November 21 2016 | #BESTPRACTICE
Stop stigmatizing
Logistics are also no stranger to stigmatization. Many clichés heard are ‘ track is not reliable ’, ‘ track is not flexible ’, ‘ track is not customer oriented ’ or ‘ track is too complicated ’ and there are still a number to mention. The question is whether these clichés are justified. In any case, rail freight transport showed growth of approximately 5% in the past year (2015)%. Further volume growth is also expected for this year. This means that rail freight transport is more or less at the same level as before the crisis. After a number of years of stagnating volumes, this is of course a nice boost for the sector.
Notably, the growth primarily involves continental transport, and increasingly, craneable trailers and swap bodies are being used for this purpose. This indicates that more logistics service providers, and indirectly shippers, are opting for rail. A recent survey of several shippers and logistics providers using rail reveals that the reasons for choosing rail vary. For some, the decisive factor is the additional tonnage allowed on rail, while for others, it’s the flexibility that intermodal transport offers, allowing containers to be loaded and unloaded on demand. This helps prevent congestion at warehouse dock shelters, which can lead to significant cost savings. Another reason mentioned is risk diversification or avoiding long waiting times at road transport borders. However, one thing they all have in common is that they wouldn’t want to switch back and will use rail even more where possible. Where does this collective enthusiasm come from?
Although I haven’t extensively researched the answer, I might have a possible explanation. The perception of rail among many shippers and logistics providers is still heavily influenced by the past and by what is reported in the media. This stigmatization appears to lead to a cautious approach toward rail and the intended modal shift. There is still a lot of reluctance. Admittedly, there is room for improvement, and not all cargo flows are suitable for rail transport. However, for the parties who dared to make the switch, rail transport has proven to offer more benefits than initially thought. The involved parties openly admit that this switch wasn’t automatic; an internal “mental shift” was required. At the same time—and this is a point of criticism towards rail—there is often interest from shippers, but a lack of transparency sometimes causes them to drop out while searching for the right contact point or desired transport solution.
For this reason, the Rail Cargo information bureau has developed a new tool that makes it easy for (potential) rail customers to connect with the appropriate provider. This tool is an extension of the existing ‘Rail Scout’ application. By entering a few parameters, such as customer type, tonnage, rail connection availability, loading and unloading location, and equipment, a transport recommendation including providers is generated. This applies not only to intermodal transport but also to bulk (dry & liquid), breakbulk, and special products.
During the Transport & Logistics trade fair from November 29 to December 1 at AHOY Rotterdam, Rail Cargo will host a workshop on this new functionality. Shippers or logistics providers who previously claimed they couldn’t find the right contact point now have no excuse…
Given the increasing congestion on highways, the ‘modal shift’ ambitions of both European and national governments for sustainability and environmental goals, the growing driver shortage, and rising wages, it’s wise to already be seeking new transport solutions. Recent best practices demonstrate that rail freight transport offers more advantages than initially thought. So, stop stigmatizing and experience for yourself what rail has to offer.” Pieter-Dirk Roeleveld, Communication Coordinator at Rail Cargo Information Netherlands