the containers deposit them on another wagon or in a storage area;

- the catenary is re-engaged;

- the train leaves the station.

The whole operation takes between 15 and 20 minutes.

The “Automation and technology” approach

Here the installations are divided into modules, each consisting of:

a gantry crane travelling parallel to the track - two transfer tables - two trucks travelling parallel to the track a storage area.

This system operates as follows: details of the load and its destination arrive at the terminal in advance;

- the catenary is disengaged to allow handling from above;

- the two sensor arms on the gantry crane identify the wagon and position themselves opposite its tell-tale plate;

- the two pairs of arms required to handle the swap bodykontainer are designed to enable them able to slide along and, with the aid of the sensors, the identity of the swap bodykontainer can be checked before it is unloaded:

- the swap bodykontainer is deposited on the transfer table;

the swap bodykontainer is moved from the transfer table to a motorized shuttle truck;

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- the shuttle truck takes the swap bodykontainer to another location where, 15 to 20 minutes at most after the arrival of the train, it is loaded onto another train to continue its journey.

The Technicatome approach

The transshipment terminal is equipped as follows:

- several transshipment tracks with collapsible olr movable catenaries (three cIr more) ;

- 36 transshipment cranes with a travel perpendicular to the track;

- two parallel tracks equipped with 10 to 20 trucks (one track for each direction);

- 350 storage positions.

This system operates as follows:

- each wagon is positioned alongside its own transshipment crane;

- as instructed by the supervisor, the transshipment crane unloads the appropriate swap bodieskontainers and places them on trucks;

- the trucks are taken to the storage area;

- at the same time, the transshipment crane locates any swap bodieskontainers to be loaded onto the train, loads them, and the train can then depart.

The experimental Commutor installation at Trappes

As mentioned earlier, prototypes of various automatic handling systems are in use at Trappes (south of Paris). As regards the two most important ones described above, the following comments may be added here:

Technicatome system

This requires the use of wagons of identical length with a gantry crane assigned to each wagon: the cranes travel perpendicular to the track.

“Automation and technology” system

Wagons of different lengths can be used, with gantry cranes that move parallel to the track and operate on consecutive wagons.

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The whole terminal could be contained within an area 1000 m long and 50 m wide; it would need to be completely enclosed, with space to the side of its rail access.

The manpower required is estimated at 30 people, in contrast to the 300 currently needed for similar operations.

To meet all the needs of a country such as France, between four and seven Commutor stations would have to be created.

The Krupp automatic terminal

A prototype for an intermodal terminal was developed in 1991, on the basis of studies carried out by Krupp Industrietechnik of Duisburg-Rheinhausen, with support from:

Krupp: DM 6.5 million Land of Nordrhein-Westfalen: DM 6.5 million DB: track, locomotive and rolling stock for the trial

The German Federal Ministry of Transport asked the Krupp Research Institute and the Krupp Logistics Department in Duisburg to assess the performance that could be expected from intermodal terminals and to identify potential areas for improvement.

The Krupp system was put forward as a solution to the problem of wagon loading in general. Krupp is holding talks with several countries and believes that the adoption of its high- technology system on an intermodal infrastructure could offer considerable savings. Krupp is a participant in the EU’s Euret/Simet research programme for the transfer of intermodal technology.

Criteria for the Kmpp system

- Loading and unloading of a 600 m train in 15 minutes. - Number reader: records the details of each wagon, container, swap body and semi-trailer on a central computer as the train passes, making it possible for the central computer to check the dimensions of the unit in a master database. - The Krupp system is entirely compatible with conventional equipment.

Environmental limitations in Germany

1) 750 loading operations/day per terminal 4 unloading operations per crane 750 unloading operations/day 2

2) Maximum distance between terminals = 100 km

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These constraints reduce very substantially the movement of full trains between neighbouring terminals and make them uneconomical.

Proposed solutions

- “Liner trains” which would stop at several terminals and collect or drop off swap bodieskontainers at each, with loading times of 15 minutes: at night, a liner train could serve three terminals.

- Building large terminals with perhaps four transporters which would act as loaders. Shuttle trains would connect the main terminal with smaller ones, and these would be fully loaded and unloaded at each terminal.

Firstpossible installations of the Kmpp system

- Duisburg-Hohenbudberg for industry in Nordrhein-Westfalen - Koln-Gremberghofen - Radebeul-Ost, near Dresden.

c) Rolling stock

The continual changes in the European combined transport market, and especially in the dimensions of containers and swap bodies, mean that wagon manufacturers are under constant pressure from transport operators to respond to the new requirements of demand.

This section presents some of the latest innovations, describing new projects and prototypes in the categories of rolling stock (wagons), terminals and infrastructure, all designed to bring about improvements in combined transport.

With regard to rolling stock, over the past ten years or so there have been no major changes in the design of goods wagons, the composition of trains or the control process. The emergence of combined transport has generated considerable growth in these areas, in particular pocket wagons for semi-trailers and flatcars for containers and swap bodies. These wagons are produced in a variety of lengths and designs.

The “multifreight wagon” which has appeared in France is designed to transport high swap bodies, containers, semi-trailers and lorries on lines with a reduced vehicle clearance profile, as well as different types of containers and swap bodies for greater loading efficiency.

- 119 - PE 167.055 Logistics systems in combined transport

The maximum length of the “multifreight wagons” is 13.4 m for a semi-trailer and 15.5 m for an entire lorry. They have a low-loading platform, 840 mm wheels and a maximum payload of 54 t. The illustration on the next page shows a “multifreight wagon” and the various loading options.

Some new technical designs for rolling stock have recently appeared on the market, and some of these are shown on the following pages, including Cargo Sprinter, Eurospine, Kombilifter, Megawagon and the “Multicradle”wagon.

- 120 - PE 167.055 f

. Logistics systems in combined transport

Cargo Sprinter

This is a project developed by the German railways (DB), with the aim of designing a train set that can compete with road haulage over short distances.

The main features of the Cargo Sprinter are as follows:

- double driver’s cab at each end - carrying capacity: ten 7.82 m containers - diesel train to replace road transport on short journeys. - automatic hook-up system - electric brakes and other devices to reduce operating costs.

The investment cost of the Cargo Sprinter is ECU 2.35 million, and it is hoped that it will be operational during 1997, with between 300 and 500 units operating throughout Europe in 1998.

Final testing is currently under way on the 20 prototypes, which are 91 m long and have a traction unit at each end of the train with three wagons in between.

This prototype is equipped with a 1420 hp 6-cylinder diesel engine built by Volvo and is capable of carrying a 112 t payload at a speed of 120 km/h.

It bums 12% less fuel than the four large lorries that would be required to transport the same load over the same distance.

An electronic system helps reduce the braking distance; the train is equipped with disc brakes which can be replaced without removing the wheel.

- 122 - PE 167.055 Deutsche Bahn [m] Der Cargosprinter. Logistics systems in combined transport

Eurospine

This is a design by the Rosyth Royal Dockyard in Scotland, based on an American patent and intended for use in combined transport between the United Kingdom and the mainland of Europe via Eurotunnel.

It is an articulated wagon consisting of four long and straight steel guides which run from the centre and four fixed articulated segments supported on five bogeys. Each segment can carry one semi-trailer, container or swap body.

Eurospine is based on a project developed in the United States in 1984, where 3000 units were built for carrying lorries and containers.

In 1993, this system carried 7.1 million semi-trailers in the United States.

Kombilifter

In 1994, the German company Mercedes-Bern began developing a system for transporting goods by rail, in response to a market survey which showed that around 68% of combined transport operations used swap bodies and 16% semi-trailers, and that by the year 2000 the total estimated traffic in Europe would be 800 million tonnes.

In October 1994, a test was canied out using five wagons loaded with 250 Mercedes engines and travelling between Bremen and Stuttgart.

For the most part, the Kombilifter is loaded and unloaded horizontally and requires no gantry crane or straddle carrier, needing only 100 m of railway track and a compressed air supply.

The loading and unloading operation is carried out as follows: the lorry transporting the swap body (built to standard specifications and with retractable stands) straddles the track, the stands are lowered onto their marks, and the lorry proceeds on its way.

The various swap bodies are thus arranged one behind the other. Next, the train set comprising a traction unit and wagons equipped with the Kombilifter drives under the swap bodies and between the stands; the pneumatic lifting system built into the Kombilifter then positions the swap bodies on the flatcars, after which the stands are raised.

The specifications of the wagons are as follows:

- Length: 13.130 m - Payload: 14 t - Height: 870 mm - Speed: 100 to 140 km/h

- 124 - PE 167.055 !/

c .

Les dispositik d'autocha;wmcnt.

\he perspective des wagons syeclialises Kornbilifier.

des Chemins de Fer -c

hvncuation de l’ensemble routier. Source : Revue Genkrale des Chemins de Fer Logistics systems in combined transport

The “Multicradle” system

This is an innovative system for loading and unloadmg in roadrail terminals, since the operation can be performed without the need for a crane or vertical handling equipment, i.e. a horizontal system is used for loading/unloading from lorry to wagon and vice versa in one quick operation.

The “multicradle” system is a simple system consisting of three main elements:

a conventional road chassis with a hydraulic jib a wagon fitted with pivots - a roadrail swap body.

To be able to use the system, lorries must meet three conditions:

- minimum of three axles - equipped with a fixed or articulated hydraulic sliding jib - sufficiently long wheelbase.

They are fitted with a fixed frame onto which the swap body is pulled lengthways with the aid of the hydraulic jib.

In France there are over 10 000 vehicles with this system, which is also used in Belgium, the Netherlands, Germany and Switzerland because of the economic benefits it offers, since it can be loaded or unloaded in 5 or 10 minutes.

It can be used with swap bodies of between 5.670 and 7.300 m internal length and IS0 series 1 20’ containers on S 82 wagons.

Wagons require fitting with pivots to enable the transfer of swap bodies between lorry and wagon.

There are two types of wagon: - SLPS 83: Tare: 25.4 t Capacity: 3 swap bodies of 5.70 m

- SLPS 82: Tare: 24.2 t Capacity: 2 swap bodies of 7.30 m

The system has official approval for use in France and on European networks.

Its possible applications are: - Bulk transport in containers - Transporting pallets and containerized products as well as standard IS0 20’ refrigerated containers.

Most terminals cater for their use because they are extremely simple, and the variety of load options makes it possible to transport different types of swap bodies.

- 128 - PE 167.055 Logistics systems in combined transport

Megawagon

Intercontainer has designed a new high-capacity wagon called the ICF Megawagon 300 and expects it to be fully operational by 1998.

The new wagon will accept the new generation of high-capacity swap bodies, which provide 30% more volume than the units currently in use, with an internal height of 3 m and an external height of up to 3.30 m, for which reason they can only be used on the main European trunk routes.

The ICF Megawagon 300 has been developed from the multifreight wagon used by Eurotunnel and its main feature is the loading height, which is 820 mm above the ground.

The technical specifications are as follows:

- Length: 36.5 m

- Payload: four 7.82 m swap bodies with a gross maximum load of 16 t, or two 13.6 m swap bodies with a gross maximum load of 34 t.

The new Megawagon 300 wagons are scheduled to come into service as follows:

- 12/97 - 100 wagons - 05/98 - 180 wagons.

This loading system can compete with the high-volume road semi-trailers.

- 129 - PE 167.055 U; conten- 80 pieds de la CNC avec sa berce remi5 au transport pa-31 camion de l'armte kanpise.

'C

Quelques aspects de manuten- tions avec le systerne multlberces.

: Revue Generale des Chemins de Fer

~ ~~~~ ~~~___~~~ Technische Daten / Technical Data / Donnees techniques

c

19.0 I

a9.0 I

Source : Rail International Logistics systems in combined transport

Chapter IV

ORGANIZATION OF THE COMBINED TRANSPORT MARKET IN EUROPE

The European Commission's efforts to increase the liberalization of freight transport by rail have to take account of the national railways, which operate as virtual monopolies, as well as users and intermediaries.

In June 1995, the European Union adopted two directives concerning access to the market and the use of infrastructures, in the light of the opening-up of the market which is the subject of Directive 91/40. The combined transport market in Europe is currently undergoing a phase of restructuring and adaptation to facilitate the entry of new operators, which will stimulate competition in the market among those agents involved in combined transport.

Structure of the combined transport market - The national and international dimensions

Combined transport was initially intended for the transport of sea containers, a system exported to Europe by vessels coming from the United States.

To begin with, it was the national railway companies which were responsible for the transport of containers by train from the ports to their final destinations, using their own rail network.

Then a new competitor arrived in the form of road haulage, which was more flexible than the railways and gradually took over the transport of sea containers, mainly because of poor rail management and the competitiveness of road haulage, which could offer better prices, delivery times, quality and guarantees than the railways, which also suffered from severe deficiencies in operation.

Rail transport has advantages compared with road haulage over long distances, given that in most cases the geography of Europe means that transport will have an international dimension. To satisfy international demand, Intercontainer was set up at the end of the 1970s in the form of a holding company, composed of the international railway administrations.

Since the 1970s, combined transport has grown very rapidly, and new transport techniques began to be developed which were better suited to customers' needs and therefore resulted in increased productivity. From the 1980s onward, cooperation has been established between the railways and road haulage, making the best of the advantages of each mode and improving productivity further still.

- 132 - PE 167.055 Logistics systems in combined transport

This roadrail cooperation took the form of the creation of joint national roadrail enterprises, some of them belonging to the International Union of Combined Roamail Transport Companies (UIRR), which is mainly concerned with international transport. These companies are financed by both private and public capital and are distributed between road haulage (around 60%) and transport by national railways (around 40%). During the past ten years, new railway operators have appeared, privately owned and with both national and international activities (some of them collaborating with the international railway administrations). These operators, however, have no traction units of their own and therefore have to purchase traction services from the railway administration of the country in which they operate.

However, Directive 91/40 makes it possible to set up companies which could also operate using their own traction equipment.

Directive 91/440 is in the process of being fully implemented, with strong reservations on the part of national railways. This is discussed at greater length in Chapter 6, which deals with the relevant Community legislation. To summarize, the structure of the combined transport market in Europe is as follows:

Company/Operator Territorial scope

National railway administrations National UIRR International Intercontainer International Private railway operators National/International

At the beginning of the 1990s, a report by A.T. Kearney, based on experience in the USA, estimated that combined transport in Europe would triple by the year 2000. Since 1992, however, there has been an up-and-down trend, except in the case of alpine transit - rolling road - because of public aid; its full potential has not been achieved. Productivity is higher in the United States because of greater liberalization of the road haulage industry, larger permitted dimensions for intermodal units and greater competitiveness, combined with a lower incidence of infrastructures in combined transport, for example the absence of tunnels on non-electrified lines.

These conditions are difficult to match in Europe, since the network is very highly developed and the initial circumstances are very different from those in the United States. For example, the clearance profiles of tunnels in Europe do not allow the transport of containers stacked two high, as in the USA.

- 133 - PE 167.055 Logistics systems in combined transport

Size of the combined transport market in Europe

In the last ten years, combined transport in Europe has doubled, reaching a level of nearly 8.5 million TEU, 50% of this being international traffic. However, international transport is growing twice or even three times as fast as national traffic, mainly because combined transport is more cost-effective over long distances of the order of a thousand kilometres.

In 1995, Intercontainer - Interfrigo (ICF) handled 1 310 000 TEU or 32% of the combined transport in Europe, while the UIRR’s Kombiverkehr company was responsible for 1 200 000 TEU or 21% of the total. Other major companies belonging to the UIRR are Cemat in Italy (1l%), Novatrans in France (9%), Okombi in Austria (7%) and Hupac in Switzerland (6%).

The UIRR transported a total of 3 700 000 TEU in 1995, of which 2 200 000 TEU were international traffic and the remaining 1 500 000 TEU domestic traffic. International traffic quadrupled between 1985 and 1995, with domestic traffic increasing by 50% over the same period. In 1995, the UIRR‘s international traffic was up by 14% compared with the previous financial year.

Although combined transport traffic in Europe grew substantially between 1970 and 1995, the levels originally forecast were not achieved, mainly because road haulage prices were reduced and short sea shipping services improved. In Europe in particular, combined transport has historically been regarded as economically uncompetitive, for which reason it needs to be encouraged by the EU since it has ecological advantages as a means of transport.

The European international operator Intercontainer - Interfrigo (ICF)

Intercontainer was set up in 1967 as a cooperative commercial organization between the European rail networks, operating on a continental scale. In this context, Intercontainer provides support for the networks through its management of sea container transport, focusing its activities on containers and swap bodies. In 1993, it merged with Interfrigo to form Intercontainer - Interfrigo (ICF).

ICF prefers to operate with traffic consisting of complete trains and flexible rolling stock, including “semi-shuttles”.

ICF‘s rolling stock consists of 5500 wagons carrying a total volume of goods amounting to 1 300 000 TEU, more than 700 000 TEU of which is moved on complete trains, i.e. trains between nodal points with “shuttles” offering a high level of service. In this way, areas with otherwise low demand can still be included in the ICF network.

- 134 - PE 167.055 Logistics systems in combined transport

The operating structure of ICF includes the “Qualitynet” concept, which is applied to a main network linking Benelux - France - Spain - Portugal - Switzerland - Italy and Germany. To supplement the main network, ICF has established branches based on nodal points with other countries such as the United Kingdom.

The growth which is forecast by ICF for its traffic will require a new business structure aimed at adapting to the new context. ICF has set itself an average growth target of 4 to 6% for the coming years.

The increasing competition to transport containers to or from seaports is a key factor in combined transport, since most containers do indeed follow this route. In practice, this has traditionally been ICF’s main activity. However, the appearance on the market of new operators in the field of port traffic has led to ICF having to compete for traffic in the port sector and stepping up its involvement in continental transport.

Despite the difficulties caused by the entry of new operators, resulting in a decline of 5% in its traffic carried to and from ports, this remains ICF‘s principal activity.

Non-port traffic, which ICF refers to as “continental traffic”, has grown at a rate of about 5% over the past two years, with the route from the Iberian Peninsula to Germany being one those that has contributed most to this rise.

ICF’s traffic with Eastern Europe is increasing at a rate of about 20% per year, the most important route being that between Berlin and Moscow.

The temperature-controlled goods transport carried out by Interfrigo has fallen by 10.5% because of competition from other modes, in particular maritime transport for the routes between Greece and Russia.

Intercontainer mainly transports containers (75%), followed by swap bodies (24%) and then semi-trailers (1%).

The following pages show the trend in combined transport traffic between 1991 and 1995 (in TEU), the proportions of continental and seaport traffic, and the amount of transit traffic in 1995. This information was supplied by Intercontainer.

- 135 - PE 167.055 Logistics systems in combined transport

The following tables also show the breakdown by origin and destination of the combined transport traffic carried by Intercontainer in 1995, in TEU.

The destination countries were:

Country Volume (TEU) %

Germany 260 000 19.77 Italy 226 000 17.20 Belgium 180 000 13.63 Netherlands 113 000 8.60 Austria 75 000 5.67 Denmark 85 000 6.51 France 72 000 5.44

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The main countries of origin were:

Country Volume (TEU) %

Germany 270 000 19.77 Italy 225 000 17.20 Belgium 158 000 13.63 Netherlands 113 000 8.60 Austria 75 000 5.67 Denmark 85 000 6.51 France 72 000 5.44

The main destinations were:

Country Volume (TEU) %

Germany 270 000 20.48 Italy 225 000 17.12 Belgium 158 000 12.00 Austria 96 000 7.29 France 86 000 6.57 Netherlands 85 000 6.49 Denmark 76 000 5.83

- 137 - PE 167.055 Produit lntercontainer

Trafic combine

Evolution du trafic 7997 - 1995 (en TEU)

1 200 213 1 !92 656 l 148 061 1 322 213 1318 678

1 4oc 000

'99; 1992 1993 1996 i 995

Evolution rnensuelle du trafic 7994 - 7995 fmill/ers de TEUI

130 30.3.

I 20 000 c

1'0000 ""

Source : INTERCONTAINER Repartition du trafic 1997 - 1995 par secteur de marche

676 162 621 778 655 150 737530 700 109 Trafic des ports 750 000 maritimes TEU

500 000

25000c0 l

199: 1992 1993 199.: 1995

(milliersl 523 509 492 843 521 554 615030 590 692 TEU-kilometres 755 500

524051 570878 493 113 584683 618569 Trafic continental TEU 750 000 (inti. C€/)

500 000

2.50 000

0

199' 1992 1993 153.: 1995

Source : INTERCONTATNER - Produir Inrerconrafner

552 111 616 897 566 185 697 035 749981- TEU-kilometres (milliersl. 750 OOO

SM) 000

250 COO

0

29 469 30302 34 467 35 484 4a212 Trafic avec et via la CEI TEU 75mc

'c 31 246 34 200 40 262 47 739 60 162 TEU-kilometres (rnilliers) 7s 000

Source : INTERCONTAINER Les trafics de transit en 7995

TE U Trafic total TEU-ki lornetres imiiirersl

14 621 6 534

7 314 2 273

277 860 82 378

232 127 8 306

220 062 I 83 286

101 930 24 149

19 12

25 148 1 056

..L 1

29 417 12 891

106 261 28 433

8 461 5 657

632 795

8 739 4 510

91 863 25 091

283 485 146 526

18 842 11 947

17 064 4 580

3 047 392

11 034 a 010

Source : INERCONTAINER Logistics systems in combined transport

In January 1997, NDX Intermodal, a pan-European railway operator, began operating between Rotterdam and Antwerp with the US carrier Sea Land as its first customer. Previously, Sea Land had been using the services of Intercontainer - Interfrigo.

The new services operate five days per week between Antwerp's Interferry terminal and Rotterdam's Delta terminal. and carried 80 000 TEU in 1997.

There are some operational differences between Intercontainer and NDX Intermodal. The following can be highlighted:

Intercontainer NDX

- Sales via agents for - Sales directly to shipping companies shipping companies

- Large network in - Initial concentration European ports in the Benelux ports

- Pricing policy with - Pricing intended to be no reductions competitive with road haulage

- Maximization of rail - Maximization of door-to- transport door service

Intercontainer's objectives for 1998

Intercontainer's objectives for 1998 are essentially as follows:

Objectives:

Annual growth of 5% to reach ECU 441 million in 1998, compared with ECU 400 million in 1996 Annual growth of 4-6% in 1997/1998, whereas the market is expected to grow by 3-5% 75% utilization of rolling stock To become the market leader in multimodat transport.

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Strategy:

Increase productivity from ECU 1 million/ employee in 1995 to ECU 1.3 milliodemployee in 1998. At loading terminals, improve from 3500 TEU/employee to 4200 TEU/employee.

Improve productivity from 51 000 wagonkm in 1995 to 60 000 wagonkm in 1998.

Increase the sales team from 48% of staff in 1995 to 64% in 1998.

Address services in the following order of priority: organization of systems - wagons - operations at terminals - concentration and distribution. There are no plans to invest in rail traction.

Concentrate on selling via agents, including shipping companies, and not direct selling.

Develop 24-hour internodal services.

Methods:

New organizational structure

Development of the "Frigo 2000" plan

Decentralization of operations where possible

Simplification of transport documents

Preparation of an Intermodal Master Plan and establishment of a schedule of European services.

- 143 - PE 167.055 Logistics systems in combined transport

UIRR

The UIRR (International Union of Combined Roamail Transport Companies) was formed as a grouping of companies transporting road vehicles on rail flatcars (“piggybacking”).These are private companies usually having minority holdings by various rail networks, being mainly controlled by road haulage groups.

- Country Company Spain Combiberia Italy Cemat United Kingdom C.T.L. Switzerland Hupac Germany Kombiverkehr France Novatrans Austria Okombi Portugal Portif Sweden Skan Kombi Netherlands Trailstar Belgium T.R.W.

The UIRR companies carry out both national and international combined transport. There was a 14% increase in international traffic in 1995, compared with 1994. A total of 968 910 units were carried in international transport and 646 454 units in national transport.

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For international transport, the breakdown by company was as follows:

International traffic

1995

Kombiverkehr 368 808 Hupac 141 977 Okombi 128 116 Cemat 94 671 Novatrans 75 584 T.R.W. 61 733 Hungarokombi 37 205 Trailstar 18 298 Skan Kombi 13 142 Adria Kombi 11 126 C.T.L. 9 539 Combiberia 7 371 Polkombi 1 340

Total 968 910

Source: UIRR

- 145 - PE 167.055 Logistics systems in combined transport

For national transport, the breakdown was as follows:

National traffic 1995

Company Units

Kombiverkehr 261 000 Cemat 167 000 Novatrans 124 329 Okombi 43 073 Skan Kombi 36 418 Hupac 13 954 T.R. W. 680

~ ~~ Total 646 454

Source: UIRR

The breakdown of transport techniques used by the UIRR is as follows:

Breakdown of combined transport techniques

~~ ~ ~~~~~~~~~ Year Semi-trailer (%) Rolling road (%) Swap body (%) 1986 27 11 62 1987 27 12 61 1988 27 13 60 1989 20 16 64 1990 20 18 62 1991 19 19 62 1992 18 17 65 1993 16 16 68 1994 14 17 69 1995 14 19 70

Source: UIRR

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As can be seen, semi-trailers are losing ground compared with roiling road and swap body transport, the latter being the most significant of the UIRR’s European continental transport modes.

The “Kombi” companies in fact buy complete trains from the national railways and sell space on the wagons to road hauliers, who can come from anywhere. If a carrier needs to purchase a complete train, the usual method is to make a direct approach to the national railway or to Intercontainer.

On the next page, the total UIRR traffic for 1995 is shown, broken down by transport technique and showing how it has developed from 1985 to 1995. It is interesting to note that, from 1992 onwards, international traffic began to overtake national traffic. In the author’s view, this is because combined transport is better suited for longer distances in terms of cost-effectiveness.

In the corresponding annex, a breakdown of the UIRR statistics is presented which includes other companies from third countries such as Poland and Hungary.

- 147 - PE 167.055 Bruxelles, le 03.05.96

Union lnternationale des socibtes de transport combine Rail-Route lnternationale Vereinigung der Huckepackgesellschaften

Statistiques annuelies UiRR Jahresstatistik 1995 (en envois - in Sendungen)

IN NAT TOTAL Semi-remorques Auflieger 130.566 14% 93.463 14% 224.029 14% Caisses **) Behalter **) 543.083 56% 535.896 83% 1.078.979 67% Route Roulante Rollende Landstrasse 295.261 30% 17.095 3% 312.356 19% TOTAL envoidsend. 968.91 0 646.454 1.615.364 TOTAL mio. TEU 292 195 397 -

Evolution du trafic de I'UIRR au cours des dix dernieres ann6es Entwicklung des UIRR-Verkehrs in den letzten zehn Jahren

1.800.000

1.600.000 r

1.400.000

c 1200.000

1 .o0o.oO0

800.000

600.000

400.000

200.000

0

*) Un envoi correspond a la capacite de transport dun camion sur la route *) €;ne Sendung enfspricht der 6eforderungska?azifdteines Lastzuges auf der Strasse ") Cene categorie reprend les caisses mobiles et les confeneurs ") In dieser Kategorie sind WechselbehaiMer und Container enthalten Logistics systems in combined transport

The fact that the UIRR exists demonstrates that collaboration between rail and road is both possible and necessary.

Cemat and the Dutch operator Trailstar have created a precedent within the UIRR by joining forces to operate shuttle-type services in the Rotterdam - Verona corridor. This kind of venture confirms that the UIRR is trying to gain a foothold in the traffic to large ports which is currently controlled by Intercontainer - Interfrigo (ICF) and the national railway administrations.

The development of combined transport in Eastern Europe has shown considerable growth since the early 1990s. The UIRR operators are increasing their traffic with Eastern European countries, despite the fact that it is ICF which has most experience there.

The UIRR companies could increase their combined transport traffic if the national railway administrations were to lower their prices. These are gradually agreeing to price reductions for their main customers, as in the case of Kombiverkehr in Germany and DB.

National railway administrations

The national railway administrations have been operating at a loss in recent decades, because railways are not governed by market forces. In recent years, however, they have separated out the tasks involved, defining their products and producing individual sets of accounts.

According to the statistics on combined transport published in 1995 by the UIC, the intermodal units, tonnages transported and tonnages per kilometre were as follows:

- 149 - PE 167.055 Logistics systems in combined transport

Demand for combined transport in Europe

1995

-

Switzerland CFF 1 110 8 881 3 030

TOTAL " 11 062 123 452

(1) BR - formerly British Rail, now privatized (2) Estimated

- 150 - PE 167.055 Logistics systems in combined transport

Directive 91/40, which will be analysed at greater length in the chapter on legislation, involves a radical change from previous situations in such matters as the separation of infrastructure and operation, the definition of public service, access for new operators and the financial soundness of companies.

The directive is currently being implemented by the various European railway administrations, although in some cases this is happening more slowly because a special market situation applies to rail transport in the country in question, or because of a political decision. Implementation of Directive 91/40 will change the behaviour of the national railway administrations to a greater or lesser extent.

At present, the national railway administrations manage the infrastructures, traction units and drivers, and operators are therefore obliged to “buy traction” from the various railway administrations. As regards the wagons, more than half of those involved in European combined transport belong to the railway administrations, while the rest are either owned by the operators or privately owned. There are both publicly and privately owned terminals, the former being far more numerous.

Other private operators

Directive 91/40 permits new operators to enter the railway sector and therefore also to become involved in combined transport, and this will serve to increase competition.

