A study focused on shifting freight from road to rail highlighted that any such move entails complex challenges and requires early-stage co-development rather than a procurement mindset. The study tested the feasibility of a concrete modal shift across three strategic corridors: Italy-France, Spain-France, and Poland-France.
The study was conducted over an 18-month period by lobby group France Supply Chain and consulting firm Argon & Co. Called the ‘Modal Shift Initiative’, it brought together major French manufacturing groups such as Legrand, Michelin and Renault and made several concrete recommendations:
- identify the corridors already deemed strategic by operators
- secure a commitment from shippers regarding minimum volumes for a period of at least three years
- establish an ongoing dialogue with carriers that extends well beyond the formal consultation phases
1-out-of-12 offers
The study began with ‘test’ – a Europe-wide invitation to tender. However, the response was to fall well short of expectations.
“Of the 12 transporters invited to bid, only one submitted an offer, illustrating the gap between shippers’ demand and the rail market’s ability to meet it through a simple procurement process. The conclusion is clear: rail freight cannot be considered a simple ‘off-the-shelf’ alternative to road transport. Its structure, constraints, and business model require a radically different approach,” the authors of the study noted.
They went on to underline that the key lesson to be learned is the need to move from a customer-supplier relationship to a true partnership.
“Creating a new rail service requires verifying in advance the availability of train paths, terminals, equipment, and rolling stock. For an operator, such a study represents a significant investment with no guarantee of a contract. The involvement of rail operators from the earliest stages of the project is therefore essential to its success.”
‘Working together to build a viable solution’
Argon & Co’s senior manager and head of innovation, Aurélie Delemarle, explained that while rail must become an alternative to road transport it is not a simple matter of shifting from one to the other. “Rail’s operations are fundamentally different. To create new rail services, shippers and operators must work together to build a viable solution, even before the call for bids,” she said.
Conditions for success identified
Although only a test, it was possible to document precisely the obstacles and drivers for action which could serve as a roadmap for future initiatives.
“This project allowed us to test the proposed model against market realities; we now understand the conditions that must be met for a future initiative to go further: volume commitments, corridor designation, dialogue with operators, adaptation of requirements, and collective governance,” noted Philippe Bastard, vice-president, Supply Chain at Legrand, a multinational specialised in electrical and digital infrastructures.