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19. WP1: Logistics Requirements
December 6th, 2007
Progress Report on WP1

Building on the research carried out at the beginning of this work package the conclusion has been reached that the potential for growth can be seen in all four RETRACK market segments:

1. Dry and liquid bulks: larger chemical companies like BASF, Dow, Degussa, etc, are increasingly setting up manufacturing activities and finding new customers in Romania, Turkey, Ukraine, Russia and the Caucasus. This requires transport of supplies to these sites, and also transport to Western Europe. Additionally, the cleaning of tank containers sometimes requires extra transport; this can also be done efficiently by train.

In fact, the private operators which are part of the RETRACK consortium are currently already negotiating with a number of chemical companies (not mentioned here due to confidentiality reasons) to use the RETRACK rail freight shuttle between Germany and Constanza. The container tanks to be transported for the chemical companies will most probably form the base load for the RETRACK rail shuttle. Return transport is also covered here, because the container tanks have to go back in order to be cleaned and reused.

2. Special/oversized cargo: The RETRACK rail freight service will provide an opportunity for Eastern European steel and automotive manufacturing to transport their finished goods to Europe. Particularly in Slovakia, there is interest in using the RETRACK rail service. These loads need to be put on the train in Budapest, probably with a feeder link from Kosice or Bratislava to Budapest.

3. Maritime containers: Rotterdam, Antwerp and Constanza will continue to grow in the next 5 to 10 years, and in all ports there is a policy objective to make increased use of rail and inland waterway transport. Several major logistics service providers report increasing traffic towards Eastern Europe, with up to 10 maritime containers per week each. The port of Constanza is reporting a substantial increase in container transhipment (about 35% in 2006), and is interested in developing the rail links to the Romanian and Hungarian hinterland. Several shipping lines are also interested in using the RETRACK rail service.

4. Swap bodies: In the continental market for swap bodies, the RETRACK shuttle offers possibilities, especially for large retail groups with interests in Eastern Europe, like Carrefour and Tesco. This market will probably grow a little less than the other three markets.

The results of WP 1 will be reported in Deliverable which will be ready in December 2007.


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