The NDX company was created by the merger of DB Cargo, NS Cargo and CSX, the parent company of the shipping company Sea Land. The first two corridors operated by NDX are Rotterdam-Antwerp and Rotterdam-Munich. NDX began operating at the start of 1997, with “block train” services which represent an innovation on European routes.

Wisconsin Central, an American railway company, acquired the freight division of British Rail, which has been converted to English, Welsh and Scottish Railways (EWS).

Besides the public rail operators which form part of the national railways and the UIRR companies with minority holdings, there are other private operators such as TUP Welz (Austria), Athus (Belgium), AlpinaKonteba, Berstchi and StisaLasag (Switzerland), DUSS, Sebastian Geigh und Sohne, NIAG and Jaeckering (Germany), Transfesa and TCC Sea Train (Spain), Merci and Ambroggio (Italy), Optim (Netherlands) and Liscont (Portugal).

The policy of alliances between operators

At present, the trend in maritime transport is towards building ships with larger capacities. This entails high investment costs, and the vessels therefore have to operate continuously to ensure profitability. To reduce shipping company costs and overcome the effects of constant price cuts, a process of forming alliances between major shipping companies is currently under way, which makes it easier to “fill”large vessels.

- 151 - PE 167.055 Logistics systems in combined transport

In the maritime sector, mergers between large companies have begun to take place, for example that between the British company P&O and the Dutch company Nedlloyd. This merger has created one of the four largest companies in the world, with a fleet of 112 container carriers. Other large shipping companies, such as Maersk and Sea Land, have concluded reciprocal agreements to share vessels and marine terminals and to refrain from competing against each other on certain routes.

These alliances will not only increase the traffic handled by shipping companies - because of their larger carrying capacity and the greater frequency of maritime services - but will also enable them to respond to increases in demand, which is a key factor for ocean traffic in particular.

The policy of alliances between railways began in 1995 with the agreements between major American rail operators (Burlington Northern and Santa F6 Railroads). Later, CSX and Conrail merged to form the world’s largest railway company, with 50 000 km of track.

Besides NDX Intermodal, mentioned earlier, ERS (European Rail Shuttle) has been operating since 1994. This includes the shipping companies Sea Land, Maersk, Nedlloyd and P&O, which operate shuttle trains from the ports using the infrastructure of NS, the Dutch railways. The recent alliances between the shipping companies participating in ERS will provide competition for the other public and private operators.

It seems clear, however, that the major shipping companies are becoming increasingly interested in what is happening on the “landward” side of ports, and more involved in the overland transport of the containers carried on their vessels. There are several reasons for this interest:

the wish to share in the profits generated by the overland transport of their containers and to benefit from economies of scale;

the need to coordinate railway services for the ever-increasing transport needs created by the capacity of their vessels.

Trends in the organization of the combined transport market in Europe

To compete with the advantages offered by other transport modes (road, and short sea shipping), the structure of the rail transport market needs to change radically in the coming years.

Although combined transport can be regarded as a type of public service for ecological reasons, as well as minimizing the congestion produced by goods vehicles, and could therefore be considered a candidate for public aid, it is more likely that what will be done is either to impose conditions or to internalize the costs for all the modes involved, in particular road haulage. For all these reasons, combined transport by rail should be prepared for more difficult competition in the future. At the same time, legislative moves are currently under way to deregulate the transport of goods by rail and allow new operators access to the networks.

- 152 - PE 167.055 Logistics systems in combined transport

Consequently, the structure of the combined transport market will have to adapt to these new requirements and face up to keen competition, somewhat on the lines of the American model.

The main changes which can be expected in the structure of the combined transport market in the near future are as follows:

Railway companies will use loading services but will still remain independent.

In the short or medium term, most of the old national railway companies will be completely or partially privatized.

The infrastructure and rolling stock will be maintained by specialized companies operating internationally, thereby enabling maintenance costs to be reduced.

The use of infrastructure will be managed by independent organizations under government control, as proposed in the European Commission’s White Paper on rail transport.

To ensure profitability, railway operators will seek to make optimum use of their resources. This will result in staffing cuts which are estimated at between 40 and 50%.

Railway operators will specialize in offering specific types of services. Some of them will have specialized rolling stock to meet particular logistic demands.

New operators will appear on the market, coming from the road haulage and maritime transport sectors.

The present costs involved in crossing frontiers will decrease considerably, and the current transit times will be improved.

“Leasing” services will be offered, both for traction units and rolling stock, so that few operators will have their own range of equipment. Another possible way of improving the profitability of equipment is to share it by establishing a “pool” of wagons between companies with common interests.

Small terminals are likely to disappear or become specialized in particular types of traffic.

The railway companies that survive will know the market and understand the needs of their customers very well indeed, offering tailor-made services. Marketing will become an essential part of a railway operator‘s activity.

The services offered will have to be strictly timetabled, with no room for delays. Customers will receive compensation if the services do not meet the minimum standards specified.

When deregulation has been completed, prices and services will have to be competitive.

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Railway operators will have to specialize in the types of traffic which benefit most from the advantages of rail transport, such as long-distance services, the transport of heavy loads whose size prevents them from being carried by road, or transport in corridors in which the movement of goods vehicles is not permitted.

As a result of all the considerations set out above, a high proportion of goods transport will be international.

The policy of mergers and alliances will continue, with a view to achieving economies of scale.

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Chapter V

INTEROPERABILITY, MANAGEMENT AND DATA-PROCESSING SYSTEMS FOR COMBINED TRANSPORT

Combined transport is defined as transport involving two or more modes, with the majority of the journey being undertaken by train or short sea shipping and the remainder, at the points of departure and destination, by road. However, rail transport is the mode which has undergone the largest expansion in combined transport, partly because Community regulations and legislation on sea transport have not developed at the same pace.

Although short sea shipping is a constituent of combined transport, this chapter will focus on the technical and commercial organizational aspects relating to the railways as the basic combined transport mode. The chapter on Community legislation does, however, look at regulations on short sea shipping.

This chapter will also consider the problems affecting rail transport in Europe in generic terms, since the rail transport of intermodal units - containers, swap bodies, semi-trailers, rolling road, dual mode - faces the same problems as the railways themselves, while at the same time having its own problems, such as the structures or dimensions of the new intermodal units analysed in Chapter 111.

We shall look in particular at the general factors affecting the interoperability of rail transport and the specific aspects of marketing, management and data processing in combined transport.

1. Rail interoperability in Europe

The concept of interoperability was defined in the course of discussions on "technical compatibility" by a European Commission working party involving representatives of the rail administrations, rolling stock manufacturers and rail operators.

According to their definition, interoperability means all the regulations and technical and operating conditions required for trains to be able to move freely within the infrastructure of the network at a specific level of performance.

Although our study of interoperability primarily focuses on high-speed transport, the definition applies to all types of rail traffic because of the large number of existing regulations and systems which the International Union of Railways (UIC) is trying to harmonize.

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Section VI of Annex I1 of Decision 94/914/EEC states that a study of the interoperability of the various national systems is needed in order to guarantee continuity in the rail services provided by the European networks. Our study will therefore concentrate on defining the conditions needed for interoperability and will examine standardization in closer detail.

a) Generic problems relating to rail interoperability

Establishing a European rail network presents a number of problems arising from technical differences between the various national networks and affecting not just freight transport but all types of rail traffic.

The differences concern the following:

- gauge - electrification - signalling - dimensions - train drivers - axle load.

Gauge differences

The basic rail network in Europe has three gauges: the UIC gauge (1.435 m), the Iberian Peninsula gauge (1.668 m) and the Russian gauge, which is also found in Finland (1.524 m).

The following three technical solutions could be used to facilitate rail operations between networks with different gauges:

1. substitution of axles 2. automatic changing 3. transhipment of goods.

Although the third solution continues in operation on the Franco-Spanish border, using mobile cranes to move swap bodies and containers, it is regarded as more economic, though not yet widespread, to use automatic changing instead, as is done with passenger trains. Axle substitution also continues, based on long experience at Iruflendaye and Port BodCerb6re on the Franco-Spanish border.

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Substitution of axles or bogies

The Spanish company Transfesa pioneered the use of this system, which consists of raising the wagons over a pit which has both gauges; once the fixings have been taken off the track and removed, others with the new gauge are positioned to take the body of the wagon. The operation to change the axles on four wagons (eight axles) takes a team of twelve workers seven minutes. The system has recently been improved, with the axles and tracks being lowered under the chassis while the wagon remains stationary. This operation requires only three operators and means that the train does not have to be divided up into groups of four wagons, while the time required is three minutes per axle. 45% of the rail freight transport across the Pyrenees uses this system.

Automatic changing

The gauge is changed automatically by taking the wagons over a transitional plate which changes the wheel gauge. This is the system used by the Talgo passenger train. When it reaches the track changing zone, the locomotive is detached and put on a tractor. The changing zone has a double set of tracks, and the carriages pass over a small ramp which frees the wheel.

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The special axle on the Talgo train consists of two separate semi-axles and has two grooves, each representing a different gauge. Each one has a hook which opens when the carriage is raised, the wheels are freed and are moved by a traverser from one gauge to the other. The hook then recloses and the wheels descend.

Work is currently being done on a similar system for freight transport. Germany is extremely interested in having the system for trade with the countries of Eastern Europe, if it can be applied at other frontiers in Europe.

Electrification

Of the 154 674 km of rail network in Europe, including Switzerland, 46.7% is electrified:

Railway lines (km)

Electrified 72 245 Alternating current 45 238 Direct current 27 007 Non-electrified 82 429 Total 154 674

Countries vary widely: in the United Kingdom, France and Finland the majority of the network uses 25 000 volts alternating current, while Germany, Austria, Switzerland and Sweden use 15 000 volts alternating current on most of their network, Spain, Italy and Belgium use 3000 volts direct current on their network, and France and the Netherlands use 1500 volts direct current.

So electrification varies widely across the European network, and this causes operational problems which are resolved by using "multivoltage" locomotives or diesel traction for international traffic. Examples of multivoltage locomotives include GEC Alsthom's Astride and the E 402 by Ansaldo, which can be adapted to any type of supply across the networks. The extra cost involved compared with the single-voltage locomotives is 6%.

Signalling

Each national railway network has its own different signalling system. Because the manufacturers of the signalling installations and equipment are multinational companies which operate throughout the European Union various agreements have been reached, with the result that even if the signalling is different, the equipment is the same. It will therefore not be very difficult to achieve the harmonization for which the national rail administrations and the European Union are calling.

Two European projects - Eurocabina and Eurobaliza - which aim to harmonize criteria are currently being developed with the support of the EU and supervised by the UIC. Eurobaliza is the further advanced, but neither has yet reached the application stage.

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The Eurobaliza project is led by Adtranz and involves other manufacturers like Siemens, Alcatel and Sagib, with funding from the EU. In some countries like Spain, the new signal lights already have technical specifications very similar to those of Eurobaliza, which will make future adaptation easy. The basic problem is with the age of the rest of the equipment (25 years), which is becoming obsolete and therefore incompatible.

Train drivers

Differences in signalling and between locomotives present an additional problem for the various rail networks in terms of the operating conditions for train drivers, which is why the drivers usually change at the frontier. There is also a continuing language problem.

Dimensions

This subject was dealt with in Chapter 111 of the study.

Axle load

UIC fiche 571-4 defines the various types of freight wagons and the various loading options (20 and 22.5 t per axle) which directly affect the infrastructure.

Traffic management, automatic equipment identification

The best system for managing axle load and which also offers other facilities such as cargo monitoring and control is automatic equipment identification, an advanced technology developed by the American railways.

ECU 240 million were spent in the United States on equipping 1 400 000 wagons and 22 000 locomotives, an investment of ECU 120 per wagon. A further ECU 50 million were spent on equipping 2000 recording stations.

Researching and introducing the automatic equipment identification (AEI) system cost a total of ECU 300 million. This has been more than offset by the time saved, the reduction in wagon handling at terminals and the elimination of human error.

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The quality of service provided in international combined transport will be improved enormously since considerable savings will be made in fleet management:

- reduction in delays - savings on handling costs in terminals - reduction in incorrect wagon identification - better checking of data - more reliable service.

Analysis indicates that profitability increases by some 25%, not including variables which are difficult to quantify such as customer satisfaction.

In 1991, the Association of American Railroads (M)chose the "Incom" system as being easier than the "Dynicom" system which, although more complex, was selected for Europe by the UIC in 1993.

The "Incom" system provides high frequency identification and meets the IS0 standard for the automatic identification of containers.

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IDENTIFICATION AUTOMATIQUE DES VEMCULES ET CONTENEURS I- I

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As well as in the wagons, locomotives and containers, the electronic devices may also be placed at the end of the train to check that it is complete and has not lost any wagons.

The main disadvantage with the system is that it can only provide information on set elements which are less useful than variables. The "Dynicom" system which UIC selected for Europe does provide information on variables, and will therefore improve productivity and the quality of rail services not just in combined transport but throughout the rail network.

The experience gathered in the United States has enabled considerable progress to be made in managing the vehicle fleet - wagons and locomotives - thanks to the reliability of the system. Advantages have included savings in the control rooms at intermodal terminals, the use of the locomotive fleet and the investment needed in motive power.

In Europe studies and experiments in vehicle identification have been carried out - such as SNCF's Astree project and DB's Autik project - in order to test the various optical reading and radio frequency techniques.

In combined transport the "Combicom"project was developed in 1993 by the following UIRR companies:

- Kombiverkehr (Germany) - Trailstar (Netherlands) - Cemat (Italy).

It combines wagon and container identification using the Dymiso system, which gives information on the frontier stations along the route and action taken at intermediate stations.

In 1993, the UIC adopted Alcatel-Amtech's DYNICOM system with the standards applicable to rail vehicles for international transport in Europe.

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Europe's experiments with automatic equipment identification were as follows:

Year Network Country Company VehiclesIEquipment PlaceRoute 1994 DB Germany BTZ") 150 dual mode Munich-Verona roadrails

1994 CFF Switzerland CFF in cooperation 1300 locomotives Lausanne with SNCF

1994195 SNCF") France SNCF(*) 90 interrogators Pans-Est 1200 responders 48 locomotives

(1) Bayrische Trailerzug Gesellschaft (2) Astree project (3) SNCF also has the "DECA (automatic shock detector and recorder) project

The SNCF and CFF experiments relate to rail transport in general, whereas the German experiment focuses solely on combined transport and more specifically the dual mode system.

In March 1996, Switzerland's CFF decided to introduce automatic equipment identification for passenger trains. At a later stage it will also be extended to wagons, and it is hoped that this decision will influence other networks as interoperability increases.

The application of an automatic identification system for vehicles - locomotives/wagons - and containers/swap bodies or intermodal units in the European combined transport fleet will require investment of ECU 25 million and a unit cost similar to that in the United States for equipping the 160 000 combined transport wagons in use on the EU networks. Intercontainer with its fleet of 13 838 wagons would need to invest ECU 2.1 million to install the "Dynicom" system.

The American example shows that the detailed information which the automatic identification system provides for the client is an added value which could benefit the railways and combined transport in particular.

- 164 - PE 167.055 Logistics systems in combined transport b) Interoperability projects

At European level the UIC, and the European Commission are working on various standardization projects which are designed to facilitate interoperability in rail transport.

Although the projects described are not specific to combined transport, it will certainly benefit from any progress made, which is why this section also covers technical innovations which, in bringing about improvements in the rail sector in general, also help combined transport.

1. Projects by the European Rail Research Institute (ERRI)

The ERRI is a UIC body which carries out research, studies and tests in the rail sector, especially on projects involving the new technologies. It organizes, manages and carries out work for the UIC, the rail networks, equipment manufacturers, rail installations and others.

The ERRI replaced the former Office de Recherche et d'Essais (ORE - Research and Tests Office) in 1992.

Despite the historic differences between the national rail systems in terms of signalling, energy supply, communications and operation, the ORE succeeded in eliminating the main obstacles to the development of international rail transport. Some of its achievements included:

- the standardization of freight wagons - the standardization of the UIC 60 rail - the Hermes telecommunications network.

The ERRI's current functions are as follows:

- involvement in drawing up strategic programmes for the development of rail transport;

- evaluation of new techniques for confirmation by EU bodies.

There have been changes within the ERRI, mainly in its legal status, and its main client is now the UIC, but its structure could be modified depending on market trends.

Because of the competition introduced by Directive 91/440/EEC, the networks need to cooperate in a number of areas which are likely to be covered by interoperability. This is viewed by the European Commission as a basic condition for the development of the railways.

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In this context, cooperation between innovative projects is essential in order to take advantage of economies of scale and to improve the overall efficiency of the railways.

The ERRI is currently carrying out various projects relating to European interoperability, with two areas of common interest: the management and operation of rail services.

The most interesting ERRI projects on management and international interoperability are as follows:

A. ETCS programme : European Train Control System.

This is one of the ERRI's showcase projects, and although the ETCS programme mainly focuses on the interoperability of high speed trains, there is no reason why the results, which aim to harmonize signalling in Europe, should not also be of benefit to combined transport.

The ETCS is currently running projects in the following fields:

- ground-train communication. A radio system is used to exchange information between the terminal and the train by means of a sensor on the track. The system identifies the position and speed of the train;

- man-machine interface. The driver is kept informed of the distance to the train in front, the track profile and the braking options;

- speed control. A system has been developed which applies the brakes if the driver exceeds the permitted speed limit. It can also fix a cruising speed depending on the distance to the train in front.

The ETCS projects, which are supported by the EU, aim to develop a European signalling system which can be used on any of Europe's infrastructure, initially on new track and subsequently on the rest of the railway lines, once the existing equipment has become obsolete.

The need for a single signalling system is shown by the fact that, over the years, the networks and producers developed various automatic train control systems which were incompatible and proved to be a major obstacle to international transport.

The ETCS project is linked to other programmes such as Eurocab-Eurobalise and Euroradio, and it aims to standardize the ATC systems proposed by the European companies in the EUROSIG group.

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DG VI1 at the European Commission is responsible for coordination between industry and the networks and also provides financial support.

B. ERTMS programme (European Rail Traffic Management System)

The advantages which it is hoped ERTMS will bring are as follows:

- reduction in the unit costs of rail operations - development of safety concepts under a common system - harmonized regulations for system certification - gradual and flexible introduction in the existing infrastructure.

The ERTMS programme involves two phases: development and validation.

Development phase:

- development of functional specifications and specifications for users - coherent framework of specifications and test tools - development of industrial prototypes.

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Validation phase:

- adaptation of pilot locations (DB-FS-SNCF) - functional evaluation of interoperability on the Madrid-Seville line (EMSET project) - practical tests: certification of levels 1, 2 and 3 (EEIG and Vienna-Budapest line).

The linked projects and working parties involved in the ERTMS programme are:

- EEIG: European Economic Interest Group, whose job is to define and manage the ERTMS projects;

- EMSET: Eurocabine Madrid-Seville Equipment Test, which is involved in the validation phase; it also covers the Vienna-Budapest line;

- MORANE: Mobile Radio Netway in Europe. Developing a digital telephony transmission system using GSM radio (Global System Mobile Communications) which eliminates noise:

- EUROSIG: group of European signals manufacturers who are involved in the specifications and design of the system and the specifications for testing the system.

European industry is also involved in developing prototypes.

The tests are being carried out on the Madrid-Seville (EMSET) and Vienna-Budapest (ETCS VB) lines, and other pilot locations on the lines of DB (Germany), FS (Italy) and SNCF (France).

Under the MORANE project the UIC, European industry, the European Commission and the DB, FS and SNCF networks are working on the validation of prototypes using EIRENE specifications, which are to be demonstrated in France, Germany and Italy in 1997/1998. Although originally designed for the trans-European high speed networks, it can be used on any railway, and it is hoped that it will become compulsory in Europe within 10-15 years.

The introduction of international standards for public cellular communications and private mobile radio in 1993 led to a series of developments within the rail system, given that the railways cannot easily be adapted to meet these standards.

The UIC preferred the GSM system to TETRA (Trans-European Trunked Radio Application) because of its high degree of application and development.

The specification of the EIRENE system is designed to replace standard UIC 751-3 concerning ground-earth communications.

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The aim of this standardization process is still the same: to facilitate international interoperability and economies of scale in the manufacture of equipment.

There are still a few problems to be ironed out, such as the need to make the system reliable without making it more complicated than is necessary. The team working on the EIRENE project is analysing various proposals with differing degrees of complexity.

2. DG XI11 projects and fourth R+D framework programme

The European Commission’s Directorate-General for Telecommunications is working on a number of programmes and projects relating to transport and more especially rail transport.

The ERR1 has been involved in European projects under the fourth R+D framework programme, the most important of which are as follows:

R+D projects

INGOTRA IMPULSE Innovative Goods Vertical transhipment of intermodal units (containers, swap bodies, semi-trailers)

ROROTRA Horizontal transhipment of transport units (trucks, semi-trailers)

INTERPROD LOAD INTERPROD LENGTH Increased productivity in goods traffic.

INTELFRET “Intelligent Freight Train”

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CITHER TUNER Communication and Trackside Underground Information Technology for for the European Railways Harmonizing the European Railways INTER Integration of Networking Technologies for European Railways

ENVIRAIL SILENT FREIGHT: Environmentally Friendly Noise reduction Railways EUROSAB: Reduction of brake noise

EUROTENASSES: Evaluation of network

SILENT TRACK: Noise-free track

LNT: Low Noise Train

Another DG XI11 project of interest to the railways is the ROSIN project - Railway Open System Interconnection Network - based on the Train Communication Network (TCN).

The aim is to have an open platform based on a new generation of interconnected vehicles and a standard network interconnecting all "on board" systems.

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CONTR~LET TELEPHONIE. / / RESEAU FERROWAIRE FIXE

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The main conditions are as follows:

- train interoperability for use in different countries - vehicle interoperability for easy, simple exchange - improved results and introduction of new services - openness to external systems, standardization with signalling and control systems.

The countries involved are: Belgium, France, Germany, Italy, Spain, Sweden and Switzerland; the manufacturers are: FIREMA, ANSALDO, SIEMENS, ADTRANZ, ABB, GEC ALSTHOM and CAF.

3. Telematics applications in road transport

The scope offered by the new pan-European telephony systems means that they simply have to be used in mobile communications for lorries. The part which communications play in coordinating movement is vital if the vehicle fleet is to be used effectively.

DG XI11 has developed the Drive programme with a view to creating integrated trans- European services. It is based on advanced information and communications technologies and is designed to improve the performance, safety and efficiency of goods transport and to reduce the impact of transport on the environment.

When choosing a communications system account must be taken of the actual cost involved and of the savings that can be made by investing in new technologies. What this means is that productivity, fiied equipment costs, network links and variable use-related costs must all be evaluated.

In September 1995, the Council published Resolution 95/C 264/01 in which it acknowledges the work that has been done on:

- the harmonization of early warning traffic services using RDS-TMC (radio data system - traffic message channel);

- defining technical specifications and standards to ensure compatibility;

- emphasizing the role that the private sector has to play.

Furthermore, it makes certain requests and recommendations relating to the work on:

- standardizing the ALERT (advice and problem location for European road traffic) protocol on the basis of the proposal made by Technical Committee No 278 of the European Committee for Standardization (CEN);

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- standardizing the technical aspects of communications, which should be extended to cover methods of transmission by mobile telephone (cellular radio) and satellite.

In its opinion 96/C 18/32, the Economic and Social Committee stresses the following points on telematics applications for transport in Europe:

- the enormous importance of telematics in intermodal transport;

- infrastructure capacity, safety and efficiency must be improved;

- steps must be taken to prevent the formation of national or European monopolies, whether private or public;

- the introduction of telematics systems will increase the technological-organizational risks involved if inadequately tested technology is used, causing errors or disruption in traffic management.

The opinion proposes the following measures:

- clarify the main aims (safety, environment, infrastructure utilization, transport capacity) ;

- create a harmonized political framework to determine the risks, the level of competition and the public sector's responsibility for telematics applications which are designed to improve traffic flows and increase safety;

- take account of European standards and interoperability;

- establish a uniform legal basis and give consumers more certainty;

- define the level of competition, operating conditions and legal protection;

- private-sector involvement: private-sector investment is appropriate.

Technology offers two possibilities

- Mobile radiotelephony in a closed circle (trunking), which means that authorized operators may be contracted to supply a mobile radiotelephony service without the need for an own repeater or for permission to use a shared frequency.

Calls can be made from one mobile to another in the network and group calls can be made to a fleet of lorries.

The system works by means of radio equipment, is open to any manufacturer and offers reduced rates or tariffs not determined by the level of use.

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It makes optimum use of resources to keep costs down, it guarantees privacy, it reduces waiting times and it provides reliable data transmission.

- Satellite communication services

These are designed for zones or routes with low population density or for isolated roads where the cost of using land-based cellular systems would not be economically justifiable.

The service is limited in narrow streets and valleys and in forests; coverage is Europe-wide.

Telematics applications for road transport are useful in combined transport, although they have limited application in the initial or final legs which tend to be very short; they are, however, useful as basic technologies in any mode of transport.

4. Interport project

This is a telematics project for application in maritime transport, which is being funded by DG XI11 as part of the fourth R+D programme.

Seaport terminals are being studied with a view to introducing telematics applications in order to make them a more efficient part of the intermodal transport chain. The study focuses in particular on:

- automatic vehicle and equipment identification systems - integrating ED1 and information systems in seaport terminals.

It is divided into three phases:

a) define user groups, collect information and select telematics products;

b) establish total integration between users, technology and services;

c) identify requirements of various modes of transport and design a system for integrating ED1 with automatic identification technology.

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2. Organization and management of combined transport in Europe

Council Directive 91/440/EEC allows rail companies to provide international rail transport services in conjunction with other Member States.

UIC fiches 291 and 292 lay down rules for international technical and commercial cooperation through line of route groupings.

These groupings, which are already in operation in Europe, are formed in response to demand, so that wherever a business opportunity emerges, a grouping is set up involving all the rail administrations along the line of the route concerned.

For the commercial operation of each route there is a "route president", which is one of the rail administrations involved. Any users or operators interested in the route approach the relevant president, following the "one-stop shop" principle recommended in the White Paper on revitalizing the Community's railways. The aim is to make transport operations smoother and to minimize the possibility of communication problems between several different administrations by having one single contact point.

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c

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There are large numbers of groupings, each with its own president and its own conditions set out in a contract signed by the client and the president on behalf of the entire operation.

The route presidents are in charge of economic and commercial operations, collecting the fees and then distributing the income to the networks involved.

Being the president can be a useful advantage: the president, as the most senior management level, can guide the market and knows how it works. Although there are no specific criteria for appointing route presidents, the United Kingdom is president of all the groupings in which it is involved.

It has not been possible to talk to all the international line of route groupings, but an interview with the Spanish network RENFE produced the following information:

~ ~ ~ ~~ ~~ President Grouping Country Network

Spain-France-United Kingdom United Kingdom RFD Germany-Spain-Portugal Spain RENFE Spain-Scandinavian countries Denmark DSB Spain-Luxembourg-Netherlands France SNCF Spain-Belgium Belgium SNCB Spain-Italy France SNCF Spain-Switzerland France SNCF Spain-France France SNCF Spain-Eastern Europe France SNCF Spain-Poland Poland PKP

Chapter VI on Community legislation looks in closer detail at the forms of technical and commercial cooperation which govern the operation of the international combined transport groupings.

In theory anything is possible, since clients can purchase the services of whole trains or parts of trains, or else the contract may be simply by intermodal transport unit (container, swap body, semi-trailer, lorry, dual mode, etc.), but the tariff structure is different in each case.

For example, the UIRR,one of the leading international combined transport operators in Europe, buys whole trains and/or spaces from the administrations and "sells them on" to their road haulage clients.

- 179 - PE 167.055 Logistics systems in combined transport a) Public and private management

Of the 1100 or so combined transport terminals in Europe, some 800 are in the EU. Most of them are managed by the rail networks of the Member States in question, so they are publicly run.

There are also a series of privately run terminals, distributed as follows:

Country Private terminals Belgium 2 Switzerland 12 Germany 5 Denmark 2 Spain 1 France 1 Italy 28 Portugal 1 Sweden 1 Total 53

Source: Intercontainer

In Greece, Finland, Ireland and Luxembourg the terminals are publicly run.

This reflects the actual situation of combined transport in Europe, almost 100% of which is publicly run. The United Kingdom recently began privatizing some of its rail networks, in which the Netherlands now has a stake.

Chapter VI contains a section which analyses the legal position of rail firms which are slowly beginning the process of privatization.

b) Marketing

Marketing in international combined transport is organized by the line of route groupings through individual agreements for each route concluded for a specific period, usually one year.

The agreements are concluded in accordance with tariff 9145, the European tariff for the transport of intermodal transport units published by the UIC, and are signed by the relevant networks and the operator, usually Intercontainer.

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The standard contract includes the following points:

scope: loaded or empty wagons, type of operation (eg. Qualitynet), route and connections:

transport documentation: consignment note specifying characteristics: length and mass, loading requirements and insurance against loads being dropped, displaced, etc.:

tariff arrangements: fixed prices for transporting a complete train-load or for a journey covered by the Qualitynet system, or else an all-in price for transporting one ITU, a price per day for the supply of wagons by the rail networks, plus ancillary costs;

period of validity of prices:

period of validity of contract.

International tariffs for combined transport are governed by tariff 9145 laid down by the UIC and have to be applied by the networks. However, although the prices are calculated on the basis of tariff 9145, lower prices do occur because of the strong competition in the road transport sector.

Under the general provisions of UIC fiche 352, if a number of networks are interested in entering into an individual agreement they can establish their own conditions and can introduce "tariff reductions" by charging clients lower transport prices or ancillary costs.

