DB Schenker Rail

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DB’s experience with the Landbridge

L.RESept. 17th 2012

DB Schenker Rail is a strong European company focused on international transports

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Employees:32,600 Turnover (EUR): 4.9 bn Performance (tkm): 112 bnLocomotives: 3,600Wagons: 107,000

DB SR PolskaZabrze

RBH LogisticsMEG

RBH LogisticsMEG

Region EastRegion CentralRegion West

DB SR UKDoncaster

Cobra Brussels

DB SR NederlandUtrecht

DB SR PolskaZabrze

DB SR RomaniaTimisoara

DB SR BulgariaPirdopNordCargo

Milan

RBH LogisticsGlad-beck MEG

Schkopau

TransfesaMadrid

DB SR ScandinaviaTåstrup

DB Schenker Rail in Europe

DB SR HungariaGyör

Source: DB SR (2011)

Rail ECR FranceParis

DB SR SchweizGlattbrugg

DB SR DeutschlandMainz

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Transports to the east to the Asian part of Russia and to China are a logical extension of DB Schenker Rail activity

westbound

eastbound

Many international companies are interested in transporting goods, both semi-finished and finished

along the Europe-Russia-China route.

RU

BY

KAZMN

PL

CN

Chongqing

Mala / Brest

Dostyk / Alashankou

Zabaikalsk /

Manzhouli

Moscow

Shenyang

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DB Schenker Rail started activities towards the Far East in 2005

2007 2008 2009 2010 2011

The first DB train from China

Customer: Thyssen Krupp

Via MN, CN, BY, PL Train en route: 16 days

Founding TEL Signing the JV

contract Focus on Europa –

CIS traffics

20062005

TEL develops a Company Train from China Customer: Fujitsu Siemens Via CN, BY, PL Train en route: 17 days

DB drives a special train to China Marketing Train en route: 15

Little or no demand for China-Europe transports

TEL starts developing connection between DE and CN

Commencement of „Moscovite“

Capacity utilisation risk with TEL

Ca. 1-2 times a week

Since spring 2010 start of dvelopment of Company trains for HP TEL as a Terminal-Terminal

forwarder First whole train in March 2011

Start of a production platform with Interrail Services GmbH

Common development of eastern transports

VW train: First trains for

VW to Russia

VW transport ramp-up

Transports to Kaluga and Niznyj Novogrod run at full capacity

2010: BMW first test trains

Founding YXO, a JV with participation of DB Schenker.

2012

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Transport along such a long route over many countries and various track gauges poses a lot of challenges

In order to overcome the various

organizational and formal challenges, DB Schenker Rail had to implement a series of

solutions, in cooperation with the

partner carriers.

Challenging for us tariff systems in CIS railways;

permanent and sometimes announced late construction works of railway lines on the whole routes;

time zone difference in winter of 3 hours (Germany-Moscow);

severe winter conditions in the northernmost part of the transsib route;

missing real-time tracking and tracing information.

Organisational

Different bills of lading in EU, CIS countries and China (not only formally, but also language- and font-wise);

necessity to perform customs procedures, different for different countries.

Formal

The challenges may roughly be divided into two groups

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The Joint-Venture contract defines TEL as a forwarder for Europe-CIS transports

TEL is primarily steered by RZD and DB

Changes in the business focus are only made with approval of all companies involved

Minimum volume guarantee is secured in the JV contract by Trans-Container (TC), Kombiverkehr and Polzug

Employees of TEL are only employed by DB

TEL has a significant political weight as a common undertaking of DB and RZD

30% DB 10% Kombiverkehr 10% Polzug

30% RZD 20% TC

TransEurasia Logistics GmbH

Two Managemement Borad Members DB/TC Seven employees DB Initial capital EUR 100.000

One of the solutions to counter organisational difficulties was Trans Eurasia Logistics…

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… another one is the CIM-SMGS bill of lading, used extensively for the VW traffics

2006 2007

2009

2010

2011

Introduction of CIM-SMGS bill of lading

<5.000 CIM-SMGS B/Ls

EU CIS

Switching the EU - Kaluga traffic to

the CIM-SMGS B/L

18.074 CIM-SMGS B/Ls

EU CIS

29.311 CIM-SMGS B/Ls

EU CIS

23.021 CIM-SMGS B/Ls

EU CIS

Target 2012: CIM-SMGS China

Europ

2008

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Thanks to cooperation with partners, DB Shenker realises many transports with CIS countries and China.

Moscow

KAZAKHSTAN

UZBEKISTAN

TURKMENISTAN

Yekaterinburg Krasnojarsk

CHINA

MONGOLIA

KalugaNiNo BMW Leipzig-Schenyang

HP Chongqing-Duisburg

VW Kaluga & NiNo

TEL Moskovite

Coal, chalk & cement Belarus

Coal Ukraine-Poland

Line train Poland connection to LHS broad gauge track

Tank wagons via broad gauge ferry

Shenyang

CLAAS machines to Kazakhstan

CIM/ SMGS consignment notes

Schematic

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DB Schenker Rail

Thank you for your attention!