The rail freight market is changing, and in more ways than one: geopolitical developments are reshaping supply chains, European industrial output is down and demand for the transportation of bulk goods is shrinking fast. To make sense of the convergence of these historical junctures, we turned to METRANS CEO Peter Kiss. The rail operator’s leader sheds some light on his company’s strategy in these challenging times.
European rail companies find themselves operating in a prolonged period of uncertainty. The continent is combatting a lack of growth, low industrial demand and a higher-cost financing environment than during the pre-2022 low-interest rate years. On top of that, geopolitical risk now plays a considerable role in planning and investment decisions. Supply chains are being diversified and customers value reliability and resilience more than before. Low cost is not the only deciding factor.
In this context, METRANS is preparing for a variety of future scenarios, from low industrial demand to strong industrial recovery. “Intermodal must perform in both”, argues Peter Kiss.
“Our base expectation is continued pressure on parts of the European market, but with long-term factors remaining untouched: supply chain resilience, sustainability targets, congestion on roads, and the need for efficient hinterland connections. That means we keep investing in operational robustness, terminal performance, and scalable capacity – so we can respond quickly to the requests and the development of the market.”
Implications
The ongoing political and economic trends are having a direct impact on rail and intermodal, continues Kiss. The CEO identifies four dimensions of impact. Firstly, demand planning cycles have become shorter. Customers want flexible capacity, but also dependable schedules.
Second, there is now a greater need for robust and resilient inland networks. That is because there have been more disruptions on major global trade routes, such as the Red Sea and the China-Europe rail route through Russia. That can throw off equipment and timetables – meaning that inland networks like rail need to adapt better.
Third, the importance of low-carbon transport solutions is growing. Regulations and decarbonisation are now operational realities, not just some “future topics”, says Kiss. However, the underlying condition for their success remains quality and punctuality.
Lastly, the ongoing challenges of Europe’s rail infrastructure (capacity constraints, lengthy infrastructure works, bottlenecks at key nodes, uneven network quality across countries and the complexity of cross-border operations) remain significant issues. “These factors directly affect punctuality and reliability, which are exactly the parameters customers care about most.” It directly impacts growth.
“From METRANS’ perspective, our performance is best judged by service stability and network resilience”, continues the CEO. “In a market where conditions can change quickly, our priority is to keep a predictable product: frequent shuttles, strong hinterland connections, and terminal operations that can absorb volatility. Where the wider rail system becomes less reliable – because of disruptions, limited paths, or infrastructure restrictions – our role is to buffer that variability through network design, terminal capacity, and operational discipline.”
Resilience, reliability, stability
Despite the challenges, the evolving economic conditions also present opportunities for businesses. Peter Kiss believes that the biggest opportunities can be found in strengthening port-hinterland corridors and building reliable inland networks – as said above – around which customers can do their planning. This is especially true where nearshoring and regional production create recurring freight flows.
When reflecting upon Kiss’ comments, one idea stands out: resilience, reliability and stability are the key words when talking about business strategy. “If rail is to take a bigger share, it must be a product customers can plan their supply chains around – every day, not only in ideal conditions”, says Kiss.
The METRANS strategy is also built around this idea. The company seeks to build a dense and reliable intermodal system with an “all-inclusive” solution. It takes all matters surrounding terminals, rail services and supporting operations into its own hands for an integrated product.
Centrality of terminals
Terminals, such as the one currently under construction in Szeged, are “absolutely central” to making that strategy work. In the intermodal business, terminals are where reliability is created or lost. They are the key to failure or success. Fast, predictable handling and sufficient capacity determine whether rail can compete with the road on lead time and service quality, says Kiss. METRANS’ terminal network is a core part of its value proposition.
The critical success factors become frequency, punctuality, terminal performance, and seamless cross-border operations – not only traction and wagons, says Peter Kiss. For policymakers, this means modal shift is not achieved by targets alone. The sector needs practical improvements: infrastructure capacity where it matters most, fewer cross-border operational barriers, and investment that improves reliability.
Yet, the centrality of terminals and other high-cost assets also makes rail a difficult business. Whereas any truck driver with a professional network could rent a truck and start driving (more or less), rail has a lot more hurdles to clear. “Rail freight is difficult because it is capital-intensive and deeply dependent on network capacity, infrastructure quality, and international coordination. In such conditions, the winners are those who”, you guessed it, “deliver stable service.”
“METRANS’ strength is the system we built over many years: a dense terminal network and frequent shuttle connections that make intermodal predictable for customers. We focus on service quality, neutrality, and the ability to manage a large part of the chain with our own resources – this is what keeps us resilient even when the market is challenging.”
This article was originally published in our RF Magazine: Leaders in the Spotlight.