Article | REF: AG8110 V1

Rail freight transport

Author: Patrick CHARPENTIER

Publication date: April 10, 2007

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AUTHOR

  • Patrick CHARPENTIER: Director, Institute of Railway Operations, SNCF Group - Within the SNCF Group, the author was Freight Production Director, Freight Strategy and Development Director, then General Manager of the International Freight Group.

 INTRODUCTION

The transport market is highly competitive. Intermodal competition has largely benefited road transport over the past 30 years. Until now contained by cooperation agreements between national railway companies, and by the real difficulties of access to the profession, competition between railway companies, announced in 1991, is now part of the European landscape. Although of little significance in France, it is a reality in other major European countries.

The political authorities are calling for a revival of the rail mode to meet the challenge of growing trade in Europe and worldwide. In so doing, they are relaying the pressure exerted by public opinion and institutional players, who fear the external effects of a growth in trade that would only be ensured by road transport. The long-term rise in energy costs makes it more imperative than ever to find an alternative to "all-road" transport. Shippers themselves, whether manufacturers or freight providers, are increasingly keen to benefit from the intrinsic advantages of the rail mode.

The issues of harmonizing conditions of competition, under-pricing transport and taking external effects into account have been raised for years. Clearly, the railways can't wait for the debate to reach a positive conclusion before taking the measures that fall within their remit. All incumbent railroads are therefore implementing restructuring policies on an unprecedented scale, based on new industrial models, with a view to regaining strong competitiveness and irreproachable service quality. In many respects, both in terms of its weaknesses and its profound industrial transformation, SNCF is exemplary in the search for a viable model for the future of rail transport on a European scale.

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