Individual tariffs or agreements which include provision for tariff reductions must contain a clause specifying:

- the rules applicable to the client - the method for fixing the tariff - the conversion rate to be used.

Individual agreements must also specify:

- the conditions for settlement - minimum tonnage - the stations involved - goods codes.

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c) Quality of services

Intercontainer's "Qualitynet" system

Intercontainer has introduced a quality control system called "Qualitynet" in order to improve its competitive position in combined transport.

Qualitynet was established in 1922 as a multilateral network of block trains applying various tariffs and covering Belgium, the Netherlands, Luxembourg, Switzerland, Italy, Germany, Spain and Portugal.

The system is based on the idea of network + quality.

Network

A number of block trains travel directly from the Qualitynet terminals in the north to the network centre at Metz-Sablon (France). Trains from the south also travel directly to Metz, where they occupy most of the station's capacity as new block trains are made up.

Quality

The Qualitynet operations centre controls and monitors services and intermodal units 24 hours a day and seven days a week.

The Metz centre receives and processes information on new units using special software. It then passes the information on to the frontiers, destination terminals and the "Traffic Controller" in Basle.

The control and monitoring system offers the following advantages:

- advance notification for frontier customs services - notification of arrival of goods - reporting of accidents.

IS0 quality

The IS0 standards organization has drawn up a quality standard - certificate 9002 - for certain transport operations, which is designed to:

- standardize production processes - reduce the number of errors - reduce non-quality costs - improve quality of service - involve all human resources in the production process.

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The IS0 quality certificate is currently being introduced in a number of European combined transport operations.

"Quality labels" for transport services

In line with IS0 standard 9000 the SNCF has introduced three levels of quality - gold, silver and bronze - depending on the level of service required by the customer:

- feedback - production management - monitoring of services supplied at terminals - simplification of business relations.

The gold, silver and bronze levels represent the following standards:

Gold: top quality design, production and marketing procedures and procedures for purchasing the internal and external services needed for developing door-to-door services with all partners in the logistics chain;

Silver: monitoring the goods throughout the journey, irrespective of the technical differences or different regulations applied by the networks involved;

Bronze: information provided by interconnected operational monitoring centres, which deal with routing, production management and delivery at the destination terminal.

d) Documentation management in combined transport

According to the information supplied by an international rail operator in combined transport, five documents have to be filled in for every intermodal transport unit transported:

- single administrative document (2) - dispatch note (Intercontainer) - bill of lading - transport contract (CIM).

International combined transport handles around 6.5 million ITUs, which means filling in a total of 32.5 million paper documents.

The situation in maritime transport is even worse, since the volumes transported are greater. The documents required here are:

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- single administrative document - cargo manifest - movement order - dispatch note.

The ports handle 23 million ITUs every year, which implies that a total of 115 million paper documents are produced.

Clearly, the management of such a huge quantity of documentation requires considerable human resources and equipment, which means increased costs for transport.

If this procedure is to be eliminated, considerable efforts will have to be made in order to harmonize the data-processing systems used by the networks and operators involved.

The intermodal CIM has 52 spaces to be filled in, the international CIM 96 and the Intercontainer dispatch note 46. Annex 4 contains samples of these documents. It is easy to see just how much information has to be supplied and how great the risk of error is.

Intercontainer intends to introduce "zero administration" for its main transport operations in 1998, which will be adaptable to all types of transactions and should ensure maximum compatibility.

International documents include the transport contract (CIM) and the single administrative document (SAD).

Transport contract (CIM)

This is an international contract for the carriage of goods by rail. The DOCIMEL (electronic CIM document) project tried transmitting CIMs electronically, but failed because of the complexity of the system and the lack of agreement between the rail networks.

The project, which was carried out by the DB, DSB, FS, NS, SBB and SJ networks, was simplified by reducing the number of messages and updated by gearing it to Edifact. For the development of this new project, called Orfew, a company was set up called Euraildata, which previously came under Hermes.

Orfeus is currently in operation on the Germany-Italy routes only.

It is important to stress the absence here of important networks like SNCF which, being a transit country but not involved in Orfeus, is preventing Spain and Portugal from being involved for the purposes of the international tariffs.

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Single Administrative Document (SAD)

Although it can be transmitted by EDI, this standard format for exchanging data and messages is not very widely used.

Seaports make the greatest use of EDI connections and have agreements with the communications companies resulting in a 10% reduction in administrative costs.

The EDI connections which the railways can access through Orfeus facilitate contacts with the customs authorities and the ports.

Integrating information technologies and in particular EDIFACT provides an opportunity to increase competitiveness by using telematics and document exchanges at ports and by eliminating the use of paper documents and making document transmission easier.

Many of the operators have already started using EDI, but for the time being it is having to coexist alongside paper EDI until the use of such telematics procedures becomes more widespread.

Interoperability of documentation for one single mode is fairly common, but between different modes it is, as yet, non-existent because there is no common transport contract for all modes.

3. Data-processing systems in combined transport

Transport management requires flexible instruments which can meet customers' demand for information on the situation of their goods in real time.

Combined transport in the rail sector uses its own computer system (Hermes), while the seaports use systems based on EDI. a) The Hermes network in Europe's railways

The Hermes network is owned by the following rail administrations: RENFE, SNCF, OBB, FS, CFF, DB, SNCB, NS, OSB, SJ, BR and SZ.

The system is defined in UIC fiche 917-5 as a group of packet consumers called NIs (international nodes) - in theory one per network - based on the UIC data transmission network. The NIs are separate from the national data-processing systems and are connected by transmission lines. The system is supervised by a Control and Monitoring Centre.

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Each network is connected to its NI by means of one or more national stations with connection software, which enable compatible national systems to be connected to the Hermes network.

Faced with growing demand, the capacity of the system needed to be increased and it was decided to replace it with a new, larger-capacity Hermes Plus network managed by a new company set up by the railways: Hermes Information Technology RAIL (HIT RAIL). Hermes Plus was completed in 1995 with technical support from the UIC's Hermes Project Group.

There are three types of centres in the Hermes Plus network:

main centres: Berne/ Brussels/ Frankfurt/ Paris or transit secondary centres: Copenhagen/ Nottingham/ Rome/ Utrecht peripheral centres: Ljubljana/ Madrid/ Stockhold Vienna.

In 1992, Hermes Europe Railtel was set up as a subsidiary of HITRAIL with the idea of using the running powers for the lines to create a Europe-wide telecommunications network selling basic information services to telephone companies, value-added network companies etc. by installing an optic fibre network along the railway lines.

This was a new departure for the rail networks hoping to break into the telecommunications market. In 1994, the American company Global Telecommunication System (GTS) bought a 33% share in Hermes Europe Railtel and is currently creating a pan-European network along the railway lines which is due for completion in 1998 at a cost of ECU 200 million. This will be a high-technology network linking 55 cities by 1999 and will enable the rail companies to fulfil the dual role of owners and suppliers.

Informatics applications in Hermes Plus

Hermes Plus can be used on three levels: commercial, movement/management of trains and reservations. Of these, only reservations is in operation, while the others are still being developed. The notification of arrival, notification of dispatch and removal from service functions were introduced at the end of 1996; the majority of the applications will be introduced during 1997 and the rest in 1998.

- 186 - PE 167.055 Hermes Plus Logistics systems in combined transport

The main management and movement applications are as follows:

Application Acronym Concept

EUROP EUR Wagon fleet management HIPSS - Helps to manage goods traffic GOETHE KMW Use of wagons on foreign networks PROMETHEE RPW Manages wagon maintenance ENEE ENE Standardization of data and supply of information on frontier stations and crossing points DAMOCLES MDG Data base on hazardous goods Notification of arrival AAR Announces train arrivals Notification of dispatch AEX Announces dispatch Frontier crossing points PFR Information on wagon and goods Advance notification of PRT Advance notification of train arrival arrival International Block Trains TEI Movement of block trains

The main commercial applications are as follows:

Commercial Acronym Concept application

Find wagon QLW Enables wagon to be located Frontier crossing point PFR Notifies crossing of each frontier Traffic incident INR Notifies wagon stopped Wagon change ECH Enables wagons to be changed at frontiers ORFEUS - Enables networks to exchange information on international transport using ED1 (Electronic Data Interchange) messages Notification of dispatch A,EX Notifies of dispatch Notification of arrival AAR Notifies of arrival of goods dispatched

There are also other general applications such as free file exchange, harmonized commodity code and priority message management.

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Despite the considerable size of the Hermes Plus network, the applications that came into operation in 1997 are still far from up to strength because they have not yet been widely introduced by the European rail administrations.

The frontier wagon change system (ECH), harmonized commodity code (NHM) and wagon recall system (PROMETHEE) are not yet in operation on any of the networks.

Other applications such as free file exchange (DELF), hazardous goods (DAMOCLES) and priority message management (GPR) have only been introduced by two or three companies.

The most widely used applications are:

management of wagon fleet (EUROPE), general buildings file (ENGE), advance notification of trains (PRT) and wagon location (QLW).

Some of the European networks such as CFL (United Kingdom), FS (Italy), SNCF (France) and SNCB (Belgium) have introduced a considerable number of applications.

Annex 5 shows the various Hermes applications together with details of those which the networks plan to introduce and those which are currently in operation.

In future, the Hermes network is hoping to have new applications which are currently being researched by the UIC's Raildata, a group specifically set up to develop new computer applications such as ORFEUS (Open Railway Freight EDI User System) and new services using new interconnection modes such as X-25 and X-400. These are protocols which give data- processing terminals access to a packet switching network and procedures for interconnecting message-handling systems.

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I J Logistics systems in combined transport b) System based on "Electronic Data Interchange" (EDI)

EDI is the structured exchange of data between computer applications and offers the possibility of coordinating the automatic flow of data and solving problems arising from systems incompatibility.

Its biggest advantage is that it eliminates the need for paper documentation in business, transport and administration.

Successful comrnunication requires a common standard language, and this has fortunately been provided for at national and international level by the ISO, which has introduced the UN/EDIFACT* standard for Europe and ANSIX 12 for the United States, although it appears that in the short term EDIFACT will be used at international level (IS0 standard 9735).

Data can be transmitted by various means, X-400, the Internet and the Value Added Network (VAN) being the server protocols most commonly used at present. The Internet is the most widely used, benefiting from the fact that it is the most economic, secure, reliable and broadly based method of EDI exchange.

The benefits of EDI for customers are considerable:

it increases efficiency while at the same time substantially reducing the amount of paper and administrative personnel needed;

(The section on documentation gives a brief assessment of the volume of paper saved in the management of combined transport in Europe.)

it speeds up data transmission and improves productivity;

it improves management by reducing errors and making control programmes possible;

the data go straight into special archives and can be quickly circulated in the company, making contacts more direct and effective;

it offers a better service to the customer, speeding up procedures, reducing delays and allowing work in real time.

However, there are certain disadvantages, though these are sure to be eliminated in future by the introduction of completely new technologies, different psychological approaches and legislation on transmission confidentiality. As new EDI companies become involved, the necessary critical mass will be achieved to guarantee that the process becomes profitable.

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ED1 data transmission was traditionally handled by private VANS with the information services of General Electric (GEIS) and IBM (36% of the European market) and ATTLJnisource, British Telecom, Csnet, Intesa, TSAI and other operators offering tariffs based on use with X-400 protocols, mailboxes, fax, printers, etc.

The emergence of the Internet, which is much more economical, accessible and global than any other VAN operator, has provided considerable new scope since it offers low-price contracts with fixed costs not determined by the use of the network.

The Internet solves the problems of security and confidentiality by using electronic encryption algorithms which also allow acknowledgement of receipt.

There are ED1 user terminals such as EDIWIND on the Internet which easily overcome these problems.

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USAGERS' Logistics systems in combined transport

ED1 applications in the railways

In 1990 the UIC set up an organization - EDIFER - whose main role is to act as the interface between the railways and the EDIFACT standardization process.

EDIFER has the following functions:

- to represent the UIC at meetings of IS0 standardization bodies and others; - to examine IS0 and UN recommendations and standards; - to help users to develop messages.

EDIFER serves the UIC and the networks and can help to:

- identify the technical solutions needed; - present the railway networks' requirements to the international standards bodies; - check the EDIFACT messages developed by the networks; - ensure that international codes are used correctly and translate some railway codes into EDIFACT codes; - provide information and training for EDIFACT personnel.

Some rail networks have developed their use of ED1 further, such as SNCF in France with its information system, for which the EDIFRET company was set up with the following holdings:

- SNCF (61%) - FTLIS (30%) - SOFRERAIL (9%).

It has an EDIFRET server and receives commercial files for French domestic traffic and international traffic through the SESAME application. It also provides the following services:

- routing of individual wagons and block trains (NAW application) - wagon maintenance (MARS application) - wagon monitoring (ESTER application) - international information (SIRENE application). c) The Intercom project

Various pilot projects were carried out as part of the EU's PACT programme on the integration of the rail networks' data-processing systems for combined transport. One of these, the Intercom project under the 1993 programme, was carried out in 1993-4 by the CP and RENFE networks together with the UIRR, CNC, Novatrans, Kombiverkehr and Combiberia.

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Aims: the aims of the project were as follows:

"The project is designed to establish closer cooperation between the rail networks and operators. Dialogue was established between such diverse partners as CP (Portuguese network) and RENFE (Spanish network) on the one hand and the container operators CNC (France) and the UIRR. These organizations, who are also sometimes competitors, constitute an interest group whose aim is to improve exchanges of information and thereby to provide a better quality of service. The aim of the project is to study the feasibility of a wider, more global solution. Communications are to be improved only between the partner networks and operators, and certainly not with rival operators. Then, on a purely technological level, the project proposes at a later stage to study the feasibility of applying data representation standards such as EDIFACT. This in itself is an ambitious target in that few of the partners are familiar with these representation standards."

The final report examines the following critical points which are to be used as the basis for further work in the future:

definition of information requirements existing data flows definition of various flows determining use made of information definition of characteristics of information marketing of information standardization of exchanges of information use of standards and standardized messages to represent data technical structure of the information system simplification of data acquisition other information systems monitoring existing traffic profitability of the system.

Information requirements

The information requirements identified were as follows:

- destination of information and monitoring of routing;

- messages and their content: description of sections: message; train and problem affecting it; wagon and problem affecting it; ITU specifying whether or not maritime; goods; hazardous goods; customs documents; seals; damage; commercial information; departure and arrival fees.

The current absence of common codes makes integration difficult and in many cases clients' codes have to be re-encoded when they are passed to other networks. This is why it is felt necessary to re-examine clients' codes in order to define the content and guarantee integrity.

The conclusion reached is that a timetable must be drawn up for preparing and updating a common thesaurus.

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Definition of data flows

The various flows used are as follows:

- Identification of data flows: liberalization of traffic; reservation; notification of departure; estimated arrival time; notification of passage; notification of delay.

All the procedures vary according to the configuration and number of terminals, the staff at the terminals and problems on the ground which require scope for improvisation.

- Existing flows circulate at different levels and some theoretical flows defined are already in place.

- Exchanges between the UIRR companies and the networks. Data are sent using a standard form which has to be re-encoded by the networks. Each network has its own information system and requires the roadrail companies to use its own formats and conventions and often also to monitor goods. At major stations it is the companies themselves or the operators who do this.

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section du mcssage Ltgende: nombre de ripdtition I ,I i Conditionnal ou Mandatory

- Siruclure thdori9ue du message Logistics systems in combined transport

- Exchanges between UIRR companies. The X-25 standard is becoming the reference standard using the public networks. The main problem currently is ensuring that data are available in time to be usable.

The UIRR has proposed a new UIRR message which has many similarities with the information sections defined earlier.

- Exchanges between networks.

The networks use the Hermes system which is a private X-25 network and is described elsewhere in the study along with the HIPPS and ORFEUS projects.

In the specific case of the transhipment station at Port Bou on the Franco-Spanish border, it is extremely important that it should be given greater data-processing capacity and upgraded so that it can provide a better quality of information for commercial and technical use.

Data characteristics

Data transmissions should be subject to clear rules regarding deadlines and restrictions, levels of confidentiality, addressees, restrictions on use of data, levels of responsibility and legal aspects.

On the subject of confidentiality, it should be stressed that each operator should keep files on its own clients in order to safeguard commercial information.

Formalization and standardization of exchanges

Data exchanges in the rail sector involve two forms of electronic communication:

- coordination between rail administrations using UIC messages which may or may not follow EDIFACT standards;

- specific bilateral or multilateral messages between administrations and their clients or partners in the rail transport chain.

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Documents - 1V.I.; LC. Mesragcr Voii reled de mesages DESTlNATAlRE Logistics systems in combined transport

While it cannot yet be said that there is a set of standard messages for business communications with clients, each interest group has now more or less obtained what it needs.

Another part of this chapter looks at UIC messages which have the EDIFACT structure and those which do not, such as the HIPPS and ORFEUS projects, which deal with "routing plans" and "automation of the international goods transport contract".

On the subject of connections between computer systems, there should be common messages agreed between the railways and the combined transport operators on which future developments would be based. Although it would not meet everyone's needs, it would form a basis for joint harmonization.

The project group considers that the following documents should be included here:

- the common UIRR form (UIRR) - the dispatch note (ICF) and the consignment note - notifications of departure and passage - estimated arrival time.

Different administrations and companies have different relations with their clients, and the computer messages sent to clients serve different purposes.

Companies such as SNCF, DB, SNCB and RENFE are all in discussions or are already developing EDI connections with other transport modes - seaports - and with their clients, involving various types of applications.

New messages will probably be developed and existing messages adapted through the ORFEUS system, which handles transport operations, error monitoring, border crossings, updating main messages and notifications of arrival.

One of the main problems with using standardized messages and data is that the firms involved in electronic exchanges have little experience of handling them.

What makes the current situation even more difficult, not just for the rail administrations but also for other modes of transport, is that new telecommunications technologies are going to have to be incorporated. The various alternatives available will make it difficult to decide on future developments, particularly in a market where costs are constantly coming down. Exchanging data on paper will not be viable in future, but at the same time steps must be taken to avoid economic and "cultural" problems in firms.

Integrated system: architecture

It is better to start with a simple infrastructure in order to avoid the risk of projects being paralysed by external problems. If technically complex elements are eliminated, then full attention can be given to data flows and business relations.

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There are two ways of constructing a telecommunications network:

- mesh network of identical PCS - hierarchical star network.

The project group recommends that all projects should adopt the mesh network structure while still observing all the theoretical architectural restrictions.

This structure is more complex, but gives each member greater independence.

Conclusions

The main conclusions of the Intercom project are as follows:

"The networks involved in the experiment should take whatever measures are necessary as soon as possible to:

- incorporate in their computerized traffic monitoring systems (NAW for SNCF, SACICO for FSNFE, etc.) information on international traffic, including the number of ITUs per wagon;

- speed up the introduction of the Hermes applications described earlier and improve data reliability.

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In order to encourage the other combined transport operators and transporters (maritime operators, maritime and inland waterway transport companies, port authorities, etc.) to adopt the project, the Working Party considers that a Telematics Implementation Group should be set up for the sector.

The Group would also coordinate telematics projects with other similar informatics projects being carried out by other sectors under the PACT programme.

Of all the measures mentioned earlier, steps must be taken, with the support of the European Union, to carry on with those projects which are designed to implement measures currently being developed as part of the PACT programme by the Working Party's partners who took part in this study." d) Computer systems in terminals

One of the most important aspects of handling information in intermodal transport is the management of port and roadrail terminals.

Port terminals

Almost all European port terminals handling containers are connected to the ED1 system, bringing savings of some 10% in management costs and in turn generating greater competitiveness and lower port taxes.

A wide range of computer equipment is used in Europe's port terminals, though the majority is IBM and Hewlett Packard, both of which are compatible with the ED1 system.

The main functions which computers fulfil in terminals is to provide inventories, container location and management and links with clients and terminal users.

Some European seaports have introduced the Teleport application, which has been a major step forward in communications between seaports using exchange data information (EDI).

Roadrail terminals

The national rail networks to which the vast majority of railhoad terminals belong have their own national systems (SACICO - RENFE/ NAW - SNCF, TRAV-K/ SJ, etc.) for managing transport at national level.

The national systems are interconnected through the Hermes system, which was examined in another part of this chapter.

Within the roadrail systems, terminals have also developed their own data-processing programs in order to optimize container handling and monitoring.

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The computer systems in terminals usually also provide add-on services, allowing their clients to interconnect with the terminal in order to exchange information.

Connecting with the terminal allows clients to find out what is happening to their goods in real time, since the terminal is usually linked up to the national monitoring system.

The information exchanged through the national data-processing systems includes data on the train, departure and arrival times, estimated journey time and the containers transported.

All the client needs is a normal-capacity PC and a telephone line.

Computerizing terminals and links with clients offers the following advantages:

- communication with users in real time - savings in time and cost (50%) for administrative tasks - reduction in errors compared with manual processing - interconnection with other information and data exchange systems.

The experience of operators and users hitherto indicates that more people need to use data processing for a wider range of tasks, since the benefits currently only apply to certain documents, whereas the vast majority still have to be completed by traditional methods.

As part of the EU's intermodal transport investment programme "Smart intermodal European transport" (Simet), studies have been carried out on the application of new technologies, with the following results:

- Most intermodal transport operators and terminal operators are convinced of the benefits of EDI, but are still waiting to see the results before committing themselves. The EU Commission should encourage the more widespread use of this system. In line with the proposal put forward by the EDIFACT Transport Group the INTRACON message system should be adapted so that it can be used for swap bodies and trailers.

Reading and writing label messages for swap bodies and trailers will require rapid automatic data transfers in terminals.

(INTRACON messages) + (AEI technology) + (DRIVE/ projects) should be tested.

Communication networks

Research into communication costs, including hardware and software, has shown that the cost is acceptable even for small terminals if satellite mobile communications and car telephony are used.

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Further conclusions concerning ED1 are as follows:

ED1 is basically an organization system: the technological aspects are of secondary importance. Special attention should be given to changes in responsibilities.

ED1 development systems should only send messages, not receive them.

It is recommended that a code book should be drawn up for hazardous goods and should be saved in a separate file.

Test messages containing errors should be tried out in order to see what is rejected.

The ED1 code system should be internationally recognized, clearly defined and reliable for communications between crews and operators.

A clear legal framework needs to be established between all the parties involved before the system becomes operational.

Where data transfer is not possible, there should be general procedures for knowing how to deal with ED1 messages and back-up procedures acceptable to all parties.

0 There should be internationally accepted identification codes for swap bodies and trailers if Rail Freight (RF) identification becomes internationally used, as IS0 10 374 is for IS0 containers.

Trains should be labelled to make RF identification possible.

This should apply in particular to information systems which share data with the bodies concerned.

There is also the security aspect for users of RF identification equipment.

Proceeding through customs without a customs pass in the EU.

It is hoped that there will be an EU project to study the viability and requirements of this.

* New research is needed into intermodal transport labels for rail transport. Pilot projects have shown labels to be very useful, particularly as information can be forwarded via EDI.

The operational messages handbook and earlier recommendations are to be studied by the EDIFACT Board as part of its work on harmonization and standardization.

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Chapter VI

COMMUNITY LEGISLATION AND NATIONAL POLICIES FOR DEVELOPING COMBINED TRANSPORT

Community legislation and national policies have a fundamental effect on the impetus which the European Union hopes to give to the development of combined transport.

For as long as the Community has had a policy in this field, it has been trying to harmonize national legislation on transport.

In this chapter, we shall look briefly at the European Union's philosophy and overall policy on transport. We shall exarnine rail transport as the basic component of combined transport together with its main competitor, the road transport sector, because whatever policy is pursued there, it is bound to affect combined transport directly. Road transport, as well as being a competitor, is also involved in the initial and final legs of combined transport.

We shall give a brief analysis of the situation of inland waterway transport and the maritime sector, which are also involved in intermodal transport, and we shall look at the specific regulations which apply to combined transport and in particular those which apply to transport infrastructure and networks, the rules on competition, associations between firms, exemptions, tariff schemes and special financial aid.

A separate section analyses Directive 91/440/EEC, the extent to which it is currently applied in the Member States and the problems which its application and development have caused.

Finally, we shall study the Member States' national policies on combined transport and the differences between them, demonstrating the need for harmonization and standardization if combined transport is to achieve a truly European dimension.

The aim of the Community policy is to improve the use of the transport system by adopting an overall approach which covers all modes, meets the three basic requirements of economic and social cohesion and subsidiarity, and uses instruments which do not penalise any particular choice of mode.

The Community's combined transport policy focuses on four main areas as mentioned earlier:

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Infrastructures: trans-European combined transport network (rail/ road/ inland waterway/ seaports) new construction projects

Competition rules: liberalization and elimination of trade barriers (Directive 90/106/EEC for the road transport sector) accessibility for other operators (Directive 91/440/EEC for the rail sector) establish fair competition for the same type of combined transport

Financial aid for combined transport: Community funding (infrastructure, rolling stock, PACT programmes, etc.)

National funding and state aid.

1. Community legislation and the European Union's railways policy

Community legislation contains a wealth of information on transport policy. Recent examples include the White Paper on revitalizing the Community's railways and the Green Paper on pricing in transport, which set out the European Union's thinking on transport policy for the future. a) The White Paper

The White Paper presented by the Commission in July 1996 proposes a new strategy for revitalizing the Community's railways, which have seen their market share decline in recent years and which the Commission feels should be given help to deal with their problems while still observing the principle of free competition between transport modes.

The document puts forward a four-point plan, as follows:

divide financial responsibility between the state and the rail companies, although the latter will still be subject to the regulations on state aid;

guarantee services by means of public service contracts;

establish a network of rail "freeways" giving priority and open access to goods traffic.

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The general thinking behind the White Paper is to try to give the rail companies the elements they need to become more efficient. The main objectives of the measures mentioned above are as follows:

Finance:

- reduce debt - improve finances and normalize accounts and state aid - reduce costs and improve financial management.

Introduction of market forces:

integrate national services providing complete logistics;

speed up the process of opening access rights to infrastructure for international services (Directive 91/440/EEC);

establish principles for the allocation of capacity and infrastructure charges;

create freeways in consultation with infrastructure managers, shippers and operators;

create one-stop shops throughout the combined transport process, including requests for train paths;

examine the possibility of setting up a European authority to deal with problems arising from the integration of national services, to supervise the allocation of capacity and technical harmonization aspects and to improve interoperability.

Public service:

- All the railways of Europe have a similar history, and it is now felt that the present organization needs to be changed in order to provide an efficient, high quality public service.

Two types of improvements are proposed:

the use of public service contracts negotiated between the state and the rail companies, with transparent compensation, defined in advance, for providing non-commercial services;

the introduction of market forces into the operation of services.

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Integration of national systems:

- There are still major technical and operational differences hampering freedom of movement, particularly for large containers and full height road vehicles along major routes.

- The Commission is working on an ambitious policy to develop a trans-European network and to coordinate research.

Social aspects:

- Over the last 20 years the European railways have lost almost one million jobs because of financial problems and lack of competitiveness.

As part of the revitalization of the railways, consideration is being given to providing aid for major staff retraining programmes, possibly from the European Social Fund.

Finally, it should be pointed out that the implementation of the White Paper will depend on European rail organizations like the UIC, the Community of European Railways, the ERR1 and other bodies directly or indirectly involved in the rail sector such as the ECMT and the UN ECE Inland Transport Committee.

It should be stressed here that, in our opinion, the UIC's work on technical and operational harmonization in international transport is failing to help it meet current commercial requirements. The same could be said of the standardization organizations (ISO, CEN, etc.) which, according to our interviewees, are failing to keep up with market trends and whose recommendations are failing to keep pace with reality. One example is the wide range of weights and dimensions of containers and intermodal units, where the reality of the market is far removed from the recommendations of the standardization bodies.

It is therefore desirable to involve market forces such as installations and equipment manufacturers and the maritime, road, rail and inland waterway operators in order to establish the broadest and most flexible possible technical conditions for the future of internodal and combined transport.

b) Transport policy documents supporting combined transport

The following are the main documents published in the Official Journal or produced by the EU over the last few years:

- opinion of the Economic and Social Committee on the report by the Group Transport 2000 Plus "Towards a European network of transport systems" 92/C 49/14 (OJ C 49, 24.2.1992);

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- European Parliament resolution on the future development of the common transport policy (A3-0390/93, published 14.2.1994);

- Council Resolution 95/C 169/01 on the development of rail transport and combined transport, published 5.7.1995;

- European Parliament resolution on the Common Transport Policy Action Programme 1995- 2000 (COM(95) 0302 - C4-0351/95), OJ C 181, 24.6.1996;

- Green Paper on internalizing the external costs of transport (COM(95) 0691) of 20.12.1995.

Document 92/C 49/14 published on 24.2.1992 gives the opinion of the Economic and Social Committee on the report by the Group Transport 2000 Plus "Towards a European network of transport systems".

The report stresses the need to promote intermodality and discussed the following alternatives:

- road with rail - maritime transport/coastal shipping with rail and/or waterway transport andor road - waterway transport with rail andor road, adapting rail and waterway transport infrastructure.

The interfaces between seaports and land-based terminals used for combined transport must also be developed, and the development and universal introduction of standardized containers for part-loads would simplify transshipment routines.

European Parliament resolution A3-0390/93 specifically calls for ''measures in support of combined transport to increase interoperability between modes of transport" and for priority to be given to "modal interface systems and technical interoperability and harmonization".

It "considers that combined transport should be defined as a mode of transport in its own right as a basis for establishing new rules of competition and cooperation between companies operating in the transport system".

