1The Future Prospects For Intermodal Transport On Rail InScandinaviaBjarne Ivar WistDirector Strategy and information
2CargoNet Our train replaces more than 600.000 transportson road with average transport length of more than500 km. 91% delivered within 15 minutes in 2012. Over 50 % market share of the main routes inNorway. 450 meter trains. Average speed 70 km / h. High frequency. Two lines in Sweden - partly owned subsidiaryReal Rail AB. Our system trains are designed for industrialcustomers. Turnover: approximately NOK 1,100 million Number of employees: approximately 570
3Great opportunities for intermodal transportation CargoNet have experienced how close strategic partnership with ourlargest customers generates growth – focus on “high value cargo”. Since we ended the wagonload business back in 2003, we have hadmore than 80% growth in intermodal traffic. More than 70% of the volumes of the largest fright forwarders in Norwayare transported on an intermodal rail shuttle. CargoNet and rail transport has a market share of over 50% of the totaltransport market on the main transport corridors.
4A high market share means increased standards forpunctuality and coordination throughout the value chain New customers with new and more demanding expectations. Competing more directly with road transport. Handling transfer from one transport mode to another. Focus on capital utilization has until resent years, not been the mostimportant for railway companies – intermodal transportation has been akey factor for changing focus.
5Reduced punctuality and regularity - the infrastructure is notdeveloped in line with customers requirements Reduced transport time on the roads - construction completed faster thanthe rail network. In recent years its only built a few terminals for rail - old terminals do notsatisfy the customers or the railway companies requirements. There are many good projects under development, but progress is tooslow.
6The challenge – how to cope with low margins andinfrastructure problems Focusing on equipment utilization – transport times and concepts. Stronger commitment from the customers – both parts have to take risks. Dedicated products and concepts – fish transportation. Low margins leave no room for more companies to make money in thesame value chain – how do we deal with the terminals? Today we focus too much on the limitations, and too little on thosecustomers who want a strategic partnership.
7The new agenda In our role as intermodal operator we have the opportunity to challengethrough genuine cross-border products - focus on transport corridors. Challenge the infrastructure managers. Challenge the technical barriers. Challenge the limitations of unions. By doing so we earn the trust of our customers.
8The best solution Intermodal solutions provides the best utilization of the infrastructure. Intermodal solutions provide the best social benefits of infrastructure. Intermodal solutions will help to build confidence in the railway transport. My experience is that intermodal solutions also represent the lowesttransaction costs between the customers and the railway.