Transp rt News December 2016
UK’s Largest Rail Infrastructure Project to Boost Economy and Generate Jobs
Plus: Robust Actions to Lift ScotRail Performance / Bus Services Bill / New Guide to the Safe Carrying of Bulk Cargoes / Future of the Rail Market / ORR’s Half-Year Assessment of Network Rail / Heaviest Ever Air Cargo
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This Christmas edition of Transport News INTL showcases key news, deals, appointments and developments from this truly global industry. This issue has a special focus on cargo, including a piece about the UK P&I Club’s new guide to the safe carrying of bulk cargoes, not to mention the exciting news about the heaviest single piece of air cargo to be flown in the Americas. In deals, we learn that Falcon Group has completed an acquisition agreement with Vantage Vertical, a nationwide drone aerial imaging services firm. In addition, DHL Express has earmarked $185 million investment for the rest of this year and 2017. Despite all the glaring evidence proving that palm-oil biodiesel is three times more polluting than fossil diesel, European transport still keeps burning more and more palm oil to power its diesel cars and trucks according to thought-provoking comment from the European Federation for Transport and Environment. I hope you enjoy reading this end-of-year edition, as we journey towards Christmas and 2017.
TRANSPORT NEWS DECEMBER 2016
Cargo Contents
4. News Cargo 10. ACS and Antonov Airlines Deliver the Americas’ Heaviest Ever Air Cargo 12. New Guide to the Safe Carrying of Bulk Cargoes 14. Global Shippers’ Forum and Cargo IQ Sign MOU to Collaborate Towards Industry Adoption of Quality STA Rail 16. ORR’s Half-Year Assessment of Network Rail 18. Transformational Shifts in Vehicle Automation and Digitalisation to Shape the Future of the Rail Market 20. UK’s Largest Rail Infrastructure Project to Boost Economy and Generate Jobs Aviation 22. Aviation Needs to Go Cold-Turkey from Subsidy Addiction, Says NGO 24. EU Renewable Energy Directive Must Prioritise Sustainable Aviation Fuels 26. Easier Access for General Aviation Pilots to Instrument Flight Rules Flying 28. Deals
www.transportnews-intl.com
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Bus Services Bill - Boost to Communities Welcomed by MPs The UK’s Transport Committee says the Bus Services Bill is a major opportunity to transform passengers’ experiences of bus services. Although 60% of all journeys on public transport are made by bus, passenger numbers are in long-term decline. The Bill proposes major reforms to the way services could be delivered in England, outside London.
Powers for local authorities to introduce integrated networks and ticketing; the use of open data to compare offers from providers and the standard fitting of audio-visual equipment on buses, are three proposals which would win support from passengers. Chair of the Transport Committee, Louise Ellman MP said, “bus services face a number of challenges from deregulation, increasing fares and cuts to services on local routes. Yet they are a vital lifeline for communities up and down the country. A reliable service allows individuals to access employment, education and public services, and ensure that they can fully participate in society. Even non-bus users agree that a good bus network is important for their area. A recent report predicted a 55% growth in all traffic by 2040. Buses can make a real impact towards reducing congestion not only in metropolitan areas, but increasingly in smaller market towns and rural areas.
TRANSPORT NEWS DECEMBER 2016
In this Bill, there are possibilities for local authorities to implement new forms of partnership or franchising based on what’s best for their communities. But Committee scrutiny of the franchising process was hindered by a lack of information. We expect to see all relevant draft secondary legislation and guidance when the Bill is introduced into Parliament. There is a lot to welcome in this Bill. By giving local authorities new powers and offering practical measures such as improved passenger information and services, these proposals have the potential to bring about significant improvements for both passengers and communities.” www.parliament.uk
News
Croatia’s Pula Introduces New Buses with €5 Million EBRD Loan The European Bank for Reconstruction and Development (EBRD) is supporting the introduction of ‘green’ buses in Pula, the largest city in the western Croatian county of Istria, with a €5 million loan to Pulapromet d.o.o, the municipal transport company. The company will acquire up to 20 new compressed natural gas (CNG) buses for urban transport in Pula, a major tourist destination in Croatia. The new buses will consume significantly less fuel than the current fleet, have lower emissions of CO2, reduce noise levels and offer passengers a better and more comfortable service. The EBRD will further support the project by providing additional technical cooperation of up to €410,000 to prepare an updated urban master plan and transport strategy for the city of Pula and for assistance to the company in project implementation, together with financial and operational improvements. Lin O’Grady, deputy director for municipal and environmental infrastructure said, “this loan underlines the EBRD’s ongoing commitment to supporting Croatian municipalities as they adapt to market standards and EU regulations. We fully support the company’s plans to improve their operational performance in order to introduce sustainable transport solutions that also benefit the environment.”
Vedrana Jelušić Kašić, EBRD regional director for Croatia, Hungary, Slovak Republic and Slovenia commented that, “with this new loan we are deepening our cooperation with Pulapromet and the city of Pula. The investment in new buses will benefit residents and visitors as well as the environment and will further support positioning of the city as a leading tourist destination in Istria. We hope to develop similar projects with other Croatian cities.” “The City of Pula is turning more and more to environmentally friendly energy sources ranging from the construction of natural gas systems to establishing charging stations for electric cars. In the last few years’ considerable funds have been invested in the reconstruction and development of Pula’s roads. By acquiring new, modern buses we will further improve the quality of public transport services for all the citizens of Pula,” said Boris Miletić, the Mayor of Pula. Satisfied with the signing, Igor Škatar, Director of Pulapromet, added that the new bus fleet would enable the company to respond better to challenges facing the public transport system. Pula is the largest city in Istria county and one of the leading tourist destinations in the coastal Adriatic region with more than 350,000 visitors a year. This year Pula was included among the 100 most sustainable cities in the world. The EBRD signed its first project in Croatia in 1994 and has invested over €3.57 billion in 190 projects to date. The Bank’s activities cover all areas of the economy but are especially strong in the infrastructure, corporate, financial institutions and energy sectors.
