Freight rail reports, projects and other news from outside North America
3/5/2021
COVID supply chain challenges prompt technology investment — ABI Research:
Global transportation management system (TMS) revenues will nearly double to $31 billion by 2025, according to ABI Research. TMS-related technologies include predictive analytics, automation, real-time tracking, machine learning, artificial intelligence and blockchain. “There is growing usage of open APIs and software development kits to create customized solutions for different sized companies, verticals, and geographies as well as partners and co-opetition,” said Susan Beardslee, ABI principal analyst, freight transportation and logistics, in a March 3 statement. “Adoption triggers include capacity constraints, which are growing ever tighter (including driver shortages back to 2018 levels) and pushing up costs toward the double-digits. Beyond that, consumers and businesses continue to push for more granularity in answering, ‘where’s my stuff?’ with an ETE, real-time response.”
Cargo theft trends in 2020 — TT Club report:
On Feb. 24, international transport and logistics insurer TT Club released a report on 2020 cargo theft trends. Compiled by TT Club and global provider of supply chain intelligence BSI, the report covers “significant new trends in risks both regionally and globally,” TT Club said. Among the highlights:
• thefts of cargo in transit remained highest proportion of total, although the 71% share represented a decrease from 2019 (87%);
• losses from warehouses and other storage facilities increased to 25%;
• 2020 was “an atypical year due to supply chain threats from the pandemic,” they concluded, and the pandemic likely will be “of continued concern well into 2021”;
• the year marked several “new high-value targets,” including PPE, face masks and anti-bacterial gel, and the vaccine supply chain will “come under threat as roll out expands”; and
• the food and beverage sector remained the largest target at 31%.
The “most significant trend,” TT Club said, was “the relative shift in the location of thefts, with in-transit incidents and those involving vehicles showing a decline, though remaining the most dominant threat, and theft from storage facilities increasing. The extent of the rise in the latter was variable from region to region however this trend was reflective of the disruption to supply chains brought about by radical changes to consumer buying patterns as a consequence of the pandemic.”
Global train control management system market to reach $5 billion by 2027 — Allied Market Research report:
Estimated at $3.13 billion in 2019, the global train control management system (TCMS) market will reach $5.09 billion by 2027, growing at a compound annual growth rate (CAGR) of 8.7% from 2020 to 2027, according to report released Feb. 10 by Allied Market Research. “Rise in demand for safer, more secure, and efficient transport systems and surge in allocation of budget for development of railways have boosted the growth of the global train control management system market,” Allied Market Research officials said. “However, requirement of high capital hampers the market growth. On the contrary, innovations in railway infrastructure in emerging economies would open new opportunities for the market players in the future.” The report segments the global TCMS market based on component, solution, network type, train type and region. Based on component, the human machine interface segment is projected to register the fastest CAGR of 10.3% throughout the forecast period, Allied Market Research officials said. The vehicle control unit segment held the largest share in 2019, contributing to nearly half of the global market’s total revenue, the report said. Based on solution, the integrated train control segment is estimated to portray the highest CAGR of 12.2% from 2020 to 2027. The positive train control segment dominated the market in 2019, accounting for nearly two-thirds of it, Allied Market Research officials said.
Germany:
Seaborne cargo throughput in the Port of Hamburg performed better than expected in the fourth quarter of 2020, port officials said on Feb. 25, adding that the upward trend has been noticeable since Q3 2020. Seaborne cargo throughput in Q4 was about 3% higher than it was the same period a year earlier, and container throughput was 1.2% lower year over year. Total throughput in 2020 was 126.3 million tons, 7.6% below 2019’s 136.6 million tons. “The first six months [of 2020] were notable for reduced activity in many areas of the economy, weaker consumer demand, and a reduction in liner service sailings,” said Axel Mattern, Joint CEO of Port of Hamburg Marketing. “In Hamburg, this caused a double-digit downturn in throughput. We are delighted that the second half brought a turnaround.” ... In memoriam: Heinz Hermann Thiele, majority shareholder and long-time chairman of the executive and supervisory boards of Munich-based Knorr-Bremse AG, died on Feb. 23. He was 79. “Through his entrepreneurial vision, in more than 35 years he built up the Knorr-Bremse Group from a medium-sized company in a difficult economic situation into a profitable, globally successful corporation with almost 30,000 employees and annual sales of around EUR 7 billion,” Knorr-Bremse officials said. “To this day, more than a billion people around the world place their trust in the company's pioneering technologies for greater safety on rail and road.” Knorr-Bremse manufactures braking systems and supplies safety-critical subsystems for rail and commercial vehicles.
India:
Even though the Indian Railways’ Dedicated Freight Corridor Project was “adversely affected due to a COVID-19 induced lockdown,” capital expenditures for the project during the first 10 months of the current financial year were up by 21% compared with the same period the previous year, India Minister of Railways Piyush Goyal announced on Feb. 15. The project management team and contractors have been directed “to take all possible steps to speed up the pace of works on all the sections” of the 1,504-kilometer Western route and 1,856-kilometer Eastern route, ministry officials said. … In January, the Indian Railways registered an all-time-high monthly freight-loading total of 119.79 million tons (MT), the Indian Ministry of Railways tweeted on Feb. 8. The previous high was 119.74 MT in March 2019.
Nigeria:
On Feb 9, Federal Republic of Nigeria President Muhammadu Buhari presided over the groundbreaking ceremony of the 284-kilometer Kano-Danbatta-Kazaure-Daura-Mashi-Katsina-Jibiya-Maradi rail line. “The cities of Jibiya and Maradi constitute a significant trading core between Nigeria and Niger Republic — a tradition dating back many centuries,” Buhari said. “This vital infrastructure line will establish an end-to-end logistic supply chain in railway transport services between Northern and Southern regions of the country, reaching Nigerian southern ports of Lagos and Warri. “The project, when completed, would serve import and export of goods for Niger Republic and other countries in the sub-region through Nigerian ports,” Buhari said. “The country would earn revenue through expansion of trade and commerce, while the people of Niger Republic will benefit from ease of transportation logistics at affordable cost in their import and export business. The rail connection to Niger Republic also will “foster Trans-Sahara trade and contribute to the expected gains in the African Continental Free Trade Area Agreement,” he added.