It calls for "forms of support for terminals, loading systems, information systems and the creation of new intermodal companies" and "considers it vital that seaports and inland ports be given their proper place as natural interfaces and terminals for intermodal transport".

As regards the integration of coastal shipping and inland waterway transport, there is a "need for modal integration, in particular with the railway network".

Council Resolution 95/C 169/01 of 19.5.1995, published on 5.7.1995, deals specifically with the development of rail transport and combined transport and identifies a series of factors which will enable combined transport to develop while respecting the principle of freedom of choice for users.

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The resolution stresses the link between rail transport and combined transport, stating that "the Community's railway policy cannot be dissociated from its overall transport policy; the latter should be dealt with on an intermodal basis, taking into account the overall costs of each mode of transport and ensuring that the European transport system develops under fair conditions of competition".

The Council "considers it necessary to progress with the common railway policy laid down in Council Directive 91/440/EEC".

This extremely important directive will be analysed in section VI 2.

The Council affirms its will "to make rail transport and combined transport efficient and competitive ... and to adopt the measures necessary for operators to be able to show fresh dynamism", "to establish suitable conditions to make it possible to develop the place of ... combined transport in the Comunity's transport system", and "to ensure that rail, together with navigable waterways and shipping services ... participate as fully as possible in the development of combined transport, in cooperation with the road transport partners".

Finally, the Council calls upon the Member States to "foster cooperation between the various operators involved in combined transport ... by means of the gradual introduction of technical harmonization", and it calls upon the Commission to put forward proposals on:

- charging for the use of railway infrastructure (Directive 91/440/EEC); - rules governing access to the network; - the establishment of international groupings in compliance with Regulation (EEC) No 1017/68 on the rules of competition.

European Parliament resolution A4-0075/96 published in OJ C 181 of 24.6.1996 raises the following points concerning intermodal/combined transport:

- the need to promote positive measures to encourage the combined use of the various forms of. transport in order to achieve maximum economic efficiency and minimum environmental impact;

- the urgent need to establish combined transport as a form of transport to be encouraged through the harmonization of technical specifications relating to terminals, loading units, information systems and insurance arrangements, and through the promotion, by means of tax concessions, of new undertakings in the sector and of measures for the benefits of suitably-equipped sea and river ports, which are an essential component of the European transport system;

- the need to "call for the adoption of the proposal (COM(95) 0337) to amend Regulation (EEC) No 1107/70 on measures to facilitate combined transport of goods" as last amended by Regulation (EEC) No 3578/92, OJ L 364 of 12.12.1992.

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This last regulation concerns aid for combined transport:

Investment in fixed and mobile infrastructure/equipment in terminals/rolling stock specifically used for combined transport and charges for transit services by Austria, Switzerland and the countries of the former Yugoslavia.

The previous regulation was most recently amended on 17.3.1997 by Council Regulation (EC) No 543/97 (OJ L 84, 26.3.1997), which extended the deadline for aid until 31.12.1997.

The resolution also supports other modes of transport involved in the intermodal system such as inland waterways, maritime transport and railways.

The Commission Green Paper on internalizing the external costs of transport (COM(95) 0691 of 20.12.1995) is an extremely important transport policy document, although it is generally the case that such internalization ''can only be effective as a method for influencing the use of means of transport if users have genuine freedom of choice, which is not the case in regions with seriously deficient infrastructure, in particular peripheral regions".

c) Specific regulations on combined transport

There are Community regulations relating to combined transport on the following subjects:

- competition rules - financial aid - infrastructure and transport systems.

1. Competition rules

On 26.1.1995 the Commission published a notice concerning associations of undertakings operating in the international combined transport of goods (OJ C 105).

Chapter V described the line of route groupings which were forrned in Europe pursuant to Directive 91/440/EEC (see section VI 2). The possibility was first defined in Regulation (EEC) No 1017/68 of 19.7.1968 (OJ L 175, 23.7.1968), where, although Article 2 prohibits "agreements between undertakings which distort competition", Article 5 states that "the prohibition ... may be declared inapplicable to any agreement or concerted practice which contributes towards improving the quality of transport services, promoting greater continuity and stability in the satisfaction of transport needs, increasing the productivity of undertakings or furthering technical or economic progress".

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For the implementation of the Regulation, Article 12(2) requires the Commission to publish the substance of applications from associations of undertakings, which is why the Commission published in OJ C 105 of 26.4.1995 details of applications from railway undertakings in the then 12 Member States, represented by the UIC, to have Article 2 of Regulation (EEC) No 1017/68 declared inapplicable to two agreements between them as set out in UIC fiches No 2 and No 3.

These fiches concern cooperation between railways in international combined transport and relations between railways and buyers of rail services in international combined transport.

- Fiche No 2 establishes mechanisms for technical and commercial cooperation between railway undertakings.

Technical cooperation can take place within a line of route grouping or under a subcontracting arrangement.

A line of route grouping combines a number of railways running trains on the same route and may also include other rail operators.

The object must be a purely technical one, such as interoperability on the line of route, quality criteria and technical standards or the promotion of combined transport.

Subcontracting is a formula in which a railway that has agreed to supply a transport service entrusts the actual performance of that service to another railway, with a series of restrictions including a no-competition clause.

Where there is commercial cooperation in addition to technical cooperation the formula is called joint operation, and consists of providing rail services on an itinerary, a set of itineraries or a network.

Any railway or group of railways taking part in a network is free to operate competing or partly competing trains under other forms of cooperation.

- Fiche No 3 concerns relations between railways and buyers of rail services in international combined transport.

There are two types of sales:

* Capacity sales: this is the supply of a transport service using a full train, part train or network. The price depends on the fixed costs incurred in running a train.

ITU (intermodal transport unit) sales: the provision of services using containers, swap bodies, semi-trailers, lorries, dual mode, etc. The price is calculated by applying to the basic price of the service a co-efficient reflecting the length and weight of the ITU.

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- In commercial cooperation, railways and their clients may exchange commercial information, conduct joint marketing studies and conclude partnership agreements, which may include exclusivity or no-competition clauses, in order to launch experimental services.

The applications included arguments relating to the applicability of Article 5 of Regulation (EEC) No 1017/68. There are currently line of route groupings which include national public rail companies and private operators, so the combined transport market in Europe is beginning to take off.

- Council Directive 92/106/EEC of 7.12.1992 (OJ L 368, 17.12.1992) sets out a series of common rules and exemptions for certain types of combined transport of goods between Member States.

These are as follows:

liberalization of combined transport from all quota and licensing systems;

use of a stamp to identify the loading and unloading stations and ports relating to the rail leg, inland waterway leg and maritime section of the journey;

right for all Community hauliers to carry out the initial and final road haulage legs of combined transport operations, whether or not they involve crossing a frontier;

reduction of national taxes for road vehicles, trailers and semi-trailers involved in combined transport;

such taxes include road taxes, vehicle taxes and taxes on economic activity;

exemption from presentation of documentation for trailers or semi-trailers used by an undertaking engaged in own-account transport or hauled in the initial or final legs of a journey by another undertaking;

exemption from compulsory tariff regulations for initial or final road haulage legs forming part of combined transport operations.

The aim of the directive is to facilitate the initial and final road haulage legs of combined transport operations carried out by an undertaking for its own account or for someone else's, and to regularize the status of the tractors or trailers and the drivers.

Tanfsstructures

Commission Decision 93/174/EEC of 24.2.1993, published on 26.3.1993, relates to tariff structures in the combined transport of goods and more specifically the application of Article 85 of the EEC Treaty.

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The tariff structures relate to rail haulage services which the rail companies provide for specialized operators, whether branches of the rail companies themselves or separate companies.

Under Directive 91/440/EEC on rights of access to infrastructure in the Member States for the provision of combined goods transport services, the rail companies will continue to be the only enterprises and able to provide rail haulage services (except for rail operators that are recognized as rail companies). The Decision notes that haulage costs are a determining factor of the price which operators charge for their combined transport services, It therefore declares that Article 85(1) of the EEC Treaty is inapplicable for five years (1992-1997) to the tariff structure agreement on the sale of rail haulage in the international combined transport of goods concluded by the railway companies of the Community.

The exemption brings with it certain requirements relating to the drawing up and forwarding of a list of incidental costs, prior consultation and advance notification of changes to the tariff structure, ensuring the coexistence of national and international tariffs, not reaching agreements on tariff levels and respecting the principle of income neutrality or transparency.

Although the rail companies to which the decision was addressed were those of the 12 Member States at the time, a subsequent correction (Decision 93/354/EEC of 26.5.1993, OJ L 145) excluded Coras Iompair Eireann (CIE) in Ireland and the British Railways Board (BRB) in the United Kingdom.

2. Financial aid

In addition to the investment in transport infrastructure and networks covered in the section on transport infrastructure, the EU allocates considerable sums of financial assistance to combined transport.

- Aid for transport by rail, road and inland waterway granted under the terms of Regulation (EEC)No 1107/70.

- Aid through PACT pilot projects.

Regulation (EEC) No l1 07/70

This regulation has been amended a number of times, most recently in Regulation (EC) No 543/97 of 17.3.1997, published on 26.3.1997.

It is to remain in force until 31.12.1997 and is designed to promote the development of combined transport in the following areas:

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- investment in infrastructure, fixed or mobile transhipment installations and equipment, special rolling stock;

- the cost of combined transport transit services through Switzerland and the countries of the former Yugoslavia.

Regulation (EEC) No 1107/70 was amended by Council Regulation (EC) No 2255/96 (OJ L 304, 27.1 1.1996), which added a section on inland waterway transport, with investment aid for infrastructure at inland waterway terminals and for the fixed and mobile equipment needed for loading and unloading.

The aid granted may not exceed 50% of the total amount of investment and is designed to help develop additional transport tonnage on the inland waterways. The aid will continue to be paid until 31.12.1999.

Aid under the PACTprogramme (1997-2001)

Financial assistance for the PACT programme was introduced in 1992 and has gradually increased as experience has defined objectives more clearly and improved the monitoring and evaluation processes.

The aims of the new PACT programme are:

- to make the quality and price of combined transport more competitive vis-a-vis single mode transport; - to promote the use of advanced technologies; - to give businesses easier access to combined transport; - to incorporate sea transport in combined transport: - to provide aid for pilot studies (100%) and feasibility studies (50%).

The new PACT programme was proposed in document 96/C 343/03 (COM(96) 335 final) and was submitted by the Commission on 9.10.1996. The ESC delivered its opinion in document 94/C 89/08 (OJ C 88, 19.3.1997).

In 1997, 110 applications were submitted, broken down as follows:

- rail projects 55 - maritime and inland waterway projects 17 - intermodal projects 17 - feasibility studies 21

Financial assistance may be granted for combined transport actions on existing pilot routes or on pilot routes still to be established, the purpose of which is to try out measures: such actions must first be approved by the Member States on whose territory the infrastructure concerned is situated.

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Assistance is granted for: - feasibility studies - innovative measures.

Innovative measures may include: - intermodal transport equipment - transshipment equipment - participation in the costs of access to rail and inland waterway infrastructure - the commercial operation of techniques, technologies and research or telematics programmes - measures relating to logistics, staff training and advertising.

Ceiling for state aid

The Commission issued a communication (97/C 93/05, OJ C 93, 22.3.1997) on aid proposed by the Dutch Government for intermodal transport.

In order to promote intermodal transport, the Dutch Government had drawn up a plan for shuttle links available to all consignors, for which two types of aid were to be granted:

- ECU 45 000 to finance feasibility studies; - ECU 225 000 to cover 33% of the start-up or operating costs for the first two years.

The total aid proposed for 1995-1999 was ECU 6.7 million.

The Commission declared that the planned aid was not compatible with the common market since it was an aid within Article 92(1) of the EC Treaty which, in seeking to give an advantage to intermodal ports and terminals in the Netherlands, was likely to distort competition with service operators in the other Member States.

3. Transport network

The latest and most important document produced by the European Parliament and the Council on transport networks and infrastructure was Decision No 1692/96/EC of 23.7.96 (OJ L 228, 9.9.1996) entitled "Community guidelines for the development of the trans-European transport network".

The following are the main points of this Decision, which was covered in Chapter I1 of the study:

- the trans-European transport network must include all modes of transport, taking account of their comparative advantages;

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- the network must be interoperable and must encourage interoperability between the different modes of transport;

- the network should comprise infrastructure (networks and interconnection centres), traffic management systems and positioning and navigation systems;

- interconnection centres must be set up to enable intermodality to operate effectively;

- the combined transport network must comprise railways, inland waterways and shipping routes, installations permitting transhipment between those modes and roads and, on a provisional basis, rolling stock.

Priority is to be given to the integration and optimum combination of the various modes of transport, interoperability of network components and the establishment and improvement of interconnection points and intermodal platforms.

Finally, it is provided that every five years, and for the first time before 1 July 1999, the Commission must submit a report to the European Parliament and the Council indicating whether the guidelines should be adapted to take account of economic developments and technological advances in the transport field.

Council Regulation (EC) No 2236/95 of 18.9.1995 (OJ L 228, 23.9.1995) lays down general rules for the granting of Community financial aid in the field of trans-European networks.

The regulation defines the conditions for granting Community aid to "projects of common interest" financed by the Member States or by regional or local authorities.

The types of aid are:

- co-financing of studies - subsidies of the interest on loans granted by the European Investment Bank (EIB) - direct grants - combinations of the above.

ECU 2345 million are available for the period 1995-1999.

d) Community rules on road transport

Although this is not the main subject of this study, the Community rules on road transport should be mentioned since they affect international combined transport for two reasons: firstly, road transport is involved in the initial and final legs of combined transport; and, secondly, it competes with combined transport over longer distances. This is why any changes to road transport rules have repercussions for combined transport.

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The main elements of the Community rules on road transport are as follows:

- maximum weights and dimensions allowed in national and international traffic; - infrastructure charges for heavy goods vehicles, user charges and tolls; - harmonization of social legislation in goods transport; - recording equipment in the road transport sector and controls on means of transport; - road haulage licensing.

Weights and dimensions (Directive 96/53/EC)

The maximum permitted dimensions in national and international traffic and the maximum permitted weights in international traffic are laid down in Directive 96/53/EC of 25.7.96 (OJ L 235, 17.9.96).

These parameters are extremely important for economic viability, competitiveness and technical compatibility and interoperability between different modes of transport.

Vehicles have to be adapted every time new dimensions are introduced for containers and swap bodies, which vary widely from one country to another. The technical aspects of this subject and national policies in the field are dealt with in Chapters I11 and VI of this study.

The directive is to come into force by 17.9.1997, with certain exceptions for the United Kingdom and Ireland, which have until 31.12.1998.

Further amendments relating to weights and dimensions are currently in the pipeline (Common Position No 5/97 of 28.11.1996, OJ C 41, 10.2.1997), providing scope for vehicle harmonization (derogations and exceptions) and modifications to certain types of vehicle.

The application of infrastructure charges and user charges is regulated by Council Directive 93/89/EEC of 25.10.1993 (OJ L 279,12.11.1993), which defines the national taxes on industrial vehicles in the various Member States and the extent to which their systems of tolls and user charges need to be adapted. The annual limit for user charges is fixed at ECU 1250 per year, but reductions and exceptions are allowed.

The directive is facing problems, however, in that the Court of Justice has annulled it because of procedural irregularities.

The ESC delivered an opinion (96/C 18/08, OJ C 18, 22.1.1996) on infrastructure costs in the road freight transport sector as a basis for comparison with other transport modes.

It concludes that infrastructure and external costs should be fully allocated to the different modes in a fair, uniform manner, and that internalization of these costs can help the transport modes to achieve optimum infrastructure use.

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However, there are a number of problems such as:

- the methods used to determine the costs; - the acquisition of the necessary data; - the need for agreement on the constituent elements of infrastructure and external costs; - the need for countries to operate a system of reciprocal compensation where the direct allocation of costs to the individual user is not technically possible.

The new proposal for a Directive (97/C 59/06) amending Directive 93/89/EEC introduces various types of EURO1 and EURO2 taxes with 10-20% reductions depending on the level of environmental damage caused.

The Committee of the Regions delivered an opinion on this proposal (97K 116/08, OJ C 116, 14.4.1997).

Harmonization of social legislation, recording equipment and controls on means of transport are covered by the following regulations:

- Regulations (EEC) Nos 3820/85 and 3821/85 on driving times and rest periods in road transport;

- there are proposed amendments to Regulation (EEC) No 3821/85 and Directive 88/599/EEC on recording equipment in road transport, and an ESC opinion on the amendments (95/C 110/07, OJ C 110, 2.5.1995);

- Regulation (EEC) No 3912/92 on controls in the field of road and inland waterway transport in respect of means of transport registered or put into circulation in a third country.

Road haulage licensing is covered by Commission Regulation (EC) No 792/94 of 8.4.1994 (OJ L 92,9.4.1994) and Regulation (EEC) No 3118/93 of 25.10.1993 (OJ L 279, 12.11.1993).

A system of ecopoints has been introduced for heavy goods vehicles transiting through Austria (Commission Regulation (EC) No 1524/96 of 30.7.1996, OJ L 190, 31.3.1996).

The Austrian Government hoped that this system would promote rail transit and limit road transport.

There is also an agreement on road and rail transit through Switzerland (Decision 9311 17/EEC, OJ L 47, 25.2.1993).

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e) Rules governing maritime transport

The most important development in combined transport in recent years has been the incorporation of maritime transport and in particular its infrastructure (seaports) in the trans- European networks.

This subject was examined in Chapter I1 and in another section of Chapter VI.

The main Community legislation on maritime transport is as follows:

- the Communication on "the development of short sea shipping in Europe: prospects and challenges" (COM(95) 0317);

- the Council Resolution of 11-March 1996 (96/C 99/01, OJ C 99, 2.4.1996) on short sea shipping.

On the subject of intermodal transport, the Council states that the main objective of short sea shipping policy is "the positive and active integration of short sea shipping, including feeder services, into the intermodal transport chain".

These were the first documents on short sea shipping and were the subject of an opinion by the Economic and Social Committee (ESC) (96/C 97/05, OJ C 97, 1.4.1996), which concluded that short sea shipping must be fully integrated into the trans-European networks as an equal partner with the other transport modes.

The European Parliament expressed the same views in its resolution A4-0167/96 and stressed the need to introduce advanced technologies in order to make short sea shipping part of a multimodal logistics network and to extend links with port hinterlands.

Finally, the Committee of the Regions delivered an opinion on the communication referred to above (96/C 129/06, OJ L 129, 2.5.1996).

Other Community documents of relevance to maritime transport are as follows:

- Community guidelines on state aid to maritime transport (97/C 205/05,OJ C 205, 5.7.1997);

- Council Resolution 97/C 109/01 on a new strategy to increase the competitiveness of Community shipping (OJ C 109, 8.4.1997);

- Council Regulation (EEC) No 3577/92 of 7.12.1992 applying the principle of freedom to provide services to maritime transport within Member States (maritime cabotage) (OJL 364, 12.12.1992).

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f) Rules governing inland waterways

As well as regulations laying down rules and providing for aid for road, rail and inland waterway transport, there are also special rules governing inland waterways alone:

- Commission Regulation (EC) No 241/97 of 10.2.1997 (OJ L 40, 11.2.1997) on structural improvements in inland waterway transport. This has been amended several times and replaces other regulations on the same subject: the premiums applicable to vessels in Austria, Belgium, Germany, the Netherlands and France;

- Council Regulation (EC) No 1356/96 of 8.7.1996 on common rules applicable to the transport of goods or passengers by inland waterway between Member States with a view to establishing freedom to provide such transport services (OJ L 175, 13.7.1996);

- Council Directive 96/75/EC of 19.11.1996 on the systems of chartering and pricing in national and international inland waterway transport in the Community (OJ L 304, 27.1 1.1996). The Directive excludes combined transport from the rotation chartering system;

- Commission Opinion 95/32/EC of 30.11.95 addressed to the Belgian Government concerning three draft ministerial orders concerning chartering procedures for inland waterway goods transport (OJ L 302, 15.12.1995);

- Commission Opinion 95/217/EC of 12.6.1995 addressed to the Netherlands Government concerning a draft temporary law on cargo allocation in north-south inland waterway services (OJ L 134, 20.6.1995).

2. Directive 91/440/EEC

Of all the Community rules on transport, Council Directive 91/440/EEC of 29 July 1991, published on 24.8.91, is one of the most important in that it involves major changes for the railways and thus also affects the development of combined roadrail transport.

First of all, it should be pointed out that the Member States were required to apply the Directive by 1 January 1993, yet in 1997 there were certain Member States which had still not implemented it in full, although almost all had taken the necessary steps for implementation. However, there are still many obstacles in its path, and the Commission produced its White Paper on "A strategy for revitalizing the Community's railways" in a further attempt to promote rail transport.

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The aim of Directive 91/440/EEC is to increase the efficiency of the railways and to facilitate their adaptation to the needs of the Single Market by following four basic principles:

ensuring the management independence of railway undertakings;

separating the management of railway operation and infrastructure from the provision of transport services, separation of accounts being compulsory and organizational or institutional separation being optional;

improving the financial structure of undertakings;

ensuring access to the networks of Member States for international groupings of railway undertakings and for railway undertakings engaged in the international combined transport of goods.

The Member States which have transposed Directive 91/440/EEC in full are: Austria, Denmark, Finland, France, Germany, Ireland, the Netherlands, Sweden and the United Kingdom. Those which have transposed it in part are: Belgium, Italy, Luxembourg and Spain, which have not provided guaranteed access; Portugal, which has not separated management from the provision of services; and Greece, which has not notified the Commission of transposition into national law. This has been the situation since July 1996, as recorded in the White Paper, and infringement proceedings have been started against the Member States which have not yet implemented the directive in full.

The directive specifically distinguishes between "railway undertakings" and "railway operators", with the undertakings providing traction while the operators do not. This is a very important distinction in that at present almost all the rail legs of combined transport operations involve hiring traction from the national networks.

Intercontainer and the UIRR, which are very much in favour of Directive 91/440/EEC and which represent the main European combined transport operators, do not have their own traction and are therefore not railway undertakings within the meaning of the directive, unlike the national networks.

Some international combined transport operators have show an interest in being involved as railway undertakings, in other words in providing their own traction, but this has not yet actually happened. Intercontainer, the main European operator, has said that it has no plans to provide its own traction for the time being for technical, organizational and economic reasons.

As provided for in Article 10 of the directive, international groupings have been formed which are currently operating as associations of rail undertakings and operators, as described in Chapters IV and V of this study.

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Legal position of national railway undertakings

Germany

DBAG was set up on 1 January 1994 as a private law company replacing DB and DR and divided into passenger, goods, infrastructure and haulage sections. Its earlier debts were written off and its political obligations removed. It is currently in the process of becoming a holding company (1999), with a number of branches and the structure of a public limited company. It appears that the infrastructure will remain the property of the state since it is still not certain whether DBAG will be privatized - it is still receiving state aid and it is difficult to tell whether any real competition will emerge. Germany is very interested in and actively promotes the use of the railways. As a road transit country it faces a number of problems which Austria and Switzerland have already to a certain extent resolved. DBAG was the first European network to guarantee access to operators from third countries and to publish tariffs based on market forces and infrastructure quality. The chemical group BASF has announced plans to run goods trains on the DB network.

The Austrian railways were given public status on 1 January 1993, releasing them from the dependency and budgetary Obligations previously imposed by the state. The OBB is now subject to the rules governing public limited companies. There are no plans to divide it into separate companies, but infrastructure management and the operation of services have been separate since 1988.

Austria is one of the EU's most enthusiastic supporters of rail transport and combined transport.

Belgium

SNCB has developed "Plan 2005", which is designed to transform the railway into a profitable independent company, organized in separate commercial units under a management board.

The new structure is based on:

- central coordinating units: strategy, finance, safety, environment, human resources;

- separate service centres: data processing, sales, legal affairs, social affairs, staff administration;

- separate operational centres: production, infrastructure and equipment maintenance, operations.

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Denmark

Since 1 January 1997, the Danish National Railway Agency has been operating as an independent state undertaking under the responsibility of the Minister for Transport, working with DSB as an operator.

The Agency has the following functions:

- maintenance and development of infrastructure; - traffic and infrastructure capacity management, collection of fees for use of infrastructure.

Since 1993, separate accounting has been applied to rail services and the management of the infrastructure.

Spain

December 1996 saw the creation of the public body "Gestor de Infrastructuras Ferroviarias" (GIF) under the responsibility of the "Ministerio de Fomento", in accordance with Council Directive 91/440/EEC, although RENFE had produced separate infrastructure and services accounts for a number of years before that.

The GIF has the following functions:

facilitating access and transit for undertakings and operators with recognized rights under Community or national regulations: providing information on changes in infrastructure quality and capacity; collecting fees for use of infrastructure; monitoring and maintaining traffic safety.

The GIF is a public law body with full legal personality and ability to carry out its objectives.

RENFE is responsible for the operation of rail services, providing traction and paying the corresponding rent.

RENFE is divided into operating units: goods (loading, combined transport), passenger services (long-distance, regional, suburban), traction/ maintenance of infrastructure and rolling stock.

France

In May 1995, the decree transposing Directive 91/440/EEC was published, introducing new rules for the management and use of the rail infrastructure:

- management of the national rail infrastructure - use of the national rail network infrastructure

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- allocation of rail infrastructure capacity - fees for use of infrastructure - appeals procedure.

Three types of operators can use the infrastructure:

SNCF, international groupings of railway undertakings and railway undertakings providing services for the international combined transport of goods.

In July 1996, the French Government issued a series of decisions about the future of the railway, based on two principles: bringing greater transparency to financial relations between the state and SNCF in connection with the infrastructure, and decentralizing regional transport. A public body responsible for the infrastructure - the Reseau Ferre National (RFN) - was subsequently set up in January 1997.

SNCF will continue to have the dual role of transporter and infrastructure manager, and will continue to hold the assets to develop both of these functions.

Finland

The institutional separation of infrastructure management and operation of services occurred in January 1995 with the setting-up of a body responsible for development, maintenance, safety and rail installations (RHK) and the group UR Limited, which aims to involve all the transport operators.

The RHK comes under the Minister for Transport and Communications.

Greece

The Greek railway OSE is a public capital company and has begun to modernize its main north- south line.

A draft law to bring the OSE into line with Directive 91/440/EEC was brought before the government and parliament, and was ratified in September 1996. The main principles are as follows:

- separation of accounts only, with no major changes to the structure of the network;

- the OSE will be responsible for the management of the rail infrastructure;

- all rail companies which meet the safety requirements will have access to the rail infrastructure in line with the principle of non-discrimination and must pay fees according to the quality of the track, the market situation, the position on the timetable, etc.;

- the OSE will also be required to pay fees, which will be done through the accounts;

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- under the new organization the OSE must be genuinely independent and must be able to decide on its own commercial policy and tariffs.

Ireland

The Irish railway (CIE) has transposed Directive 91/440/EEC in full, according to the White Paper.

Italy

The Italian railway FS SPA became a shareholder company in 1992, with separate accounts and organization. In 1993 it was divided into four commercial units:

- infrastructure - assets - engineering and construction - transport.

The company TAV was set up for high-speed services as a joint venture between FS (40%) and the private sector.

The company is structured as follows:

- group management (2): management, organization, human resources, administration and finance;

- commercial sections: ASA Rete (infrastructure), engineering, rolling stock, traction, passenger service, logistics and assets.

ASA Rete, which is responsible for infrastructure management, was set up in accordance with Directive 91/440/EEC and has a contractual relationship with the state.

Two contractual instruments were introduced on the basis of the Directive:

- a contract covering a programme of infrastructure maintenance, investment in development and the modernization of the national rail network;

- a public service contract for local transport and later, once the regionalization process is complete, for regional transport.

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Luxembourg

The process of bringing CFL's articles of association into line with Community law began in April 1994, and it was allowed to become involved in other transport companies. Separation of accounts was achieved by setting up a Rail Fund to guarantee investment and to manage the infrastructure.

The CFL is currently organized in three sections:

- infrastructure (track, installations, traffic and assets) - joint services (finance, personnel, data-processing) - transport services (passengers, goods, equipment and traction).

Netherland

The Dutch railways (NS) began the move towards independent management in 1992, becoming a holding company in 1995:

Parent company: NS Groep NV, which includes NS (market sector) and the Rail Infrastructure Trust (under the responsibility of the government).

- The undertakings under the responsibility of the government are:

NS Railinfrabeheer: rail infrastructure NS Verkeersleiding: traffic control Railned BV: allocates infrastructure capacity.

The NS Groep (market sector) is structured as follows:

NS passengers NS cargo NS stations NS buildings NS rolling stock NS maintenance NS safety

- The profit and loss accounts are separate, and the companies under the responsibility of the government receive state funding.

- From 1998, state funding for the operation of the rail services will end, so the NS group will have to take steps to organize its own funding.

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- In view of the lack of international goods traffic on the railway because of the small size of the network, it seems likely that international traffic will be covered by European organizations such as Thalys, which already provides passenger transport between Paris, Brussels and Amsterdam. From the year 2002 international goods transport, which is expected to grow given the potential of the port of Rotterdam, will be using the new BETUWE freight line linking Rotterdam with Emmerich on the German border.

Portugal

In 1991, the Basic Law on the land-based transport system introduced separate accounts for infrastructure and operations.

The articles of association of CP (Portuguese railways) were amended in 1992 to allow third countries access.

In December 1996, a plan was drawn up for the creation in 1997 of a public body responsible for the definition of railways, light urban railways and tramways.

A public CP infrastructure company has also been set up incorporating CP investment and CP maintenance, while CP transport is to manage rail transport.

