May 17, 2020

European rail execs meet over freight corridor

Supply Chain Digital
DB Schenker Rail
TX Logistik Freight
Freddie Pierce
4 min
CEOs from DB Schenker Rail, TX Logistik, SBB Cargo and BLS Cargo meet over Rotterdam-Genoa freight rail corridor
In the type of meeting that could have mimicked a scene from The Godfather, four CEOs of major European rail companies met in Berlin yesterday, tasked...

In the type of meeting that could have mimicked a scene from The Godfather, four CEOs of major European rail companies met in Berlin yesterday, tasked with working out details on international freight rail lines.

DB Schenker Rail (Germany), TX Logistik (Germany), SBB Cargo (Switzerland) and BLS Cargo (Switzerland) – presented their requirements for the development of the European rail freight transport corridors defined by the European Commission. Under the impulse of the Community of European Railway and Infrastructure Companies (CER), the four companies agreed on a joint position which will be actively promoted to policymakers and national infrastructure managers.
 
Given that the growth forecast for European rail freight mainly concerns cross-border corridors, like the Corridor Rotterdam-Genoa, it is important to eliminate infrastructure bottlenecks along those routes. On the Rotterdam-Genoa Corridor, bottlenecks are in Oberhausen, Basel, Chiasso and Milan.

“The new infrastructure of the Betuwe line, the Lötschberg Tunnel and the Gotthard Base Tunnel must be linked to create an efficient end-to-end corridor,” Dr. Dirk Stahl, CEO BLS Cargo said. “Capacity bottlenecks need to be alleviated.”

EU Regulation No. 913 concerning a European rail network for competitive freight, which entered into force in November 2010, aims to increase the competitiveness and quality of international rail freight. The network should be organized in such a way that the most important economic centers are linked in a more reliable and faster way, allowing more volumes to be transported. Nine international rail freight corridors, giving more priority to freight trains, are to be established by 2015.

Corridor 1, also known as ERTMS Corridor A, connects Rotterdam (Netherlands) and Zeebrugge (Belgium) with Genoa (on the Italian coast) via Cologne, Duisburg, Mannheim, Basel, and two parallel routes in Switzerland. This corridor is one of the most important routes in the European rail network. It was therefore selected for investigation by the four rail operators. 

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According to Dr. Alexander Hedderich, CEO of DB Schenker Rail, the biggest European rail freight company, “improving the corridor’s efficiency involves numerous infrastructure investments. Construction works and information about these works must be coordinated on an international level to maintain the best possible quality of service.”
 
Capacity can also be increased if priority is given also to freight trains, if operational processes are harmonized, and if train paths are constructed based on market needs.

“In addition to these operational challenges, it is absolutely essential that cost burdens are set in a way to guarantee the competitiveness of the rail mode,” stressed Karl Michael Mohnsen, CEO of TX Logistik.
 
Keeping in mind the objective to improve economic efficiency, any new infrastructure should generally be designed to accommodate 1,500-meter trains. Moreover, there is a need to simplify and improve processes in order to minimize the number of operational stops.
 
Interoperability in particular is essential for rail companies to remain competitive with road transport.

“Railway operators continue to struggle with different national rules, such as complex homologation procedures and different safety systems,” said Nicolas Perrin, CEO SBB Cargo. “This results in additional costs which reduce the advantages of rail in cross-border transport. This clearly goes against the objective of market opening in Europe and puts rail at a disadvantage to road transport,” he added.
 
Dr. Johannes Ludewig, CER Executive Director, concluded that the four companies’ recommendations are groundbreaking with regard to the implementation of the EU Regulation.

“CER has started and driven the political corridor discussions with former EU Transport Commissioner Loyola de Palacio back in 2003. Since then, a lot has happened on the operational as well as on the legislative side,” Ludewig said. “CER strongly believes that operators’ involvement is paramount in shaping corridor developments. The corridor concept will only be successful if operators are directly addressing the corridor-management with their concrete market-oriented requirements.

“The signal sent today in Berlin is thus a very important step.”

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Edited by Kevin Scarpati

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Jun 21, 2021

Elon Musk's Boring Co. planning wider tunnels for freight

BoringCompany
supplychain
freight
elonmusk
2 min
Elon Musk’s tunnelling firm plans underground freight tunnels with shipping containers moved on “battery-powered freight carriers”, according to reports

Elon Musk’s drilling outfit The Boring Company could be shifting its focus towards subterranean freight and logistics solutions, according to reports. 

A Boring Co. pitch deck seen and shared by Bloomberg depicts plans to construct wider tunnels designed to accommodate shipping containers. 

Founded by Tesla CEO Musk in 2016, the company initially stated its mission was to offer safer, faster point-to-point transport for people, particularly in cities plagued by traffic congestion. It also planned longer tunnels to ferry passengers between popular destinations across the US. 

The Boring Co. completed its first commercial project earlier this year in April. The 1.7m tunnel system is designed to move professionals between convention centres in Las Vegas using Tesla EVs. It says the Las Vegas Convention Centre Loop can cut travel time between venues from 45 minutes to just two. 

 

Boring Co.'s new freight tunnels

The Boring Co.'s new tunnel designs would allow freight to be transported on purpose built platforms, labelled as “battery-powered freight carriers”. The document shows that, though the containers could technically fit within its current 12-foot tunnels, wider tunnels would be more efficient. Designs for a new tunnel, 21 feet in diameter, show that they can comfortably accommodate two containers side-by-side, with a one-foot gap between them.

The Boring Co.’s new drilling machine, dubbed Prufrock, can tunnel at a rate of one mile per week, which is six times faster than its previous machine, and is designed to ‘porpoise’ - mimicking the marine animal by ‘diving’ below ground and reemerging once the tunnel is complete. 

Tesla’s supply chain woes 

Tesla is facing its own supply chain and logistic issues. The EV manufacturer has raised the price of its vehicles, with CEO Musk confirming the incremental hike was a result of “major supply chain pressure”. Musk replied to a disgruntled Twitter user, confused as to why prices were rising while features were being removed from the cars, saying the “raw materials especially” were a big issue. 

Elon Musk Tweet

Car manufacturing continues to be one of the industries hit hardest by a global shortage in semiconductor chips. While China’s chip manufacturing levels hit an all-time high in May, and the US is proposing a 25% tax credit for chip manufacturers, demand still outstrips supply. Automakers including Volkswagen and Audi have again said they expect reduced vehicle output in the next quarter due to a lack of semiconductors, with more factory downtime likely
 

Top Image credit: The Boring Company / @boringcompany

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