‘Certain reluctance’ of shippers to adopt intermodal transport

Many shippers continue to display a “certain reluctance” when it comes to the adoption of combined rail-road freight transport solutions, according to Portmann’s CEO Jean-Michel Bauer. Last summer, the company launched an intermodal shuttle service between the French eastern city of Metz and the rail freight hub in Valenton in partnership with DB Cargo France, the main customer being IKEA.
“We have successfully established a daily train service, running Monday to Friday, which operates reliably in both directions. A major plus is the strength of the traction provided by DB Cargo France”, Bauer said in an interview in the French media. “However, there is room for improvement at the Valenton terminal which has faced technical issues leading to service interruptions.” A company spokesperson confirmed his comments to RailFreight.com.

Challenge to ‘balance flows’

Currently 26 to 30 containers are transported daily on behalf of IKEA between Metz and Paris route, the total capacity available being 44 containers, Bauer commented. “Therefore, there is capacity available for shippers with Portmann or other carriers. This is even more the case on the Paris–Metz leg which we are struggling to fill.”

Bauer explained that DB Cargo and Portmann would warmly welcome other shippers onto the trains and that discussions were currently underway. “Now that we have a reliable, high-quality solution, it would be great if others were to join the venture. The key to the success of this service now lies in the ability to balance flows, that is, to load the train on the Paris–Metz leg and consolidate traffic.

The inauguration of the new DB Cargo France service on behalf of IKEA
The inauguration of the new DB Cargo France service on behalf of IKEA. Image: DB Cargo France ©

‘Right time for modal shift’

Asked whether he had expected a stronger response from the market to the ‘combi’ service, Bauer replied. “While we are realistic, there is a touch of disappointment regarding a certain reluctance on the part of shippers to join the venture on the Paris-Metz route.” He said the vast majority of shippers declared their support for modal shift and decarbonisation. However, it was another thing sitting down with them at the negotiating table to work out the operational arrangements and the organisation of departures and shipments.

“Certain constraints have to be taken into account. Trains don’t go everywhere, and shippers inevitably have to adapt their processes to the timetables.” Could the recent developments in road haulage, with the high number of business closures and bankruptcies, leading to a shortage of trucks, play in rail freight’s favour? “I would be tempted to say that now is the right time to switch to rail which will continue to offer the same capacity, whereas truck capacity is set to decline,” Bauer replied.

‘Additional cost compared to road remains reasonable’

As for freight rates, Bauer revealed that the promotional campaign ahead of the launch of the Metz-Paris-Metz service had generated some interest and was seen by a few shippers as an opportunity to switch modes at road haulage prices. “Overall, this service does indeed incur an additional cost (compared to road) but it remains reasonable and it is always possible to discuss this with shippers, taking operational constraints into account. The business model for our service has not yet been fully realised but we are improving it week by week with DB Cargo,” he concluded.

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