1.1.

Intermode-TRANS project summary

The importance of transport technologies and transshipment tools and equipments which are not yet optimised for goods handling and moving will become even more critical with the enlargement of the European Union to Eastern Europe that will shift transport demand to/from the accession countries. It is critical to raise awareness and come to an efficient solution as soon as possible so as to decrease potential points of friction and costs. The main problems that will be addressed in the specific support action Intermode-TRANS are: Incompatibility between the different available technologies and tools. Incapacity of the different terminal technologies to cope with the increased demand of transport. Standardisation and interoperability of transport technologies which are not actually optimised for easy handling and moving of goods.

The Specific Support Action Intermode-TRANS will target ongoing research and development with regard to transport technologies that can achieve a sustainable modal shift from road to railways and waterborne routes including inland navigation and short sea shipping, promoting the development of transshipment technologies, tools and equipments based on the real need of the end-users. This will be done through an interaction among transport operators, engineering companies and manufacturers of transshipment technologies. The research and dissemination will also give a specific attention to target SMEs and participation of new member countries through several workshops used to gather information. Therefore, one of the key aims of Intermode-TRANS is to provide a platform among manufacturers, engineering and transport operators. The dynamic platform will then generate RTD guidelines for innovative technologies for intermodality. Within the dynamic platform, a second objective is to prepare the ground for future RTD activities within and beyond FP6 by networking and creating constituencies of technologies suppliers and stakeholders in order to investigate future research challenges and associated implementation models. The project will contribute to the implementation of activities of the work programme for sustainable surface transport. (Intermode-TRANS, 2004)

1.2. Objectives of the project Intermode-TRANS (From D2.2)

The objectives of Intermode-TRANS will address the following problems: Development of efficient and standardised intermodal technologies and transshipment solutions. Role and benefits for SMEs in general and with special consideration of Candidate Countries and new Member States. Incompatibility between the different available technologies and tools. Incapacity of the different terminal technologies to cope with the increased demand of transport.

1.3. Background to intermodality (From D2.2)

Transport as a key element of the worldwide economies will face a number of challenges in the forthcoming years. There are many good and well documented reasons to presuppose that a modern transport system must be sustainable from an economic, social and environmental point of view. Any future plans for the European transport sector have to take into account the economic importance with a contribution to the European GDP of more than 10 %. But still the transport market is not harmonised which becomes visible by the increasing congestion in Europe. Further globalisation and general economic growth will lead to ever increasing transport demand. The enlargement of the European Union will create additional transport needs. So it is forecast that unless major new measures are taken, by 2010 heavy goods vehicle traffic alone will increase by nearly 50 % over its 1998 level. The expected growth in transport demand may very likely lead to a collapse of the system. Therefore, a fast solution is necessary in order to anticipate such a collapse of road transport. Logistics channels that are more global also require multi/intermodal transport chains. Intermodality is at the core of most advanced logistics strategies used by the major transport companies in the world. Intermodal management responds to the challenges faced by logistics service providers. The coordination of production and distribution in an integrated process is becoming of strategic importance to many companies. The transport service providers must be able, first and foremost, to provide a timely, cost effective, high quality service to their customers and therefore operate in an intermodal environment. Clearly, the terminals for transshipment between modes are becoming increasingly important. Recent analyses have provided an overview of the requirements shippers have with regard to the use of intermodal transport. The most important points are speed, short running times, organisation of a door-to-door chain, punctuality, schedule keeping and flexibility. At the same time the shippers expect the following advantages from intermodal transport use: reduction of environmental damages, reduced road congestion, increased speed as well as micro-economic advantages. Obviously the potential for a modal shift is very large, as shown in a statistical study within the TRILOG Europe project (Henstra et al., 2000). It was found that only 7.5 % of all transport work in the European Union (1996, EU-15) is carried out intermodally, mainly in short sea shipping combinations. Road-rail intermodality had then a market share of 2.7 %. There are differences between the countries and regions of Europe, often due to geographical conditions. Thus Austria and Switzerland, with the alpine transit, and Sweden, with the long distances, have a clearly larger percentage of rail transport, and the Netherlands stand out regarding inland waterway transport. The European Task Force on Transport Intermodality provided the following explanation, regarding the economic, social and employment impacts of intermodality: The objective of promoting intermodality in the first place is to achieve a better use of existing capacities and infrastructures, notably in rail, inland waterways and short-sea-shipping. The efficiency of road haulage, on which a majority of industries currently rely, is being eroded by congested roads. The cost of road congestion was estimated to 120 billion ECU per year, equivalent to 2% of Europes GDP. Improved efficiency in the transport system will positively help Europes competitiveness at a global level and, eventually, the European consumer.