The new organizational structure is expected to be fully in place by 1998.

United Kingdom

Railtrack was created in 1994 to manage the rail infrastructure. It was privatized along with the passenger and goods services, including combined transport operations (Railfreight Distribution).

The process of privatization began with British Railways in 1992 and led to the reorganization of the rail transport system.

As well as managing the infrastructure, Railtrack is also responsible for safety and traffic management, investment funding and maintenance, and it can provide and promote access to the infrastructure for private operators upon payment of fees. British Rail has been divided up between a number of privatized groups.

Sweden

This was the first country to separate infrastructure management from rail operations when in 1988 it set up the Banverket (BV), which is responsible for track and installations, and the SJ for rail operations and station management.

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SJ pays rent to BV for the use of the infrastructure in the form of a fixed annual charge for each locomotive, wagon or carriage and a toll for each stretch of track. The level of rent is determined by factors such as socio-economic and environmental costs, use of fuel and effect on the track.

SJ has agreed subsidies with the regions, since it has to operate on the open transport market and has to try to remain profitable.

Banverket is a public company with an independent management: the government decides on policy, but BV decides on investment and maintenance. SJ has transferred traffic control to BV and plans to do the same with station management.

Switzerland

In February 1996, the Swiss railways (Cm)decided to divide into two bodies, infrastructure and transport, with the same management board but with separate accounts. At the end of 1996, the conversion of the railways into a public limited company was discussed, and it was hoped that the necessary legislative reforms would be adopted in 1997 for conversion to go ahead in 1998.

The reforms relate to separate accounts for infrastructure management and transport services, access to the network for new operators and the debt legislation applicable to the railways.

Advantages and disadvantages of applying Directive 91/440/EEC

Separating infrastructure and operation is an appropriate way to develop the railways in that it allows other rail companies to compete and widen the range of services offered. The changes mark a major step forward, although there are both advantages and disadvantages.

Within this new and in theory flexible framework, confidence needs to be established between the undertakings, with relationships based on economic principles and contractual agreements in order to keep costs down.

Specialization can generate considerable innovation and improve productivity, which in turn can help to offset the overall costs.

However, with the separate structure, disputes may arise when it comes to identifying responsibilities, since it may be difficult to define the precise reasons why a train is late, for example, and therefore who is responsible. The United States is currently reconsidering the whole issue of separate organization.

There are quite legitimate concerns about the effect of dividing responsibility for safety, which an integrated company might be better able to ensure. Nevertheless, the professionalism of the railway companies should always guarantee adequate safety levels, which are absolutely vital in rail transport.

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It would be a mistake to think that the changes resulting from separation are only minor and that the circumstances surrounding them were very different from the present.

The allocation of track capacity is an issue which is potentially very sensitive and one which is resolved in integrated companies by the establishment of a very clear hierarchy. With separate organization, the system is very different and conflicts may arise where there is competition on a busy network. Solutions can be found based on economic operational criteria.

Among the disadvantages, the fragmentation of the railways has an obvious impact on staff, who risk losing the benefits of collective agreements and traditional rules and regulations.

On the other hand, it can be good for staff to have movement in their professional life, to change their cultural identity and widen their experience, which is more difficult to do within one company.

A further consideration is that if infrastructure management is under government control and therefore any losses are covered, the reduction in economic risk can actually mean that the management becomes less dynamic.

Negotiations between managers and operators tend to be shaped by the knowledge which the former have of the infrastructure costs and the knowledge which the latter have of the transport market.

It seems advisable to separate infrastructure ownership from infrastructure management, to ensure that managers do not demand investment in infrastructure on the basis of their own requirements, without considering the overall situation.

Certain advantages may be lost, such as companies refusing to recognize each others' tickets, or problems at stations where a number of competing companies operate, or passengers being given different information on the same journey, which may be useful for the passengers but can cause conflict in the system.

The whole question of access to infrastructure is governed by a mixture of political and economic considerations: should it be decided on purely economic grounds or should it be a public service, should it form part of town and country planning, what should the tariff policy be. etc.

Caution should be applied when deciding on theoretical measures relating to charges for the use of infrastructure, since they can be difficult to apply in practice. It is difficult to establish criteria such as types of costs (short-term, long-term, marginal, etc.) and equally difficult to quantify them in absolute terms.

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A further problem from the economic point of view is that the management undertaking might be inclined to apply a discriminatory policy, which is prohibited by Directive 91/440/EEC. But it is difficult to know whether user charges are fair in terms of the service provided, so applying purely economic criteria could produce distortions in the system. Furthermore, charging the sort of tariffs needed to make under-utilized lines viable could well lead to closure; indeed, if user charges are high, rail prices will not be competitive. The question of what to do about current subsidies for loss-making lines has yet to be resolved.

Prices should be transparent and should accurately reflect costs, in keeping with the spirit and letter of the Community legislation; the results of negotiations should also be made public in order to avoid discrimination in similar situations.

On the subject of competition and freedom of access, it should be pointed out that conflict may arise where, for example, delays by one operator cause problems for others, or where the infrastructure manager organizes work on the line.

With regard to international services and in particular combined transport the national authorities will tend to fix user charges according to national interests. It must therefore be a priority to bring international rail services into line with market demand.

The requirements will be different for the transit countries and for the peripheral countries, where no one single solution will be valid for all. Common principles such as transparency and non-discrimination must therefore be established. They will be more difficult to apply in international transport than in national, and this is why the European Commission faces such an enormous task in the rail sector and in combined transport in particular.

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3. From road transport to combined transport

Road transport is the main competitor of combined transport - roadrail, short sea shipping and inland waterway, depending on the route - because it can easily adapt itself to the market.

The European Union has introduced legislation to normalize competition between the various modes of transport, but the socio-economic characteristics of the sector make it difficult for the Member States to reach agreement, which is why there are discrepancies between Community legislation and national legislation.

An important issue which is currently being examined is the possibility of opening network access to private combined transport operators and applying a charge for use of the infrastructure across the board.

National policies tend to develop in line with national requirements, particularly in the transit countries, where legislation is particularly important because of the volume of traffic coming from the peripheral countries.

The transit countries which are nearest to the major European markets have different problems from the peripheral countries. Some need to apply different traffic, dimension and weight restrictions because their requirements can affect the peripheral countries' access to the European markets.

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This is not the only consideration which justifies the restrictions applied, since the infrastructure in the transit countries is more overburdened and therefore requires more maintenance.

In some cases, the congestion caused by international freight traffic has forced the transit countries to build new transport infrastructure.

The rapid expansion of the ecology movements over the last twenty years has influenced legislation in some countries where there is particular awareness of the problems. The movements are calling for the development of combined transport and have proposed a number of restrictions on road transport. They have enjoyed considerable success in this field in countries like Austria and Switzerland.

Combined transport is a much easier option for the state in terms of infrastructure maintenance costs, the cost of accidents and congestion and the effects on the environment and society.

One way of giving an advantage to combined transport, in addition to providing subsidies for project development, the construction of terminals and better equipment, is to penalize road transport, its main competitor. The view in the sector is that if the costs of road transport are not internalized, combined transport could disappear.

The peripheral countries have a greater interest in promoting road transport than those in Central Europe, since the former are the countries of origin and destination of goods, whereas the latter are mainly transit countries. In addition, their rail services are usually inadequate, so they rely heavily on road transport to get their products onto the market.

The road transport of goods accounts for a considerable number of jobs, and in recent years the sector has given a show of strength through strikes which almost completely paralysed road transport in some countries, with the transit countries particularly badly affected.

Legislation should be geared towards regulating competition between combined transport and road transport, bearing in mind that combined transport involves road transport in the initial and final legs.

One of the problems of international road transport which has not yet been resolved is the lack of harmonization on holidays on which traffic is prohibited. These generally coincide only on Saturdays and Sundays, given that each country, region and district tends to have its own public holidays which account for some 35% of the total. Where a lorry has to pass through three or four countries, it is difficult to draw up itineraries which keep possible restrictions to a minimum.

- 234 - PE 167.055 DK I ES I FL I FR 40 44 40 48 40 48 40 38 40 40 Poids maximum des vehicules (t) I I I I I I Exemption pour vehicules de 44 t - 0 en trajets terminaux I I I Taxe/vkhicule (Ecus) annuel (40 t) 2800 1 l 10 1490/1 550 410 1480 860 2110/ l370 11; 775 I 720 I100 700 2300 ~ Ill Exemption totale ou partielle pour 0 @ @ no no no 0 vdhicdes utilisks' dans le transport combine Taxe carburant en transport routier 0,3 0,25 0,3 0,33 0,4 0,26 0,3 (Ecusflitre) 0,44 0,25 0,32 Restriction de,circulation dans J no J no J no 4' no no no idurs Erigs ' .:. ' ., - no - - IT Exemption pour operations (@l - I@ - no - no - - intermodaux Subvention investissements en Q@ @ no no no 0 0 no no

.. I. transport.combin6.. ,: ' : .. .: , ..

LEGEmE 0 Favorable J Applicable no - Non aplicable Logistics systems in combined transport

The Member States have a number of different taxes on road transport

Road tax

This is a fixed annual tax calculated according to the dimensions and weight of the lorry and the noise and pollution it causes. It applies to all lorries irrespective of the number of kilometres they cover, which penalizes combined transport, since long-distance lorries may cover more than five times the distance of lorries used in combined transport.

If combined transport is to be promoted, the lorries used exclusively for that form of transport should be identified and should pay less road tax. However, it is difficult to assign part of a lorry fleet to combined transport apriori, since this would restrict the operator's flexibility; it would also be difficult to check whether part of a fleet was really being used solely for combined transport.

Fuel tax

This is a tax calculated in proportion to the distance covered and thus applies to everyone under the same conditions.

In some EU Member States, the road hauliers' associations are trying to set up their own refuelling centres under a cooperative system in order to minimize diesel costs.

Infrastructure tax

This is a fixed sum which allows access to the infrastructure. Unlike the road tax, this tax is paid in the countries where the vehicle travels, not in the country of registration.

Being a fixed annual tax, it again penalizes combined transport, where the distance covered is smaller.

Tolls

Combined transport generally does not pay tolls, since the distances involved in the initial and final legs are small and the areas around the terminals do not have tolls.

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4. National policies on combined transport

In 1995, the European Conference of Ministers of Transport (ECMT) drew up a report on all the national measures taken by the Member States to develop combined transport. The present report gives a summary of the main measures introduced in recent years and those still in the pipeline.

Austria and Switzerland stand out amongst the countries analysed as being the ones which have pursued a specific policy of promoting combined transport, and in particular rolling road by Transitar through the Alps. As a result of this both Germany and Italy, the next closest countries to the Alps, have also promoted combined transport in the same way, with the development of Kombiverkehr, Cemat, Okombi and Hupac, companies dealing principally with Alpine transit and rolling road.

Although combined transport basically means rodrail transport, which is found in all countries, inland waterway transport is also commonly used in Germany, the Netherlands, France, Austria and Belgium.

a) Importance of combined transport at national level

The role of combined transport in the Member States varies depending on its economic importance and the impact it has on the environment. It must be borne in mind that at European level, combined transport accounts for only 4% of activity in the transport sector, where road transport enjoys an almost total monopoly. However, the potential offered by combined transport and in particular the activities of certain countries may increase its market share, since agreement is now needed on the European Commission's policy of providing aid for companies.

-Because they are transit countries, both Austria and Switzerland have opted for a policy which favours environmentally friendly transport, such as combined transport and in particular transport using semi-trailers, containers and rolling road. These two countries might be said to provide the greatest support for combined transport, with specific aid measures and restrictions on road transport. Luxembourg too is tantamount to a transit country, but has policies on a much smaller scale because of the size of the country.

The Dutch Ministry of Transport provides considerable support for intermodal transport, which is understandable in view of the congestion on its roads. It has devoted special attention to rail and inland waterway links from its ports, just as Spain and Portugal have given priority to rail links and seaports in their planned infrastructure development.

Both Spain and Portugal have developed plans for a system of port terminals and for maximizing the rail/port interface so as to increase their capacity for multimodal combined transport.

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Other countries of major economic importance in Europe such as Germany, France and Italy do not have such a clearly defined role as Austria and Switzerland; conditions are different and combined transport does not currently occupy a very important position in their economies. This is not to say that they do not support combined transport, simply that road transport is highly developed and their national policies make them more careful about what they support.

So we can say that France, Germany and Italy are not focusing on combined transport, although they have introduced measures to support it.

The Nordic countries such as Finland and Sweden use shipping as their main mode of transport, and road transport is a relatively weak sector.

Problems associated with the dimensions of road vehicles in Finland and Sweden have made combined transport a less interesting option in those countries, where it is understood to mean roadsea, raiYsea and to a much smaller degree roadrail, because of their peripheral location and the need for maritime links.

The situation is similar for Denmark, though having both islands and a mainland puts it in a slightly different position. The fixed links in the form of tunnels and bridges built between the islands and the mainland will mean that rail and road will become more important, as will combined transport. Greece is in a similar situation, with major developments in sea transport.

In Belgium, where there is competition at federal and regional levels in the transport sector, there has been considerable political recognition for combined transport, which is seen as an environmentally friendly and sustainable mode of transport by both Flanders and Wallonia. Studies are being carried out into maximizing the potential of the inland waterways and trimodal railhoadinland waterway installations.

In the United Kingdom, the Freight Facilities Grant is designed to encourage a shift in the majority of goods transport from road to rail.

b) Aid for combined transport

Countries grant a wide range of different types of aid according to their national policies. They fall into the following categories:

Financial aid for investment Financial operational aid Fiscal aid Other aid measures Other combined transport planning measures

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1. Investment aid

Country Investment aid

Germany 1992-2012 federal infrastructure plan for the construction of new transshipment stations and the improvement of combined transport terminals

Austria 1992-1996 programme for the promotion of combined transport by roadhail and inland waterways: terminals, transshipment equipment and special vehicles

Aid programme for Eastern European countries: Hungary (terminal at Sopron), Slovenia, Croatia, Czech and Slovak Republics

Belgium Partial involvement in the construction of terminals and purchase of wagons for SNCF, public companies (TRW, Ferry Boats, etc.) and private firms (Terminal Athus, ECE, etc.)

Spain Investment in rail/port intermodal transport: 80% from the state, 20% from the port authorities with aid from the EU

Transshipment centres to be funded by the state

France 50% subsidy for equipping combined transport terminals

State: rail and inland waterway terminals, transshipment equipment, data transmission

State (40%) and local authorities (30%): projects for development of combined transport

Subsidies for specialized equipment (swap bodies and chassis): interest rate subsidies for road hauliers (state) and subsidies for the purchase of equipment (regional councils) up to a ceiling of 20%

Subsidies for changes to railway lines Kehl - Cerbere and Dunkirk - Modane, and access to the port of Le Havre and Fos- Marseille with aid from the EU and certain regions

Italy Ten-year plan (1990-2000) for FS (investment in intermodal transport) and measures to promote intermodal transport through the construction of interports and the purchase of loading units (1990)

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Netherlands Infrastructure and access to terminals Telematics applications in the transport chain Shuttle feasibility studies, logistics research and experiments

Portugal 1994-2000 infrastructure projects for combined transport in the European network: intermodal railhead, road/sea and rail/sea combinations and access to them

- Investment in rolling stock and terminal equipment

United Kingdom The Freight Facilities Grant is designed to move goods from road to rail or inland waterway (50%). It is invested in branch lines, rolling stock and installations. It is limited to the costs of rail or inland waterway transport over and above those of road transport.

Switzerland Grants or loans at favourable rates for the construction or renovation of transshipment installations

Rail vehicles for combined transport

Investment to promote combined transport

2. Operational aid

Some countries in the European Union provide the following aid:

Country Operational aid

Austria Under Community legislation, Austria's law on railways provides for favourable tariffs for reasons of environmental protection or public interest.

France - As an experiment, the Ministry of Transport plans to reimburse part of the infrastructure tax on certain routes for reasons of environmental protection. This measure could be carried over to the state/SNCF contract.

United Kingdom The Track Access Grant, like the Freight Facilities Grant, may be applied to services, but does not cover their costs. It is paid for environmental protection reasons. It applies for a certain period and is administered by central government.

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Switzerland Piggyback transport is classified as a public service and operating deficits are covered by the Swiss Confederation. Container transport, on the other hand, does not receive these subsidies.

The remaining countries do not provide direct operational aid for combined transport, but it is important to remember that, as a general rule, all the Member States cover operating deficits for rail services. One of the aims of Directive 91/440/EEC is to separate infrastructure management accounts from the operators' accounts in order to identify their costs.

3. Fiscal aid

The taxes and charges imposed on the transport sector are based on fuel, road use, tolls, and infrastructure use.

The fiscal aid granted to combined transport varies widely:

Country Fiscal aid

Germany Tax exemptions for vehicles used in combined railhead, inland waterwayhoad and sealroad transport Tax refunds for vehicles using rolling road (graded according to route)

Austria Tax refunds for national vehicles over 3.5 t used for a month on short trips to terminals for the combined transport of containers, semi-trailers and swap bodies

Tax refunds for national vehicles over 3.5 t on rolling road. The reduction may be up to 100% per year.

Spain Aid provided for in Article 6 of Directive 92/106/EEC

Portugal Possibility being examined of granting physical aid for combined transport

Switzerland Possibility of obtaining refund of U360 of the tax on infrastructure use for each consignment using combined transport

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4. Other aid measures

The Member States grant a wide variety of other aid measures for combined transport. Austria and Switzerland operate measures on the largest scale in a number of ways.

The main types of aid are as follows:

- travel permit for heavy goods vehicles on the road leg of combined transport operations - no need to have a licence for transfrontier trips or for cabotage - no restrictions on travel on public holidays or at weekends - opening-up of zones or corridors - penalization of road transport - aid for converting vehicle fleet - permission for alternative haulage and trailing - promotion of cooperation and aid to attend conferences on combined transport - creation of working parties.

The aid granted by individual EU Member States is as follows:

Country

Germany 44 t weight limit for the road leg of combined transport operations

Terminal legs and transfrontier cabotage exempted from licence requirement

Licence to travel on Sundays, public holidays and during holiday periods

Austria Increase in total weight for terminal legs (38 t-48 t) depending on the intermodal unit

Acquis communautaire adopted from 1995

Cabotage permitted during final legs

Liberalization of corridors on certain Alpine rolling road routes

Liberalization of services over a 70 km radius around the station of Wels

Travel allowed on Sundays and public holidays within a 65 km radius of certain terminals

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No restrictions on night travel along certain corridors

Exemption from ecopoints system

Facilities for introducing extra quotas with the Eastern European countries

Rolling road periods spent by drivers to be classified as rest periods under EU regulations

Belgium Application of Community rules on initial and final legs, tariff systems and ban on cabotage

France 44 t permitted for road transport on initial and final legs from the station or inland waterway port of transhipment

All road transporters established in a Member State allowed to carry out initial and final legs whether or not they involve crossing a frontier

Aid for converting the vehicle fleet

Exemption from restrictions on road travel on public holidays for combined transport

Exemption from semi-trailer requirement and permission to use alternative trailer

Netherlands Promotion of cooperation and organization of conferences and meetings

State aid for crossing frontiers into Eastern Europe

Portugal Establishment of a commission for the development of combined transport and pilot projects initiated by the Community

United Kingdom Maximum lorry weight increased from 38 t to 44 t in 1994. Drivers must have documentary evidence that the load is travelling to or from a rail terminal.

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5. Other combined transport planning measures

As well as the measures described above, the aid included by the Member States in their legislation and general budgets and that provided by local authorities, there are other planning measures and projects which various Member States have introduced:

Country Plandprojectsheasures

Germany Automatic transshipment terminals and adaptation of existing terminals

Austria Promotion of rail transport and combined transport of goods across the Alps

Improvement of competitiveness of combined transport by fixing comparable prices to road transport

The corridors are as follows:

- Brenner and Tavern route - Phym - Col de Schoter route - Danube route - Pontebanc route

Belgium Studies currently being carried out to identify ways of promoting combined transport under Community legislation: techniques, equipment, etc.

Finland Systems of direct trains on rail routes Telematics applications Improvement of competitiveness of combined transport

France Study of rail freightways

Netherlands Intermodal aid programme for all types of intermodal operations

State aid provided for crossing frontiers

Development of links between ports and hinterlands as part of trans-European network

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Switzerland Short-term infrastructure programme:

Improvement of infrastructure on the Lijtschberg- Simplon route for piggyback transport. Lorries over 4 m will be able to be carried by rolling road.

Long-term infrastructure programme: new railway line through the Alps enabling 43 million tonnes to be transported by combined transport. Journey time to be reduced from 8 to 5 hours. The project involves:

0 new line with new tunnels under Mount Gotthard and Mount Ceneri;

0 base tunnel under Ltitschberg between Frutigen and Valais;

0 works scheduled for completion by 2005 for Ltitschberg and 2007 for Mount Gotthard;

e promotion of combined transport. As decided by the people of Switzerland, the Alpine area is to be protected against road traffic and goods are to be transported by rail. Consideration being given to use of more shuttles and boosting competition between combined transport operators.

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Chapter VI1

PASSENGER RAIL/AIR INTERMODALITY AND THROUGH BOOKING OF JOURNEYS

Over distances of between 400 and 700 km, high-speed trains achieve similar journey times to aeroplanes, if door-to-door journeys are considered. It is on these routes that there is the greatest competition; the trains offer a service comparable to that of aeroplanes and may be used as an alternative to certain air routes.

In the case of Europe, where high-speed trains are currently in operation in France, Germany, Italy and Spain, intermodal transport enjoys great potential and has been used to some satisfaction in Germany and France.

Ticket distribution is one of the main target areas in the drive to improve intermodal transport, since rail networks are not currently integrated into air ticket distribution systems and vice versa, which considerably reduces the feasibility of making intermodal reservations.

Air transport ticket distribution has a considerable advantage over rail distribution, mainly because of characteristics inherent in air transport, which will be analysed in due course. Other differentiating factors can be said to be well-established air ticket distribution systems, continued investment in research and development, a higher turnover (the price of air tickets being greater), and different journey and passenger profiles for each of the modes.

This chapter contains firstly an analysis of the distribution systems currently used in air transport, the marketing methods, the legal and economic aspects and the impact of new technologies in the air distribution sector, and, secondly, a study of the distribution systems currently used in rail transport, the European distribution networks and the marketing of rail tickets.

Once the air and rail distribution systems have been described, an analysis of the current status of intermodal transport will be carried out, together with an assessment of likely future developments due to new technologies being introduced.

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1. Distribution in the air transport sector a) Computerized reservation systems

There are various different computerized reservation systems: GDS (Global Distribution System), and CRS (Computer Reservation System), also known as SIR (“SystGme Informatiques de Rbervation”); the latter is used in rail transport, but the future aim would be to use only GDS systems. These are defined basically as systems which provide real-time information on all airlines’ flights and allow tickets to be booked, paid for and cancelled. Most GDS systems now include additional information on hotels, car hire, etc.

1. General applications of computerized reservation systems

GDS systems came on the scene in the 1950s when airlines started using the computer to make bookings, while bookings through travel agencies continued to be made manually.

The improvement in communications enabled certain North American airlines to install their reservation system monitors in some travel agencies, with two main objectives: to cut the number of staff in their offices and to extend their sales network.

This formula quickly crossed the Atlantic, imitating the structure of the new American GDS systems whereby other airlines’ flights were included in an airline’s GDS by means of bilateral agreements.

GDS systems are now essential for product distribution; they offer information on other aspects of the journey apart from the flight, such as hiring cars, reserving hotels and entertainment, as well as the health requirements in the country of destination.

They also provide an extensive database for the airline, since they contain information about its customers which affects the way the aircraft is configured - the percentage of smokers, seating preferences, cabin distribution, who is financing the trip, payment with or without a credit card, etc. - all of which is essential for analysing and meeting demand.

This information is currently an essential part of the process of analysing new management projects, where a thorough knowledge of real-time sales is required so that fares can be set at an optimal level.

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2. GDS systems currently in operation

The large American airlines originally had their own GDS because of their large volume of traffic. In the 1980s, however, in order to benefit from economies of scale and to allow one airline’s flights to be marketed by another, there was a wave of mergers between various airlines’ GDS systems.

In Europe, the situation is completely different. Due to the smaller volume of traffic and in reaction to the large North American GDS systems, the companies set up two non- discriminatory GDS systems: AMADEUS (Air France, Iberia, Lufthansa and SAS) and GALILEO (British Airways, KLM, Swissair and Alitalia). The world GDS market breaks down as follows:

No of sales GDS Airlines with holdings in GDS systems outlets Terminals

Amadeus Iberia - Air France - Lufthansa - SAS - Continental Airlines 33 293 93 147 Galileo United Airlines - British Airways - Swissair - KLM - USAir - 30 161 115 454 Alitalia - Olympic Airways - Air Canada - TAP - Austrian Airlines - Aer Lingus Sabre American Airlines 29 277 119 956 Worldspan Delta Airlines - Northwest - Transworld Airlines 14 102 45 104 AXESS Japan Airlines 6 195 11 340 Abacus Singapore Airlines - Thai Airways - Cathay Pacific 4 200 10 500 Infini All Nippon Airways 6 195 7 770 GETS SITA’ 3 150 126 573 403 271 Total

Source: INECO and others. I SITA is a telecommunications company.

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STRUCTURE DU MARCHE MONDIAL DES GDS Abacus

CO/ Amadeus

Sabre Galileo 23% 24%

This chart shows that the GDS systems with the major share of the market are AMADEUS, GALILEO and SABRE, which together cover 73.26% of travel agencies and 81.48% of sales outlets.

3. GDS systems in Europe

In Europe, the systems in operation are AMADEUS, GALILEO, SABRE, WORLDSPAN and SYSTEM ONE, the first three taking the majority of the market, as can be seen from the following chart:

VENTILATION DE LA DISTRIBUTION PAR .. TERMINAUX

GALILEO

Y -10 WORLDSPAN SYSTEM ONE 5% 0%

A more detailed analysis of the European airlines' GDS systems, AMADEUS and GALILEO, will now be presented.

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The AMADEUS GDS

The Amadeus reservation system became operational in 1989; it was founded by Air France, Iberia, Lufthansa and SAS.

In 1990, they were joined by a further 14 airlines: Air Inter (France); Linjeflyg (Switzerland); Finnair (Finland); JAT and Adria Airways (Yugoslavia);Braathens Safe (Norway); Icelandair (Iceland); Luxair (Luxembourg); Emirates (United Arab Emirates) ; Air Mauritius (Mauritius); Thai Airways (Asia); Royal Air Maroc (Morocco); Austral (Argentina) and LTU (Germany).

It has a holding company structure with three subsidiary companies: a development company, a marketing company and an operations company. The holding company and marketing company are based in Madrid, the operations company in Munich, and the development company and two marketing departments in Sofia Antipolis near Nice.

Initial investment in the project was about USD 300 million, of which USD 160 million was for hardware, developed by IBM, and USD 140 million for software, developed by System One, the GDS of Texas Air and EDS. Each airline involved spent USD 3 million on connecting and adapting its systems to the network.

The products offered by the system include:

- Amadeus Direct Access: provides the reservation system with real-time access to 26 airlines for booking purposes.

- Amadeus Cars: provides information on 28 car hire companies throughout the world with direct access to Avis, Hertz, Budget and National.

- Amadeus Hotels: allows reservations to be made at 13 000 hotels from 60 chains.

- Amadeus Tariffs: a guide to fares through the United States system.

- Amadeus Info: provides tourist information related to the journey.

- Amadeus Neutral Display: provides purely factual information on the airlines in the system. A listing is produced showing place of departure, destination, flight duration and stopovers; the information is presented in order of departure time, with preference given to direct flights.

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The GALILEO GDS

The GALILEO INTERNATIONAL reservation system was formed in 1993 by the merger of Galileo international and &via Partnership. It is distributed in North America, Mexico and Japan under the name APOLLO, and in the rest of the world as GALILEO.

The present owners of the GALILEO INTERNATIONAL system are Aer Lingus, Air Canada, Alitalia, Austrian Airlines, British Airways, KLM, Olympic Airways, Swissair, TAP, United Airlines and USAir.

Galileo’s main products and services are:

Booking services

Connection is provided to more than 550 airlines (170 of which by direct access), 30 000 hotels and 47 Rent-a-Car companies. “Global Fares” is a fare payment system. The “Room Master” service gives travel agents easy access to information on 30 000 hotels worldwide, while “Car Master” allows integrated car hire management anywhere in the world.

Access products

Galileo access products make it easier to connect terminals and install the necessary hardware and software, and include help and advice for travel agents.

Document issuing

The booking service allows the booking procedure to be carried out in full, which enables air tickets, itineraries and invoices to be printed.

As we have already seen, the airlines are shareholders in the GDS systems. However, there are also companies which distribute GDS systems in certain countries. These are called “national marketing companies” (NMCs) and their main shareholders are the airlines in the country concerned, although some rail companies such as DB, FS and SNCF also have holdings. The remaining shareholders are tour operators and shipping companies.

- 251 - PE 167.055 Logistics systems in combined transport

The diagram below shows the major NMCs in Europe.

The services offered by the NMCs include:

- User-server connection - Network maintenance and troubleshooting - Terminal equipment.

- 252 - PE 167.055 Logistics systems in combined transport b) Economic aspects of GDS distribution

Overall, GDS reservation systems are profitable. In 1986, for example, the Sabre system of American Airlines generated profits of USD 178 million from revenue of USD 372 million (48%), and had more than 200 clients, 80% of whom were not North American companies, while United’s Apollo system generated profits of USD 136 million from revenue of USD 318 million (43%). The policy of alliances between GDS networks reduces costs and encourages market growth.

