Samskip Multimodal Short Sea and Multimodal Business - - PowerPoint PPT Presentation

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Short Sea and Multimodal Business

Samskip Multimodal

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Samskip Group Profile

• Samskip is a globally active company offering transport and related services

by land, sea, rail, inland waterways and air.

• Dutch based.
• Group revenue is 500+ M Euro shipping over 850.000 TEU annually.
• 1.230 Samskip employees, of which 460 are in the Euro 350 M short sea

and multimodal business.

• Samskip operates 55 offices in 23 countries in Europe, Asia, Australia,

North- and South America.

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The European Transport Market

International and National Intra-EU freight transport:

• Trucks (47.3%)
• Seagoing ships (37.8%)
• Rail (11.2%)
• Inland waterways (3.7%)
• Trucks dominate inland EU freight transport with a 76.1% share of the

tonne-kilometres and about 94% of the CO2 emissions.

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The European Transport Market

International Only

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Type M Units % Share Road Only 17.3 40.7 Road and Rail 10.2 24.0 Fixed link/Rail 0.5 1.2 Sea and Rail or Road 14.5 34.1 Total 42.5

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Key Facts

• Multimodal competing effectively and efficiently with road transport.
• Certain of Samskip’s multimodal products are faster than accompanied

trailers.

• Not “just environmentally friendly” but cost efficient.

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Market Context and Trends

Short Sea and Multimodal

• Substantially increased interest in multimodal products:

– Trailers eliminated from the market past 3-4 years – and this is accelerating as we speak as refinancing is not available for small and mid sized operators – Increasing fuel cost and road taxation – Customer risk management

• Declared EU Objective : 300+ km = multimodal, not road

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What Do Customers Want ?

Or : Sustainability from a customer and operator perspective

• Key Parameters

– “Price” – Reliability and predictability – Security of supply – Speed – Sustainability

• Cost Efficiency = The Right Combination – Short Term versus Long Term ?
• Environmental sustainability a bi-product of cost efficiency ?
• End consumer increased awareness of sustainability
• Cost will in the end always be shouldered by the end customer and end

consumer

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EU Transport Policy

Drivers

• Taxation to drive behavior
• Subsidies to promote policy

Good Intentions – Attention to Unintended Consequences

• Who to listen to ?
• Broad and close consultation required with carefully selected industry
• perators and associations – and still be critical of their motives.
• 0.1% Bunker Sulphur legislation January 1st 2015 = substantial shift away

from short sea to rail and (back) to road in many trade lanes.

• Substantial cost increase for European transport industry (Euro 1 B) and

substantial increase of congestion and CO2 pollution in many areas.

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EU Transport Policy

EC 2011 White Paper Key to efficient transport :

• Consolidation of large volumes for transfer over long distances, in between

the so-called first and last miles.

• Above some 300 km : Significant rebalancing - 30% road freight shifting to

multimodal solutions by 2030, and more than 50% by 2050.

• Major challenge : Reduce the environmental impact of intra-EU freight

transport without sacrificing its efficiency (= cost).

• Focus obviously need to be on the road industry, which as an added benefit

alleviates crippling congestion.

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Samskip Short Sea and Multimodal Business

Reliable, sustainable and cost effective unitised transport solutions through short sea, rail, road and barge across Europe Barge Rail Road Short Sea

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Multimodal Equipment

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Multimodal Equipment

Innovation

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• Samskip and DSM jointly developed a light weight composite 45foot High

Cube Pallet Wide container for European multimodal market.

• 20% lighter than steel
• Steel frame with walls of propriety developed and patented composite

panels, glues and building techniques

• Successfully real life field tested by Samskip for over one year.
• Assist in taking cargo off the road and onto more environmentally friendly

transport solutions (rail, barge and vessels or a combination).

• Carry more cargo weight or carry the same cargo weight whilst using less

energy.

• Composite walls, unlike steel, insulate

cargo from outside temperature.

• Flat instead of corrugated walls make

cargo loading/unloading operation easier.

• Composite walls have longer lifetime than

steel, will not corrode and easy to clean.

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Short Sea and Multimodal Network

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Landside Network Tools (Example)

Multimodal Rail Terminal Duisburg Operational Feb 2013

• 150,000 units Phase 1
• 300,000 units Phase 3

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Why Multimodal

Competitive advantages

• Lower total cost of multimodal transportation combined with reduced

carbon footprint

• Hedging against capacity shortage

– Less trailers & structural lack of drivers

• Increased reliability and less volatility

– Traffic jams: road (and port) congestion due to increasing intercontinental trade – Oil price: fuel cost is a relatively larger cost component for trailers

• Inventory optimization

– In transit: storage in transit (rolling stock) – Flexible: higher (operational) flexibility (potential delays, use of off dock depots)

• Safety & Security

– Stowage: less lashing and securing requirements – Pilferage: lower risk of theft

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Why Multimodal

Competitive advantages (2)

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Issues – Now and In Future

• Infrastructure

– Rail paths and rail monopolies – Multimodal terminals – Collection and delivery facilities – Fixed infrastructures with monopoly / minimal competition risk

• Seamless connectivity
• Legislation – consultation with real, major operators – less political process
• Still cumbersome procedures multimodal and short sea versus road
• Consumer attitudes – cost and sustainability
• Risk management – avoid two step forward and one back
• Role of sustainability on the Board agenda

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