{"id":173019,"date":"2025-02-05T19:24:21","date_gmt":"2025-02-05T09:24:21","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=59555"},"modified":"2025-02-05T19:24:21","modified_gmt":"2025-02-05T09:24:21","slug":"baltic-rail-achieves-406-per-cent-teu-growth-despite-unfavourable-circumstances-in-2024","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=173019","title":{"rendered":"Baltic Rail achieves 40,6 per cent TEU growth despite unfavourable circumstances in 2024"},"content":{"rendered":"

Intermodal container operator Baltic Rail saw significant growth in terms of TEU handled in 2024. That is despite unfavourable circumstances: The company’s business is particularly affected by the fragile security situation in the Red Sea. Nevertheless, the setbacks have not stopped the company from achieving growth.<\/strong>
\n<\/span>\u201cWe\u2019ve had a difficult period in 2024, due to the Suez crisis. That has reduced our main activity\u201d, Stephen Archer, CEO of Baltic Rail, explains to RailFreight.com. The company provides intermodal transport services for containers, especially on the Baltic – Adriatic corridor. Its niche product concerns fast connections from Asia, including Chinese, Korean and Japanese traffic.<\/p>\n

Freight from that region is shipped via sea, through the Red Sea and Suez canal, into the Adriatic Sea and unloaded in the port of Koper. From there, Rail Baltic takes it further into Europe, running three trains per week from the port.<\/p>\n

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TEU handled in all Baltic Rail terminals 2020-2024. Image: LinkedIn. \u00a9 Baltic Rail<\/figcaption><\/figure>\n

The crisis in the Red Sea has had its impact on traffic coming into the Adriatic. By extension, it has affected Rail Baltic\u2019s business. Nevertheless, the company achieved 40,6 per cent in terms of TEU handled.<\/p>\n

New terminal, new Baltic routes<\/h2>\n

\u201cWe have taken into use a new terminal in Sz\u00e9kesfeh\u00e9rv\u00e1r in Hungary, that is one of the reasons why our volume has increased\u201d, says Archer. The terminal is used for Far East traffic, still through the Suez canal via CMA CGM\u2019s service, which has continued through there.<\/p>\n

At the same time, Baltic Rail\u2019s terminal near Katowice is supporting connections to Gda\u0144sk and Gdynia operated by Loconi International, the CEO says. \u201cWe have not operated this route in recent years and it is great to see the whole corridor working again.\u201d<\/p>\n

Middle Corridor: growth or redirection?<\/h2>\n

Middle Corridor traffic could also be a factor in the volume growth. Baltic Rail has done some traffic in that direction in 2024, but the question is if it constitutes growth or a redirection of traffic, explains Archer.<\/p>\n

\u201cSome exporters are looking to send their products from Poland to Koper, and from there to Poti in Georgia. They want to export to China and do not want to go through Russia. Since there is a trade imbalance between China and Europe, there is always free capacity in the eastern direction\u201d, the Baltic Rail CEO says. \u201cIt just so happens that they chose our company to transport freight on the route to Poti, so they didn\u2019t need to invest in their own train solution.\u201d<\/p>\n

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A Baltic Rail container train in Poland. Image: \u00a9 Baltic Rail<\/figcaption><\/figure>\n

2025’s outlook for Baltic Rail<\/h2>\n

Can Baltic Rail continue this trend of growth into 2025? Archer believes so. \u201cWe have had a reasonable start to the year, in respect of the corridor to the Adriatic\u201d, he says. \u201cWe are hopeful that the ceasefire in Gaza will reduce the Red Sea tension and Suez traffic will return to normal.\u201d<\/p>\n

Archer also does not see the war in Ukraine settled quickly. \u201cAnd even if that were to happen, trade flows are not likely to return soon.\u201d Supply chains that left that route are very cautious, the CEO explains. \u201cThe conflict redirects traffic onto our business corridor, so we could benefit from that in 2025. On top of that, the Adriatic corridor is cheaper and less complex than the Middle Corridor<\/a>.\u201d<\/p>\n