ESCCA presentation of Gyorgy Firbas

The Far East Land Bridge and the V4

countries

György FIRBÁS Mr.

board member of the Hungarian Logistics Association

[email protected]

Wednesday, April 24, 13

mailto:[email protected]




V4 countries and logistics


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


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


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








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


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


Gauge problem


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....


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


Figues of FELB


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


Train utilization in Q1-2013

0

25

50

75

100

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

9999989899%


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


Customers

• Apple ( Apcom )

• Dell

• Samsung

• Huawei

• General Motors

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

• Still under heavy development, dependency on Russia.


Thank you for your kind attention! April, 2013


Documents

ESCCA presentation of Gyorgy Firbas