Indian Government to Invest $10 Billion over next 5 Years in Port Infrastructure Research and Markets recently announced the addition of the ‘India Port Infrastructure Market by Type (Major and Minor Ports), By End User (Cargo Passenger), By Region, Forecast & Opportunities, 2025’ report to their offering. The ports infrastructure market in India is projected to grow at a CAGR of over 9% during 2016-2025, on account of heavy infrastructure funding at ports and related infrastructures such as connecting roads, railways and Coastal Economic Zones. Additionally, National Perspective Plan of Government of India envisaged an investment of over $10 billion for the next five years, aimed at development of ports. This investment inflow is anticipated to minimise demand and supply gap at ports in India in the coming years. The implementation of Sagaramala initiative by Government of India presents investment opportunities for ports and related infrastructural development in order to boost maritime trade in India. Moreover, modernisation and expansion of ports by private international companies is anticipated to fuel growth in marine transport sector in India, during the forecast period. Additionally, several Coastal Economic Zones (CEZs) projects are underway to concentrate manufacturing clusters near major ports and this is expected to surge demand for maritime trade in the country during 2016-2025. Port led industrialisation is anticipated to provide immense scope for reduction in logistics costs. Rising number of Public Private Partnerships and 100% FDI under automatic route for development of ports is anticipated to encourage international companies to start operations in India in the ensuing years. For more information about this report visit http://www.researchandmarkets.com/research/2tk4sw/india_port.
www.ebrd.com www.transportnews-intl.com
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TRANSPORT NEWS DECEMBER 2016
News
Robust Actions to Lift ScotRail Performance Humza Yousaf, Minister for Transport and the Islands on 23rd November outlined the key actions and investments ScotRail will make to lift its performance to meet passenger expectations. In a statement to Parliament the minister highlighted the key improvements that will be made as part of ScotRail’s improvement plan and the government’s contract with Scotrail to modernise Scotland’s rail services.
Despite recent challenges the performance of rail services in Scotland is higher than the UK average, with almost 90% of trains running on time and punctuality improving in the last eight weeks. The Minister also confirmed that recently announced earlier morning commuter services between Inverness and the central belt will begin in mid-December and that work is nearing completion to add additional carriages to peak time services on the Borders rail from December boosting capacity on the new line. Actions to improve rail services include: • Acceleration of £16 million over two years to upgrade key junctions, track and signalling equipment; • A £5 billion five-year programme to 2019 to transform the railway; • An extra 200 carriages by 2019: 50% more carriages than in 2007; • Investing twice as much per capita as the UK Government in the existing network; • 70 new electric trains from 2017 providing up to 40% extra seats at peak times on the main Edinburgh –Glasgow route; • £475m for new trains and modernising the current fleet to improve reliability and comfort, providing valuable work for Scottish engineering plants in Kilmarnock and Glasgow; • £14m of which is investment in improving the reliability and comfort of the class 158 diesel fleet, serving much of rural Scotland; • An ambitious refurbishment programme underway across 90% of our existing trains; • Increased focus at major stations on prompt departures and; • Measures put in place to reduce skip-stopping during peak times. Mr Yousaf said, “everyone rightly expects a railway network that operates effectively. So, when things go wrong I fully understand the dissatisfaction of passengers and the inconvenience that is caused. “Although there are no guarantees major failures won’t happen, I give my reassurance
that ScotRail has learned lessons and is far better prepared for contingencies, including communication with passengers, when such incidents do take place. “I have no intention of underplaying the effect a slide in service quality. The actions we are taking and the long-term transformation we have planned underlines this Government’s commitment to improving the service received. That is why I instructed an improvement plan. “We have accelerated £16 million to upgrade key junctions, track and signalling equipment, for example at Glasgow Central station the key terminus station. This week, points and circuits are being renewed at Cowlairs and Dunblane, while £14m is being spent to improve fleet reliability. “Overcrowding is frustrating that is why, from mid-December, we have introduced more services to and from Inverness and are finalising details to provide more carriages on peak time service on the Borders Railway. “I know about the work that is required and the service that is to be delivered. I am taking action and a plan is now in place. This government has a track record of delivering for our railways and it is my firm intention that we will continue to do so.” Addressing plans to develop a public-sector operator to bid for future franchises Mr Yousaf added that, “for future franchises, we stand by our invitation to get around the table with anyone who has a genuine interest in taking forward work on a not-for-profit bid. This does not remove the need for competition as any bid must be tested so we can pick the best option for Scotland’s passengers in an objective manner. “Our commitment to our railways is undeniable - we want to see a vibrant, growing industry with more seats and services than ever before. I remain focussed on ensuring the best outcome for passengers - a franchise which delivers for Scotland.” www.gov.scot www.transportnews-intl.com
News
Drivers Are the Top Consumers of Palm Oil in Europe - 2015 Figures Despite all the glaring evidence proving that palm-oil biodiesel is three times more polluting than fossil diesel, European transport still keeps burning more and more palm oil to power its diesel cars and trucks according to the European Federation for Transport and Environment. 2015 data from OILWORLD, industry’s reference for vegetable oils market analysis, shows a 3% increase in the use of palm oil for biodiesel. European biodiesel is now the main end product of imported palm oil, reaching an all-timehigh share of 46%. This makes drivers the leading (albeit unaware) consumers of palm oil in Europe.
Jori Sihvonen, biofuels officer at Transport & Environment (T&E) said that, “citizens can do their best to avoid palm oil in their food and cosmetics. But the EU biofuels rule force them to burn palm oil in their cars, almost always without their knowledge. With this law, the Commission is failing the environment while deceiving consumers trying to do their best for the planet”. If the world were to follow Europe’s current thirst for palm oil biodiesel, 4,300,000 hectares of land in the tropics would be needed to quench it. That area is equal to the remaining rainforests on peatlands of Borneo, Sumatra and peninsular Malaysia (2). The European Commission is to propose the Renewable Energy Directive (RED), which will determine whether biofuels should keep receiving public support after 2020. According to the leaked draft proposal, the Commission plans to keep supporting land-based biofuels with a volume target of 3.8% of total transport fuels in 2030 - a tiny reduction from the 4.9% biofuels share in transport achieved already in 2014. The leaked biofuel plan contradicts the Commission’s own Strategy for Low Emission Mobility published last July, which promised a ‘phase-out of food-based biofuels’. Jori Sihvonen concluded that, “if the world consumes as much palm oil biodiesel as Europe does, it will be game over for the world’s rainforests. We need to stop this biodiesel madness and the best place to start is where all began: Europe. We therefore urge the Commission to phase out land-based biodiesel by 2025 and all land-based biofuels by 2030.”
