DIOMIS - TREND Project€¢ The DIOMIS CT Master Plan 2015 will be a strategic document centralising the findings of all the work packages and consigning them in a document designed

ZSSK QMS Conference, Bratislava May 4th 2006

1QMS Conference

Bratislava, May 4th 2006

DIOMIS(Developing Infrastructure and Operating Models for Intermodal Shift)

Growth and Quality of Service : coping with a constrained InfrastructureThe example of Combined Transport

By Eric PeetermansSNCB Holding, Corporate International Affairs &Chairman of the UIC Combined Transport Group


2QMS ConferenceBratislava, May 4th 2006

CTG Study on Capacity Reserves 2015

• Combined Transport Group UIC (CTG): 21 UIC Railway Un dertakings, dealing mainly with co-operation issues related to Combined Transport

• CTG commissioned an investigation to comprehensively e xamine if the capacity of rail network and intermodal terminals in Europe will be sufficient to a bsorb the growth of international combinedtransport by the year 2015.

• The full report can be downloaded from the UIC website www.uic.asso.fr

• The project has been initiated and financed by the UIC (Un ion Internationale des Chemins de Fer), with the participation of the UIRR (Union International e des Sociétés de Transport Combiné Rail-Route).

• This partnership reflects the joint concern for maintainin g an optimum development of this excitingtransport mode.

• The study was carried out by the following team of consultants:• Kessel & Partner Transport Consultants, Freiburg

• KombiConsult GmbH, Frankfurt am Main

• MVA, Paris



International unaccompanied CT is a very concentrated b usiness

� 80% of total traffic concentrated on approx. 100 intermodal intermodal links = services both ways








6

UIC Combined Transport Group (CTG) Study about Infrastructure Capacity Reserves 2015 : Growth Proj ections

(International non accompanied Combined Transport)

QMS ConferenceBratislava, May 4th 2006


7

UIC Combined Transport Group (CTG) Study about Infrastructure Capacity Reserves 2015 : Growth Proj ections

(International non accompanied Combined Transport)

14

44,1

103,6

0

20

40

60

80

100

120

1988 2002 2015

mill

ion

tonn

es

6,8 % average annual growth rate

8,5 % average annual growth rate





� 80% of total traffic concentrated on approx. 100 intermodal intermodal links = services both ways

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

1 251 501 751 1001 1251 1501 1751

1.00

0

Number of Relations

TE

U-> 10% of all services (195) cover 80% of the total volu me-> 16% of all services (307) cover 90% of the total volu me



Concentration of International CT expected in 2015

CT Trains per day 1 5 10 25

50

75

100

• High concentration of ICT: primarily North-South, but by 2015 all axes are involved

• 75% of the total transhipment volume of international CT handledat intermodal terminalslocated in 25 majorEuropean economicareas


10

Utilisation rate of the Railway Infrastructure in 2 015 after consideration of planned enlargement investments




Main international rail axes with bottlenecks by 20 15

Country Main axes with bottlenecks

Germany

France

Belgium

Switzerland

Spain

Hamburg – Rhein / MainKöln – Rhein / MainSaarbrücken - Stuttgart

Barcelona - Tarragona

Greater Basel area

Freight corridors from / to Anvers

Metz - DijonLyon - AvignonParis – Orléans - Tours



Taulov

VeronaLjubljana

BudapestBasel

Ludwigshafen/Mannheim

Nürnberg

München

Wien

Wels

Praha

Lübeck

RotterdamAntwerp

Zeebrugge

BremerhavenHamburg

DuisburgNeuss

Köln

Paris

Barcelona

Valencia

Madrid

Novara

Milano

Warszawa

Poznan

Le Havre

Bremen

Gliwice

Graz

Genk

Roma

The Intermodal Terminals: selected representative transport areas

� 25 largest areas

Villach

Bologna

� 9 end-of-corridortransport areas


13

Main Basic Assumptions of the Study

• Sustained growth of International Combined Transport (ICT) on all corridors• Growth differentiated per corridor but average growth for Unaccompanied

ICT estimated at 6,8 % per year (less than historical growth of CT)• Which means + 113% 2015/2002 (+ 134,92 % for Unaccompanied

International Combined Transport and + 19% for Accompanied ICT)• Increase of the number of Conventional Freight Trains by 25%• Increase of 20% of the productivity in the use of the Infrastructure by Freight

trains:– 750 m/ 1 500 Gross Tons on all corridors studied– 80% use of the available length– Internationally integrated railway paths– Return of quality of service to normal levels (85/90% punctuality)

