Rail freight traffic in the context of current competition

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Rail freight traffic in the context of current
competition
Odessa10 11 June 2008

• Kalin Grasian
• COO CFR Marfa

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Contents

• Reorganization of rail transport in Romania
• Dynamics of transport market in Romania
• CFR Marfa National Operator of Rail Freight
  Transport
• About us
• Cooperation at the international level
• Participation of CFR Marfa in OSJD projects
• Rail freight figures
• CFR Marfa what is done in 2007
• Intermodal transport
• Objectives

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Reorganization of rail transport in Romania
Rail Authority of Romania
1998 Reorganization of SNCFR
Infrastructure CFR AO
Freight transport CFR Marfa
Passenger traffic CFR Kalator AO
Administration of rail assets SAAF AO
Rail management SMF AO
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Dynamics of Romanian transport market
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Dynamics of transport market in 2007?
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CFR Marfa National rail freight operator

• CFR Marfa was founded in 1998 after
  reorganization of rail roads of Romania. Now it
  is the major operator in Romania
• Main activity general national and international
  rail freight transport and multimodal transport,
  ferry and other services (maneuverable works,
  weight, customs formalities, etc.)

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About us

• 987 locomotives and diesel locomotives
• 50980 freight wagons
• 2 ferries 12500 tdw for maritime transport in
  Turkey and Georgia
• 18877 workers
• 8 branches ? 8 sales centers
• 23 commercial productive centers
• 3 branches for wagons, locomotives and ferries
  maintenance

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CFR Marfa Branches
Ferry branch FERRYBOAT
Ferry transport
Maintenance / modernization of wagons
Depots / Maintenance of locomotives
Branch CFR IRV
Branch of CFR IRLU
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Cooperation at the international level

• Main international organizations where Marfa
  takes part
• Cooperation of Railways Cooperation, Companies on
  European Infrastructure - CER
• International Railways Union - CIT
• Organization for Railways Cooperation - OSJD
• International Committee on rail transport - CIT
• ?????????? ??????????????? ???????????? ??????? -
  ATFR
• INTERUNIT OCCF
• ATFER

TRACECA
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Participation of CFR Marfa in OSJD projects

• Decrease of downtime at the border stations, with
  UZ and CFR I mean transmission of wagons from
  one gauge (1520 mm) to the narrow one (1435 mm)
• Development and introduction of comprehensive
  measures on international OSJD corridors
  (Corridor IX Helsinki Salonik)
• Financial and accounting aspects between OSJD
  members
• Consignment note CIM/SMGS
• Multimodal transport

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Figures on rail freight traffic in Europe
Tons km (millions)
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Rail freight traffic of CFR Marfa with CIS states
Tons
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CFR Marfa - conducted in 2007

• New border technology of work between Romania and
  Hungary was introduced on the 1st of February
  2007 (CFR Marfa MAV Cargo)
• Development of activity in the framework of
  international organizations
• Strengthening of cooperation with internal
  partners
• Purchasing and modernization of rolling equipment
• Reorganization of commercial and marketing
  department by dividing of activity in the
  specialized markets
• New sales strategy (single tariff class from 1 of
  January 2007)
• Development of multimodal transport
• New technology of mountain ranges crossing (3000
  tones at the 27 of high ground
• Most powerful locomotive of Europe was modernized
  in locomotive depot of Krayova (7700 KW)
• Track link of heavy train (3600 tones gross )

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New sales strategy

• Attraction of clients directly
  (consigners/consignees) without intermediaries
• Development of international traffic and
  strengthening of relations with clients by
  executing direct commercial agreements with
  national operators of rail transport of foreign
  states
• Attraction of transit cargo flow with competitive
  rates

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Reorganization of commercial and marketing
Department

• Objectives
• Increase of service quality
• Flexibility at negotiations and during contracts
  executing
• Decrease of feed-back time and drop in
  decision-making authorities  
• Measures
• Organization of central body and creation of
  single park of sales divided according to
  freight markets
• Organization of territory structure for
  commercial sales centers
• Opening of CFR Marfa branch in the neighboring
  states, states of Black sea region and IV
  corridor

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Division of services on sales into specialized
markets

• Sales Center
• Market Coal, oil products, chemical cargo
• Market ore, metal, construction materials,
  wood
• Market Multimodal transport
• Market Cars, military transport, agricultural
  cargo, general cargo
• Cargo Leasing of rolling equipment, agreements

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Participation of CFR Marfa in international
projects

• Business analysis in ERTMS Corridors (Germany,
  Czech Republic, Austria, Slovakia, Hungary and
  Romania)
• Increase of capacity and elimination of
  bottlenecks
• Increase of handling capacity of terminals
  located at E corridor
• Increase of operational parameters
• CREAM Project (Customer-driven Rail-freight
  services on a European mega-corridor based on
  Advanced business and operating Models)
• Decrease of transport time (15-20) between
  Western Europe and Turkey/Greece and attraction
  of additional volumes
• Increase of rail transport by 200 mln. tons in
  the corridor Belgium/Holland Germany Austria
  Italy Slovenia Hungary Romania Bulgaria
  Greece/Turkey

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Intermodal transport

• Ferryboat
• Location Constanta Sud Adzhidzha
• Birth depth 14.5 M
• Length of specialized birth 220 m
• 2 ferry boats Euphoria and Mangalia
• Tonnage 12000 TDW
• Capacity
• 70 wagons and 40 autotrains TIR or 108 wagons or
  80 autotrains TIR
• Containers at the rail pallets

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Intermodal transport
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Intermodal transport

• Advantages of ferry service
• Decrease of rail route
• Direct border with Georgia and Turkey
• Elimination of downtime at border crossings
• Decrease of transport time
• Decrease of handlings
• Suitable for every kind of wagons
• Environmentally-friendly

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Combined transport Rolling
Road (RO-LA)

• Specialized wagons
• Saadkkms 160 units,
• Sdgmnss 16 units
• Routes
• Glogovets (Romania) Velts (Austria) 20 hours
• Episkopia Bikhor (Romania) - Velts(Austria)
• Berchen(Romania) Piatsenza (Italy)

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TEU in 2007
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Our objectives

• Development of traditional relations with rail
  roads
• New sales strategy
• Introduction of single sales centre
• Development of activity in international
  organizations
• Development of new accounting model
• Introduction of advanced information technologies
  
• Constant adaptation to EU requirements
• Increase of service quality of rail freight
  traffic
• Certification of management system on environment
  
• Modernization of rolling equipment
• Development of RO-LA terminals and container
  terminals

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Thank you for your attention!