Freight news July 2016


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Time for summer for Stena Line

Why does time seem to fly just before the holiday season? At the time of writing this it is already Midsummer.

Our customers’ support for the first half of 2016 has really motivated us. The market is strong in all of the five regions that we are operate in and this means that we have improved results against our budgets and forecasts. The demands over these last few weeks before the holiday season are showing a strong trend and hopefully this is a good indication for the autumn period.

Our freight team in Stena Line are looking forward to their holidays. Freight’s low season is only just the next six to eight weeks, however the right time of the year for some outdoor swimming, barbecues and relaxing with families and friends.

While freight is ‘out of the office’ our colleagues in the Travel departments and on board the ships are having their peak season – their strongest time of the year. The summer season accounts for almost half of their annual turnover. During the three months of June, July and August more than 2.9 million passengers will travel on our vessels!

We know the importance of focusing on our Freight and Travel customers all year around and with our ears to the ground and with a close dialogue with you we will continuously focus on our core values.

Wishing all of you a great summer!

Björn Petrusson
Freight Director

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Successful business at trade fairs

While you are reading this we are busy evaluating this year’s spring trade fair exhibitions. The five we have already attended are; Transrussia in Moscow, SITL in Paris, the CV Show and Multimodal in Birmingham and the Breakbulk in Antwerp, and the next is the Logistik & Transport in Gothenburg in November.

 

No matter what business you are in there is always a trade show, a conference or a seminar that brings together the biggest names and the brightest minds in the business within the area we are working.  We have experienced that customers present as well as future see an advantage in visiting trade fairs as an ideal place for surveying the market, trying out products, having an in-depth exchange of information and to discuss their business with the exhibitors’ sales and marketing team.

 

We believe that establishing leads and cultivating relationships is essential for us that is why we prioritise these fairs and deploy resources to be present at each of these events - what better place to do so than at trade fairs and exhibitions, where you are in direct conversation with all the right business partners.

 

Thanks to all of you who took the time to meet with our sales and marketing teams.

 

Inge Rosenbæk Carlsen

Head of Freight Marketing

Baltic Sea North Freight Sales activities

This spring has seen dedicated business conferences and sport games attendances together with our customers.

 

At the beginning of May our Baltic Sea region’s Sales Managers were spectators at some of the World Championship Ice Hockey games together with present and future customers. Among our customers were representatives within the logistics sector, producers and export companies of raw material products and metal processing equipment import companies. Events like these always give us the opportunity to discuss business with our customers and to stay updated about the market and the short and long term business opportunities within the industrial sector.

 

We also participated in the Riga business conference, the “16+1 CEEC - CHINA 1st Transport Ministers' Meeting & Business Conference”, with a topic on the agenda: Tailor made product offer for cargo supply chain to Scandinavia with a Stena Line partnership”. The purpose of this conference was to foster a development of and an integrated transport corridor between Europe and Asia as well as to strengthen the cooperation in the field of transport and logistics.

 

Another exciting event in Riga was the business forum, ‘German-Latvian Maritime’, which was organized by the Port of Hamburg. At this forum the existing and potential business cooperation issues between the German and Latvian ports were discussed and during the panel discussion we emphasized the importance of the ports playing a major role in the supply chain in addition to the already provided services.

 

Oskars Osis

Freight Commercial Manager, Baltics, Russia & CIS countries

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The 1,000th Kiel – Verona train trip

Since October 2012 Stena Line and the leading European Intermodal Operator, Kombiverkehr Frankfurt and their partner Cemat Italy have been running a direct train connection between Kiel( Schwedenkai) and Verona(Quadrante Europa). On 21 April this year we celebrated a jubilee - the 1,000th trip of the Kiel-Verona shuttle train.

 

The fast train needs 24 hours only to run between both hubs. The length of the train is currently 540m for a maximum weight of 1,420 tons cargo, up to 25 trailers and or containers can be transported on each train combination.

 

From November 2012 until now more than 1.7 million of CO2 were saved for the units transported during this time compared to long-distance road haulage.

 

The train schedule is linked to the timetable on the route Gothenburg-Kiel. Customers are able to book for the entire journey combination from Gothenburg to Verona with just a single booking.

 

In Kiel the rail hub at Schwedenkai is located very close to our berth – 300 meters from the ferry. That guarantees a very efficient and secured handling in the port. The volume development during 2015 was very positive showing the increased demand for this connection.

 

For the time being Stena Line and Kombiverkehr/Cemat are preparing an analysis to increase from two to four departures per week and direction.

 

Stena Line is looking forward to establish more “Hinterland Solutions” for the freight market.

