Diesel fuel hikes and their impact on road haulage costs is triggering greater interest in the modal shift to rail among French shippers, participants heard at a recent conference in Paris organised by combined transport trade body, the GNTC. Still, an industry leader pointed out how expectation should be managed as demand and mindsets do not shift overnight.
Speaking at the conference, Valérie Cornet, head of overland freight transport at the French shippers association, the AUTF, highlighted a survey it had conducted on the decarbonisation of road transport. “What clearly stands out from the survey is that shippers need all available tools to decarbonise such as biofuels, electric trucks and modal shift was cited by about 60% of respondents as a necessary measure which is very significant.”
‘Don’t expect demand overnight’
“So the willingness is there, obviously heightened by the current diesel fuel crisis, but that doesn’t mean solutions are immediately available. While a lot is going on presently to develop an attractive road-rail offering, we shouldn’t expect demand to emerge overnight.” Shippers’ transport provision is heavily dependent on road haulage which is largely carried out over short and medium distances whereas rail freight can often entail journeys of 800 kilometres plus, Cornet noted.
“Next, you need to be located in proximity to a multimodal terminal. When this is the case, it (modal shift) can work very well and be competitive. But it’s another matter when you’re further away (from a terminal).” Cornet also pointed to the need for reliable road haulage partners who have built a solid foundation in intermodal transport and are committed to it for the long term.
There is also the crucial issue of service quality. “We’ve had feedback from shippers who, in the current context of the fuel crisis, have said to themselves, ‘Well, let’s give modal shift a try right now’, only to to find that a suitable service is not available or the quality of it is lacking.”
And then there is the matter of transparency and access to information when a problem occurs. “With the various intermediaries in combined transport—whether it’s those on the rail network side or transshipment, it’s not always clear to shippers where it (the problem) lies.
Cultural change
Cornet went on to emphasise that modal shift from road to rail was nothing short of a cultural change for shippers, impacting their industrial organisation and storage capacity. It also entailed working in a project-based mode with carriers and operators, where there was a different approach to requests for proposals and specifications. “All-in-all, it will take time for shippers to adapt but there is certainly a willingness to do so if in the end they can be offered a good quality of service that’s readily available and competitive,” she added.