The average cost of GDS systems works out at approximately 1% of the total cost of the ticket. Since distribution costs (agency commission, publicity, GDS and so on) represent about 20% of the cost of the ticket, it is estimated that GDS systems account for more than 5% of distribution costs.

According to the interviews and questionnaires, airlines consider overall distribution costs, and in particular GDS costs, to be excessive, which is something of a paradox. It is difficult to understand this attitude, since GDS reservation systems are very profitable, and because their capital belongs to airlines, the profits are passed on to them. The answer might be that airlines find GDS systems expensive if they do not own them.

Due to the profitability of GDS systems, companies which have little or nothing to do with air transport have been buying into them over the last few years. For example in 1990, Texas Air sold 50% of its System One GDS to EDS, a private telecommunications company.

GDS companies are, however, trying to minimize costs to increase profitability. One of the main problems, for example, is due to a peculiarity of air transport: bookings being cancelled. GDS companies do not in fact charge for cancelled bookings and, according to statistics, these number almost 50% of total journeys and are on the increase. Some systems have therefore responded by charging a minimum of USD 0.14 per cancelled booking.

The expansion of air transport means that GDS companies are reaping larger profits and at the same time increasing their basic tariffs. This is surprising in the light of the competition that exists between GDS systems, and especially with the Americans, who have been accused by the European GDS companies of unfair competition.

This competition is the reason for attempts by European and American GDS companies to “colonize” the Asian markets in particular by forming alliances with local GDS companies.

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c) Legal aspects

The intention of legislation on GDS systems is twofold: firstly to prevent any monopolistic practices and, secondly, to ensure that information on all airlines is available and displayed in an appropriate order on the monitors.

In fact, to increase profits within each of the distribution networks, the European, Asian and American systems have developed plans to exchange holdings. In 1990, Galileo bought a 38% stake in Covia (United’s GDS); at the same time USAir bought an 11.3% stake and Air Canada a 1% stake. Covia bought a 30% stake in Gemini (Air Canada and Canadian). Amadeus signed cooperation agreements with Abacus (airlines in Asia), while it formed an association with Infini, the GDS of All Nippon Airways. Amadeus merged with System One, which gave it a presence in 14% of American agencies. Galileo merged with Apollo and thus became the second largest travel agency network in the USA. Sabre is pursuing a policy of expansion, mainly into Europe but also into the hotel market, and is in the process of moving into rail ticket bookings.

The merger of certain companies’ GDS systems was threatening to create an oligopoly, however, obliging the authorities to intervene.

Such was the case with the attempted merger of Sabre of American Airlines and Datas I1 of Delta Airlines in 1990. The Department of Transportation forbade the merger of the two systems, as they would have cornered almost 50% of the market. However, mergers of smaller companies’ GDS systems have been authorized, such as the merger between Datas I1 (Delta Airlines) and Pars (Northwest and TWA), creating Worldspan, which had a market share of 15% at the time of the merger.

At the beginning of the 1980s, the two largest American GDS systems, Apollo of United Airlines and Sabre of American Airlines, prepared to enter the European market. The Association of European Airlines took evasive action, thinking that it might lose control of its distribution systems, given that GDS users could, it said, manipulate the information on the screen to their own advantage, by putting their flights first. It has been shown that 80% of bookings are made from the first page of the GDS and 50% from the first two lines.

Since this was a form of discrimination, the US Department of Transportation introduced certain regulations to forbid the practice in 1984, which were not very successful and were revised in 1990. In Europe, this practice is prohibited under competition rules. Nonetheless, altercations between companies about discriminatory practices frequently take place. In 1992, for example, American Airlines complained to the Department of Transportation that Iberia’s systems did not comply with the agreement on non-discrimination and sought to have Iberia’s licence to fly to Miami revoked and its expulsion from all the United States’ GDS systems. Previously, Iberia had sought a ban on the Sabre system, which was employing discriminatory practices to benefit American Airlines. The European Union supported Iberia by threatening to ban all American companies from European routes and thus forced the two companies to make peace.

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In theory, all airlines now have the right for their information to appear in any GDS, regardless of which company it belongs to. In 1989, the Community took action against Sabena and KLM to ensure that they included the smallest companies in their GDS systems, and the legislation stipulates that all flights must be listed on GDS screens.

d) Ticketing in air transport

Since air travel began, ticketing has developed from the old handwritten ticket issued by the airline to “ticketless”and “chipcard”systems. There is a trend towards simplifying procedures and passenger information, which optimizes revenue and above all reduces distribution costs.

In chronological order, the first tickets to appear were handwritten, as indicated above. This type of ticket is issued by the airline, bookings being made via a connection with the airline’s offices, in the majority of cases over the telephone. It is thought that this type of ticket will disappear completely over the next three years.

Then in the 1980s, the TAT/OPTAT ticket came into circulation. This ticket already has a series of three numbers pre-printed on it, and when it is issued the printer adds ten more. This system does not allow the inclusion of a magnetic strip, with its concomitant advantages.

The greatest progress in ticket quality came with the addition of a magnetic strip on which all the flight information was recorded, and which had the added advantage of minimizing boarding time. Thus in the mid-l980s, first-generation ATB or ATBl tickets were put into circulation. The boarding card is issued separately and also has a magnetic strip. Towards the mid 1990s, attempts were made to improve what ATBl could do by increasing the system capacity, which in addition made the information recorded on the magnetic strip easier to read. As already stated, the use of ATB-type tickets has considerable advantages for the sector, improving ticket-issuing and boarding times, staff availability and real-time management and allowing yield management to be improved. This new ticket-issuing technology also allows fraud to be reduced.

This was the background to the emergence of ATB2, which came on stream at the end of the year for certain specific segments.

New types of ticket such as the electronic ticket, or “ticketless”,and “chipcard” systems, as well as the Internet, will be analysed in section 4, which deals with future plans and trends.

IATA predicts that 90% of tickets will be “smart” by 2005. GDS companies are more reticent, however, since the advantages will be felt only by travel agencies, airports and airlines.

- 255 - PE 167.055 Logistics systems in combined transport e) Air transport distribution through travel agencies

1. Characteristics of air transport distribution through travel agencies

Air transport distribution is costly for airlines. Originally, airlines distributed their own tickets; later on, to increase the market and reduce costs, travel agencies were given the task. But airlines are currently contemplating a reduction in distribution costs based on reduced agency commissions.

Airlines traditionally prefer a mix of options, whereby the majority of their tickets are sold by agencies and the remainder by a network of the airline’s own offices. Around 80% of sales are made by agencies, 15% by the airline itself and the remaining 5% by other companies. For example, in 1990 British Airways had a network of 40 offices and its products were also distributed through more than 8700 agencies, generating more than 80% of its revenue.

Travel agencies play an important role in an airline’s business, since they distribute 80% of its products. However, the majority of agencies have no link with the airlines. They are free to favour one or other of the airlines, depending on the market. This has led to a cold war between the airlines, which try to curry favour with the large distributors so that they will give their flights priority over their competitors.

A case of vertical integration arose recently in Spain with Viajes Halcon, a travel agency which has its own airline. It has specialized in a very specific market which benefits from economies of scale.

There are currently more than 140 000 travel agencies throughout the world with direct access to the Sabre, Worldspan, Amadeus and Galileo systems.

Favouritism is clearly encouraged by installing GDS systems in travel agencies. In fact, in most EU countries, travel agencies have a high percentage of access to the national airline’s GDS, as can be seen from the following graphic.

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EUROPEAN TRAVEL AGENCIES' ACCESS TO GDS SYSTEMS

1 AMADEUS GALILEO

! i i

1 -M) -80 -40 -M 0 20 40 00

Source :Elaboration INECO.

This situation has arisen because a country's agencies rely to a large extent on the domestic and international flights operated by its own airlines. Cases of national airlines exerting pressure on travel agencies to use their GDS system have been observed.

Furthermore, agencies tend to have more confidence in the information in a computer database if it is provided by the national airline than if it is provided by other airlines. Booking procedures are also quicker. For these reasons, setting up GDS systems in agencies generates loyalty and repeat business.

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2. Economic aspects

In 1978, before liberalization, the commission on agency sales was between 4 and 5%. In 1990, airlines had to pay up to 20% of the sale price to agencies in certain markets, although the average in Europe was 13%.

An agency commission is made up of a fixed rate commission, which in EU countries fluctuates between 9 and 10% for domestic flights and 7 and 10% for international flights, and a commission for a set number of sales and a set rate of growth over previous years. This system is attractive for large travel agencies organized in a network and for international tickets.

Interviews with airlines have shown that they are aware that travel agency commissions are high, and that the higher they are, the more control the airlines lose over the product.

In the USA, attempts have been made to set a maximum commission rate, but travel agencies threatened to stop selling the tickets of the airline seeking to impose this measure. However, the commission appears to have fallen slightly on domestic US flights (9 to 10%).

Another way in which airlines can reduce commissions is to offer net rates to the travel agencies and let them decide on the commission that they will pass on to their customers. This practice is common in the USA. There are also moves to reduce the commission paid on a set number of business class or first class sales.

3. Legal aspects - code of conduct

The control that travel agents have over the products can lead to practices which are detrimental to comumer interests: agencies try to sell the products which bring in the most profit in terms of commission. The airlines are aware of this behaviour and therefore offer bonuses to agencies if they sell their products, resulting in a commission war. It is clear that the greatest loser is the final customer, who does not obtain a ticket for a shorter, higher-quality journey at a lower price, but rather one which it is in the company’s interests to sell. The European Commission has produced a code of conduct for travel agencies which states that they must inform the customer of all the alternative ways of making the requested journey.

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2. Distribution in the rail transport sector

In this section, passenger rail transport distribution is analysed and the differences between the distribution methods used in the rail and air sectors highlighted.

The first part presents an analysis of the current data transmission network and the national rail ticket distribution systems. The technical and economic characteristics of the systems and the services they provide are then examined.

The second part contains an analysis of the marketing methods employed in passenger rail transport, which - with the exception of high-speed services - are different from those used in air transport. In fact, 75% of tickets are booked and sold in the companies’ offices and 25% in travel agencies, while 80% of air tickets are sold in travel agencies and 20% in the companies’ offices.

Finally, there is a summary analysis of trends in rail ticket marketing.

Rail transport ticketing depends on the type of service offered (suburban, regional, long-distance and high-speed) and on the rail company or operator; there is no standard as in air transport.

a) Rail distribution

Although the railways developed before air transport, the latter is more advanced. This is particularly true of the air ticket distribution systems (GDS), which offer a greater number of services than the rail distribution systems, known as Computer Reservation Systems (CRS), due mainly to the fact that since the 1950s airlines have been marketing-oriented, while most rail companies in Europe, organized as national networks, have experienced more difficulty in operating on a commercial basis.

The American airlines, privatized in the 1950~~set up GDS systems to improve their sales, and the European airlines, the majority of which were state-owned, imported these systems and created their own versions. In the case of passenger rail transport, the technology has not been imported from the USA because of the sector’s slow development there.

Recent years in Europe have seen moves to privatize rail freight and passenger services, and to provide access to new transport operators. The European Commission has drawn up legislation on this subject, Directive 91/440 being the basic text. This refers to the separation of infrastructure management and transport operations, with a move towards running on commercial lines. As a result, railways will tend to behave in the same way as airlines in the future.

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Consequently, whereas passenger air transport has a major international dimension and requires integrated information concerning airlines in other countries, in the case of passenger rail transport, the information is produced in the country itself. In fact, international passenger services account for between 10% of total journeys in large countries and 40% in others, in particular those whose geographical situation means that they have a relatively long border.

According to the networks’ statistics, international transport is becoming more important due to the development of high-speed rail lines on international routes.

1. The communications infrastructure linking the European railways

Most European railways, currently 14 of them, are linked by the Hermes network, as described in Chapter V. Not all the railways in the EU are part of the network, for example Ireland and Greece are not included, but conversely other non-EU countries, such as Slovenia and Slovakia, are connected.

At present, the technology allows the booking systems of the various rail companies in the Hermes network to be interconnected; the difficulties experienced with the booking procedures are therefore mainly due to problems of a commercial nature and inadequate training of ticket sales staff, which slows down booking and sales procedures.

2. Characteristics of the rail CRS systems

CRS systems are generally internal distribution systems used by each national network, as GDS systems were originally, which means that they can book and sell their own company’s tickets without any difficulty. The majority of current management systems, however, do not allow access to real-time information on the occupancy level of a train on another network, which means that the rail companies cannot offer lower prices to fill up a train, as the airlines do with their aeroplanes.

A telling statistic is that the average occupancy level of a train is 40%, while for a plane it is 70%. Improving the sales system for high-speed trains has meant that higher figures have been achieved, approaching those in the air transport sector. As a logical consequence, this has had a favourable effect on these railways’ finances.

The system does allow bookings to be made by computer in other countries, but because the timetables in the system are not updated often enough, it is common for physical documents to be used and paper versions of timetables consulted, if they are available.

Some GDS systems, such as Amadeus, incorporate the rail networks’ timetables, which makes it possible to book international journeys through a travel agency, but this is not possible in rail companies’ offices or at stations.

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CRS systems were born in the 1980s out of the national rail companies’ need for a central booking system. Improvements to these systems have resulted in a second generation of CRS systems, which have become established over the last few years.

The systems used by the main European railways are:

Country System

Germany KURS’90 Belgium SABIN Spain SIRE France SOCRATE Italy SIPAX Netherlands SABIN (l) United Kingdom BR-TRIBUTE ESP-TSG

(1) Expected to become operational in the Dutch railways in 1997.

The main reservation systems are KURS’90 and SOCRATE, the German and French systems, which are the most extensive because of their length of track and the large number of international services that they operate.

The reservation systems can:

- provide timetable information - make single or multiple bookings - issue individual or group tickets - manage seat availability on a given service.

Most of the systems are made up of several independent, non-integrated subsystems, one to calculate fares, another to make bookings and deduct a seat from the list of those available, and another to provide timetable information.

Traditional systems allow seat availability on a given service to be managed, as it is possible to calculate the number of free seats in the train from the number of recorded bookings.

SNCF has pioneered a new type of reservation system which is similar to a GDS. This is the Socrate system, currently operational and used by the Swiss railways on international routes through France, by Thalys operating international links with Belgium and the Netherlands, and by Eurostar for managing part of the traffic passing through the Channel Tunnel.

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The Socrate system was developed from the Sabre system of American Airlines and has been adapted to the needs of rail. It has not been marketed to other rail companies, however, mainly because of its high cost, problems of a commercial nature, and the fact that each country has its own system.

The high cost of Socrate is essentially due to two factors: the cost overshot the initial budget because of technical problems, and it had been thought that this was an investment which could be written off later by the product being marketed to other European railways. This was the aim of the joint venture set up between American Airlines and Socrate and known as Resarail2000.

The Socrate system allows revenue to be managed, a process known as “yield management”; it therefore applies the philosophy of air transport management to the rail mode.

The Socrate system incorporates real-time management of timetables, seats, availability and fares, the latter allowing special offers to be issued in real time for a particular day and route. As in air transport, information is provided about the passenger, giving an insight into passenger types, preferences and methods of payment.

When this system became operational, a certain number of technical defects came to light, which have since been ironed out. The main obstacle to its working smoothly at the start was preparing ticket sales staff, as they had not received enough training to be able to use the system. They also had to adjust mentally to the new way of working, quite different from the traditional rail distribution system.

Due to the development of CRS systems and the information highway revolution, it will certainly be difficult for the railways to set up a system similar to GDS. Although it would have made sense for all the European railways to build a GDS in the mid 1980s, there is not much point today; it is better to take advantage of new technology such as the Internet, which is much easier to use, the language being a great deal simpler than the codes that are used in GDS systems.

Even if the railways do not create systems similar to GDS, it does not mean that they should not be connected to existing GDS systems, as will be seen in section 3.

Current technology allows you to reserve a seat on an international train if you are in another country; between Amsterdam and Munich, for example, the Hermes network works perfectly well. However, it is only possible to book a ticket if you are in a country whose national company - which issues the ticket - has commercial agreements with the national companies of those countries in which the train will run.

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3. Economic aspects of the CRS systems

Since the rail companies’ reservation systems belong to the companies themselves and are used internally, no commission is payable, as it is with airlines’ GDS systems.

The improvements which need to be made to CRS systems should be directed towards optimizing management so that fares can be set depending on the competition from other modes, and not according to “distance by rail”, the method traditionally used by European railways hitherto. Some high-speed services are already more marketing-oriented, however, and take account of the fares of other modes on a certain route.

Rail companies have made it obligatory to reserve seats on high-quality services such as on European high-speed trains.

This change of direction in revenue management has allowed new fare structures to be introduced which differentiate between passengers. This means that the demands of those requiring a higher level of quality and service can be met, subject to payment of a higher fare.

This system can improve the railways’ finances, as a fare structure can be used based on peak and off-peak periods, with services in line with market prices. To optimize the process, yield management systems are essential.

Communications are tending to become less expensive because of reductions in international rates, which may have implications for the railways. The Internet could bring a much more substantial reduction; in the opinion of certain operators who have been consulted, the savings from using this system could be up to 60%.

b) Marketing passenger rail transport

The main sources of revenue for travel agencies are air transport and hotels, which is another way of saying that rail transport has never been a good source of revenue and has remained quietly in the background.

The travel agencies’ limited involvement has taken the form of specialization in certain areas:

High-speed services. These are long-distance, high-quality services. This means that passengers can go to the station with their tickets and do not have to find a seat, queue, wait, etc.

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International services. In large European countries such as Germany, Spain, France and Italy, an international journey usually involves spending a night on the train. In such cases, reservations are made in advance at travel agencies.

Journeys included in a tourist package. Obviously, if the package is sold by the agency, the rail element is included in it. Travel agencies which offer the customer added value tend to dominate.

Business trips. Although the preferred mode for business travel continues to be air transport, high-speed train services are starting to be used in certain corridors and airhail intermodality is developing.

Passengers of this type use the same travel agencies for their air and rail tickets; these offer them a better service and are familiar with their preferences.

The capillary-like distribution provided by the network of stations and travel agencies can be provided by the Internet. Travel agencies should integrate into this system and offer its advantages to their customers. In fact, Internet users are more likely to print out the timetables and fares (if available) and then go to a travel agency or one of the company’s agencies and ask for a certain ticket. This mixed formula of information over the Internet and reservatiodsale through traditional channels may have a bright future, once the problems of confidence in the network’s security have been solved.

Internet applications will be examined in more detail in section 4 of this chapter.

As stated in the previous section, some companies offer benefits to passengers who make bookings over the Internet, because in theory the reduction in distribution costs should be reflected in the fare paid by the traveller.

Rail companies are already on the web. If the experience of the Canadian rail company Viarail is anything to go by, whose tickets are booked and sold over the Internet, this tool could stimulate sales, due to increased promotion of rail products and the planning of inclusive journeys. This company’s statistics show that its Internet site has a million “hits” per month, but the number of actual bookings is only a small percentage of this, as some of these “hits” are related to “virtual” journeys.

Since reservations over the Internet were authorized, however, sales have increased by 15%, and the conclusion is that being on the web brings in passengers.

- 264 - PE 167.055 Logistics systems in combined transport c) Ticketing in rail transport

The type of ticket depends on the company or operator issuing it (i.e. there is no standard as there is in air transport) and on the type of service or ticket being offered; tickets for suburban services are different from those for high-speed train services.

The UIC has studied the possibility of introducing a new type of ticket called RCT (Rail Combined Ticket), which combines the ticket and reservation in a single document. The studies resulted in the design of the RCT1, currently used by the operators SNCF, SCNB, CFF and EPS.

These systems allow a magnetic strip to be included on the ticket, which stores all the information that the networks need.

The UIC’s Ticket Action Group (TAG) has developed a ticket incorporating new technology called RCTZ, which is more advanced than the previous version, in the same way as ATB2 is an improvement on what ATBl can do. In general terms, the improvements of RCT2 over RCTl lie in the way the ticket is printed, which makes fraud more difficult and gives the user easier access to maximum information.

3. Intermodality in passenger transport

This section analyses rail/air intermodality, and in particular the possible ways in which intermodal tickets might be distributed. Firstly, there is a brief account of current experience of intermodal transport in Europe, together with the technical aspects of connecting the air GDS and the rail CRS systems. The marketing of intermodal tickets is then examined. a) RaiVair intermodality in Europe

In Some countries, the quality of high-speed train services has attained the standards of air transport, meaning that intermodality has become of interest to the user. This has led to intermodal travel becoming a reality in Europe, allowing the advantages of both modes of transport to be exploited.

Current situation

The advantages of intermodal transport have been felt since high-speed trains came into operation over 10 years ago, especially in countries such as Germany and France where high- speed trains are more developed.

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If the railway station is in the airport, or if the two are connected or have good links, intermodality is made vastly easier.

At some airports, such as Paris-Charles de Gaulle, there is an adjacent station for high-speed trains. Usually, though, the airport is connected by conventional or suburban rail to the high- speed train station. The characteristics of each of these modes mean that it is logical for airports to be located more than 20 km from the city centre and high-speed train stations to be in the centre, where they benefit from rail facilities and have improved access to the city centre, an argument in their favour when competing against air transport.

Intermodality between air and conventional rail is more frequent because the railway acts as a feeder and air provides the long-distance transport. However, regional airlines operating over distances of less than 600 km are ahead of conventional rail in this segment.

In the case of high-speed rail, however, the rival rail mode offers excellent services over these distances and competes successfully with air, as seen for the Paris-Lyon and Madrid-Seville routes.

Over the next ten years, with the construction of the European high-speed train network and the modernization of rail systems, a significant increase in intermodal airhail traffic is expected.

b) Distribution in intermodal transport

Intermodal transport is currently held back by problems related to distribution, as the GDS distribution systems used in air transport are not compatible with rail’s CRS systems and employ completely different ticketing structures.

Experimental distribution schemes and pilot projects are under way with the aim of facilitating intermodal transport, but in most cases it is not yet possible to obtain an intermodal ticket.

1. Technical aspects: connection methods

While GDS systems are companies, mostly belonging to airlines, which are interconnected and allow access to all airlines’ information, the rail CRS systems are not really integrated and reservations and sales on international routes still prove difficult.

On top of these technical difficulties, intermodal distribution is faced with the problem of differing commercial approaches towards air and rail distribution: while air distribution is based on advance bookings and involves frequent cancellations, booking a rail ticket means blocking a physical seat on the train.

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The tendency seems to be towards rail distribution being integrated into air transport systems; indeed, high-speed trains are in the process of adopting the criteria used in air transport.

Air transport’s distribution structure, with the GDS as the system and the travel agency as the channel, seems more sound than that of rail transport, since GDS systems are now COM&~to airlines and most travel agencies. Another factor in their favour is that they incorporate access to other services such as hotels, car hire, etc.

It seems obvious, therefore, that integrating the two systems will involve adapting rail’s CRS technology and incorporating it into GDS systems, rather than the alternative of building up a new integrated system.

There are several possible ways in which the air and rail distribution systems might develop.

The rail CRS systems evolve substantially and transform themselves into more GDS systems; it therefore becomes possible to access information and distribution functions in the same way as for air transport.

This hypothesis would entail a complete change of approach towards distributing rail tickets. But it could not be introduced across the board: it would be absurd to require a suburban ticket to be reserved. There is little chance of this alternative being implemented, as it is unlikely, for reasons of cost, that the railways will set up new GDS systems.

Access to rail systems from GDS monitors. This solution is the most economically viable as it minimizes travel agencies’ costs: they can access the national rail companies’ systems from the terminal connecting them to the GDS networks.

The two systems may appear on the same screen, but they are not currently interlinked and it is not possible to search for optimal intennodal solutions for a certain route or to issue intermodal tickets.

Access of this sort is relatively straightforward and is negotiated through commercial agreements between the GDS systems and rail companies in each country. Generally, the rail companies conclude agreements with the GDS systems in use in the country’s travel agencies, with the aim of guaranteeing better distribution of their product. An example of this is the agreement between Amadeus and the Spanish railways, RENFE.

Part 3 of this section indicates the connections between the various GDS systems and national rail companies.

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Development of interfaces between the GDS systems and the national rail systems. Protocols are being developed which would allow access to each of these systems in such a way that information on the railways would be available on the air systems’ screens.

For this to work, interface technology needs to be developed, and this will be different for each rail company and each GDS. To link the main GDS systems in Europe - Amadeus, Galileo and Sabre - and the 15 rail companies in the EU as well as private operators which use different distribution systems, more than 50 different interfaces would need to be developed.

This technique does not allow intermodal tickets to be issued, but since the information on the screen is in the same language, it is at least possible to find an optimal way to make the journey.

Projects to develop some of these interfaces are in progress.

Simultaneous distribution of intermodal tickets. Experiments along these lines are under way, with train tickets being sold which carry airlines’ codes. A few years ago, Lufthansa operated full rail services between two German towns.

This formula only makes sense for high-quality train services (high-speed trains). Lufthansa has now allocated air codes to rail services, so that tickets of this type can be distributed in the same way as air tickets. A similar experiment is in place between Paris-Charles de Gaulle and Lille airports.

Code-sharing is more common in air freight transport, as airlines use their own flight codes for the lorries bringing goods to the airports and therefore have a record of the whole of the consignment’s route on their computers.

This system incorporates fares, timetables, station codes, train capacity and air service parameters, which means that a substantial amount of harmonization work will have to be done to bring it into line with IATA’s codes.

GDS systems and European rail companies’ CRS systems integrate via the Internet. For this to become a reality, rail companies and GDS systems would have to be on the web; this is entirely feasible, if the trend observed in recent years continues. On-line companies could be set up, as mentioned in the chapter on GDS systems, could be set up, which would assemble information and facilitate booking for each of the modes of transport.

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Ticketless or electronic ticket. Establishing a single intermodal ticket-issuing system will involve reconciling two different commercial approaches. In addition, rail tickets are not standardized, which means that it will be difficult to find a Europe-wide solution for inter- modal distribution. The possible answer is for air and rail companies to introduce the electronic ticket.

Travellers would obtain a code for each leg of the journey and a journey itinerary; once at the station or airport, the code would allow them access to the services. As will be seen in section 4, there are still legal obstacles to this being introduced generally.

2. Economic aspects: the cost of connections

Most of the scenarios for the introduction of intermodal distribution analysed in the previous section involve additional costs for distribution. It is necessary to assess these costs and the proportion of them which should be borne by the various players.

GDS companies should invest in the development of the interfaces necessary for the information to be pooled through their systems. Converting timetables, fares and system capacity into a valid format which GDS systems can read would be up to the rail companies. Along with the travel agencies, they should be the most interested in developing these interfaces.

Once these interfaces were up and running, thereby giving the rail companies access to distribution through the GDS systems, this would be paid for by the rail companies, as is the case in air transport distribution.

Cases of unfair competition against the railways might occur, since the GDS companies are owned by the airlines.

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3. Connections between current systems

The following diagram shows the connections between the rail companies’ distribution systems and the European GDS systems Amadeus and Galileo.

AmAMADEUS m Accxs GALILEO

ACW AMADEUS et GALILEO

Reseau national non acccsible AMADEUS et GALILEO I

The trend is for rail companies to be incorporated in the GDS systems with a majority of the European market, shown by the fact that commercial negotiations are taking place to arrange for the railways’ distribution systems to be accessed from the GDS systems.

This venture may be disrupted if travel agencies become connected to the Internet and access the rail distribution and GDS systems in that way. However, the Internet still presents problems of user-confidence and security as well as speed and availability, although these will surely be resolved in the near future.

- 270 - PE 167.055 Logistics systems in combined transport c) Marketing intermodal tickets

Amongst the services offered by travel agencies are the booking and sale of air and rail tickets, hotel reservations and car hire.

In the case of tourist packages, a distinction can be drawn between those with a large number of potential customers, which the tour operator buys at the beginning of the season and which agencies undertake to distribute to the general public, and so-called “a la carte” packages, for which a smaller number of customers are prepared to pay more and which consist of planning an unusual trip with different features from those on offer to the general public.

Travel agencies play a crucial role in their distribution because they benefit from offers and can act as brokers, thus securing better prices for their clientele and acquiring a large number of tours which they sell on to their customers.

In the second case, their experience enables them to advise their customers and provide them with a better tourist package, since arranging the best possible tour depends on their skill and experience, since it is necessary to assimilate the information which appears on screens and in other documents.

The air GDS systems have incorporated information on airlines, hotel reservations and car hire; all that remains is to integrate national and international rail travel on the agencies’ screens, thus optimizing the possibilities and obtaining computer access to special offers.

That is why agencies will be increasingly less important as middlemen between airlines and customers, which they have been over the last 30 years, and will become companies providing complete services for tourist trips.

Those travelling on business trips wish to optimize their travelling time; given the high-quality, high-speed services developed by the railways, the need to integrate these services on the screen is ever greater.

Travel agencies do not offer this type of service independently; they mainly depend on commercial agreements between rail companies and GDS systems.

1. Distribution of intermodal tickets by travel agencies

The main beneficiaries of intermodal distribution through agencies will be rail and GDS companies and travel agencies.

If it is integrated into GDS systems, the potential of the rail market will be increased, especially for bookings made from other countries. At present, this process is ridden with deficiencies because the two systems are not integrated, making it difficult to offer the possibility of travelling by rail for one leg of an international journey.

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By way of an example, consider a traveller from South America, where there are no high- speed railways, coming to Europe on holiday. He will be very keen to use this system, being aware that it is competitive with the air system.