 

Christof Weichbrodt
Freight Commercial Manager, Central Europe

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Our intermodal connection in Trelleborg - Rostock

Stena Line is half-way there in setting up an intermodal connection on Trelleborg – Rostock – Bratislava. Drop a trailer in Trelleborg and pick it up 1½ day later in Bratislava or vice versa at an extremely good price. The plan is to achieve two roundtrips per week in motion by Q1 2017, and many customers active in the region have been approached with the combined rail/sea product. The competition within the region of Slovakia, Austria, Hungary and Romania is extremely competitive, leaving any land-based transport solution with very high utilisation demands to not become seriously unprofitable – requiring committed volumes. On the other hand, securing capacity on Trelleborg - Bratislava is a very attractive market pole position.

What do you do next?

If you have transport business in this region, you should not miss out on this deal - just contact your Stena Line sales representative and get more details of our product.

Christer Kjellberg
Group Freight Rail Manager  

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Development of Europoort

The construction work for the new second berth in Europoort is well on its way. The new berth will be able to handle ships up to a length of 212m and a draft of 6.3m.

 

“The berth has been excavated and the next milestone will be filling it with water, which is planned for the end of this summer, and after that the linkspan will be placed”, says Marcel van der Vlugt, General Manager Port Operations. After completion of the piling for the quay wall, linkspan foundations and the placing of the grouted anchors, the work started on reinforcing the quay wall (see pictures).

 

Over the last few months the concrete work was carried out and the phasing screen was installed, which is a temporary separation between the new and the old berth”, Bob Brouwer, Fleet Manager and responsible for port and terminal facilities, adds. The work, carried out by Ballast Nedam, proceeds satisfactorily. “The collaboration with Ballast Nedam and the Port of Rotterdam is very good!”, emphasizes Bob Brouwer.

 

Actions have been taken, to minimize hindrance from the work on the Stena Line services. “A separate entry has been made for the delivery and disposal of materials. In addition, there are regular consultations on the steps to be taken, in order to anticipate timings”, explains Marcel van der Vlugt. It is expected that this new berth, berth 1-North will be completed in January 2017. Thereafter, the current berth will be renewed and both berths will be operational from January 2018.

 

Rob Mittelmeijer

Freight Commercial Manager, North Sea

Additional Saturday sailings during the summer season on the Gdynia-Karlskrona route

In order to satisfy the increased demand for freight on the Baltic Sea, we will add an extra Saturday roundtrip with Stena Baltica on the Gdynia-Karlskrona route. An extra roundtrip will increase the frequency on the route from 11 July until 14 August in order to accommodate the freight units during the very busy summer weeks when the route is transporting thousands of cars and passengers at the same time.

In 2015 we added four sailings per week on Gdynia-Karlskrona and this year we will have an additional two sailings per week on this very popular ferry route.

The route has also strengthened its role as a popular gateway to and from Scandinavia over these past years, transporting not only many thousands of freight units but also has seen great growth in the number of cars and passengers. By adding frequency during the summer peak season we have the flexibility in adapting our timetable into the freight market demands.

We believe that our new timetable will meet our freight customers’ expectations and help the truck drivers’ to use their weekly working hours in an optimal way during the summer months.

Henryk Kaluzny

Freight Manager, Poland & Ukraine

Being part of The Northern Powerhouse

The Northern Powerhouse is a government sponsored proposal to boost economic growth in the North of England engaging the core cities of Liverpool, Manchester, Sheffield, Leeds, and Newcastle. The proposal is based on urban agglomeration and aims to stimulate repositioning of the UK economy away from London and the South East. Clearly, any initiatives that stimulate economic growth to create jobs in Northern England will be good for Stena Line and its freight customers. Stena Line routes on both the west and east sides of Britain connect Ireland and the Continent and are well positioned to serve and benefit from the Northern Powerhouse. Investments in road and rail infrastructure will also improve communication and mobility, making our ports more accessible.

Transport for the North (TfN) will soon become the statutory transport commissioning body supporting The Northern Powerhouse (on a par with Transport for London - TfL). It will focus on better east to west inter-city road and rail links. One vision is to build Northern Powerhouse Rail (previously known as High Speed 3) to provide faster connections across the North of England, to draw the core cities together in a tighter economic unit. Sections of the M6, M56, M60 and M62 are being upgraded to ‘smart motorways’ to increase road capacity and the impressive Liverpool Gateway suspension bridge is being built over the River Mersey at Runcorn, to ease traffic on the M6 motorway near Warrington.

Critics however say there is not enough vision for new infrastructure capacity in the long term Northern Powerhouse plan, particularly in the context of freight. There is still an ongoing debate on how to connect the new Liverpool 2 Super port - opening next year - to the M62 motorway. Our railway infrastructure in the North is largely Victorian in origin, congested and under invested in comparison to South East England. With increasing demand for passenger trains there is not enough intermodal rail capacity on British railways because timetable slots between passenger trains (train paths) are limited and relatively expensive. It is possible that technological development and environmental demands will speed up infrastructure change for The Northern Powerhouse but investment funding strategies are unclear. The low cost and flexibility of road freight on existing infrastructure remains the most effective way to move goods around Britain and we can expect the demand for freight ferry series connecting the British Isles to the continent to remain high into the foreseeable future.

Richard Horswill

Head of Freight, UK & ROI