Biodiesel made from virgin vegetable oil is the most popular biofuel in the European market with a market share of 80% in 2015. Of all biodiesel, palm oil is the cheapest (1) and has the highest greenhouse gas emissions – three times worse for the climate than fossil diesel. This is because palm expansion drives deforestation and peatland drainage in Southeast Asia, Latin America and Africa. Palm-oil biodiesel accounted for 32% of biodiesel, and 2% of all diesel burned in Europe last year, a fact few European drivers know when filling up their vehicles.
(1) In 2015 palm oil was on average about $130 per tonne - 17% - cheaper than any other vegetable oil in Europe (Oil World data). (2) &nbspMiettinen, Shi & Liew. (2016) Land cover distribution in the peatlands of Peninsular Malaysia, Sumatra and Borneo in 2015 with changes since 1990. Global ecology and Conservation.
Met Office Wins Prestigious Team Heathrow Partnership Award The Met Office Aviation team at Heathrow won the ‘Improving Every Day’ category award on 22nd November for their work building a bespoke snow response forecast for the airport. The Met Office has a team of meteorologists working in close partnership with Heathrow colleagues on site at the airport, helping mitigate weather risks, reducing costs and improving ways of working.
Ian Ballentine, Heathrow’s procurement director commented, “the Heathrow Partnership Awards recognise the best partners in our supply chain who demonstrate Heathrow’s values and share in our vision to provide the best airport service in the world.” There are six award categories in the Heathrow Partnership Awards ranging from ‘keeping everyone safe’ to ‘giving excellent service’ and ‘working together’. The Met Office was shortlisted alongside organisations such as Atkins, Bagport, Bradford Swissport and Mace. James Shapland from the Met Office added, “we are delighted to receive this award and the recognition from such a valuable customer as Heathrow. We are pleased that the close working partnership our team of on-site meteorologists have with Heathrow colleagues has helped reduce the impact of weather on Heathrow’s operations and enabled staff to make timely decisions aimed at maintaining schedules and safety”. The Met Office is one of over 400 companies who work with Heathrow ensuring the airport runs smoothly and efficiently. www.metoffice.gov.uk
For more details, please visit: https://www.transportenvironment.org/sites/te/files/2016_11_Briefing_Palm_oil_use_continues_to_grow.pdf. www.transportnews-intl.com
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TRANSPORT NEWS DECEMBER 2016
Cargo
ACS and Antonov Airlines Deliver the Americas’ Heaviest Ever Air Cargo Air Charter Service’s Brazil and Florida offices worked together to charter Antonov Airlines’ giant AN-225 to carry the heaviest single piece of air cargo to be flown in the Americas. The huge transformer, which weighed in at 182 tonnes, was flown from São Paulo to Santiago de Chile. From there it was transferred to its final destination, where it is a direct replacement for a damaged transformer in a plant near the capital.
Richard Thompson, president of ACS Americas commented that, “the airline has said that it is the second heaviest single piece of cargo that has ever been transported by air and the largest to fly in the Americas. The record is a single piece weighing 187.7 tonnes, which was flown from Frankfurt to Yerevan in 2009, making this charter the heaviest piece flown this decade. “A lot of careful planning went into this operation. 182,000 kilos is more than most cranes’ lifting capacity, and with the tricky dimensions, it took almost four months of discussions between us, the client, the airline and the airports to plan the charter and exactly how we would load and offload the cargo. “The power unit is more than four metres high, and that doesn’t include the transportation cradle that it is travelling in. As you can see from the photo, it was a tight fit, even for the world’s largest cargo aircraft. It generated a lot of local attention, with many Brazilian television networks covering the loading and departure.” www.aircharter.co.uk
“A lot of careful planning went into this operation. 182,000 kilos is more than most cranes’ lifting capacity, and with the tricky dimensions, it took almost four months of discussions between us, the client, the airline and the airports to plan the charter and exactly how we would load and offload the cargo. www.transportnews-intl.com
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TRANSPORT NEWS DECEMBER 2016
Cargo
New Guide to the Safe Carrying of Bulk Cargoes The UK P&I Club, a leading provider of P&I insurance and other services to the international shipping community, has produced a new guide to the safe carrying of bulk cargoes. The guide says that when bulk cargoes shift, liquefy, catch fire or explode due to poor loading procedures, the consequences can be critical – ships could capsize, lose stability or sustain severe structural damage.
“Carrying solid bulk cargoes safely: Guidance for crews on the International Maritime Solid Bulk Cargoes (IMSBC) Code”, is an updated version of a 2013-published guide for ships’ officers and agents who arrange cargoes for loading, produced jointly by Lloyd’s Register, UK P&I Club, and Intercargo. This new edition outlines the precautions that need to be taken before accepting solid bulk cargoes for shipment and sets out procedures for safe loading and carriage and details the primary hazards associated with different types of cargoes. The guide includes a quick reference checklist and flowchart summarising the steps to be followed. Updated guidance includes a warning on the possible liquefaction properties of bauxite (which was considered until recently a cargo not liable to liquefaction), advice on the issue of cargo residues deemed harmful to the marine environment, changes to the IMSBC Code’s structure, advice on SOLAS mandatory enclosed space entry and rescue drills, and updated references to supporting IMO Circulars. Sam James, Lloyd’s Register’s head of regulatory affairs, said the guide is extremely useful to crew members as an aide memoire: “Since the release of the original guide in 2013, it has heightened the awareness of seafarers, managers, charterers and shippers to the hazards associated with carrying solid bulk cargoes. Stuart Edmonston, loss prevention director at UK P&I Club added that “the main purpose of the guide is to provide on-the-spot references to help in practical situations.’ A PDF of the pocket guide can be downloaded at www.lr.org/imsbc and hard copies can be ordered from www.ukpandi.com.
