Bulk Distributor Nov/Dec19 | Page 2

2 B ULK D ISTRIBUTOR Rail & Intermodal November/December 2019 A bright future for UK rail, says VTG V TG Rail UK is the largest private wagon hire company in the UK. From offices in Birmingham, in the English Midlands, a team of 23 dedicated staff manage a fleet of more than 2,000 wagons. The firm is a subsidiary of Hamburg, Germany- based VTG Group. “We have wagons that service most sectors and commodities that use rail,” Ian Shaw, sales and marketing director, tells Bulk Distributor. “These are loosely divided into three divisions that are aligned with the VTG Group’s ‘Centres of Competence’, namely tank, intermodal and standard freight - the latter being a catch all for the multitude of other wagon types that exist. We have wagons suitable for all types of shipping containers, petrochemicals, steel, aggregates, cement and biomass to name just a few.” Ian Shaw - We decided that a speculative build of new box wagons was appropriate Shaw sees a bright future for rail freight in the UK. Following the government decision in April 2015 to double the carbon floor price, effectively making coal uneconomical as a power station fuel, there was a sudden decline in coal volumes. However, Shaw says the overall amount of freight moved on the UK rail network has remained fairly steady, with some sectors like construction and intermodal having actually seen an upturn. “Our introduction of new tank wagons carrying aviation fuel, box and hopper wagons for aggregates, and more Ecofrets for the maritime intermodal sector bear witness to this,” he says. “We are definitely seeing a high level of enquiries for box wagons at the moment,” he continues. “As I said before, the construction sector has been seeing signs of growth over the past few years and, while the industry clearly needs to see Government providing increased levels of confidence to enable critical decisions to be made, we strongly believe this will continue. VTG’s latest generation of box wagons are designed to incorporate enhanced levels of strength and wear resistance as well as being of the optimum length and volume for aggregates. “This means higher levels of fleet availability and more tonnes of payload in any given length of train,” says Shaw. Additionally, the ‘track friendly’ bogies they run on, offer customers reduced track access charges as well as significantly longer maintenance intervals.” VTG is even investing in significant fleet additions. Some 200 new build wagons will be delivered over the next nine months. These will be open boxes, primarily aimed at the aggregates market, but also suitable for a variety of other VTG has wagons that service most sectors and commodities that use rail commodities, Shaw explains. “We decided that a speculative build of new box wagons was appropriate in this case, both in preparation for a potential increase in major infrastructure projects and also to allow us to manage our normal wagon fleet replacement cycle,” he says. Interestingly, aside from new rolling stock, repurposing wagons is becoming increasingly viable and VTG is taking full advantage of this development. This was also prompted by the growing redundancy of the coal wagon fleet. “At VTG, we have always prided ourselves on being innovative, both in the design of new wagons and also in recycling existing ones to cope with changes in the market place,” Shaw goes on. “When the decline in coal movements for the electricity supply industry became apparent, we spearheaded the move to find a way to make relatively new coal wagons suitable for the efficient movement of aggregates – which are much higher density - by shortening the wagons and reducing the volume. This award winning work has since become the benchmark for the industry with hundreds of wagons having gone through the same process,” he explains. In 2017, VTG Rail won the ‘Freight and Logistics Achievement of the Year’ award at the National Rail Awards for this innovation. The award recognises major new contributions to the railfreight or logistics sector where the outcome measurably enhances the role of rail in the supply chain, and is part of the 20 year running National Rail Awards that celebrate excellence in Britain’s rail industry, Most recently, VTG was one of the project partners that won this year’s award. Working in partnership with Railfreight Consulting, British Airways, BP, Network Rail and Freightliner, the award was made for a project that has seen significant new private investment in terminals and wagons provide a cost effective solution for British Airways that will significantly increase the resilience of fuel supply into the country’s largest airport, London Heathrow. The project is designed to operate for at least 15 years. Of course, one spanner in the works is Brexit which has the potential to disrupt significantly the country’s logistics chains. However, Shaw remains calm. “Brexit has been a significant distraction for VTG as well as for the whole rail freight sector, and as part of Europe’s largest independent wagon leasing company, it is not something we wanted to happen,” he says. “However, as always we are facing our challenges head on, and planning for them in the best way possible,” he says. While the exact nature of Brexit is not yet known (at least at the time of writing) VTG is taking steps to ensure that stocks of critical imported components are being increased to minimise the impact of potential supply chain disruption. “As the main supplier of internationally approved ‘Megafret’ intermodal wagons, we are also talking to our customers and other industry stakeholders about increasing the availability of this fleet, should there be a need to run additional trains through the Channel Tunnel to alleviate cross border delays,” Shaw says. Silk Road links require regulation in Europe S takeholders on the Silk Road urgently need to co-ordinate their actions more closely due to rapidly growing flows of goods and trade along this major geo-strategic route, which spans more than 12,000 kilometres. To this end, closer co-operation with the Group of European TransEurasia Operators and Forwarders (GETO) was agreed on the sidelines of the 28th plenary session of the Coordination Council for Trans-Siberian Transportation (CCTT). Last year alone, flows of goods between China and Europe along the Silk Road railway corridor increased by more than a third (35 percent), according to Russian Railways (RZD). While China has a standard set of rules for transport planning through goods platforms, in the European Union (EU) flows of goods encounter a “poorly co- ordinated logistics and infrastructure system”. CCTT and GETO will work together with industry and authorities in the future to develop and put forward proposals for co-ordinating both innovative technologies and existing IT solutions. “We have to develop a network of public authorities, industry as well as existing infrastructure – terminals and rail networks – to solve the main problem of bottlenecks in the co- ordination of the last mile to the consignee,” said Harm Sievers, GETO’s president. GETO and CCTT have a long history of working together. And today they still enjoy a close partnership that benefits both sides. CCTT’s secretary general, Gennady Bessonow, feels that GETO’s partnership initiative is urgently needed and that there will be outstanding opportunities to improve this co-operation in the future. “All partners involved along the Silk Road are indicating to us that they are willing to improve existing processes and to connect through us. There are no concerns at all about this partnership – we are being urged to put forward proposals by policy-makers, authorities and industry in all countries involved,” he said. GETO and CCTT will work together closely on developing infrastructure related to customs procedures, digitalisation and the harmonisation of international law along European-Eurasian routes. The main goal is to continue raising awareness among governments in affected countries and to continue increasing the movement of goods at almost equal workloads in either direction. “This will allow us to tap into additional sectors and groups of commodities and to create lasting jobs along the 12,000km corridor, which goes through five countries, as a result of these services,” Sievers said.