In countries such as Germany, France, Italy and Spain which have a few high-speed lines, it is worthwhile distributing these products, and travel agencies are especially interested in distributing intermodal products.

GDS companies need to invest in the design of interfaces between rail distribution systems and their own standards. In return, they will earn a similar percentage of ticket sales revenue as they do in air transport. Subsequently, they will receive the same percentage and achieve higher sales, which means more revenue.

Travel agencies will derive benefits in the same way as they do from GDS systems, i.e. as sales increase, commissions will increase too, and although variable costs will also rise, higher sales will bring fixed or general costs down, allowing optimal use of staff, monitors and time.

Airlines might be thought to suffer, since air transport could lose some business because of the railways entering the general distribution network.

But looked at another way, integrating rail transport in the distribution systems could stimulate the use of air transport. In our example, if one leg of the journey is by high-speed train, this might act as an incentive to travel. The major airlines derive huge profits from filling large aircraft on intercontinental routes, and they might therefore increase their profits, despite losing some of the market in domestic flights.

On the other hand, in countries with high-speed lines where international airports and airline hubs are used, towns which do not have an international airport are connected by high-speed rail, which is competitive in terms of price and time with air travel.

Passengers will benefit from direct competition between train and plane, with better prices and more services, giving them more choice of when to travel.

It seems obvious that the development of intermodal transport has advantages to offer for all those involved in travel distribution: rail and air companies, GDS systems and passengers. It seems reasonable to ask why the technology has not yet been developed, and why commercial agreements have not been concluded making intermodal distribution a reality today.

There are two possible answers to this question: firstly, commercial agreements are problematic, in particular because the air sector operates on the basis of stricter commercial criteria than the rail sector, which in Europe generally consists of national companies. Secondly, offering intermodal services requires rail transport to be integrated, and there are currently commercial obstacles standing in the way.

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Section 4 analyses how the Internet can be used as a tool for distribution in general. Travel agencies need to take advantage of this tool for intermodal transport, as in the next decade it will be essential for a travel agency to use the Internet anyway.

2. Economic aspects of marketing intermodal tickets

As for air transport, travel agencies can negotiate better prices for intermodal transport than users dealing directly with the company or booking over the Internet, which has not yet led to a cut in prices. Travel agencies could in fact act as brokers by buying a large number of tickets at a lower price and selling them on to their customers.

Large travel agency chains would be likely to do this, but small ones do not have enough customers to do so and should therefore form associations in order to have access to these prices and thus survive.

As stated in the previous section, if intermodal distribution were integrated into a single system, travel agencies would be able to reduce their costs and use their resources more efficiently.

To increase their clientele, travel agencies could pass on these savings to their customers by bringing down ticket prices, or by introducing a frequent traveller card and points- collecting scheme for free travel to cultivate customer loyalty, as the airlines have done with so much success.

The commission which the travel agencies can command for distributing integrated internodal transport will be the sum of the commissions for each leg of the journey, as described in the corresponding sections. However, it is generally considered that travel agency commissions should be reduced (this is starting to happen in the United States), which is why it is possible that the final commission on an intermodal journey will be less than the sum of the commissions for each leg of the journey.

This reduction will be more likely once integrated internodal distribution has become established, as the percentage of rail transport sales made through travel agencies will rise above its current 25%.

. The chances of this happening are increasing thanks to the plans to construct new high- speed train lines in Europe for the next decade, because the proportion of high-speed train tickets distributed through travel agencies is nearly as high as that of air tickets (80%).

This situation will affect travel agencies’ economic situation and will change their approach towards distributing various types of rail journeys. Terminals will be rationalized, as will rail companies’ sales counters and staff.

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4. Trends in distributing and booking tickets

This section will analyse the new technologies that will influence ticket distribution in air, rail and intermodal transport.

The major revolution is the emergence of the information highway due to more and more people having Internet access at home or at work.

The impact of new ticketing technologies in the transport sector will also be analysed, including in particular the ticketless system and chipcards, and their implications for GDS systems and travel agencies will be assessed.

a) Booking and sale of air, rail and intermodal tickets via the Internet

At present more than 100 million people have Internet access via 16 million terminals.

The number of users is expected to increase steadily, and in the near future a high percentage of travellers are expected to have access to this tool at home or at work.

It is only very recently that it has become possible to book and sell air and rail tickets over the Internet. The practice started in the United States two years ago and most airlines’ timetables can now be consulted via the Internet; in some cases, it is also possible to book and purchase tickets in this way.

This practice is increasingly widespread and companies which do not yet offer this service are in the process of doing so, to avoid losing their market.

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European flag-carriers currently offer the following on-line services:

Airline Services available on the Internet

Air France Timetables

Aer Lingus Timetables

Austrian Airlines Timetables and availability

British Airways Timetables. Booking and sales for UK residents

Finnair Timetables

Iberia Timetables and availability Last-minute offers (“Entrando en pista” programme)

KLM Booking system in collaboration with Northwest using Compuserve, which sources information from Worldspan and Sabre

Lufthansa Own timetables and those of its competitors Booking and sales for frequent travellers

Luxair At the time of writing, technical difficulties prevented connection to its website

Sabena Timetables

SAS Timetables, availability, booking and sales

TAP Information not available

Internet research by the author.

Annex 8 contains the findings from visiting various airline sites on the Internet.

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Most people who consult timetables or make bookings via the Internet at present do so to make “virtual” journeys, i.e. they have Internet access and enough free time to plan hypothetical journeys. Some companies such as Lufthansa have set up a page for these “virtual” journeys with such people in mind.

It is noticeable that in Europe, airlines are more selective about granting access to booking and ticket sales services than in the USA; they restrict access to residents or people with a frequent flyer card.

Internet sales are more advanced in the USA; airlines’ sales statistics are beginning to show figures of between 1 and 5% for Internet sales.

1. On-line sales

On-line sales are defined as those concluded by telephone or modem and which provide up-to-date booking information.

These services access the airline’s booking information via their own program or through specialized companies.

The middleman is just as likely to be an independent company (PCTravel or ITN at Raleigh and Palo Alto respectively) as a GDS member such as Sabre’s Travelocity.

These systems offer more information than traditional Internet systems and have the advantage of being interactive. Another idea is to screen advertisements, but this has not yet been implemented because companies fear a negative reaction from users.

A disadvantage of ITN’s systems is that they do not require information on the traveller’s current account before making the booking, which could lead to fraud or deception caused by a rival company filling a plane with fictitious passengers.

United Airlines has been a pioneer in this field with its “Connection Program”, which provides direct access to its reservation system, Apollo. In 1996, it hoped that 1% of its bookings would be made by this means, corresponding to sales of USD 25 million. 70% of bookings are thought to be made in respect of “virtual” tickets. 30% of tickets on domestic flights are purchased using this system, which represents 1.5 million passengers. Its objective for the year 2000 is to sell 25% of its tickets in this way. The actual figure for 1996 was 5%.

Southwest, its major competitor on the west coast, introduced this system in 1996 and is known to sell nearly 40% of its domestic seats by this means.

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USAir has adopted the same system through its “Priority Travel Works” programme. Distribution is much more restricted, however, as this service is only open to what the company terms “Elite” passengers, those who travel more than 30 000 miles a year.

Northwest and Delta are going to provide access to their GDS system, Worldspan, on the domestic market. Continental is also developing the on-line market and will provide access to booking and ticket sales facilities, but not to its GDS.

These systems are already beginning to spread to the large distribution networks. For example, United Airlines, British Airways and USAir offer frequent flyers access to their Apollo system. A joint initiative by the member airlines of Galileo is expected soon. Amadeus has also set up its own web page on the Internet.

2. Economic aspects

The main beneficiary of passengers using the Internet to reserve or buy tickets is the airline, as a direct Internet booking costs the airline about USD 2, while a GDS booking costs an average of USD 3.50 and a telephone booking as much as USD 15.

Airlines have not, however, exploited the Internet as much as they could have done, because they need travel agencies to ensure that most of their products are marketed.

Using some on-line systems does cost something; for example, Delphi costs USD 0.59 at peak and USD 0.42 at off-peak times, although most companies prove to be cheaper.

Internet users should derive some benefit from booking and purchasing tickets via the Internet, given the savings airlines make on distribution costs. Up until now, however, no airline has offered reduced fares on flights booked over the Internet, only special offers on certain flights.

Airlines have developed a reward scheme, with a points system for frequent flyers, since this has been well received in other promotions.

For example, for each ticket booked using KLM and Northwest’s Internet reservation system you receive between 500 and 1000 points. Another example is American Airlines’ Easy Sabre system, which offers 500 bonus points for each booking.

Since Internet provides direct access to companies’ information, if planes are not full it is possible to offer the remaining free seats at lower prices, bearing in mind that these seats are more difficult to fill. This practice is more frequently employed by American companies such as USAir, Northwest and American Trans Air, but some European companies such as Finnair publish various offers for their flights on the Internet.

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Iberia has incorporated its “Entrando en pista” programme into the network. This gives the flights on offer for the following day, with their flight code, departure and arrival times, and price, which is considerably more reasonable than the cheapest fare (by between 30 and 70%). Annex 9 contains the output obtained on 17 July 1997.

Similarly, there are “last minute” travel agencies which offer better prices by taking advantage of opportunities such as those mentioned above.

There are also plans to hold auctions for air tickets on the Internet. If an airline was certain a few days in advance that it would not sell a set number of seats, these would be published on the airline’s network. Interested Intemet users would send their bids to a web address before a certain deadline; at a predetermined time the bids would be opened and the tickets sold to the highest bidders.

The various ways of obtaining cheaper flights mentioned above benefit airlines, travel agencies and users. The idea is to fill the planes whatever the price; airlines cover their flight costs with first class, business class and 50% of economy class tickets, which is why they can offer the remaining seats at substantially lower prices.

The Intemet’s reach makes it the ideal way to promote these last few seats. Over the net, travellers can find out about the latest offers, either directly or by dialling a reservations telephone line published on the web. Airlines, travel agencies and private organizations are all in fact setting up web pages with special offers on flights. This marketing method could improve airlines’ economic performance and is possible because the airline knows the load factor on each of its flights in real time and can thus optimize yield management.

3. Technical aspects

The main technical problem is Internet access, since it is not enough to have a computer; a modem and Intemet provider are also needed. It is also necessary to know web addresses and how to use the Internet.

Airlines are reluctant to market their flights on the Internet because of problems related to information security and payment methods, which in some cases have not yet been resolved. Mastercard, Visa and Microsoft have introduced the SET protocol, a method for making payments over the net.

British Midland has been the pioneer here, offering booking and payment services on the net thanks to Netscape software which incorporates an encryption system. This system has been developed by major airlines and has become established in recent months.

- 278 - PE 167.055 Logistics systems in combined transport b) Ticketing in the future: ticketless and chipcard systems

This section analyses new advances in transport ticketing, in particular the ticketless system or electronic ticketing and chipcards or prepayment cards.

The study covers the economic, technical and legal aspects and also those factors influencing whether passengers will want to use these tickets.

1. Ticketless systems or electronic ticketing

As already seen, tickets have gradually improved and are now equipped with magnetic strips - the ATBl and ATB2 systems for planes and the RCTl and RCT2 systems for the railways. The next step will be travellers without tickets. Pilot projects are under way using this type of ticket.

The ticketless or electronic ticketing system involves the passenger receiving a reservation code when booking over the telephone. Information about the journey may be sent by fax or e-mail. When the passenger goes to the payment office with the code, a boarding card is issued.

Ticketless systems may be used in various different ways by different companies, but the main objective is the same: to reduce air and rail companies’ distribution costs.

The ticketless system conducts transactions directly with the airline. This procedure means that no paper is issued unless the user requests a receipt or an invoice by fax.

Ticketless systems have taken root successfully on many domestic flights in the USA. In Europe, many pilot projects are under way, such as Iberia’s on the Madrid-Valencia route.

This ticketing system is more appropriate for domestic flights where the reduced boarding and waiting times are of greater benefit.

2. Chipcards or smartcards

This system involves passengers having a prepayment card (some airlines such as Lufthansa and SAS give chipcards to frequent flyers). The system is quite widely used in Europe, but less so in the USA.

Passengers swipe the chipcard through a reader; since it is a prepayment card, the ticket is billed directly to the chip. A chip-readiig system using an electric arc is currently being developed by Lufthansa, which will mean that passengers will not have to take their cards out of their pockets.

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Similar thinking lies behind prepayment cheques, which offer a special price on a certain route. These cheques usually provide between 10 and 20 coupons, i.e. between 10 and 20 flights. This does not save the airlines anything in terms of distribution costs, however; it is more of a commercial initiative which is of benefit to frequent flyers. An example of this system is Talonair, developed by Spanair, a Spanish company partly owned by SAS.

Chipcards currently in circulation amongst users are as follows:

Lufthansa has distributed 100 000 magnetic chipcards to its frequent flyers and hopes to increase this number to 250 000; the magnetic cards act as tickets and not as boarding cards.

KLM hopes to introduce them at the end of 1997 and is investing USD 6 million in the project.

British Airways offers its “E-Ticket” service across its domestic network. A pilot project has been running since 1996 on the Heathrow-Dublin route.

SAS has introduced cards on its domestic market which allow prepayments of USD 14 000. It has sold nearly 1000 cards, which represents 2% of the total domestic market.

Small airlines have not been left behind; the French airline AirJet offers services of this kind on the Paris-Charles de Gaulle - London City route.

3. Technical aspects of the ticketless and chipcard systems

Chipcards work by recording information on any transactions and feeding this data into a central database. Ticketless systems work through a direct connection with the airline’s computers.

This distribution method cuts down on time spent waiting to board, which is why it has been adopted by airports and airlines. At Frankfurt airport, installing these systems has reduced boarding times by more than half (from 45 to 20 minutes).

Innovations of this type are a threat to travel agencies because they mean airlines are less dependent on them to distribute and sell their tickets.

4. Legal aspects of the ticketless and chipcard systems

Electronic ticketing should cause distribution costs to fall substantially. Travellers have a unique reference code which they produce at the airport along with a piece of identification; they are given an electronic card, which saves time and money and increases security. Savings are put at USD 10 per journey.

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As well as saving money on printing tickets, which requires expensive printers, electronic tickets offer airlines advantages such as shorter boarding times, quicker revenue management and greater processing control, which imply considerable cost reductions.

The financial advantages for travellers are not as great: since they have no ticket, penalties cannot be imposed if they lose it, and airport taxes could also be reduced.

It is clear that a revolution is taking place in this field. This will have a considerable influence on the way in which airlines sell their products and will affect costs.

In the USA, it is hoped that 30 to 40% of flights in 1998 will be marketed using electronic tickets, and that two years later the figure will have risen to between 50 and 60%, reducing travel agencies’ share of the market by 85%.

Travellers do not obtain either a receipt or an invoice unless they request one. Since they have no ticket, the requirements of the Warsaw Convention are not being met, nor those of immigration control in certain countries, where tickets are required to be presented.

Another problem is security, as travellers do not have any documents to validate their tickets. This should be easy to resolve, however.

5. Psychological aspects of the ticketless and chipcard systems

On domestic US flights, the electronic ticket has been more successful than expected, being used for almost 40% of flights, partly because a large proportion of flights in the USA are domestic. In Europe, the ticket has met with less acceptance, due to psychological factors influencing passengers.

The main factor is the feeling of insecurity felt by travellers if they go to a station or airport without a physical ticket. This negative aspect affects those travellers who are less accustomed to using this mode of transport, since as well as being familiar with the facilities and procedures, frequent travellers try to optimize their waiting and transfer times.

When travellers are not happy with the way they have been treated, they can complain to the travel agency where they bought their ticket. Agencies usually know their customers well and will try to solve the problem. However, if they buy an electronic ticket, travellers are not so sure to whom they should address their complaints in the event of a problem.

Moreover, although work is in progress to make credit card data completely opaque, users are reluctant for their codes to travel across the network.

- 281 - PE 167.055 Logistics systems in combined transport c) The future of GDS systems

GDS systems have not remained static in the face of the Internet boom; on the contrary, most of them have been restructured using new protocols to adapt them to the new information systems.

Worldspan and Sabre currently have access to the information highway via Compuserve. European GDS systems have been more cautious about putting their products on the Internet, however. The main reason for this could be that the Internet is more widely used in the USA than in Europe, and that Americans are more comfortable with using new technology.

Nevertheless, the European GDS systems, Amadeus and Galileo, have opted for a mix of ways of providing Internet access with specific applications, the main feature being the involvement of travel agencies.

The procedure is as follows: the GDS companies develop a system which they deliver to NMCs, which then distribute the product to travel agencies for a low fee (USD 10 to 20), and finally the travel agencies distribute it to those customers who request it.

The advantage for GDS companies and airlines is that travellers can plan their prospective journeys from home, which could increase the number of journeys made with the airline concerned.

Travel agencies benefit from selling the product, since when they distribute the product to their customers they add their own code, which means that they are credited with commissions.

With some of these systems, it is possible to access the GDS databases from anywhere in the world, using a portable computer or mobile telephone and for the price of a local call.

The timetables and possible flights appear on the computer screen (in Windows) and users can select the flight they want.

The systems allow customers to express preferences, such as their priority criteria for selecting a ticket (date, fare, airline), the preferred class, smoking or non-smoking, meals and seat, and to enter their credit card number to pay for the journey.

The latest technology to be introduced into the system allows a seat to be chosen using a diagram of the aircraft, the seats already taken being marked with a cross.

The advantage of these systems is that they offer direct sales via the Internet and through the travel agency. Travel agency commission costs are not avoided, which means that there is no reduction in distribution costs.

Airlines will only be able to offer the same reductions through these systems as they can for bookings made directly over the Internet.

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These products show that GDS companies have not remained unaware of new technology such as the Internet, but have taken advantage of the information highway and satellite communications to improve the way in which they supply their products.

Moreover, GDS systems are well established in travel agencies; more than 75% of travel agencies are currently connected to a GDS. Groups of travellers can be formed, and the system allows group tariffs to be obtained. GDS systems allow the whole trip to be planned, as they provide access to hotel and car hire databases, etc.

Lastly, it is necessary to consider the wave of capital investment in GDS systems by private companies, mainly from the telecommunications sector, who might also be customers in the near future, benefiting from economies of scale.

d) The future of travel agencies

In the 1950s, there were 25 million travel agency customers, travelling throughout the world; in 1990, there were 425 million. The World Tourism Organization has predicted that in the year 2000, there will be 637 million.

Travel agencies employ a total of 130 million people worldwide, generating USD 3 billion.

Travel agencies started up more than a century ago and have witnessed all the major changes in the world of passenger transport, from flights coming on the market to GDS systems coming into operation. They are currently the main channel of air transport distribution, selling 75% of flights in Europe and 80% in the USA.

The rest are sold directly by the airlines and over the Internet in the USA (1 to 3%).

Travel agencies are the main distributors for air transport, since airlines need a distribution network to complement their sales outlets in large cities or airports.

The figures are reversed for rail transport, i.e. 80% of tickets are sold directly and 20% through travel agencies. Statistics show much lower Internet sales in the USA, while in Europe this distribution method does not yet exist to any significant extent.

This breakdown is mainly due to two factors: firstly, the type of ticket, which is often for a suburban service where it is not necessary to book and the ticket is bought at the station; secondly, there is a much denser network of stations than of airports and, since there are points of sale in most stations, tickets are bought there.

Most bookings for high-speed trains, on the other hand, are made through travel agencies, in similar proportions to air ticket sales, i.e. 75% through travel agencies and 25% at stations or in company offices.

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The number of agencies worldwide has increased at a rate of 6.5% a year since 1978 (by 172% altogether) reaching 75 000 in 1995. However, revenue has only increased by 75% over this period. Revenue from bookings has fallen by 36% and the number of passengers making bookings by 26%.

Competition from electronic distribution systems and the maximum commission rates imposed by certain airlines are two further causes of their difficulties.

In the United States, 60% of their revenue comes from airlines (the remainder is from train and hotel bookings and car hire).

Does this signal the end of travel agencies? Perhaps not. Travel agencies are perhaps quicker to react to change than airlines. Most will set up on-line sales programmes on the Internet.

Travel agencies seem to be prime contenders; they have good customer knowledge and some of them have introduced customer loyalty schemes, either on their own or in association with an airline.

There are three possible scenarios at present:

The agencies manage to survive the changes and turn themselves into virtual companies offering Internet-based services to airlines, including electronic tickets, etc., taking advantage of their breadth of experience with travellers.

Some agencies may develop their own on-line tools, while also offering their own services to frequent travellers. In this scenario, airlines might lose control of distribution and have to work in association with the large distributors.

The advantage of this scenario for airlines is that it would remove secondary services from the agencies’ activities.

In the second scenario, airlines dominate distributors thanks to their combination of on- line systems, GDS systems, smartcards, self-service ticketing and yield management. They offer their services directly to the public via GDS systems, computers or other means (interactive television, Internet, etc.).

The problem with this scenario is the possibility of consumers refusing to move over to this type of system.

Travel agencies, on the other hand, would only capture 20% of the market in a very specific field.

There is a third and more unlikely scenario, in which passengers assume control. They access the airlines’ GDS systems directly using a modem, making distribution networks obsolete.

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In this case, airlines and agencies have to seek new ways to market and sell their products. This may seem excessively futuristic, but AT&T and Official Airline Guides have signed an agreement to develop a system making it possible to have real-time access to all available information on all airlines using a modem.

At the moment, all these scenarios are possible and it is to be hoped that the situation will become clearer in the near future.

1. Technical aspects

The next step is for travel agencies to use the Internet. This system provides them with a much simpler working tool than those they currently use (GDS systems). At the same time it offers multimedia facilities, such as displaying photographs of the hotel being booked, menus, etc.

However, until the infrastructure is adapted, the Internet will remain quite slow compared with GDS systems.

Travel agencies are trying to improve their quality, as they make mistakes on almost 25% of fares, 20% of availability enquiries and 15% of timetable enquiries.

2. The European Union’s code of conduct

The European Union’s code of conduct (Commission Regulation No 3652/93 of 22 December 1993) is in force from 1 July 1994 to 30 June 1998. The European Commission started preparing proposals to amend the code of conduct at the beginning of 1996.

-The code of conduct aims to eliminate “mistakes” made by GDS systems in favour of airlines with a financial interest in them. It also requires travel agencies to display all the travel options, and under no circumstances only those which pay the most commission.

It is difficult to ensure that the code of conduct is being applied, however, and to check that an agency really is offering all the products to its customers.

In addition, it would seem logical to legislate for the emerging rail CRS systems.

3. Economic aspects

Travel agencies are criticized by airlines for taking excessive commissions on ticket sales. This criticism has gained currency with the advent of the Internet as a means of booking and selling tickets.

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Travel agencies blame the high cost of GDS systems for airlines’ high distribution costs. On the one hand, it seems logical that GDS companies should reduce their charges, given that they are profitable enterprises. But it should be borne in mind that of the 18% distribution costs, travel agencies collect 12%, and reducing GDS charges would therefore not be as effective as reducing travel agency commissions.

On the other hand, travel agencies can command higher prices because of their professionalism, their contact with the market, and their ability to buy a larger number of tickets which means that they can act as brokers.

This factor means that travel agencies can benefit more from the Internet. To do this, they need to prepare their staff to search for bargains on the Internet.

To reduce distribution costs, it was thought that airlines could bypass travel agencies and sell their products directly to customers over the Internet.

But if users cannot expect reduced prices, what reason is there for them to use their own PC, pay telephone and Internet subscription charges, and use their own time to secure a price which will perhaps be the same as that offered by travel agencies?

It has been shown that bookings made through travel agencies are less likely to be cancelled than those made over the Internet, which is another way of saying that, at present, agencies are the most efficient intermediaries.

Travel agencies should also sell their products with the customer rather than the airline in mind, i.e. they should try to sell tourist trips or packages, areas where the Internet cannot compete, since it has not incorporated all these tourist ideas and this type of holiday requires a personal service.

To encourage people to use their services and to cultivate customer loyalty, some travel agencies have introduced loyalty cards, offering free travel, accommodation or car hire in exchange for points. It is possible for large travel agencies to launch a promotion of this kind, but for small agencies to be able to offer the same advantages, they need to group together and form a consortium.

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Chapter VI11

GUIDELINES AND RECOMMENDATIONS FOR THE DEVELOPMENT OF COMBINED TRANSPORT

With the aim of developing and stimulating combined tramport - and hence intermodal transport - the European Union is pursuing a number of approaches which have yet to reach a satisfactory conclusion.

In this sense, it may be said that the development of combined transport in Europe is still at the embryonic stage.

Combined transport can be said to be well received by the various interested parties - such as shippers, transport companies and operators - when it brings them significant savings in their transport operations. This favourable attitude is shared by the public authorities, and the EU has welcomed it as a new mode of transport which is compatible with both the environment and sustainable development.

Developing this form of transport is no easy matter, however, since the very competitive position already held by road transport and the demand for quality from customers have highlighted the need to find suitable ways of enabling combined transport to acquire a significant share of the market at appropriate and competitive prices.

To achieve this objective, cooperation and understanding are needed throughout the transport system in order to optimize the whole transport process in a systematic way.

The competitiveness of combined transport can and must be guaranteed by improving its efficiency through research covering transshipment, vehicles - such as wagons - and the most effective ways of loading them, the operation and coordination of services, telematics and customer information, and not least by providing a quality service for its users.

Another approach lies in education and training to overcome the limitations resulting from the problems of applying technical innovations in the market. In this context, difficulties are being experienced because of the lack of harmonization in the EU countries, as well as problems associated with vested interests, but there remains a challenge for the EU to develop combined transport. Cooperation between modes is needed as a basic precondition for taking action, so that none of the parties involved in the transport sector feels affected by discriminatory practices or special treatment as part of the development of intermodality; the shift away from road haulage as the sole mode of transport and towards combined transport should imply no breach of the principles of competition, and should mean that combined transport is accepted as a “friendly” mode which can be used by any operator who respects the principles of sustainable

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Any action which is taken will have its drawbacks and will provoke a reaction from some of the parties affected, but the role of the European authorities must be to reduce the scale of these and encourage cooperation.

This chapter presents a number of guidelines and recommendations, some of which have already been implemented by the EU, with a view to promoting the combined transport of goods and stimulating passenger traffic, especially in the air and rail sectors. The measures proposed in the form of guidelines and recommendations are set out here in the order of the chapters of the study, together with some general points which do not fall readily under particular technical headings.

Combined transport infrastructures

The development of combined transport infrastructures in Europe is being carried out in parallel by two different bodies. On the one hand, the EU has established the trans-European networks; on the other, the UN’s Economic Commission for Europe has produced the European Combined Transport Agreement (AGTC).

The AGTC is further developed, dealing as it does with highly technical issues such as: axle load, speed, length and capacity of trains, clearance profiles, terminals and so forth, as well as identifying various frontier crossing points - with or without changes of track gauge - and transshipment ports.

The efforts being made by European and international bodies to define a network of combined transport infrastructures should be pooled to enable them to benefit in terms of synergy and from the studies previously carried out; our recommendation is to proceed on the basis of the AGTC, which has already been signed by most European countries.

This would involve the negotiation of a legal and technical framework by the bodies concerned - the EU, UN and ECMT - with the involvement of the UIC and the European railway administrations, leaving the national networks to define terminals and coordinated routes with neighbouring countries in respect of their own territory.

The main objectives of this integrated network, bringing together the EU’s TEN for combined transport and the UN’s AGTC, are as follows:

- definition of seaport and inland port terminals in the integrated network, to facilitate the establishment of multimodal terminals:

- ranking of intermodal roadrail terminals within the network;

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- definition of main routes with their technical characteristics:

clearance profiles and internodal techniques which can be used (dual mode, semi- trailers, dimensions of containers, etc. capacity and length of trains speed axle load;

- identification of frontier crossing points of common European interest, with emphasis on those involving a change of track gauge and transshipment for short sea shipping.

The definition of routes coincides with the recommendations contained in the White Paper for establishing “freightways”, a number of which have already been proposed.

However, the conditions to be met by these routes need to be defined in greater detail. It is very important to define the technical and commercial specifications for combined transport services. Similarly, there should be an advance survey of rail routes which can use the technique of stacked containers, while recognizing the problems in introducing this because of the current state of European rail infrastructure.

Integration of the different modes is necessary in order to define a network of nodal points which can offer value-added transport services such as concentration and distribution, in the same way that the Europlatforms network has developed, offering logistic services based principally around road haulage.

This approach has been adopted by a number of port authorities, which have developed logistic hubs to provide added value for goods handled in their ports.

This aspect of the transport process is mainly suitable for private ventures, with the level of involvement by the public authorities varying between countries.

The planning of a network of multimodal logistic hubs must be carried out from an international rather than a purely European standpoint, since the globalization of the economy is having a major impact on container services in ocean trades.

A wide range of parties are involved in the design and construction of transport centres in Europe, since there is also competition in terms of local and regional planning, which makes it difficult to plan nodal transport infrastructures in a methodical way.

It is extremely important firstly to coordinate regional policies within a national approach and, secondly, to Coordinate national policies with a view to developing international logistic hubs.

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On the basis of this plan, it is both possible and desirable to produce a league table of logistic hubs and terminals according to their range of functions, the requirements of demand and transport operators, and the criteria of local and regional distribution.

With a view to clarifying private and public sector participation and ensuring non- discrimination, criteria should be laid down for logistic hubs and terminals to be regarded as “of Community interest’’ and thus qualify for European aid or funding.