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TRANSPORT NEWS DECEMBER 2016
Cargo
Global Shippers’ Forum and Cargo IQ Sign MOU to Collaborate Towards Industry Adoption of Quality STA The Global Shippers’ Forum (GSF) and Cargo iQ have signed a Memorandum of Understanding (MOU) agreeing to work co-operatively to support the implementation of Cargo iQ’s Quality Management System (QMS) and to promote the sustainability of the air cargo supply chain. The MOU outlines six areas for the two groups to work together towards a more efficient, quality-driven, and secure air cargo supply chain, and explores methods for industry and shippers to better communicate so that customer needs are met and the benefits of air cargo are understood by the customer. GSF and Cargo iQ signed the agreement following a joint briefing looking at how data, quality, and interoperability underpin performance at The International Air Cargo Association (TIACA)’s Air Cargo Forum (ACF) in Paris, France on 4th November. “Against the backdrop of weak growth in international trade, shippers are looking for even greater value from the air cargo industry,” said Chris Welsh, MBE, Secretary-General, Global Shippers’ Forum. “While the industry enjoys traditional benefits of speed over other modes, it needs to ensure that it is worth the premium service cost versus ocean, road, and rail.
“Our new cooperation with Cargo iQ will make sure industry performance standards meet shippers’ needs, and also help shippers understand the improvements the air cargo industry is making. As shippers continue to look for the best solutions to their logistical needs, our industry is facing continuous challenges to reinvent itself,” said Ariaen Zimmerman, Executive Director, Cargo iQ. “With continuous pressure on rates and emerging technologies putting more and more demand for real time information and shipment control, industry participants need to make the right choices in developing future services and improving the current ones. The airfreight industry, being one of the biggest enablers for our modern, globalised economy, is a highly competitive environment. “Knowing customers’ wants and needs is crucial. And only when shippers participate in avoiding costs and value its products, can the industry offer the services our world needs in an economically sustainable way.” Under the agreement, GSF and Cargo iQ have agreed the following: · To promote the acceptance, implementation, and use of Cargo iQ standards and processes, improving efficiency and ontime delivery for air cargo customers. · To share information and best practices aimed at continuous improvement of the air cargo supply chain. · To identify and promote ways that performance data of the air cargo supply chain becomes better accessible to customers. · To share details of forthcoming events where progress can be reviewed aiming at the industry engagement in its shipment control and process improvement. www.tiaca.org
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ORR’s Half-Year Assessment of Network Rail The Office of Rail and Road’s (ORR) half-year assessment of Network Rail, published on 24th November, identifies steady performance in its overall management of safety and of its assets and an improving picture of delivery against its updated enhancements programme. Significant challenges remain in the delivery of network and financial performance.
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• The key findings of ORR’s half-year assessment of Network Rail’s performance in England, Wales and Scotland are: • Safety: Overall performance in health and safety across the rail network is good, though there are clear areas for improvement. Our inspections found Network Rail needs to do more to ensure compliance with its rules and standards. In addition, the company must fully implement its initiatives designed to improve worker health or the control of risk safety.
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Network performance: Performance across the country has been mixed but has generally been poor with delays attributed to Network Rail worse than target in England, Wales and Scotland. An important area of focus for Network Rail is the time taken to recover from disruption and the company has identified this as a key improvement area. In Scotland, the Alliance (Network Rail and ScotRail) has published a robust performance improvement plan. Assets: Following Network Rail’s updated renewals plans, it is generally ahead of target, though replacement of plain line track is behind planned levels. As part of the updated plans, some renewals work will be deferred to the next control period (2019-2024), and this will need to be taken account of in its future plans. Developing the network: Network Rail has made good progress recently on its Enhancements Improvement Plan and electrification of the Great Western Line. The company has achieved 7 of its 8 project delivery milestones in the last six months, but is likely to miss its next delivery target for electrification of the line between Edinburgh to Glasgow. Money: Network Rail is forecasting underperformance against its budget. It also has limited financial headroom in its loan facility.
ORR’s chief executive Joanna Whittington said, “at the half way point in this five-year funding period, our analysis shows that Network Rail has made progress on key areas including safety and asset management. More still needs to be done to tackle problems with performance so that the impact on passenger delays is reduced and to ensure that financial underperformance does not contribute to operational challenges in future.” orr.gov.uk
TRANSPORT NEWS DECEMBER 2016
Rail
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Transformational Shifts in Vehicle Automation and Digitalisation to Shape the Future of the Rail Market The rise of mega cities and urbanisation has escalated concerns such as congestion and pollution, creating a fertile environment for the launch of innovative rail transportation products and services. These novel solutions improve the efficiency of the transportation network, aid the seamless integration of several services and, ultimately, facilitate commutes for passengers. Rail operators and original equipment manufacturers (OEMs) must adopt new business models that leverage digital platforms in both logistics and mobility sectors.
New Frost & Sullivan analysis, Changing Business Strategies in Rail (http://frost.ly/11z), examines the future and the development of various business models and solutions launched by rail manufacturers, operators, and other service providers that are disrupting the rail market. In addition, the study contains profiles of key participants, case studies of evolving business models and examines factors that will accelerate growth of the rail market. “Forming a more integrated transportation network is crucial for the rail industry to withstand the disruption caused by freight service aggregators, shared mobility service providers and local network developers,” noted Frost & Sullivan mobility research analyst, Krishna Achuthan. “Combining third-party and owned services will enable intermodal transportation. Eventually, the higher levels of automation and integration will make possible seamless intra-urban and inter-city transportation.” The expansion of rail industry stakeholders into key markets will help them harness the Internet of Things to enhance efficiency, information, safety and security in rail transportation. Revenues could cross the $50 billion mark in 2025, with logistics and mobility services gaining prominence due to the integration of services and market consolidation. “Rail OEMs are expected to expand capabilities in digitalising platforms and rolling stocks, and present platform-as-a-service and train-as-a-service to customers,” noted Achuthan. “Rail operators, meanwhile, will deliver comprehensive solutions for rail freight transportation through integrations with other modes of transport.”