But equally important is the fact that we want to promote the use of more environmentallyfriendly transport modes, by unlocking and improving their economic potential. So intermodality serves our goal of ensuring sustainable mobility in the future and is complementary to our other policies, such as the promotion of fair and efficient pricing. More intermodal transport will undoubtedly bring environmental as well as safety benefits for the citizen. The transport sector makes an important contribution to GDP and is a very large employer - this will continue without any doubt. But there will be a gradual restructuring of the workforce in transport. The required qualifications and competences will gradually change from an industrial type of employment to a more service- and information-oriented environment. A full implementation of our action programme for intermodality could result in the creation of more jobs in the supplier industry: for making new equipment and means of transport and especially for implementing and maintaining new information technologies and services. The integration of transport and logistics services could also create new employment opportunities, for example at big intermodal hubs which could become centres of economic activity. Several projects in previous research programmes have addressed the issue of intermodality and transshipment and there is a great amount of expertise available in the European research environment.

2. Intermodal transport
2.1. Definitions of modality in transport
There are several interpretations and definitions of intermodality and each one has its merits. To make this report more precise it is important to first define some common concepts. The terms that need to be defined are intermodal, multimodal and combined transport. Intermodality has been defined by the European Commission as a characteristic of a transport system whereby at least two different modes are used in an integrated manner in order to complete a door-to-door transport sequence. The resultant global approach enables the available transport capacity to be used more rationally. Intermodality should be understood as an integration of all modes, i.e. road, rail, inland waterways, short sea shipping, ocean shipping, air transport, pipelines. All these elements of the transport system have to be integrated into seamless door-to-door transport chains. The European Conference of Ministers of Transport (ECMT) has established a widely used technical definition of intermodal freight transport, which is limited to the transport of units of regular size. It has also Unitization is important to facilitate the transfer of goods between modes, but it is only one possible development. Thus the concept of intermodality should not be limited to unitised transport. The growing trend of outsourcing of logistics activities by industry means that goods can undergo an economic process at some point during the transport chain, principally at a terminal. This could be an important strategy to make intermodal transport competitive, namely by providing added value to the entire supply or distribution chain. But this means that the goods cannot remain in their containers during the whole journey. The intermodality concept applies both to freight and to passenger transport. ECMT also defines multimodal transport: Multimodal transport only describes the carriage of goods by least two different modes of transport, whereas intermodal transport refers to the transport of goods in one and the same loading unit using successively several modes of transport. Although combined transport is based on intermodal transport, it is characterised by two very important supplement items; the major part of the journey is by rail, inland waterways or sea and any initial/final leg carried out by road is as short as possible (ECMT, 1996, website). With this definition as a complement to the definition made by the commission it is easy to distinguish between multi- and intermodal transports. The main difference is that intermodal transport implies the use of a single load unit to simplify the loading, reloading and unloading processes in all parts of the transportation, while multimodal only points out that more than one mode of transport is involved in the delivery. The last part of the ECMT definition leads to the term of combined transport, which is in this sense a special type of intermodal transport, where the major part of the transport chain is carried by another mode than road, but the first and the last part of it is made by road. In this report we use the term intermodal transport in the same meaning as combined transport in the ECMT definition, but as discussed above we also go beyond the requirement of having one and the same loading unit throughout the transport chain.

