2007 Reference Document for Groupe Eurotunnel SA PDF file size

6. DESCRIPTION OF EUROTUNNEL GROUP’S ACTIVITIESintroducing larger RoRo ships and developing a double-stacked mode of container transport, a more cost-effectivemethod than unaccompanied trailers. As a consequence, the trend in favour of accompanied trucks has now cometo an end and market shares between the routes are now relatively stable.However, the factors which underlie the success of the RoRo accompanied mode on the Short Straits continue toprevail, as it provides:the shortest, fastest and most reliable route across the Channel; andmore efficient management of loads.Short Straits’ (Freight Shuttles’ and ferries’) share of the freight marketThe estimated Short Straits’ (Freight Shuttles’ and ferries’) share of the freight market has increased from 45%(2005) to 47% (2006) and 49% (2007).The increase is explained by several factors:the lack of development of cross-Channel rail freight;the withdrawal of P&O from routes in the English Channel; andcapacity increases and changes in pricing policies by the various operators.Eurotunnel Group’s share of the Short Straits marketEurotunnel Group estimates that its share of the accompanied truck market on the Short Straits corridor has evolvedas follows:2007 2006 2005Share of Short Share of Short Share of ShortStraits market Straits market Straits marketVehicles (1) (%) (2) Vehicles (1) (%) (2) Vehicles (1) (%) (2)Accompaniedtrucks (1) 1,414,709 37.9 1,296,269 36.2 1,308,786 39.5(1)Number of driver accompanied trucks transported by Eurotunnel Group.(2)The market share percentages are derived by calculating Eurotunnel Group’s accompanied truck traffic as a proportion of the total of such trafficon the Short Straits corridor as estimated by Eurotunnel Group on the basis of information provided by IRN Services Ltd.The number of trucks transported by Eurotunnel Group and its market share increased between 2006 and 2007. Formore details, see chapter 9 of this Reference Document.b) Through Railfreight Services of the RailwaysThe Railways’ Through Railfreight Services compete with most modes of sea and road freight transport betweencontinental Europe and the United Kingdom. Intermodal trains compete with LoLo container services and withservices for accompanied and unaccompanied road freight offered by ferries and with accompanied road freightoffered by Eurotunnel Group’s Freight Shuttle Services. Conventional freight trains compete with other freighttransport modes, but often enjoy an advantage in the case of very heavy or large cargoes which can be loadeddirectly from a production facility. In the market for transportation of new automobiles, competition is fromcombinations of road, sea and rail modes in the United Kingdom and in continental Europe, which are used todeliver cars between factories, distribution centres and retail outlets. Lastly, for bulk transport of commodities, railfreight is also in competition with transport by barge.29