TRANSPORT NEWS DECEMBER 2016
The important role played by OEMs and operators, along with the automation and digitalisation of processes, will give a huge boost to the rail transport market. Rail systems will become arterial transportation modes that transport payloads within regions and become integral to intra-urban mobility.
“Forming a more integrated transportation network is crucial for the rail industry to withstand the disruption caused by freight service aggregators, shared mobility service providers and local network developers,” Changing Business Strategies in Rail is part of Frost & Sullivan’s Transportation and Logistics Growth Partnership Service program, which also includes insights on ridesharing, vehicle design and Uber technologies. For complimentary access to more information on this research, please visit: http://frost.ly/11y.
Rail
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UK’s Largest Rail Infrastructure Project to Boost Economy and Generate Jobs High speed Railway systems are the only true sustainable high transport capacity solutions, which have the potential to seamlessly connect cities in the present and continents in future. Rail transportation provides the largest margins and can be extremely profitable. Rail infrastructure, which has high initial investment costs, also has tremendous longevity and payback potential. It has been over 150 years since a new rail line has been constructed in the North of London. Earlier, in the 1850’s the East coast mainline recorded close to 60 million passenger journeys per year. Over the years, passenger journeys have increased significantly to reach 1.7 billion which has urged the UK government to develop its railway infrastructure..
TRANSPORT NEWS DECEMBER 2016
The HS2 project acts as a great driver for economic growth and development in the transportation sector. The 57-billion-pound project is a game-changer which will have a great impact on the reduction of journey times while providing thousands of extra seats every day. However, there are still a few major factors which have led people to resist the initiative. The need to demolish housing estates along the proposed route has raised concerns among residents. Any infrastructure project will have an impact on the region it serves; both negative and positive. Even though the project is aimed at achieving a positive outcome, there are a few temporary setbacks during development process. People will be displaced throughout the route along with existing housing infrastructure which might also cause an emotional distress to the parties involved. In order to overcome these negative impacts, the government needs to create a strategy team to liaise with these residents and make sure that their needs are fulfilled. Even though the Department for transport has offered a compensation of 110 percent of house value to anyone living within 60 meter of the route, the immense pressure that this project will cause on the residents will be inevitable. The government must prepare an action plan to create an economy that works for everyone to remain on the right track. Since the initial announcement of the second-High speed rail project, the UK government has taken up initiatives to amend certain concerns. The HS2 changed its alignment to increase the number of people it can serve. The new alignment increases the catchment area which will carry over 300,000 people a day and will triple the seats available out of Euston at peak hours, freeing up space on the
existing network for additional commuter and freight services. This has enabled the government to make the system more profitable and accessible for commuters.
“Since the initial announcement of the second-High speed rail project, the UK government has taken up initiatives to amend certain concerns.” The completion of the HS2 line, which is due in 2033, will increase the number of trains along the mainline, commuter and intercity systems. During construction, the HS2 is expected to create around 25,000 jobs and support growth in the wider economy which will be worth an additional 100,000 jobs. With the initiation of the HS2 project, the government has established its ambition to build a sustainable transport network which will create new business opportunities for UK and a much-needed revitalisation of the economy. ww2.frost.com
Rail
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TRANSPORT NEWS DECEMBER 2016
Aviation
Aviation Needs to Go Cold-Turkey from Subsidy Addiction, Says NGO The ruling on 28th November by the WTO against Washington State on subsidies to Boeing, and an earlier similar ruling on Airbus, officially adds another €5.4 billion ($5.7 billion) to the already very long list of subsidies granted to the aviation sector sustainable transport group Transport & Environment (T&E) has said.
That list of direct and indirect subsidies includes: • Airlines enjoy universal exemption from fuel taxation, estimated at €20 billion a year in Europe and over €60 billion globally; • Airlines receive an effective subsidy worth another €7 billion in Europe alone because ticket prices are artificially suppressed by about 20% due to the VAT exemption on ticket sales; • Airlines are bailed out on a regular basis especially since the 2009 crisis; • Already lenient state aid rules for airports have been regularly flouted; worth another estimated €3 billion a year in Europe alone; • Manufacturers receive a €1.8 billion subsidy under the ‘Clean Sky 2’ joint technology initiative; • Air traffic control receives a €3 billion subsidy under the SESAR ‘joint undertaking’. Earlier this year the International Civil Aviation Organisation agreed a so-called ‘global market-based measure’ in a bid to address the runaway CO2 emissions of aviation, the most climate-intensive of transport modes. One reason CO2 emissions are out of control is that flying is artificially cheap because of such subsidies.
“ruling is a wakeup call to anyone who believes that the global market-based measure will solve aviation’s climate problem. Flying is the cheapest and quickest way to fry the planet because not only manufacturers, but also airlines and airports, are subsidised to the hilt.”
Meaningful action is urgently needed at global level but the very modest and inadequate plans agreed at ICAO will mean nothing so long as the sector binges on government handouts. The subsidies above fall outside of WTO rules and will only be removed with action by governments. Bill Hemmings, director of aviation at T&E said that the, “ruling is a wakeup call to anyone who believes that the global market-based measure will solve aviation’s climate problem. Flying is the cheapest and quickest way to fry the planet because not only manufacturers, but also airlines and airports, are subsidised to the hilt.” www.transportenvironment.org www.transportnews-intl.com
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TRANSPORT NEWS DECEMBER 2016
Aviation
EU Renewable Energy Directive Must Prioritise Sustainable Aviation Fuels The International Air Transport Association (IATA) welcomed the European Commission’s revision of the Renewable Energy Directive (RED) to incentivise sustainable fuels, and urged policy-makers to go even further in prioritising their use for air transport. The largest user of renewable fuels, the road transport sector, has increasing options to move towards electrification; however, aviation has no technological option but to continue with liquid fuel at the present time. Therefore, there is a strong case for sustainable fuel policies to prioritise air transport, in order to boost supply and reduce costs. “Aviation is on a path towards carbon-neutral growth and ultimately to reduce emissions in half. Sustainable fuels are an essential element of our carbon-cutting strategy, with the prospect of an 80% decrease in carbon compared to traditional jet fuel. Policies to incentivise the production of such fuels have been successful in the United States and elsewhere. Europe has an opportunity to take the lead in sustainable fuel production if the revised RED contains the right measures,” said Michael Gill, IATA’s Director, aviation environment.
