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Choosing and Developing a Multi-Modal Transport Solution Guide Acknowledgements

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Choosing and Developing a Multi-Modal Transport Solution Guide Acknowledgements Choosing and Developing a Multi-modal Transport Solution Guide Acknowledgements The Freight Best Practice programme would like to thank the following two organisations for their significant contributions to the case studies in this guide: Rail Freight Group Freight by Water (formerly Sea and Water), now part of FTA The Freight Best Practice programme would also like to thank the following people and organisations for their contributions to the case studies and photographs in this guide: • Alan Woodburn • British Waterways • Frank Worsford • Freight on Rail • Freight Transport Association • Gavin Roser • Mike Browne • Neil Stevens • Network Rail Plc • Port of London • Steve Mulvey The Freight Best Practice programme would like to thank the large number of companies and organisations featured in the case studies. A full list of these can be found in the Contents Page. Front Cover Photograph A Fastline locomotive at the head of a container train at Birmingham Intermodal Freight Terminal, one of the newer freight terminals and featured in Case Study 31. Due to problems with its Parent Group Fastline ceased trading in March 2010. Disclaimer: While the Department for Transport (DfT) has made every effort to ensure the information in this document is accurate, DfT does not guarantee the accuracy, completeness or usefulness of that information; and it cannot accept liability for any loss or damages of any kind resulting from reliance on the information or guidance this document contains. Foreword Freight Best Practice is funded by the Department for Transport and managed by AECOM Ltd to promote operational efficiency within freight operations in England. Freight Best Practice offers FREE essential information for the freight industry, covering topics such as saving fuel, developing skills, equipment and systems, operational efficiency and performance management. All FREE materials are available to download from www.businesslink.gov.uk/freightbestpractice. 3 Contents Acknowledgements 2 Foreword 3 1 Introduction 8 The Aim of the Guide 8 What Is Multi-modal, Inter-modal and Co-modal Freight Transport? 8 Who Is the Guide for? 9 Structure of this Guide 9 2 The Modal Markets 10 Resurgence in the Rail and Water Markets 10 The Rail Freight Market 10 The Water Freight Market 12 A Strategic View of the Transport Market 13 3 Strategic Considerations for Modal Shift 14 Modal Shift Suitability 14 Market Dynamics 16 Rail and Water Freight Policy 17 Environmental Considerations 18 Organisational Priorities - Putting Strategy into Practice 20 4 Operational Factors Affecting Your Modal Choice 21 Cost 21 Supply Chain Resilience 22 Reliability and Punctuality 24 Customer Service 25 Access to Rail Network and Waterways 27 4 Flexibility of Services Offered 29 Volumes 30 Commodity Type 31 Distances 32 5 Co-modal Case Studies 33 Logistics Service Providers 33 Retailers 34 Bulk Commodities 35 Container Operations 37 6 How to Make the Modal Switch 39 A. Access Sustainability 39 B. Find Partners and an Operator 40 C. Feasibility Study 40 D. Grants 43 E. Business Case 46 F. Review 47 G. Operate 47 Appendix 1 Glossary of Terms 48 Appendix 2 Relevant Contacts 50 Appendix 3 Map of Port Locations and Main Inland Waterways 53 Appendix 4 Rail Freight Network Including Terminals (W8 Gauge and above) 55 Appendix 5 National Rail Infrastructure 56 5 Case Studies Case Study 1: Feederlink BV 13 Case Study 2: Derbyshire County Council 17 Case Study 3: Tesco’s Rail Service Replaces Over 13,000 Lorry Journeys per Year 19 Case Study 4: Olympic Demand for Sustainable Distribution 19 Case Study 5: Cemex Starts Traffic Flow on the River Severn After a 10-year Gap 22 Case Study 6: Reliable Services - Potter Group, Rosebys, Medite, GB Railfreight 23 Case Study 7: ASDA Improves Resilience in Supply Chain by Taking to the Water 23 Case Study 8: Technology Improves Resilience in the Supply Chain - Tata and Dawsons 24 Case Study 9: A Step Approach Based on Service by Kuehne & Nagel 24 Case Study 10: Achieving CO2 Reduction and Avoiding Congestion in Central London - J Sainsbury’s Use River Transport 25 Case Study 11: Daily (7 Days a Week) Rail Freight 26 Case Study 12: Royal Mail Chooses Rail to Help Customer Service 26 Case Study 13: Cory Provides Excellent Service Levels for Local Authorities in London 27 Case Study 14: Hutchison Ports Benefit from Gauge Enhancement 28 Case Study 15: Westmill Foods Operation Benefits from Flexible Access 29 Case Study 16: The Tesco / Stobart Train 29 Case Study 17: Corus Steel (now Tata) 30 Case Study 18: Mendip Rail Choose Longer and Heavier Trains 30 Case Study 19: Abnormal Loads - Last Journey of Concorde 31 Case Study 20: Bulk Movements 31 Case Study 21: Short Distance Train Movements 32 Case Study 22: Short Distance Water Freight Movements 