2.2. Strengths and weaknesses in different modes of transports

Road: In short or middle-range distance delivery road transport is the most flexible and fastest way to perform the door-to-door transport. The market for road transport has evolved fast in recent years and the competition has put a pressure on prices and flexibility. If this development continues, there is a risk that the motorways in central Europe will lack the capacity to accommodate all trucks. The environmental strain generated by the increasing road transport is also a problem with this mode. Rail: The rail system was developed within and by the national states at the end of the 19th century. It is therefore still struggling with much incapability, created on purpose at that time. These problems have been reduced greatly, thanks to different initiatives, taken by both the EU and its member states, to simplify the use of rail transport across borders. Sea: In long distance and large volume transportation there is no real competition with sea transport. Only if the goods are valuable or are in extreme hurry, airfreight can be a serious competitor. The base of efficient sea transport is the standard load unit, in particular the ISO container series. All major ports are today planned to receive increasingly larger volumes of containers each year. Over 90% of all world cargo moves by container. One problem with ISO containers is the different regulations on maximum external dimensions in road transport that apply in different countries. Inland waterways: The main objective of inland waterway transport is to carry bulk products where speed is not a concern.

2.3. Opportunities with intermodal transport

Intermodal transport in Europe is on its way to a second revolution. Through cooperation, new thinking and long term strategy it can finally challenge road transports. To make this come true will however require extensive investments in both technology and information systems. The main factors in favour of intermodality, apart from the prospects of less congestion and beneficial effects on energy use and environmental impact, are the trans-national refurbishment of the rail systems, the development of information systems and the quality and market orientation of the supply (or demand) chain. The change in the rail system in Europe is caused by a new logistics paradigm. The users ceased thinking in terms of shipments and started to think in terms of flows, constant flows of recurring shipments, time table controlled flows and demand on delivery within a certain time frame. Nowadays the business plans for complete supply networks where raw material, components and finished products are transported along well-defined supply chains. This change can also be described as a change from production-oriented to performance-oriented logistics through a number of intermediate steps. It has also lead to that the traditional view on transportation services has become more imprecise, and the competition between modes of transports has been replaced by a market for logistics services, which uses a sophisticated integration of several modes of transports. A great possibility for intermodal transports is the creation of cargo centres gateways outside every major city in Europe. This logistic function is due to restrictions regarding weight and/or length of road vehicles and the demand for city distribution at night in a combined effort to reduce congestion in daytime traffic. The long distance transport will be focused on the links

between these gateways which makes rail and inland waterways more competitive even at midrange distances (Woxenius 2003). An application of the gateway concept is the dry port idea.

2.4. Intermodal transport in general

Transshipment of containers was a problem 30 years ago and it partially still remains a problem. Different techniques for transshipment exist or are being developed, they only have to be implemented. A global standard of containers would be an ideal solution, of which the ISO standard is a partially successful example, however, in fact, there are too varying models of containers and an ideal size or weight of container does not exist, therefore a European standardisation of containers seems unrealizable. Also the usage of 20 and 40 containers varies too much in different contexts. However a European Intermodal Loading Unit (EILU), compatible with road, rail, SSS and IW, can be used in intra-European intermodal freight flow, even if this flow does not increase a lot while the intercontinental container flows do not cease increasing. Allegedly there are gaps between sea containers and ISO road or rail containers, profiles are completely different. For sea containers standardisation seems impossible, because the use of the two kinds of containers, 40 and 20, respectively, is too different. Perhaps it is more realistic to adapt equipment and rules than to change loading units. It is important to harmonize rules and regulations. A unified European agreement for goods transport could be designed to improve intermodality. Indeed, the transparency concerning liability and guarantees is essential to acquire the customers confidence. An adaptation of rules (and handling equipment) can be a more realistic alternative for expanding intermodal transport than a change of loading units. A question raised was whether intermodality is so difficult, inflexible and slow as the prevailing conception indicates. Maybe the hesitation in using intermodality is a cultural and attitude problem, as Europe to a great extent has transformed into a road transport area? To enhance/improve intermodality in a long term strategic view education and training, marketing and information are essential measures. Education/training can improve intermodality in all fields of activities: stevedores education, logistics improvement, increase of involvement in intermodal transport, etc. Education in marketing for intermodal transport could also improve the efficiency of intermodality. The lack of promotion and marketing of intermodal transport hinders its full development. As all industrial products and services, the intermodal transport and intermodal tools and technologies must be promoted by industrial marketing targeted on the customers needs and expectations. To improve communication among intermodal players a knowledge base can be created.