The European Commission’s stated aim is for Europe to become the leader in renewable energy, and the revision of the RED offers just such an opportunity. The current challenge with sustainable aviation fuels (SAF) is to boost supply and cut costs. Greater production will help to reduce prices, and reduced prices will encourage greater demand, thus boosting production. To break into this virtuous circle, the RED must strengthen its policy framework to incentivise production of SAF. “Airlines are absolutely committed to the highest sustainability standards for alternative fuels, to ensure no interference with biodiversity, food production, or clean water resources. We are ready and willing to invest in these fuels and the revision of the RED offers a unique opportunity for Europe to demonstrate what can be achieved when policy-makers and industry combine for a genuinely coordinated approach to climate action and business innovation,” said Gill. In October 2016, air transport took a major step towards achieving carbon-neutral growth with the agreement at the International Civil Aviation Organization of a Carbon Offset and Reduction Scheme for International Aviation (CORSIA). Nations representing around 85% of all international air passenger flights have volunteered to join the scheme. Achieving carbon-neutral growth is a first step, but the industry’s longer-term target to reduce CO2 emissions to 50% of 2005 levels will require important changes in technology, operations and infrastructure. Sustainable Aviation Fuels will play a vital role in that process. www.iata.org
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TRANSPORT NEWS DECEMBER 2016
Aviation
Easier Access for General Aviation Pilots to Instrument Flight Rules Flying The European Aviation Safety Association (EASA) on 9 November published a proposal opened for comments for ‘Easier access for general aviation pilots to instrument flight rules flying’ (NPA 2016-14). The objective of this so-called Notice of Proposed Amendment (NPA) is to provide a more accessible instrument rating for pilots holding non-commercial licences in general aviation.. The NPA therefore proposes the introduction of a ‘Basic Instrument Rating (BIR)’, which is a qualification to fly in Instrument Flight Rules (IFR), but based on more proportionate requirements when compared to the traditional instrument rating, and tailored to the need of GA pilots. This is one of the key initiatives for meeting the Agency’s road map and GA community’s objectives. As an innovation, the key principles for the BIR are as follows:
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Training that is entirely competency-based. There will be no minimum hours’ requirement set for the BIR. All the required competencies that a GA pilot needs for an IFR flight are analysed and grouped into three modules of training. Candidates will progress to the next module or skill test when ready to do so. Training that is flexible. The core module of instrument flying skills must always be completed first, and after having done so, the candidate may choose which further module to tackle next, within a timescale that suits them. This takes into account the fact that GA pilots may often not have the time or financial resources to commit to a more conventional full course of training towards the IR. Focus on the practical needs of GA pilots. Holders of the BIR should feel confident to use it to the full extent of its privileges. While IFR flight has many safety advantages, what is central to its philosophy is to assess the risks of a particular flight in a more systematic way. To this end, the training will be focused on the real-world instrument flying needs of GA pilots, with particular emphasis on practical application of threat and error management. This will ensure that the full safety and utility benefits of IFR flight are reaped. High standards of training and testing. Despite the focus on GA needs, practical training and testing standards will be similar to those of the current Part-FCL instrument ratings, particularly with regard to interaction with other airspace users. It is very important that GA pilots flying under IFR have the required competencies for this.
http://easa.europa.eu
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DHL Express Invests $185 Million in 2016 and 2017 DHL Express, the world’s leading express shipping and logistics provider, said on 16th November it is continuing its investment plan for the United States and the Americas as growth in the region meets expectations. The $185 million (1) investment earmarked for 2016 and 2017 is focused on infrastructure, technology, and people – creating some 900 new jobs in 2016 alone - in order to continue to provide the highest quality service and superior customer experiences. Besides investing in its operations in, the U.S., DHL Express is also committing funds to support its growth plan in key countries in the region including Mexico, Canada, Brazil, Chile and Peru.
TRANSPORT NEWS DECEMBER 2016
“DHL Express is continuing its strong progress in the U.S.,” explains Ken Allen, member of the Board of Management of Deutsche Post AG, and CEO, DHL Express. “As part of our focus on international express shipping and our commitment to continually improving customer service, we are directing our investments toward upgrading our facilities, expanding our staff and providing them with the technology they need to enhance productivity and to be more efficient.” For instance, DHL Express has rolled out new ‘smart’ scanners for its couriers, which are faster, lighter and equipped with voice and GPS capabilities and allow for the addition of new features such as stop-by-stop sequencing as well as turn-byturn navigation so they can improve their efficiency while on the road.
fleet, adding more fuel-efficient vehicles including fully electric vans and electric forklifts at its JFK facility. Next year, the company will focus on replacing trucks and tractor-trailer combinations with more efficient models as part of the company’s overall GoGreen strategy to reduce carbon emissions and its impact on the environment. To deal with growing shipping volumes, DHL Express is applying an additional amount of nearly $60 million to expand and add facilities as well as provide technology/security upgrades and new equipment such as the new courier scanners. It has added three new service centres in New York City, Chicago, and Seattle as well as expanded another three this year. It upgraded its Los Angeles gateway in 2016 and plans to add a new gateway in
“As part of our focus on international express shipping and our commitment to continually improving customer service, we are directing our investments toward upgrading our facilities, expanding our staff and providing them with the technology they need to enhance productivity and to be more efficient.”
DHL has already completed a portion of the $108 million investment project at its Americas Hub, located at the Cincinnati/Northern Kentucky Airport, which was announced last year. The North Ramp expansion, which opened just two weeks ago, is built on 45 acres of land and provides parking space for 16 additional planes each night and adds new storage and warehouse space for ramp equipment and shipping containers. Coming next year will be additional automated sorting capability and 40 new reload positions that will enhance the hub’s efficiency to handle the growing e-commerce volume seen in the U.S. and the Americas.