32 Case Study 23: Logistics Service Providers - The Malcolm Group 33 Case Study 24: Rail and Water as Part of a Supply Chain - John G Russell (Transport) Ltd 33 Case Study 25: ASDA Operates Several Rail Services 34 6 Case Study 26: ASDA Saves Road Miles by Using Coastal Shipping 34 Case Study 27: Tesco’s ‘Green Train’ 35 Case Study 28: Tesco’s Wine by Barge 35 Case Study 29: Corus (now Tata) - Steel by Rail 36 Case Study 30: Tata Uses Water Freight for Steel Movements 36 Case Study 31: Roadways Container Logistics Limited 37 Case Study 32: OOCL Offers Feeder Services 38 Case Study 33: K-Line Short Sea Shipping 38 Case Study 34: Days Aggregates 43 Case Study 35: Lafarge Aggregates 44 7 1 Introduction Every mode of transport whether it is road, rail, inland waterways or short sea shipping has its own inherent advantages and, of course, limitations. Companies choose to use the mode that provides them with the best solution for the market and environment in which they operate. However, changing markets, increasing concern over the environment (especially CO2 emissions), higher levels of congestion, rising fuel prices, and changes in taxation and direct grants for certain freight movements, all mean that the boundary between which mode provides the best economic and environmental solution is changing. Historically this has always been the case. For example, the development of the rail network in the mid-nineteenth century fundamentally altered the balance between rail and narrow-gauge canals, and we may well be in a period when a similar process is more noticeable now than in the recent past. Freight operators are increasingly looking for opportunities to reduce costs, improve service and reduce their impact on the environment so these variables are understood and are being acted upon. Therefore, when choosing the most efficient and sustainable freight solution, a customer focused freight operator needs to look at all the different modal options possible before a route and mode are selected. Once the choice is made the performance of the new freight service must be kept under close scrutiny to make sure that the chosen option remains the best solution given changing circumstances. It is important that sustainability and profitability are not seen as mutually exclusive goals. The Aim of the Guide This guide aims to explain to freight transport providers and users of transport services, via practical steps, how to approach a consideration of the use of rail or water transport as part of their supply chains in the UK. The guide: • Explains in simple terms the water and rail freight sectors • Shows examples of where rail or water services can be used successfully • Helps you to make a decision on modal shift for a particular transport leg • Explains the availability of financial assistance such as grant funding What Is Multi-modal, Inter-modal and Co-modal Freight Transport? This guide defines multi-modal freight transport as operations where more than one mode of transport is used. Typically this might include road as well as rail or water transport. Multi-modal freight transport is often described as the use of more than one mode of transport in a supply chain. Within the UK, multi-modal freight transport is often employed by the use of road, water and / or rail. This is the context within which it is taken in this guide. Where multi-modal differs from inter-modal is in the operational specifics. The term Inter-modal is often associated with international container traffic. Inter-modal can use one or more modes, but crucially, the goods being transported are not handled each 8 time they change vehicle or mode. For example, where containers are being transported inland Who Is the Guide for? from port via rail, the goods in the container are not handled, therefore the operation is inter- This guide is for anyone interested in modal. Equally, as the transportation comprises understanding if their transportation network or both water and rail transport, it can be described flows are suited to rail or water and whether this as multi-modal. ‘Modal Shift’ is appropriate for their business. If the same transport route was utilised for the To clarify this decision, the guide highlights the flow of coal, the coal would have to be ‘handled’ steps to be considered, the benefits to be gained, to remove it from the ship and into rail wagons; and uses case studies to illustrate examples. in this case, the flow is not inter-modal, it is only multi-modal. Structure of this Guide Co-modal is a term first used by the EU in 2006 The guide is constructed around the following and refers to the intelligent use of two or five chapters and utilises case studies to more modes of transport on their own and in illustrate points. Where the case studies are combination to get the biggest benefit from each concerned with rail they are displayed with a of them so that the overall journey is the most green background, where the case studies are sustainable that it can be.
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