Chapter 6

Rail Transport
LG305DE01 International Transport
Duy Dang
([email protected])
Group discussion: Rail freight
• What do you know about this industry?
• How important is this industry in your country?
• Is there any specific national characteristics to this industry (e.g. specific regulation,
market conditions etc)?
• What do you think are the main drivers of prices in this industry?

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Railways as a part of overall logistics
• Traditional markets vs. changing markets & requirements
• Railway operational efficiency and overall supply chain view
• Addressing fragmentation of networks
• Integrated planning and investment
• Reduction of inefficiencies and reductions of costs
• Increased cooperation with stakeholders (shippers, freight forwarders and third-party
logistics providers – e.g. affiliated companies / mutually arrangements)

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UK rail infrastructure

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UK rail freight

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UK rail freight

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Rail freight moved by type of commodity

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Rail freight moved by type of commodity

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DB Cargo UK

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Industry classification

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UK classification
• Commercial rail freight split into 2 indices: domestic and international
• Domestic is split into:
• Container
• Mail
• Petroleum chemicals and nuclear
• Coal and other minerals
• Metals
• Aggregate/construction
• Rail infrastructure and engineering
• Other
• International captures the freight transport via the Channel Tunnel and is not split any further
• Moving to CPA 2.1. classification
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Price determinants
• Similar to other transport modes
• Type and weight of cargo
• Journey distance
• Type of vehicle
• Routing information (distribution/joint cargo)
• Delivery time
• Inclusion/exclusion of packing, loading and unloading services
• Domestic or export
• Fuel prices
• Other special conditions
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Pricing methods: rail freight

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Service specification
• Type of service
• Carload versus intermodal
• Type of Equipment
• Box car
• Container
• Flat car
• Gondola
• Hopper
• Refrigerated car
• Tank car
• Trailer
• Service specification
• Commodity o Shipment weight and dimension
• Origin and destination o Route

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Quality adjustments
• Prices can be impacted by advances in technology and logistics, which need to be
dealt with
• Surcharges often quite volatile over time, impacting on prices

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Type of quality adjustment methods
• Overlapping method
• Comparable replacement/direct price comparison
• Linkage to show no change

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Weights
• Sampling weights
• Index to index weights/Turnover weights
• Product weights
• Industry weights

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Emerging trends in international railway transport

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Railways as a part of Sustainable Economy
• Railways on global level:
• 8% of passenger transport
• 28% of surface freight transport
• Only 3% of global transport CO2 emissions from railway

Transit traffic in Central Asia will increase by 6% per

year until 2050 Potential for increased freight flows
in Mongolia is substantial

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Railways as a part of Sustainable Economy
Sustainability advantages of railway in
comparison to road transport
National & International
policies, strategies, initiatives

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Railways as a basis for International Connectivity
• Hard” - physical (infrastructural) connectivity
• “Soft” - operational connectivity

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Reliability of railway operations

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Enhancing interoperability for facilitation of international railway
transport

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Technical Interoperability
• Common technical parameters of railways infrastructure and rolling stock: track
gauge, structure and loading gauge, maximum axle load, train length, rolling stock
technical specifications (vehicle authorization and safety certification), etc.
• Break of gauge 1,520 mm - 1,435 mm gauge
• Efficient of break of gauge operations

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Key elements for increased efficiency of break of gauge operations

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Transshipment of containers
• directly and simultaneously
• through container yards
• automation of loading/unloading

Watch: New China TV video on Alataw Pass

transshipment warehouse

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Discussion
• What are the experiences of dealing with
break of gauge at Erlian (CN) – Zamiin-
Uud (MN) border crossing ?
• What is the status of new transshipment
ZamiinUud Regional logistic park (benefits
and remaining challenges) ?

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Legal Interoperability
• Unified contractual obligations to customers from origin to destination
• OSJD Agreements e.g.:
• on the International Railway Goods Transport (SMGS)
• on Rules for the Use of Freight Wagons in International Traffic (PGW)
• Bilateral arrangements (based on OSJD rules)
• Harmonization of transport law in OSJD members and COTIF
• Common CIM / SMGS consignment note

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CIM/SMGS consignment note
• Implements both contracts of carriage (sum” of the
CIM and SMGS consignment notes, liability
conditions)
• Recognized as a Customs and bank document
• Expanding the use of CIM-SMGS
• Use of electronic CIM/SMGS
• Functional, legal and technical specifications for the
electronic CIM/SMGS Consignment Note (CIT/OSJD,
July 2019)
• Paperless pilots and next challenges
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Operational Interoperability

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Operational Interoperability

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Electronic information exchange for facilitation of border crossing by
rail

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Automated Information Systems of Railways

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Electronic information exchange between railways

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Electronic information exchange between railways

OSJD - ERA
Contact Group
mapping
between TAF
TSI and
corresponding
OSJD
messages

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