SupplyChain Magazine August 2022 | Page 71

LOGISTICS

“ I expect rail use to continue to increase because we recognise the need to reduce our carbon footprint ”

KEN SHERMAN PRESIDENT , INTELLITRANS
highlights how , in the past 70 years , European rail freight ’ s share of supply chain movements has plummeted from 60 % in the 1950s to just 15 % today .
The report outlines how several major European import and export port hubs have very low rail modal share . In Felixstowe in the UK , it ’ s 17 %, just 8 % in Antwerp , Belgium , and 7 % in Valencia , Spain .
McKinsey called on European ports to “ strategise hinterland activity ”, urging them to follow the example of the Port of Hamburg , where redevelopment has enabled it to increase its rail modal share from 30 % to 51 % in less than three decades .
“ The targeted investment in infrastructure at the Port of Hamburg supply chains triggered a massive shift ,” McKinsey writes , adding : “ Ports play a major role in the transport of European goods , handling around 50 % of imports and exports . Rail access to ports is therefore a crucial factor in fulfilling Europe ’ s aspiration for freight rail .”
It says , if the EU is to achieve its goals on rail , it will require “ a massive shift in trajectory ” – including a switch to new major long-distance freight flows , more key connection points , such as ports , and new industries able to replace volumes lost in declining sectors .
Another challenge , McKinsey points out , is that , although rail transport is better for
supplychaindigital . com 71