• All identified Infrastructure projects have been implemented by 2015• Severe Railway Infrastructure saturation is shown, requiring far reaching

boundary crossing actions in terms of investments in rail and terminal infrastructure, technical-operational improvements, working procedures between all stakeholders of CT



14

DIOMIS Key Actions and Objectives

• In 4 domains :

- Railway Network Management- Railway Operations Management- Terminal Management- Accompanying Actions

• And an ultimate deliverable, resulting from those a ctions : the DIOMIS CT MASTER PLAN 2015

• With the objective of :

– Achieving the productivity gains underlying the con clusions of the Study regarding the rate of utilisation of the available Infrastructure in 2015

– Encouraging new types of cooperation between all st akeholders in CT : terminal operators, CT operators, shippers, railway undertakings, infrastructure managers, national and European authorities

– Describing and helping to implement optimal capacit y management models at terminal level in order to use the available capacity in an optimal manner

– Adapting and improving more effective operating pra ctices in terms of railway operation in order to relieve a saturated network and respond to future market requirements

– Describing the benefits of an international approac h towards planning and production, and lay down the basic principles for a common approach towards improvement of intermodal services

– Learning to grow Rail Freight traffics on a saturated railway infrastructure

• The UIC Freight Commission confirmed repeatedly the importance of the project for Rail Freight in general, and mandated the CTG to carry it out. The Executive Committee of the UIC decided on Sept 16th 2005 to finance it and it will be launched on January 1st 2006



15

The ultimate deliverable of DIOMIS: CT MASTER PLAN 2015

• The DIOMIS CT Master Plan 2015 will be a strategic document centralising the findings of all the work packages and consigning them in a document designed to help decision makers and stakeholders implement improved working procedures in all CT related fields

• The Master Plan will synthesise for all decision ma kers and CT stakeholders in clear and concrete terms the information made avail able by the work packages and will contribute to

– an adapted infrastructure able to cope with the anticipated modal shift– CT terminals with an adapted infrastructure– improved operational procedures– improved business models between Railway Undertakings and CT Operators, matching the

conditions of projected infrastructure and demand– an international vision and coordination in terms of infrastructure and development of CT terminals– a clear formulation addressed by the RUs to the IMs about their qualitative and quantitative needs

in terms of Railway Infrastructure for their freight trains

• The target date for publishing the CT Master Plan is December 2007



16

ERIM

NEWOPERA

TRENDEUROPTIRAILS

DIOMIS Project : Positioning and inputs/outputs

TimeHorizon

Long Term>10y

MediumTerm 5-10 y

ShortTerm<5 y

ApproachInfra corridor Infra utilisation Quality of IM- Train – Infra Technical Business approach capacities & operations RU operations interface approach Freight

DIOMIS A1

DIOMIS A2

DIOMIS A3

DIOMISA4

DIOMIS A5

DIOMIS A6

DIOMIS A7

DIOMIS A8

DIOMIS A9

DIOMIS A10

DIOMIS A11

“Core of DIOMIS”

DIOMIS A 12Master Plan 2015

BMQS

CTG ReportJune 2004

(incl. database)



17

DIOMIS Project : Modules

Outputs to the all stakeholders

Inputs from all modulesCT Master Plan 2015A 12

The End Deliverable

To TREND, NEW OPERAPeriodical Report on CT in EuropeA 11

To ERIM, NEW OPERATrends in Domestic Combined TransportA 1

The Accompanying Actions

To ERIM, NEW OPERAInternational coordination for the development of CT terminalsA 8

Extension of the opening times of the CT terminals

To ERIM, NEW OPERABest Practices for the Management of CT Terminals, includingA 4

The Terminals

To NEW OPERAAssessing New Technologies in the wagon fieldA 10

To NEW OPERAOpportunity Costs Non Accompanied vs Accompanied CTA 9

To ERIM, TRENDS, NEW OPERAICT Production systems, including Long & Heavy Trains A 7

To ERIM, NEW OPERAImproving the use of the available train lenghtsA 5

The Railway Operations

From Europtirails, RNEHarmonised procedures for planning train pathsA 6

IdemAssessment of Cost of relieving BottlenecksA 3

From ERIM, to TREND, NEW OPERAAssessment of main bottlenecks and Infra measures proposedA 2

The Railway Network Management

Input/OutputDescriptionAction



18

DIOMIS Project : the main Partners

Outputs to the whole Railway Community

Inputs from all modulesCT Master Plan 2015A 12

The End Deliverable

RUs, CT OperatorsPeriodical Report on CT in EuropeA 11

RUs, CT OperatorsTrends in Domestic Combined TransportA 1

The Accompanying Actions

RUs, Terminal Managers, CT OperatorsInternational coordination for the development of CT terminalsA 8