Chicago and refurbish its JFK gateway in 2017, adding a new, improved automated sort system that will facilitate earlier morning deliveries in the New York market.
Focus on vehicles and facilities to handle greater volume DHL Express is spending $20 million in these two years to upgrade and expand its ground
“Going forward, we will continue to keep our focus on the last mile, leveraging technologies and solutions that provide added convenience for customers,” said Mike Parra, CEO, DHL
DHL Express has added 655 new jobs in the U.S. so far, this year. To better handle growing e-commerce volume, the new positions include full- and part-time couriers for more evening delivery routes, and more back-office customer service representatives to coordinate deliveries and customs agents to facilitate clearance. Currently, the company also is working to fill 250 new full-time jobs at its Cincinnati hub to handle increased volume.
Deals
The Falcon Group Announces Drone Company Acquisition
Express Americas. “This approach focuses on convenient pick-up and drop-off options, proactive notification and flexible delivery solutions. We are also reconfiguring delivery routes to handle more afternoon deliveries due to an increasing number of shipments going to residential customers, in part due to increased e-commerce volume.” Volume surge expected during upcoming holiday season DHL is expecting to see an overall 12% volume increase year over year during the 2016 holiday season. The continued strong U.S. dollar means consumers can shop abroad for holiday gifts, so a bigger gain in import volume is expected. However, smaller gains in outbound shipments are likely because the higher dollar makes U.S. goods more expensive to foreign buyers. DHL expects its busiest shipment pick-up day will be on Cyber Monday, Nov. 28, while couriers are gearing up for their biggest delivery day on Dec. 19, just six days before Christmas, where delivery volume could be as much as 89% higher than the average day. The volume gains DHL is seeing go beyond the seasonal gains around major holidays such as Christmas and Mother’s Day. DHL Express has seen steady international time-definite volume growth (2) in the last three years, with daily TDI volume increasing by 6.8% in the third quarter 2016 compared with the prior-year period (3). The proportion of global e-commerce volume in the overall volumes of DHL Express is now more than 20% of total volume (4), up from about 10% in 2013. The Group’s objective is to leverage the global B2C e-commerce market for cross-border shipments, which is expected to grow in absolute terms from $400 billion today to a total global volume of $1 trillion in 2020 (5). As the most international company in the world, with a network that spans more than 220 countries and territories, DHL Express is uniquely positioned to handle growing cross-border e-commerce. DHL offers a suite of online shipping tools for e-tailers and provides local customs expertise and fast clearance solutions, making it an attractive shipping partner for premium international online vendors.
Regional investments also on track DHL Express is also investing an additional $105 million in the Americas region. Key investments include: • $12 million in Canada, adding new service centres in Calgary and Ottawa this year as well as one in Quebec next year and a new gateway in Vancouver; 250 new jobs added this year. • $38 million in Mexico in 2016 and 2017, in addition to its existing $160 million five-year capital investment plan already announced. The additional funds will, in part, provide 38 new outlets for a total of 500 retail service points, two new service centres this year and two more in 2017, a ground fleet upgrade and an aircraft upgrade for the domestic hub; 1,200 new jobs created between 2015 and 2016. • $7.5 million in Brazil to cover a major upgrade to the Sao Paulo domestic hub and service centre including a head office relocation • Smaller investments in Peru, Chile and several Central American countries. “These investments are a clear sign of our expectations for strong growth and of our commitment to the U.S. and the Americas,” said Allen. “We will continue to invest in this region and in our people to meet the growing demands of our customers and deliver superior service to them across the region.” DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 59 billion euros in 2015. (1) Includes a portion of $108 million CVG investment project announced in 2015 and currently under way. (2) DPDHL annual and quarterly reports. (3) DPDHL Q3 2016 report. (4) E-commerce volume information based on medium to large B2C customers in top 30 countries. (5) Source: Accenture and AliResearch. www.dpdhl.de
In November 2016, The Falcon Group has completed an acquisition agreement with Vantage Vertical, a nationwide drone aerial imaging services firm. “I am excited to bring my aviation and drone systems expertise to The Falcon Group,” says Vice President of Falcon Drone Services, Eric Koehler. “I foresee tremendous synergy stemming from our combination of drones with Falcon’s leadership in engineering and inspection services.” Eric Koehler is an accomplished Fortune 100 executive and aviation expert. He has been flying for over 30 years, holds Airline Transport Pilot and Certified Flight Instructor certificates and has been an FAA Safety Team member since 2010. As an experienced photographer, with work appearing in aviation and real estate publications and television network productions, he brings proven expertise in business and finance, drone photography and analysis, and aviation to The Falcon Group. This new venture will allow The Falcon Group to provide safer, more detailed inspections, forensic engineering studies and construction site progress reports for a multitude of existing and potential clients. Falcon Drone Services adds a whole new market segment to The Falcon Group by providing aerial photography, inspection, and photogrammetry services, nationwide. “We are excited to position ourselves as leaders in this new market. The addition of advanced drone technology makes us more efficient in a vast array of services including inspections of roofs, mid and high-rise balconies, facades and in our inferred, litigation and civil work. This will result in savings and have a positive impact on the communities and buildings that we serve,” says Principal, Andrew Amorosi of The Falcon Group. For more information, please visit www.falconengineering.com and www.falcondrones.us. www.transportnews-intl.com
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Leading 3PL Watco Supply Chain Services Leverages JDA to Optimise Freight Routing JDA Software Group, Inc. last month announced that Watco Supply Chain Services — a subsidiary of Watco Companies, LLC (Watco) — will implement JDA® Transportation Modeler, part of JDA® Transportation Management solutions. JDA Transportation Modeler will help this third-party logistics provider (3PL) give the best possible recommendations to customers with regard to highway, rail, intermodal and international logistics.