2.4.1 Transportation Networks

As roads are being more and more congested, a shift to other modes must be performed. The two other modes that are feasible are rail and sea. For import and export to/from Europe a combination of these modes can be used. Connecting inland terminals and harbours with shuttle trains would decrease the congestion of the roads, especially around areas with large harbours. Containers can be automatically transported between the harbour and the inland terminal. Supported by a well-designed IT system containers can be transported to the harbour in a sequence that makes transshipment more efficient, as they can be forwarded in the most preferable order. Fast and efficient transportation of containers can also reduce the ground area

needed in the harbour for stocking containers. The inland terminal can be further connected to regional terminals. Transportation between inland/regional terminals can be conducted by rail (or sea/IW), where only the last leg of the transport chain needs to be conducted by road. The more frequent usage of rail transport moves some of the congestion of the roads to the railways. As the estimated increase in CT transports can/will render considerable bottlenecks in terms of a lack of capacity for operating daily trains, an increase in intermodal transportation by rail will extend these bottlenecks, so a joint European resolution on sustainable transport of goods and people obviously must address research and investment in rail traffic infrastructure and terminal location.

2.4.2 Intermodal Loading Units

Transshipment of containers is considered as an obstacle of intermodality. Moving containers from one mode of transportation to another raises costs as charging fees but also costs dependent on delays and maybe also damage of the goods. Therefore a raise in transshipment efficiency is desirable. One solution may be a standardisation of containers used, but this seems in some cases unrealisable, depending of the large number of containers in circulation all over the globe. Therefore equipment for fast, flexible and secure transshipment of existing containers, horizontally as well as vertically, must be developed and implemented. Earlier projects can provide a great contribution, as many techniques have been developed but not implemented, at least not at a larger scale. In intra-European transportation a standardised EU container, based on usage of the EU pallet, may have a future as it in that case better utilises the cargo space than the ISO container.

2.4.3 Marketing and Know-How

There is a problem with the image of intermodality, i.e. that it is difficult, complex and ineffective. It is necessary to promote intermodality and to improve its efficiency. One problem can be the lack of marketing and knowledge of intermodality. Here the creation of a knowledge base could improve the efficiency of all the actors of the transshipment sector and help marketing intermodality as efficient, easy and inexpensive. Even if some actors claim that intermodal transport is technically and logistically good enough, there is a real problem of marketing facing the impression that intermodality is not efficient. This may be true today, but if the share of intermodal transport shall increase more efforts must be put in the right context.

2.4.4 Combined Transport in Europe

The future of the rail system in the area of combined transport in 18 trans-European corridors was studied by KombiConsult for the International Union of Railways - Combined Transport Group, UIC-GTC (KombiKonsult ). Their prognosis states that the volume of TEU moved will increase from 4.7 millions 2002 to 10.2 millions 2015, or 113 per cent. This increase will mainly be in the mature market of combined transport, Western Europe, and less than proportionate in EastWest corridors. The study clearly works out that, even if all planned infrastructure investments were realised until 2015, considerable bottlenecks in terms of a lack of capacity for operating daily trains would remain (see table below). This is even more true, if capacity-raising enhancements regarding train and line capacity parameters, which are considered ambitious, will not be achieved. In that case network bottlenecks would increase further. Country Germany Main axes with bottlenecks Hamburg Rhein/Main

France Belgium Switzerland Spain

Kln Rhein/Main Saarbrcken Stuttgart Metz Dijon Lyon Avignon Paris Orlans Tours Freight corridors to/from Antwerp Greater Basel area Barcelona - Tarragona

Table 1 Main international rail axes with bottlenecks by 2015

The conclusion of KombiConsult is that it is crucial to implement the planned infrastructure enlargement investments, otherwise the growth of CT and other rail freight would be impeded. In the area of terminal capacity the study states that there will exist a transshipment capacity gap of 1.7 million load units by 2015. Actions have to be taken for optimizing the capacity of intermodal terminals, e.g. by enhancements of process organization and operations supported by an IT terminal management system. In addition public terminals have to be created, operated by neutral companies permitting non-discriminatory access to any intermodal operator, since this will create a bundling effect.