Extension of the opening times of the CT terminals

RUs, Terminal Managers, CT Operators, ShippersBest Practices for the Management of CT Terminals, includingA 4

The Terminals

RUs, CT OperatorsAssessing New Technologies in the wagon fieldA 10

RUs, IMs, CT Operators Opportunity Costs Non Accompanied vs Accompanied CTA 9

RUs, IMs, CT Operators ICT Production systems, including Long & Heavy Trains A 7

RUs, IMs,CT Operators, Terminal ManagersImproving the use of the available train lenghtsA 5

The Railway Operations

Idem (including RNE)Harmonised procedures for planning train pathsA 6

IdemAssessment of Cost of relieving BottlenecksA 3

RUs, IMsAssessment of main bottlenecks and Infra measures proposedA 2

The Railway Network Management

Main PartnersDescriptionAction




Based on the common awareness and recognition of several points :� It is mainly thanks to CT that the rail mode has managed to maintain its freight traffic

volumes. And the main growth sector for rail freight will be CT� CT must now tailor its product range to the qualitative needs of the market.� The further development of CT requires that the railway undertakings and operators

voluntarily set the different standards ensuring delivery of CT services that are competitive with road transport on quality.

� The specific requirements of CT in terms of quality are particularily sharp given that road transport is not only the benchmark but also the natural traffic source for CT.

� A degradation of quality in the CT service reduces product attractiveness, decreases the productivity of assets deployed, and increases costs for each of the stakeholders in the CT chain.

� Combined transport is a very low margin activity especially for the railways, the CT operators and the terminal operators. Therefore, increased costs due to slack resulting from inadequate quality of service cannot be tolerated.

� The expectations of the customers and the external stakeholders (the European and National Authorities and the public, mainly) are high, although sometimes incoherent and without adequate follow up, but they must be answered.

� Traffic growth on a severely constrained infrastructure will necessitate from all stakeholders lean production and operational methods and strict management.

Quality Framework Commitment between the UIC Railwa y Undertakings (RUs) and the UIRR CT Operators :

Common awareness



Quality Framework Commitment RUs-UIRR :A sample of the General level of reliability of CT trains

(@29 000 UIRR trains over 18 lines of route)

60,00

47,83

43,14

48,49

57,29

64,2661,84

10,618,27 7,26 7,11 7,36 7,61

5,33

12,4216,21 17,66

14,6012,03 10,78 11,19

6,15

10,70 10,498,80

6,944,73 5,37

7,4311,86

14,04 14,0311,04

8,70 10,25

3,39 5,107,37 6,98

4,30 3,936,02

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

100,00

1999 2000 2001 2002 2003 2004 2005 (9m.)

Catégories de retards

< 0,5 h 0,5 < 1h 1 < 3h 3 < 6 h > 6h > 24h



Quality Framework Commitment RUs-UIRR :Contractual Freedom and Scope

• signed on July 5th 2005 between the Railway Undertakings, members of the UIC Freight Forum and the CT Operators, members of the UIRR,

• to develop and strengthen, by means of contracts, the quality of railway services provided in block train traffic in international combined transport,

• the framework lists the essential components to be developed in the practical and specific arrangements to be developed route-by-route and contract-by-contract,

• it does not impinge on the principle of contractual freedom of parties nor on the possibility to adopt specific arrangements required to cover some market segments and open certain opportunities,

• it applies only to non-accompanied international CT block traintraffic, including the antennas, that are listed in the production programs agreed, on the different routes, between RUs and Operators,



Quality Framework Commitment RUs-UIRR :Commitments and signal effects

• with mutual and reciprocal commitments:

– the RUs are committed, within their field of responsibility, to deliver and maintain a quality-of-service level in line with specific and strict criteria flanked by suitable penalty provisions for non-compliance.

– the Operators - in the context of inclusive capacity purchases – are committed to observe the quality criteria falling within their area of competence, and to pay, in circumstances and under forms/procedures to be foreseen in specific quality-related contracts, penalties for non-observance of these criteria.

• the underlying objective is to operate as a signal that incites the defaulting RU to deliver the service package sold to the customer, and encourages the defaulting Operator to abide by the rules that have been agreed.

• to ensure that their quality-of-service contracts are as effective as possible, the parties signatory parties shall arrange for similar agreements to be signed with their respective suppliers and sub-contractors.

