ESCCA presentation of Gyorgy Firbas

The Far East Land Bridge and the V4

countries

György FIRBÁS Mr.

board member of the Hungarian Logistics Association

gyorgy.firbas@integrail.hu

Wednesday, April 24, 13

V4 countries and logistics

Wednesday, April 24, 13

The age of logistics

• In 406 BC, Soctares held a speech in the port of Athens

• He was standing on a barrel

• The barrel was located in fron of a wooden warehouse

• The script reserved the fact, that the barrel contained wine from Persia

• Port

• Barrel

• Warehouse

• Trade

Wednesday, April 24, 13

V4 and its geologistical layout

• Poland - North of the mountain systems

• Czech Republic - North of the mountain systems

• Slovakia, Hungary - Between two mountain systems

• Slovenia, Croatia - Splitted in halves by Dinaric Alps

• Corridors

• East-West - easy! The landbridge. The advantage: door to Europe

• North-South - hard!

• Formerly: deep sea shipping from China to Western Europe

• Now: reamining shipping service / rail service from 2007 to Eastern Europe

Wednesday, April 24, 13

The Far East Land Bridge

• Train service from China to Europe via Russia and the V4 countries

• 2 main routes available

• Dalian-Zabaykalsk-Moscow-Kiev-V4

• Beijing-Astana-Kiev-V4

• Transit times vary from 18 to 25 days ( vs. 35-50 days on sea )

• Frequency: 3 times a week, bookable

• Cost: 3x than via sea

Wednesday, April 24, 13

The Far East Land Bridge

Wednesday, April 24, 13

The Far East Land Bridge

Wednesday, April 24, 13

The Far East Land Bridge

Wednesday, April 24, 13

Challenges in Rail Freight• China: 1435 mm gauge

• Russia: 1520 mm gauge

• V4: 1435 mm

• Reasons for broad gauge!

• 2 trains

• Beijing/Dalian - Zabaykalsk

• Zabaykalsk - Zahony Hungary EU

• Chinese part: Diesel / Steam locomotives

• Russian part: electrified

• Weather

• Authorities

Wednesday, April 24, 13

Gauge problem

• George Stephenson: 1435 mm ( Stockton-Darlington )

• EU ( except Baltics, Spain, Portugal, Finland ): 1435 mm

• Russia and former SU: 1520 mm

• Strategic reason, wartime army support freight trains will not be able to cross the border, normal gauge wagonsets are useless in Russia

• German engineering solved the ‘problem’ in 1941 by adjustable axles...

• Gauge-switching stations

• Manchouli / Zabaikalsk

• Zahony in HU, Dobra in SK, Malaszewicze in PL

Wednesday, April 24, 13

Gauge problem

Wednesday, April 24, 13

The train

• 96 TEU / blocktrain ( ISO containers )

• Transit time: 18-25 days depending on weather

• Operating between +42 C and -70 C (!!)

• Max speed of the train is 120 km/h ( between Novosibirsk and Omsk )

• 32 sgnss 4 axle wagons, each wagon carries 3 TEU

• Maximum allowable train weight: 2200 gross tons

• The lenght of the train is 750 meters

• Container vessel: 8000-15.000 TEU / trip...

• Emma Maersk = 151 trains....

Wednesday, April 24, 13

Comparison• Train vs Vessel

• Transit time:

• Train: 18-25 days

• Vessel: 35-50 days

• Accessibility:

• Train: Dalian, Beijing, Northern PRC

• Vessel: any seaport

• Cost:

• Train: approx 3400 USD / TEU

• Vessel: approx 1800 USD / TEU

• Advantages:

• Train: faster than sea, much cheaper by air cargo

• Vessel: uncomparable amounts of containers

Wednesday, April 24, 13

Figues of FELB

Wednesday, April 24, 13

Number of trains in Q1-2013

0

10

20

30

NOV ‘12 DEC ‘12 JAN ’13 FEB ’13 MAR ‘13

202121

15

19

Train

s pe

r dire

ctio

n

Facts Contracted Capacity

Wednesday, April 24, 13

Train utilization in Q1-2013

0

25

50

75

100

NOV ‘12 DEC ‘12 JAN ’13 FEB ’13 MAR ‘13

9999989899%

Wednesday, April 24, 13

Punctuality in Q1-2013

0

7.50

15.00

22.50

30.00

NOV ‘12 DEC ‘12 JAN ‘12 FEB ‘12 MAR ‘13

10.751.51.751.2

2020202020

Free on Rail Dalian - Zahony/Dobra HungaryDa

ys/T

rain

Scheduled transit time Delays

Offered 24 days transit time

Wednesday, April 24, 13

Customers

• Apple ( Apcom )

• Dell

• Samsung

• Huawei

• General Motors

• 90% of the containers have high valued electronics inside!

• Still under heavy development, dependency on Russia.

Wednesday, April 24, 13

Thank you for your kind attention! April, 2013

Wednesday, April 24, 13