Founded in 1983, Watco has grown to become the largest privately held short line rail operator in the United States. Watco operates 36 railroads, 32 mechanical shops, 73 terminals and 32 switching locations the U.S., Canada and Western Australia. In 2014, the company founded Watco Supply Chain Services to complement its core transportation and freight business. Headquartered in Springdale, Ariz., Watco Supply Chain Services helps customers make optimal decisions about shipping cargo in the fastest, most economical manner, whether by ocean, air, barge, rail, intermodal, truck or any combination of these. According to David Dust, senior director of logistics engineering and solution design at Watco Supply Chain Services, JDA Transportation Modeler will help the company manage the high complexity of today’s logistics landscape and make optimal customer recommendations. “Customers have so many options for shipping freight today,” said Dust. “Not only will JDA help us understand the real costs and benefits of utilising each shipping option — whether rail, over-the-road, air, ocean or intermodal — but it will help us maximise our customers’ capacity utilisation and delivery speed. We can provide strategic guidance to our customers with the highest level of confidence, because JDA’s expert analytics consider all the available options.” “The JDA Transportation Modeler is not like any other network modelling tool, it is designed to optimise transportation assets, and it is very easy to use. We were able to start modelling our network and identify business scenarios with zero handholding by JDA. This will give us the real-time view of transportation and logistics conditions as they change,” added Dust. “Commercial shipping is a dynamic business, and Watco Supply Chain Services must be agile in updating our recommendations when the unexpected occurs. JDA will identify any changes in shipping conditions and support our consultants in making the best possible recommendations in response to those changes.”
TRANSPORT NEWS DECEMBER 2016
Dust noted that JDA Transportation Modeler implementation is a key aspect of Watco Supply Chain Services’ growth strategy. “Our goal is to increase our customers’ awareness of our services offerings and demonstrate how we can deliver real bottom-line value by supporting their logistics decisions,” stated Dust. “By partnering with JDA, we will be able to establish our expertise and demonstrate added value. We’re looking forward to the new level of visibility and responsiveness that will be enabled by our JDA implementation.” “For the past 33 years, Watco has built an outstanding infrastructure of transportation and logistics assets that allow customers to deliver cargo quickly and efficiently,” said Danny Halim, vice president, industry strategy, distribution and 3PL at JDA. “Logistics service providers, small or large, are challenged to be agile and profitable at the same time. JDA Transportation Modeler gives them the ability to quickly and continuously optimise their transportation network without the burden of implementing heavy transportation management or analytics systems. Being able to compare scenarios with cost and performance data will give Watco Supply Chain Services a competitive advantage in the market.” www.jda.com
Deals
Bluemove Pursues Its Development with the Launch of Its Car Sharing Service in Barcelona On 1st December, Bluemove, leader in the car-sharing sector in Spain announced the launch of a by the hour service in Barcelona. Few months after its acquisition by the Europcar Group, the European leader in vehicle rental services and a major player in mobility markets, through Ubeeqo, the innovative mobility start-up in which Europcar took a majority share, Bluemove strengthens its development.
After Madrid and Seville, the start-up has chosen the Olympic city as the third launch in Spain to set up its service. In its first phase, Bluemove will provide 39 cars in around 20 car parks in the neighbourhoods of Example and Gràcia, among other districts, and is already considering expanding its service into new zones of the Catalonian capital. Jorge González-Iglesias, MD of Bluemove, explained, “Barcelona is an important step to consolidate our offer in the Spanish market. Additionally, we will shortly be able to cover all the national territory with our corporate car-sharing offer.” With Bluemove’s arrival in Barcelona, the aim is to improve the mobility in the city – an issue that affects large urban areas all over the world -, while reducing the environmental impact caused by the traffic. According to company data, every Bluemove car replaces between 13 and 17 private vehicles. Furthermore, Bluemove’s car-sharing offers a reduction in mobility costs for customers, particularly for those who drive fewer than 15,000 kilometres per year, and offers sustainable alternatives such as public transport and bicycles. “With the launch of the Bluemove’s car-sharing service in Barcelona, Ubeeqo remains faithful to its strategy of offering an alternative to owned cars to people from the biggest European cities”, declared Benoit Chatelier, founder and CEO of Ubeeqo. Fabrizio Ruggiero, Europcar Group Deputy CEO Sales, Marketing, Customers & InterRent stated that “we are happy that Bluemove is stepping up its development with this new opening in Barcelona. It allows Ubeeqo to strengthen its presence in Europe and particularly in Spain and demonstrates Europcar Group’s strategy to propose even more mobility solutions to our customers all across Europe.” The company has also launched a marketing campaign, to support the launch, giving exclusive discounts to the first 1000 people to sign up. It is free to join the service and there are no fixed costs for customers. www.europcar-group.com www.ubeeqo.fr www.bluemove.es
CheckMyBus Expands Its Worldwide Bus Inventory by Partnering with Busbud CheckMyBus, a leading meta search engine in the bus travel space, increases its inventory by adding select content of Busbud’s API, another major player in the bus booking industry. The partnership allows travelers to find an even larger amount of international bus connections on CheckMyBus and to benefit from the most convenient and comprehensible booking experience offered by Busbud.
“Busbud is a strong partner with an excellent booking technology in markets in which we strive for further growth. This way travelers benefit from an even more extensive portfolio of bus connections worldwide. By simultaneously comparing offers of bus providers as well as those of OTAs, users always get the best prices,” comments Marc Hofmann, CheckMyBus’ Chief Executive Officer. In recent months, Busbud has increased its strategic focus on the B2B side of the bus travel tech space by giving access to its inventory to exclusive partners like Voyages-SNCF, Skyscanner, Liligo and more. Opening the API to CheckMyBus, one of the leading meta search bus engines in the travel space, is another step towards distributing its global inventory to a wider audience. Thomas Geissmann, Busbud’s VP of Revenue comments on the new partnership said, “CheckMyBus is directly in line with our strategy of making sure that our bus partners’ offers are displayed as broadly as possible. We’ve closely followed CheckMyBus’ work over the years and we’re glad to finally create a partnership that’ll benefit international travelers.” CheckMyBus works directly with bus companies and with high quality booking platforms such as Busbud with the intention of supplying customers with the best international bus offers and booking experience. Find bus tickets and more information on www.checkmybus.co.uk www.transportnews-intl.com
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