• results will be jointly evaluated from end 2006



Quality Framework Commitment RUs-UIRR :the main elements to be developed in the quality co ntracts

• the scheduling of the trains, meaning, among other things: the maximum gross tonnage, the maximum length, origin/departure points, in principle terminals, the itinerary, the timetable, in other words the days on which services are operated, the handover deadline (HLR) ,departure/arrival and placing at disposal (MAD), …

• the appropriate procedures and communication circuits needed for implementing quality contracts, particularly in terms of operational and financial train monitoring , analysis of causes of malfunctioning, information feedback , technical adjustments, and reporting.

• updated train punctuality indicators in respect of the different routes and for the trains covered by the quality contracts. Other indicators may be agreed, especially ones related to causes of delays.

• reciprocal penalities, charged to the defective party, in case of :– delays relative to MAD and/or HLR, possible agreed tolerances being taken into account,– cancellation of trains at the initiative of one of the parties, outside the agreed exemptions or

notices,• the different penality rates shall be set at an appropriate level. This level shall be determined

jointly and shall mainly take into account the requirements of the market segment concerned and the performance required as specified by the Operators, the characteristics of the route, and the specific features of the particular service.

• cases of exemption• cases of capacity reduction• the operational information to be supplied:

– by the RUs,– by the Operators,– the agreed penalties, in case of non compliance.

• the cases the RUs cannot avoid and which they are not required to cure (force majeure).



Quality Framework Commitment RUs-UIRR :the relationship with the Infrastructure Managers ( IMs)

� Railway Undertakings shall pursue all appropriate efforts to ensure that IMs and Regulators :

• allocate paths that correspond to CT needs in terms of quality and quantity, which implies that they should accord higher priority to freight operations,

• accept full liability with respect to these operations should they be prevented from performing the service expected, and

• guarantee, jointly with the Railway Undertakings, operation of an adequate quota of CT trains in the event of sectoral strike.

• RUs shall take steps to secure, from the IMs,

• transparent information on the causes of operational delays, • all corrective action within their field of competence and relevant to the overall

quality-of-service improvement objective.

• Development and implementation of a European Performance Regime between IMs and RUs

• see further slide



Quality Framework Commitment :a similar framework agreement is under development with FIATA

� FIATA is the international association of Freight Forwarders

� Regular contacts take place between FIATA and UIC

� Considering the work done in Combined Transport with UIRR, the idea arised to establish "General Recommendations for Quality contracts for dedicated international block trains of the conventional rail freight traffic",

� That document is based largely on the CT one, and will be finalized by end of this year

� It concerns only block trains, the issue of quality for single wagons is much more complex and will be handled in the context of a broader UIC project, still to be outlined (Definition of an international high level offer in single wagon load traffic and implementing it in the framework of a pilot relation)

� Shippers must be involved in the further evolutions



Involving the IMs :The European Performance Regime project (EPR) betwe en IMs and RUs

• While the described framework agreements concern ma inly the relationship between RUs and Customers,

the involvement of the IMs in the quality process th rough EPR will enhance the robustness of the system

and the confidence of the stakeholders wioflof tl enhance the robustness of the system and t he

confidence of the stakeholders

•• UICUIC is developing between IMs and RUs a system which:

� monitors the performance of the European railway services,� stimulates a good behaviour of IMs and RUs in terms of service-quality,� provides penalization to bad performances of IMs and RUs as well� is consistent with contractual and business goals of IMs and RUs� shall improve the quality of the railway transportation service

• An Advisory Group where the RUs are represented reco mmended to :

� adopt a model based on delays - minutes� pursue a corridor based approach� include secondary delays and an incentive to delay recovery� limit penalties to a warning function� foresee a single contract� start with a test-run of at least one year on 2 lines of route, including Antwerp-Basel-Milan

� The end result will be, by end of 2006, a internati onal contractual framework on performance, robustne ss and reliability of service between IMs and RUs



Monitoring the current performance

Analysis Setting targets of punctuality

Defining measures and responsibilities (IM, RU)

Reporting system

Quality Circle

• Data collection by IMs

• aggregation on a corridor level

• Total number of delays and incidents -> ranking

• current punctuality of corridor/RU

• Measurable, operational and reachable targets

• levels of targets:macro levelmicro level

• Purpose: improving quality

• stated on macro and micro level

• prioritisation of measures

• Standardised reporting process between parties

• documenting the QM process

• basis for penalization

• International analysing and improvement meetings programmed between RUsand IMs

Process of corridor-based Quality Management : the n ecessary tools

Documents

DIOMIS - TREND Project€¢ The DIOMIS CT Master Plan 2015 will be a strategic document centralising the findings of all the work packages and consigning them in a document designed