SupplyChain Magazine August 2022 | Page 68

GREEN LIGHT

FOR INCREASE IN RAIL FREIGHT

When it comes to freight , rail is far greener than road , yet it ’ s far more complex , which is why a change in mindset – and the use of technology – will be needed if rail is to grow
WRITTEN BY : SEAN ASHCROFT

European Union ( EU ) sustainability proposals include a plan to double rail freight across the territory by 2030 , with the US also committed to increasing the role of rail as part of its transport infrastructure .

On a per-tonne-delivered basis , it ’ s estimated rail freight produces 75 % less greenhouse gas emissions ( GHG ) than shipping by truck , so it is easy to see why politicians and business chiefs are keen to embrace rail more fully as part of the intermodal logistics landscape ( with ‘ intermodal ’ defined as being two or more modes of transport being used to convey goods ).
Some countries are doing better than others on making rail a major part of their intermodal logistics infrastructure , with the US leading the way . Unlike the EU , the US is a single landmass and has a single language , and around 40 % of all US freight by tonne-mile is moved by rail – compared to around 15 % in Europe .
Also , the States has a more-advanced logistics infrastructure than the EU , plus it boasts a large ecosystem of Intermodal Marketing Companies ( IMCs ) that make it almost as easy to book intermodal transport in the US as it is to book a truck .
EU playing intermodal logistics catch-up on US The EU ’ s bid to catch up with the US on the intermodal front will be dependent as much on port development as that of rail , according to a recent report from McKinsey . The report – Bold Moves to Boost European Rail Freight –
68 August 2022