Saudi Arabia:
The Jubail and Yanbu Industrial Services Co. and Hutchison Ports have reached an agreement to invest in and operate JCPDI Port, the Royal Commission in Jubail and Yanbu announced on Feb. 15. “… JCPDI Port was established to provide modern logistics services in the region to enhance the Kingdom’s presence in this field and support the goals of the Kingdom’s Vision 2030, which aspires the Kingdom to become a global logistics platform,” said Eng. Abdullah bin Ibrahim Al-Saadan, chairman of the Royal Commission for Jubail and Yanbu.” The port is located on China’s Belt Road Initiative and is Saudi Arabia’s closest port to East Asia. To be developed in two phases, the multipurpose port will consist of a container terminal, and a general cargo and dry-bulk terminal. Commercial operations of the general cargo and dry-bulk terminal will launch this year. The container terminal is expected to start commercial operations in 2022.
Singapore:
On Feb. 1, Pacific International Lines (PIL) announced it had “garnered support from a significant majority of its creditors and noteholders” for its debt restructuring plan. “The comprehensive financing package offered by our investor, in conjunction with a holistic restructuring of PIL’s financial liabilities, will recalibrate PIL’s capital structure for long-term sustainability, thereby allowing PIL to emerge as a stronger, leaner and better capitalized company, and one that will provide creditors with a clear path to recovery going forward,” PIL officials said, adding that they planned to submit the plan to the High Court of the Republic of Singapore for approval. The debt restructuring exercise is expected to be completed by the first half of 2021.
South Africa:
Transnet SOCT Ltd. “successfully tested a reefer container train from Belcon Inland Terminal to its Cape Town Container Terminal. An operation that will ease congestion at the terminal,” according to a Feb. 6 tweet. “This initiative brings about much-needed relief on the roads, moves goods more efficiently to the ports, and reduces the cost of doing business.” … The Railroad Association of South Africa has rebranded itself as the African Rail Industry Association (Aria). The aim: “to play a greater role in revitalizing the local and continental rail sector and to support the new African Continental Free Trade Area (AfCFTA),” which went into effect Jan. 1. “We want to focus on Africa as a whole,” Aria Chief Executive Officer Mesela Nhlapo said in a Feb. 14 statement. “The role of Aria, as an advocacy group, is to have the rail industry’s opinions heard and concerns heeded. We are open to strategic partnerships that will help us forge a path for a greater and more connected African Rail Network. We believe that South Africa can play a role as one of the manufacturing hubs for railway and rolling stock equipment.”
Spain:
Transfesa Logistics has a new international rail connection in Dourges, south of Lille, France. The service began in mid-2020, with a weekly stop, in both directions, to unload containers that come from Spain. “The frequency has increased and currently stops there between two and three times a week,” the company announced on Feb. 23. “These are mixed, multi-product trains … as well as the other merchandise that continues later on other routes to various European countries.” The new connection “opens up a wide range of possibilities to expand our services,” added Pablo García, the company’s traffic implementation project manager. “Dourges is a natural step towards the United Kingdom, so we now have a greater capacity to increase the traffic that currently exists with this country. As it is in one of the largest industrial areas in France, there is great potential to introduce very diverse articles and products such as consumer goods, tanks or granulated products for the automotive sector, among others. Furthermore, from Dourges we want to reinforce refrigerated and olive oil shipments to Belgium and the Netherlands.”
United Kingdom:
DB Cargo UK and Tata Steel have “successfully trialed” the use of 100% renewable hydro-treated vegetable oil (HVO) in a Class 60 locomotive transporting product from Wales to the West Midlands, DB Cargo UK recently announced. The “carbon-busting” locomotive, which carried 2,500 tons of steel coil, was the first Class 60 powered “purely by the environmentally friendly fuel” to travel on the mainline UK rail network, the company said. Fossil-free HVO is synthetically made through the hydro-treatment process from vegetable oils or animal fats which can reduce harmful carbon dioxide and nitrogen oxide emissions by as much as 90%. “Tata Steel’s service was the ideal one to trial it on as they, like us, are continually looking for new and innovative ways to reduce their carbon footprint and impact on the environment,” DB Cargo UK’s Head of Sales Roger Neary said. “We’ve now proved that HVO fuel can be used in our Class 60, 66 and 67 locomotives with negligible impact on power output, which is critical considering the volume of bulk materials we transport like steel and aggregates.” ... A survey of 350 UK supply chain managers found that 63% have experienced delays of at least two to three days getting goods into the UK, up from 38% in a similar survey in January this year, the by the Chartered Institute of Procurement & Supply (CIPS) said on Feb. 24. Also, 58% of businesses said delays had become longer since the beginning of January. The main delay driver: the time taken for customs to work through the new paperwork following new border rules. The situation is slightly better for exports, with 44% experiencing delays of at least two to three days getting goods into the EU. Meanwhile, other new import certifications are scheduled to be phased in beginning in April. “We are well into the second month of the new arrangements and the hope that delays at the border would reduce as freight volumes returned to normal and customs systems became used to the new processes has not come to pass,” said John Glen, CIPS economist and visiting fellow at the Cranfield School of Management. “What is even more concerning is that the delays are continuing to get longer, putting more and more pressure on the UK’s supply chains and affecting the timely delivery of much-needed goods.”