It is proposed that any infrastructure or terminal receiving Community aid must be public, i.e. guarantee legal access to any operator meeting the necessary requirements.

If a terminal is privately owned or operated, it will also be eligible for Community funding provided it allows access to third-party operators.

The ranking and classification of combined transport terminals - seaport / inland port / road / rail - which are recommended for the integrated network are already being used by the international operator Intercontainer, which has a main network of terminals.

The criteria for ranking would include the following:

modes participating in the terminal accessibility of the integrated network handling capacity and equipment of the terminal volume of current and potential national and international demand technical characteristics of the services:

dimensions of trains type of trains: direct, shuttles, individual wagons techniques in use (containers, semi-trailers, dual mode, swap bodies) computerization and control quality of services and processing.

The definition and ranking of a network of maritime and inland Euroports should take the following criteria into account:

strategic location of international routes - volume of demand and adequate handling capacity - good access to rail and road networks.

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In all cases, the principles of competition and non-discrimination must be respected in the granting of public and Community assistance. As with other terminals, Community financial aid for Euroports should be available where the port terminals provide public access for any operator.

Combined transport techniques and problems arising from dimensions of intermodal units

One of the main characteristics of intermodality is the use of intermodal loading units, but there is considerable diversity in their dimensions, which need to be harmonized so as to increase productivity and profitability by exploiting synergy with other modes of transport.

The main thrust in terms of intermodal techniques would be to increase productivity by harmonizing dimensions, optimizing the loading of rolling stock, and seeking to develop more efficient transshipment terminals.

Operators have an interest in boosting their productivity, one approach being to increase unit capacity. With the help of the Community, and in some cases with their own private funding, they are developing more competitive prototypes. In this way, operators often introduce technical innovations which put them well ahead of standardization bodies such as CEN and ISO, whose procedures are more cumbersome.

For this reason, we recommend more contact between bodies such as IS0 and CEN, equipment manufacturers, operators and the UIC, with a view to working together on prototypes from the outset, thereby enabling IS0 and CEN to have a clear idea of what is likely to become available.

Such links can be established through conferences and workshops, as well as ongoing contacts and exchanges.

One indirect means of increasing the potential for combined transport is to promote the containerization of goods through aid for research in sectors producing general cargo which is not transported in containers or intermodal loading units, either because of inherent difficulties or simply because it has not been the practice in the past.

Harmonization involves both the internal and external dimensions of intermodal loading units.

- The harmonization of internal dimensions is necessary because in many cases, optimum loading is impossible because of the variety in pallet sizes. Indeed, the globalization of the economy is resulting in additional costs in ports because the lack of standardized pallets makes it necessary for goods to be re-stowed.

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We recommend that the loading units used in international transport should be changed to containers suitable for carrying standardized pallets. This will avoid containers returning empty because of difficulties in standardizing loads, thereby saving operating costs and increasing revenue.

In general terms, it should be pointed out that an internal width of 2.48 m is preferable to the 2.44 m width of IS0 series 1 containers, which presents difficulties with the handling of loads.

- The harmonization of external dimensions is a very complex matter, since it affects many elements of the intermodal transport system and has a major impact on both investment and operations.

The introduction of IS0 series 2 49' containers is having a considerable effect on transport by sea, inland waterway, road and rail in Europe, ranging from the need to invest in infrastructure and modify terminal equipment to cuts in revenue and transport capacity for ships, barges and rail wagons and problems of safety and efficiency on the roads.

There is a clear market trend towards the introduction of IS0 series 2 24.5' containers of 2.48 m internal width, since this may resolve the incompatibility in the standardization of European pallets.

Besides the IS0 series 2 (24.5') container, we are seeing the introduction of 45' swap bodies, which we believe should be encouraged as a move towards harmonization and greater technical compatibility of standards.

However, we do not recommend the general use of IS0 series 2 49' containers in the short term.

The above recommendation concerning IS0 series 2 49' containers does not mean that their introduction will come to a halt, but that it should be deferred. The change of system is likely to produce a sharp increase in productivity, but their introduction must take place selectively and in a progressive and systematic way, with very careful planning because of the sizeable investment that is involved.

It is recommended that the decision should be held over until the equipment, vessels and rolling stock currently in service have been technically amortized, since containers of different sizes will exist alongside one another for some time to come.

On selective routes where their introduction would be advantageous, private financing should be exploited, since Community funding would not in principle be available.

The very nature of intermodality makes it necessary for research to be started up into universal standardized containers and stackable swap bodies which are capable of being used in sea, inland waterway and land transport, i.e. road and rail.

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This research can be carried out jointly by the international bodies involved in land and maritime transport, such as the UIC, under the aegis of the European Union and the ECMT.

Because of the different intermodal units currently on the market, we suggest adapting the AGTC by defining the routes on which the various techniques can be used:

- rolling road - dual mode - large containers (IS0 series 1 and 2) - stacked containers - swap bodies (45') - freightways together with the measures needed for their use in the corresponding terminals and networks.

Following the lead taken by the PACT projects, we recommend that intermodal transport should continue to be encouraged by providing support for the following kinds of measures:

- coordinated action and investment in rolling stock by networks and rail operators with a view to optimizing the load factor of wagons; - conversion of wagon platforms to increase productivity; - planning of new intermodal terminals; - increasing the capacity for intermodal transport; - installing equipment and simplifying operations at transshipment terminals; - technical innovations relating to intermodality.

At present, given the current trend and the state of projects under way, the automation of intermodal transshipment terminals is not feasible because it requires a very large outlay and substantial volumes of demand which have not yet been achieved.

Organization of the combined transport market in Europe

The combined transport market in Europe is shared between Intercontainer and the UIRR for international routes and between the national railway networks for domestic markets. Some other private operators also carry out combined transport, mainly in international traffic.

The largest increases in intermodal activity are occurring on international routes, in particular around the major European ports.

There are good prospects for growth in international combined transport in Europe, and the measures to allow in new operators are likely to increase competitiveness (Directive 91/440). However, the national markets involving shorter distances require a different approach because of their range of individual features, and we therefore recommend specific aid measures to develop national and smaller regional markets which are less attractive to private enterprise.

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The large and increasing road haulage element in European transport means that this mode is a potential source of combined transport. For this reason, the road haulage sector must regard combined transport as an ally and benefit from the favourable attitude of public opinion and the Community authorities.

The progress made by the UIRR is most satisfactory and a good example of road haulage participation in combined transport.

We attach particular importance to achieving a greater degree of collaboration by encouraging roadrail agreements as one of the principal means of securing intermodal traffic.

Cooperation at institutional level between the UIRR, the UIC and the Community institutions is certainly an approach that will benefit combined transport.

The aim of bringing new operators into the market is to increase competitiveness. In this context, the US Act of 1991 on intermodal transport (ISTEA) has shown that, in the case of the USA, non-regulation is the best way to get results. In Europe, with the necessary changes, measures such as increasing productivity should be introduced to make combined transport more attractive.

On the other hand, the Community institutions must keep an eye on the possible adverse effects on employment of the rationalization of operating undertakings. In this context, Social Fund aid might be provided to cushion its impact.

The opportunities being created by Eastern Europe lead us to recommend a strengthening of technical and commercial cooperation with the Eastern European countries and the granting of aid for links with these countries to reinforce combined transport activity.

Strategic alliances are being set up between the main ocean shipping lines involving multinational pacts which will have a great impact on the major trades. These alliances include:

- American President Line (APL) - Mitsui Osk Lines - Oricut Overseas Container Lines - Nedlloyd Lines, under the name of “Global Alliance” - Maersk - Sea Land - Hapag Lloyd - Neptune Orient Lines - Nippon Yusen Kaisha - P&O Containers.

Other maritime operators are forming alliances on various routes to offer more frequent sailings and to exploit the capacity of the new super-large container ships of 6000 TEU, going up to 8000 TEU now at the design stage.

The operation of the ocean trades by large alliances gives them enormous power, in the sense that they could control the markets and be tempted to establish agreements on rates.

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The European Commission will have to keep a close eye on these agreements and make sure that there is free competition, giving particular attention to the impact on the marine terminals at the European ports, some of which might benefit while others would not, leading to a distortion of competition.

This situation is even more significant where the ports are to be included in the TENS, and any aid from the European Funds must take account of possible distorting effects on the maritime transport system.

Many marine container terminals are privately operated in favour of certain shipping companies, thus preventing other operators from using them, a situation which benefits the larger groups.

One course of action recommended to the European authorities would be to fund aid for port marine infrastructures and landward access in such a way as to guarantee access for any operator who so wishes to infrastructures where aid has been provided, failing which they would be denied access to the market.

We therefore recommend that once the ports of Community interest in the TENS have been identified, the existence of public container terminals qualifying for Community aid should be guaranteed.

In the same way, strategic alliances between public and private rail operators in intermodal European-scale operations are being set up outside Intercontainer and the UIRR to operate on certain routes and specific corridors. In the opinion of those internationally involved, this is the route to follow and will take shape in the-immediate future.

These alliances are relatively easy to set up on corridors and routes where conditions are appropriate and there is adequate demand to guarantee the economic viability of intermodal services. But there is a risk that they will occur only on a restricted number of services and that the infrastructure improvements will be of benefit only to a very small part of the market. For example, it is logical to assume that shuttle services and corridors joining busy container ports will be assured of success, but where demand is lower, competition will hamper the development of strategic alliances between operators.

On average, individual wagon services account for 40% of activity in the rail sector, an example of a market sector which is less profitable and therefore less attractive to operators.

Concentrating traffic on specific routes and corridors and providing additional facilities for individual wagons is an approach now being adopted at European level by Intercontainer, the promotion of individual wagon services being linked to the prospect of lower costs (DB’s Cargo Sprinter); this should enable the great potential of individual wagons to be exploited.

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We therefore suggest that encouragement should be given to alliances designed to develop specific routes and comdors on the lines already adopted by operators, by giving special support to the “freightways” described in the trans-European networks and the White Paper and by providing greater encouragement to operators offering favourable treatment to individual wagon services, which are less attractive to operators but constitute a sizeable share of the market. The need is to facilitate the supply of large corridors and to encourage and not disdain small-scale traffic in individual wagons.

Interoperability, management and data-processing systems for combined transport

Sound management of combined transport in Europe requires technical and data-processing harmonization of the various systems currently used in maritime, inland waterway, road and rail transport so that full interoperability is achieved in all technical and documentational aspects.

At the moment, the trend in Europe is towards making data-processing systems compatible. There have been certain problems, mainly in telecommunications where competing firms are putting their own interests before those of their users, even though compatibility is perfectly feasible.

The same cannot be said of signals, installations and rolling stock in rail transport, which are produced by different manufacturers but can still be used together, ensuring compatibility and freedom of competition.

The development and management of combined transport will therefore rely on the promotion of compatible, integrated technologies, so that any operator who is entitled to have access to the market will be competing on an equal regulatory and technical footing.

On the subject of communications as an essential technology, it is vital for the development of high-quality combined transport to promote synergy between the various modes and to harmonize computer messages, protocols and applications through the various competent bodies in order to solve the problems of data security and reliability.

Promoting rail interoperability in Europe will also have a beneficial effect on combined transport interoperability. For this reason, action should be pursued in the following areas:

- introducing automatic gauge changing on networks which have different gauges (Iberian peninsula, Russia, Finland) for goods trains, as has already been done for passenger trains (Talgo);

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- continuing research into standardized signalling which is compatible with different systems. This should not prove difficult because of the high level of compatibility which already exists between the European manufacturers. The benefits are clear in terms of improved operation, economies of scale and driver training;

- cooperation should be encouraged here between the various European bodies: ERRI-UIC already collaborate closely with the EU, and the standards bodies and equipment manufacturers are working on projects relating to train management and control systems (ETCS) and traffic management (ERTMS).

There have been many examples of how useful such cooperation can be. For example, the Eirene project, which was originally developed by just a few European rail companies, has now expanded to include almost all of them and has promoted harmonization through the use of common or similar techniques.

Similarly, all the studies on harmonization for high-speed trains are also directly applicable to conventional railways.

- Use of multivoltage locomotives on international routes involving different voltages to improve rail operations and reduce transport times.

- Promotion of exchanges between drivers and encouraging drivers to learn foreign languages.

We suggest that automatic equipment identification should become generally used as a means of significantly improving operations, starting with international freight wagons. Account should be taken of the experience of the UIC here, and its experts should be involved.

As regards containers, automatic identification of intermodal units should become generally used in all modes of transport with compatible information technologies. This is an extremely useful and important measure, since it provides clients with accurate information in real time.

Organizing international combined transport in Europe in the form of corridor operations will allow the establishment of freeways as set out in the Commission White Paper.

The development of international combined transport in Europe will require action on the following lines:

- minimizing customer-operator dealings (“one-stop shops”’);

- greater consideration of the commercial aspect with the establishment of new rate-setting systems to replace the current UIC formula. In practice, this means introducing reductions and tariffs which are more closely in line with the situation on the market and with a simpler structure;

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- exploiting the commercial opportunities offered by the Internet: an excellent meeting point for products and services. Websites can bring contact with markets and customers who do not use the traditional commercial channels:

- general use of the system of environmental and service quality certificates as set up by certain authorities. Such measures can increase an operator's share of demand. Aid could be granted by the Community bodies to operators who take steps to obtain certificates issued by the standards organizations and the UIC;

- encouraging private management in terminals, even though this will be difficult in view of the predominance of public management in Europe's terminals. It is linked to the implementation of Directive 91/440/EEC. It must be emphasized that the terminals play a key role in that they represent access to the network for operators.

On the subject of documentation, the following action is recommended:

- simplification of documentation, promoting the use of specialized data-processing products by all networks in order to benefit from synergy and economies of scale;

- encouraging documentation interoperability within each mode of transport and between the different modes. In particular, a common international carriage of goods contract should be introduced for all modes;

- supporting the general use of compatible electronic documentation by firms ("paper zero"');

- introducing and promoting the general use of on-line computer links with clients and users to facilitate billing, accounts and cargo monitoring using compatible data-processing systems in order to provide better management and customer service;

- setting up staff training programmes in the computer processing of documentation, and dealing with "cultural" problems arising from the introduction of new technologies in f inns .

The scope offered by the Hermes Plus system, used by the rail administrations, has not been properly exploited; it should therefore be used more intensively to develop rail and combined transport. Its under-utilization is not just quantitative but qualitative, and its full potential for commercial and management applications must be exploited, using its data-processing and telecommunications infrastructure to improve quality of service and interaction with clients.

We therefore recommend integrating all European networks into Hermes Plus and speeding up the exploitation of all its potential applications. We also suggest, in line with the conclusions of the Intercom project, setting up a transport corridor telematics working party.

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Integrating the Hermes Plus rail-related network with other modes of transport - sea, inland waterway and road - must be a priority, using advanced interconnection methods (X-400)to facilitate data flow.

Similarly, there would be considerable benefits from the integration and general use of EDI formats, thus furthering the compatibility of standards and protocols with competent bodies, and finally from exploiting the scope offered by the Internet as a new technology to serve transport.

Generally speaking, the involvement of the private sector should be monitored and the responsibilities, powers and functions of the public sector defined, monopolies and abuses should be prevented and systems interoperability guaranteed.

Finally, to ensure that Community aid is put to best use, the telematics projects under the PACT programme - which is to continue - should be coordinated and the networks should take part in joint projects on the application of new technologies. However, a certain lack of enthusiasm has been noted because the pilot projects have not been put into practice. Operators appear to have adopted a "wait and see" attitude to the introduction of new technologies, which is why compatible system must be promoted which will gain their confidence. Systems compatibility should be regarded as a prerequisite for receiving Community aid.

Community legislation and national policies for developing combined transport

Combined transport in Europe is a small part of the market (4%) and the EU has therefore thrown its weight behind its development because of its environmental credentials.

The main guidelines for encouraging and promoting combined transport are as follows:

.- Combined transport has to be seen as a mode in its own right, an integral part of the transport chain.

- In view of the danger that road haulage will monopolize the freight sector, transport should and must be analysed as a system with a view to establishing projects for balancing out the use of infrastructure capacity.

- Seaports, inland waterway ports and roadrail terminals must be incorporated into the European combined transport network.

- Combined transport ports and terminals must be identified, laying down criteria for Community interest and ranking them in order of importance.

- Establishing a common policy on road haulage legislation to ensure that costs are internalized for each mode of transport and conditions for fair competition exist.

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- Harmonizing and homogenizing national policies on combined transport to give it a genuine European dimension.

- Introducing Community aid for modes which internalize their costs.

- The economic importance of road transport and the differences in Member States' policies on taxation, aid, subsidies, labour legislation, weights and dimensions all underline the need to harmonize conditions in order to establish a coherent European policy on combined transport.

The view in the sector is that approving an increase in the loading unit for road transport could pose a threat to combined transport. However, agreements have to be reached with road transport to enable it to benefit from the advantages and aid offered to combined transport.

- Examining the possibility of making combined transport a public or Community interest service.

The Commission White Paper on revitalizing the Community's railways seeks to improve the efficiency of the railways, as already put forward in Directive 91/440/EEC.

Many of the provisions of this directive have already been introduced by the national rail authorities, with the sole exception of access for new operators.

Certain countries, among them Germany, doubt whether it is appropriate to separate track management from operation, as introduced by Directive 91/440/EEC and pursued in the White Paper, because of the problems it causes.

These include:

- the question of responsibility for delays or accidents; - the break-up of operational safety arrangements; - allocation of train paths and risk of discrimination by the managing undertaking; - subsidies for loss-making lines; - the setting-up of a European management agency.

Considerable work has still to be done because of the complex nature of the problems, which is why we recommend that the national rail companies and operators involved should work together under the aegis of the EU, taking advantage of the UIC's experience.

Train paths must be allocated on the basis of price transparency according to Community principles, and must avoid discrimination on grounds of national interest.

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Tariffs for the use of rail infrastructure must be based on:

- access to the network - reservation of capacity - actual use of infrastructure - social costs.

Access by new operators might allow them to bring in their own traction units, which would raise organizational and technical problems, since the fleet of locomotives would have to be big enough to offset the investment needed in vehicles and workshops.

An additional problem could be caused by the possible rationalization of human resources. The Community institutions must deal with the unemployment that might result by providing aid from the European Social Fund, given that the problem could also be a political one.

As regards the rules governing competition, we recommend that action should be taken on the following points:

- introduction of variations for rate formation for combined transport, such as by load volume (t/m3) instead of the traditional units (t) and (t X km) where required;

- studying the possibility of having the current tax exemptions for international combined transport markets also apply to the national markets (eg. VAT = 0);

- analysing the scope for liberalizing tariffs for operators providing their own traction, if they wish, going a step further than Directive 91/440/EEC;

- extending the regulations governing financial aid and the PACT projects on viability studies and the introduction of innovative measures;

- application of PACT programmes to maritime cabotage.

In view of the substantial impact of Community road transport legislation on combined transport, we recommend greater checks on the implementation of Community labour legislation (monitoring devices), as it increases road safety and clearly encourages combined transport.

We would suggest strict enforcement of the rules and the introduction of deterrent fines for offenders.

The internalization of costs and the granting of aid to undertakings putting it into practice must be continued. Research into methods will have to continue, however, with the participation of the bodies and parties involved, especially after the road haulage industry's rejection of the measure proposed in the Commission Green Paper.

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As regards legislation on maritime and inland waterway transport, we recommend:

- the incorporation of seaports and inland waterway ports into the combined transport network, defining criteria that they must meet in order to qualify for Community aid.

The Member States grant a wide variety of state aid to combined transport according to their national interests. They support different modes of transport depending on their geographical location, such as if they are transit or peripheral countries, for example.

We recommend harmonizing national policies and terms for financial and fiscal investment or operating aid and subsidies, in the light of the Community's competition rules and principles of non-discrimination.

We also recommend the coordination of national control measures such as certificates, licences, traffic rules for holidays, traction units and trailers in order to improve combined transport operations.

In conclusion, the development of combined transport in Europe will be based on the following key intermodal elements:

- establishing a common strategy for the development of network infrastructure, nodal points and terminals;

- introducing harmonized Single Market rules and conditions;

- eliminating technical, legislative and administrative obstacles and the costs associated with them;

- integrating the transport system using compatible data-processing technologies.

Passenger raiYair intermodality and through booking of journeys

Although the railways were the pioneer mode of transport in technical integration at European level, they have been overtaken and left behind by the adaptability of air transport, especially in the sale of passenger tickets.

The appearance of the high-speed train now makes it possible to integrate the two modes commercially, since they can complement each other on many routes.

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The marketing of traditional passenger rail transport differs from that of air transport because it has historically been restricted to national markets. With the globalization of the economy and the opening-up of the market to other operators (Directive 91/440), rail companies are expected to behave lieairlines in commercial terms, adopting their ticket selling system, setting fares to meet the competition and abandoning the “distance by rail” method used hitherto.

For this reason, the rail companies must adapt their services to marketing based on new tariff structures, eventually transferring the philosophy of airline management to the rail sector.

Airhail intermodality in the sale and booking of passenger tickets makes sense when it involves high-performance trains, and has a great future in Europe with the development of the high- speed network now being planned.

The obstacles to intermodal airhail distribution lie in the differing commercial approaches of operators, although high-speed rail services have started to adopt airline distribution systems, at least to some extent.

The “Global Distribution System” (GDS) used in air transport is far superior to and of a higher quality than that used by the railways, which still has serious shortcomings in the sale and distribution of international rail tickets. Obviously, the future integration of rail transport will have to involve the adaptation of its computer reservation systems to GDS rather than the alternative of building up a new integrated rail system, thus resolving the incompatibility problem by offering uniform tickets.

The technical obstacles can easily be overcome, but the starting-point is a very different one in commercial kmand also involves problems with the sale and booking of international tickets for purely rail travel.

The task of the Commission and the other Community institutions is to establish procedures and instruments for facilitating the commercial integration of air and rail transport by eliminating legal, technical and administrative restrictions and carrying out pilot projects to remove the technical obstacles.

The development of airhail intermodality will require the continuing integration of European rail networks in the sale and booking of international tickets, as many problems still remain.

The national rail computer networks are linked by the Hermes system, which is still not being fully exploited.

We strongly recommend training for ticket sales staff, not simply in marketing but also at the point of sale. Training must include sale by other technological means such as the Internet.

As a first step, the data on rail services available must be incorporated in the Arnadeus and Galileo systems, which have proved their worth.

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This must be followed by the integration of the railways into the GDS systems and the sale of intermodal tickets, something which has not yet been developed because of the absence of commercial agreements.

For intermodal tickets, the commission earned by agencies should be less than the sum of the commission they would obtain by selling each leg of the journey separately, as intermodal distribution incorporated into a single system would allow them to reduce costs.

The policy of strategic alliances between GDS systems is taking root, as in principle an expansion of supply and potential should produce a better quality of service. However, there is a risk that oligopolies will form and stifle competition in practice.

Investment by telecommunications companies in GDS systems and the holding of shares in some companies by others should be monitored by the Community institutions to avoid dominant positions and unfair competition, and to guarantee the benefit to the consumer.

The use of new technologies for ticket distribution is of great interest, given the undoubted benefits for both companies and consumers.

The presence of air and rail companies on the Internet is increasingly prominent, providing information on their services and, in some cases, allowing tickets to be booked and sold. Experience has shown that there have been many enquiries for information via the Internet, but few ticket sales as yet.

It would seem obvious that Internet distribution could cut costs, but this has not yet happened, while in future better informed customers will demand better services and perhaps cuts in fares with the elimination of middlemen.

The problems which need to be solved in respect of Internet sales are the slowness of the network, security and the lack of consumer confidence in a small but growing market segment.

One very likely future scenario would be for travellers to seek information and book via the Internet and actually buy their tickets via traditional outlets.

The use of GDS and computer reservation systems by the Internet offers fresh scope if the commercial problems with travel agents can be solved.

Another very promising technological development is the electronic or smart ticket which is coming into general use, with its cost savings and advantages to the traveller, as it allows real- time and better processing, reduces fraud and minimizes travellers’ check-in times.

The smart ticket might become a threat to travel agencies as it reduces carriers’ dependency on the agencies to the benefit of the consumer, since the savings on the fares paid by travellers should be transferred to them.

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The introduction of smart tickets should overcome the objections of travellers who want an actual ticket as evidence of their trip, enabling them to claim on insurance and resolve legal problems; the Warsaw Convention, for example, requires immigrants to have tickets.

The substantial changes in prospect for ticket distribution raise a threat for travel agents because of the upheaval this will produce in their relations with carriers.

At present, travel agents’ business consists of the sale of air and high-speed train tickets, hotel and tourist package bookings and small numbers of ordinary rail tickets.

Large-scale competition will bring a process of rationalization and possible job losses, but this does not mean that travel agencies will disappear, since they too can use the new technologies and can always offer added-value services and professional skills which an individual Internet user would find it difficult to deploy.

The outstanding problems are:

- training staff in the new technologies (Internet, smart tickets, data processing, etc.); - opening up markets and dispelling the inertia currently displayed by national interests; - incorporating agencies in GDS and improving their professional standard; - regulating commission payments while avoiding a commission war, and passing on to consumers the possible cost reductions arising from the introduction of new technologies.

In respect of travel agencies, the Community institutions would have to:

- oversee compliance with the code of conduct and ensure non-discrimination, by preventing the manipulation of on-screen data: - introduce a system for monitoring compliance with the code of conduct; - provide aid via training programmes; - encourage link-ups between small and medium-sized agencies.

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BIBLIOGRAPHY

Chapters I - VI

Journal Officiel des Communautes europeennes, 1991-1997. Transport strategic modelling, APAS, European Commission, 1996. Structure and organization of maritime transport, APAS, European Commission, 1996. Financing models for new transport infrastructure, APAS, European Commission, 1996. Cost-benefit and multi-criteria analysis for nodal centres for goods, APAS, European Commission, 1996. Methodologies for transport impact assessment, APAS, European Commission, 1996. Databases and scenarios for European transport, APAS, European Commission, 1996. Intermodalite et transport intermodal de marchandises dans 1’Union europeenne, Commission europeenne, 1994. Development of a European Quality Label for intermodal terminals, European Commission, 1995. The importance of Logistics for the competitiveness of the EU economy, DG 111 European Commission, 1996. Etude sur I’extension du champ d’application des troisikme et sixi6me directives, Commission des Communautks europeennes, 1992. Programmes PACT, 1996-1997. Economic evaluation methods of Railway authorities in the community, EURET, 1994. Redes Transeuropeas de Transporte: vertebrar la Unibn, Comision Europea, 1995 Transport combink, CEMT, 1995 Le r6le des chargeurs et des transporteurs dans la logistique, CEMT, 1987. Ameliorations des grandes liaisons internationales par ferroutage, CEMT, 1995. Evolution previsible des coiits des differents modes de transport de marchandises, CEMT. 1985. Transport growth in question, CEMT, 1992. Terminologie en transports combines, CEMT, 1993. Diverses ECIS newsletters, ECIS,1996-1997. The role and definition of intermodal nodes in the european Network, ECIS. The State of European Infrastructure, ECIS, 1996. Strategic partnering among logistic nodes: Rotterdam and Eastern Europe,1996. Integrated Transport Chains Research Task, TENTS, 1995. Traffic centres in Europe, EST1 - INRETS, 1995. Understanding the logistical needs of industrial customers, UNIFE, 1997. Les transports maritimes, OCDE, 1995. Intermodalite et Complkmentarite des modes de transport, ATEC, 1995. Les transports et 1’ intkgration de 1’Europe du Sud dam le March6 europken, 1989. Jane’s Intermodal transportation, 1996.

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- Containerisation international yearbook, 1996. - Jane’s World Railway’s, 1995-1996. - Grandes contenedores, Ministerio de Obras Publicas, Transporte y Medio Ambiente (MOPU), 1995. - Los transportes y las comunicaciones, MOPU, 1995. - Estudio sobre la Problem2tica de 10s Encaminamientos de 10s Flujos Fisicos de Mercancias en las Instalaciones Portuarias. El Papel de la CIM Portuarias y de la Telematica Portuaria, MOPT, 1991. - Annual Reports Intercontainer, 1996-1997. - Focus on Combined transport, UIRR, 1995. - Rapport0 UIRR, 1996. - Pan European Survey on Combined Transport, UIRR, Studiengesellschaft fur den Kombinierten Verkehr, 1996. - Europlatforms Yearbook, EEIG, 1996. - Fichas UIC (290, 291,292, 352,430-1,432, 503, 571, 591,592-2, 596-5, 596-6, 597, 599). - Potencialidad de 10s servicios de transporte multimodal. Fundacibn de Ferrocarriles espaiioles, 1994. - Los complejos ferroviarios de Port Bou - Cerbere e Inin - Hendaya: Analisis, Diagnbstico y necesidades de actuacih, INECO, 1993. - Informe complementario a la propuesta de desarrollo de un eje combinado entre Espaiia y Alemania. RENFE, 1991. - Informe sobre las acciones comerciales en e1 campo de 10s ferrocarriles (Sector mercancias), INECO - RENFE, 1993. - Transporte intemacional de productos ferroutage, INECO - RENFE, 1988. - Sistema bimodal transtrailer, TAFESA, 1995.

Pages WEB of Internet

Pages of technical innovations:

- MORANE - ETCS - ERTMS - CITHER

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Revues

Le Rail La vie du Rail Revue GenCrale des Chemins de Fer International Railway Journal Gazette internationale Via libre Lineas del tren Logistica & Transporte Todotransporte Transporte XXI Puertos del Estado Containerisation international Container management Ingenieria ferroviaria Eisenbahn Zeitschrift Cargo aktuell

Chapter VI1

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