RAIL TRANSPORT SEMINAR:RAIL TRANSPORT SEMINAR:RAILWAY INFRASTRUCTURE – RAILWAY INFRASTRUCTURE –

KEY TO ACHIEVE SUSTAINABLE KEY TO ACHIEVE SUSTAINABLE TRANSPORTTRANSPORT

Operation on the Bulgarian railway Operation on the Bulgarian railway market – current situation and market – current situation and challenges facing the freight challenges facing the freight

forwarders in Bulgariaforwarders in Bulgaria

Dr. Ivan PetrovDr. Ivan PetrovGeneral Manager - Trans Express General Manager - Trans Express

Sofia, 21.01.2015Sofia, 21.01.2015

GENERAL CONDITIONS ON THE RAIL GENERAL CONDITIONS ON THE RAIL MARKET IN BULGARIAMARKET IN BULGARIA

- Limited cargo committed to rail;Limited cargo committed to rail;- Profile of the economy;Profile of the economy;- Transit shipments of bigger importance;Transit shipments of bigger importance;- Lack of adequate infrastructure and many Lack of adequate infrastructure and many

problems with longer trips, stops in traffic;problems with longer trips, stops in traffic;- Rail operators in Bulgaria are better than most in Rail operators in Bulgaria are better than most in

neighboring countries;neighboring countries;- Rail charges in Bulgaria are higher than trucking Rail charges in Bulgaria are higher than trucking

charges;charges;- Private rail operators – cherry picking attitude;Private rail operators – cherry picking attitude;- Single wagonload vs. truck – the only potential for Single wagonload vs. truck – the only potential for

development of rail business.development of rail business.

WHAT IS THE SINGLE WAGONLOAD?WHAT IS THE SINGLE WAGONLOAD?

• The transport of freight in The transport of freight in individual railway wagons or individual railway wagons or groups of wagons groups of wagons (the shipment is less than a whole (the shipment is less than a whole trainload). trainload).

• The SWL supply includes The SWL supply includes grouping and sorting of grouping and sorting of wagons wagons in order to assembly full trains with different in order to assembly full trains with different shipments, in order to take advantage of the full train size shipments, in order to take advantage of the full train size and, thus, increasing the productivity.and, thus, increasing the productivity.

• Grouping / sorting can take place through Grouping / sorting can take place through marshalling in marshalling in dedicated dedicated yards where each train is disassembled and the yards where each train is disassembled and the groups of wagons are classified to form new full load trains groups of wagons are classified to form new full load trains for the next yard, or more simplified arrangement with for the next yard, or more simplified arrangement with removal / addition of groups of wagons removal / addition of groups of wagons at intermediate at intermediate stops.stops.

• Any kind of wagonsAny kind of wagons including the one loaded with including the one loaded with combined transport units can be moved in SWL supply combined transport units can be moved in SWL supply chainchain

Source: Study on Single Wagonload Traffic in Europe • Objectives, results and recommendations - PwC

HOW IT IS PRODUCED HOW IT IS PRODUCED

Source: Study on Single Wagonload Traffic in Europe • Objectives, results and recommendations - PwC

The studies analysed a number of SWL production models in terms of type of network, related drivers, level of flexibility, etc.

Three production models appear to be the most relevant in the Countries examined in detail

Network structure is in most cases supply-oriented aiming at optimising SWL productivity against demand constraints in terms of distribution, frequency, balance between directions etc.

Main challenge is to design the network in a way allowing the respect of demand requirements in particular in terms of pick-up & delivery time constraints

The production models adopted by main RUs govern the utilisation of relevant infrastructure (main and small marshalling yards, freight stations etc.)

Connected Hubs

2-level connected hubs

Corridor

HOW IT IS PRODUCED HOW IT IS PRODUCED

Source: Study on Single Wagonload Traffic in Europe • Objectives, results and recommendations - PwC

For a typical shipment, the main leg (inter-marshalling yards trains) costs just 13% of the total, + 10% for charges for track access, in total 23%.

Marshalling yards services in first and last marshalling yards are 15% of total costs. If we consider also the intermediate marshalling (7%), the total marshalling costs represent 22% of the total.

Distribution costs (distribution trains + sorting at node stations) excluding marshalling yards services costs in first and last marshalling yards are 25 % of total costs,

Commercial costs and overhead represent the remaining 20%.

The complexity of the SWL production chain imply that also the cost structure is relatively complex.

Cost structures appear to be quite different among the RUs for which data are available

Specific "local" factors appears to have a strong impacts (e.g. level of infrastructure charges, average length of the "long haul" trips, adopted production models etc.)

Different from Different from national rail national rail pathspaths

Harmonized Harmonized business business conditionsconditions

Business Business interoperabilityinteroperability

WHAT IS FREIGHT CORRIDORWHAT IS FREIGHT CORRIDOR

PRODUCT PROJECT

TRAIN PATH ORGANIZATION

Open accessOpen access

Utilizing Utilizing infrastructureinfrastructure

Authorized Authorized applicantsapplicants

Not bound on Not bound on national legal actsnational legal acts

Legally authorized Legally authorized to underline further to underline further harmonization stepsharmonization steps

SecretariatSecretariat

One-stop-shopOne-stop-shop

OperatorsOperatorsWorking groupsWorking groups TerminalsTerminals

RAIL FREIGHT RAIL FREIGHT CORRIDORSCORRIDORS

Infrastructure requirements on the Core Infrastructure requirements on the Core Network (rail freight) by the European Network (rail freight) by the European Commission:Commission:

740m train length

22,5 t axle-load

100 km/h line speed

ERTMS

Electrification

To be achieved until 2030

CORE PORTS, TERMINALS CORE PORTS, TERMINALS AND INTERMODAL AND INTERMODAL

SERVICESSERVICESTerminals Design ParametersTerminals Design Parameters MandatoryMandatoryEfficient rail accessEfficient rail accessEfficient road accessEfficient road accessNon-exclusive, so open to all usersNon-exclusive, so open to all usersCapability of receiving full trainsCapability of receiving full trains740m minimum, 2-4 tracks740m minimum, 2-4 tracks

Optionally Optionally Surface with extension optionSurface with extension optionInclusion of empty container depotInclusion of empty container depotSufficient Stacking capacitySufficient Stacking capacity24/7/52 year round operation24/7/52 year round operationHandling of dangerous goodsHandling of dangerous goodsSecured, accommodating extendedSecured, accommodating extended

customs gate solutioncustoms gate solutionState-of-art ICT connectionsState-of-art ICT connections

Future Project Trans Future Project Trans ExpressExpress

BENCHMARKBENCHMARK

Thank you!Thank you!