http://www.worldcargonews.com/htm/n20051020.573156.htm
Italcontainer, an Italian #3PI, will start running it’s own trains over Italy’s open access rail system for Swiss-based forwarder Hangartner. The service will be started “…with the principal aim of shifting more chemicals, hazardous, reefer and other high value loads from road to rail…”.
To bad North American 3PI’s are not allowed do that on this side of the pond.
Okay, I’ll bite. What is a “3PI”? Surely not an improved version of C3P0?
A 3PL is a term in Logistics meaning 3rd Party Logistics Operator, i.e. a company who manages a distribution network for a manufacturing company.
Now what doesn’t makes sense in the story is why Hangartner would want Italcontainer to operate the trains for it. Things get very complicated in Europe, first you need to understand that although Hangartner is a forwarding company based in Switzerland, it is a subsidiary of Stinnes AG a large worldwide Logistics Company, in turn Stinnes AG owns Railion the largest freight operator in Germany, which in turn owns SFM an Italian freight operator. And oh yes did I forget to mention that all of these companies are subsidiaries of Die Bahn, the German National Railway. In Europe you can’t tell who the players really are without a program.
3PI = Third Party Intermodal, synonymous with 3PL, and entirely my definition.
Futuremodal, I have read the teaser snippet on the World Cargo News website and I now understand the situation. Unless you are subscribed and there is more in the body of the story. What you do not understand is how Intermodal works in Europe.
First let me reassure you are correct that this will most likely be an “Open Access”
train. Second it will not be “Operated” in the American sense of the word by Italcontainer. The situation is this Italcontainer will “Operate” the train in the European sense. They will arrange for the container flat cars, they will arrange for the two IM terminals, they will arrange for the traction provider who will provide the train crews and physically operate the trains on Italcontainer’s behalf. The traction provider is officially known as a Railway Undertaking (RU for short) and may also provide the railcars. The RU may be one of the National Railway Companies or may be one of the Independant Open Access operators. Depending on the country, either Italcontainer or the RU will arrange the pathing with the Infrastructure Operator. In Italy, I think Italcontainer can reserve a path
but only its chosen RU can finalize the contract for the path. Now to Hangartner’s role. Hangartner has committed to Italcontainer to purchase a guarranteed portion of the container slots on the train, typically 70 - 75 % of the slots, this is enough to cover Italcontainer’s cost plus a token profit. Where Italcontainer will make its money is by selling the remaining slots to other customers. Hangartner will pay for all of its slots whether they use them or not. Hangartner also gets to determine the schedule subject to availability of path.
So now I’m curious: do the European socialized railways function for their passengers as I knew them 20 years ago, in which for example Deutsche Bundesbahn (“die Bahn”) is responsible both for luring passengers, keeping present ones satisfied and providing the hardware and software to haul them from point A to wherever? 'Cuz lordy, if it’s gotten as complicated as in Britain my foolishly literal, flatfooted Midwestern mind may not be able to take it all in!!! [:I]
Well, its a little more complicated than it was but not completely different. All the National Companies still exist but they have formed special cooperative companies like Eurostar, Thalys, and Cisalpino for high-speed International Services. In Germany some of the Länder have contracted regional services out
to private Operators other than DB Regio. For example Metronom operates all the regional services in Niedersachsen while in Schlieswig-Holstein NOB (NordOstBahn) operates the regional services. From a passenger stand point the colors of the trains are different but you can seamlessly connect from one service to another, not quite as good as in Switzerland, but not bad. The numbers of different ticket types is nowhere near as great as in the UK.
I had to read it three times, but it finally makes sense. There is incentive built into the system for value added marketing. And if one of the players fails to do it’s part, there is the opportunity for another player to step in, so the economy does not suffer n
Yes, each company is a specialist in its own part of the operation. It seemed strange to me too when I first discovered how things work in the EU. Most of the large IM Operators are members of the UIRR which is their industry association just like the AAR is for Class I railroads in the US. BTW Open Access applies to IM terminals too in the EU.
Regarding railcars, yes there are leasing companies in Europe just like in the US. While the two largest companies are European, the big US Leasing Companies, like GE Railcar Leasing, are players in Europe too. Surprisingly one of the big players in Intermodal flatcars is a German shortline railway, AAE
Ahaus Alstätter Eisenbahn. Unlike in the US this shortline isn’t a flag of convienence for a financial institution. Their website is here
http://www.aae.ch/
It’s not complicated to travel around by train in the UK - you just go to the station and buy a ticket to anywhere in the UK, just like you did back in British Rail days [:)].
Most tickets are valid on any operator’s trains, so you can swap between connecting trains of any colour as much as you want.
The ticket revenue is divided up between all the operators on a route according to formulas which take into account the frequency and speed of the service each one provides, so in fact they don’t care too much whose trains you travel on - they get some share of the revenue anyway.
In fact, other than saying “National Rail” instead of “Britsh Rail” across the top of the ticket they don’t look that different…and apart from a few additional operator specific (usually cheaper) tickets the range of ticket types is much the same as it was under BR too.
Tony
One thing I think is of concern to U.S. rail workers regarding open access is the possibility of non bargaining positions eroding the union base. With that in mind, does anyone know the degree of unionization on the open access systems of Europe or Australia? Are engine crews still unionized? What about support workers?
A few are but most are not. Still because of social norms in Europe pay and conditions are reasonably close to the National Companies, what they do that most of the National Companies employees don’t is work 40 hour weeks and 8 hour days. I think the French are at either 32 or 35 hours per week and can retire with full pension at 50.
I think the working hours in both Britain and the EU are limited both by EU legislation and Health and Safety directives. I know there’s a minimum time between work shifts (12 hours I think) though I believe Eurostar were allowed to get round it by providing overnight accomodation for their train crews in Paris and London.