Competition Report 2006 - Deutsche Bahn AG

More documents

Recommendations

Info

The freight railways are focusing on internationalisation. its services in the European rail transport market. This alliance plans to handle 35 per cent of the total European transport volume by the year 2015. Fair intermodal competitive framework is vital Unless fair intermodal framework conditions are achieved, the market position of the freight railways will deteriorate over the coming years: that is the conclusion drawn by the recent study “The Future of Rail Freight in Europe” by McKinsey. Owing to the drop in margins for block-train transports, it is increasingly diffi cult to uphold the less profi table single-wagonload transports (SWLT). In order to raise their economic viability, the railways will have to give up unprofi table SWLT. As most of the combined and block-train transports are, however, dependent on SWLT over the last mile, freight volumes will be lost in that sector, which will in turn lead to a downward spiral: the economic situation of the railways will deteriorate, as declining volumes mean that the contribution margins required to fi nance the high overheads (30 to 50 per cent) will be Market and <strong>Competition</strong> lacking. Although the railways can alleviate that trend by way of rationalisation, they will certainly not be able to stop it. The study concludes that the market share of rail in EU 15 could fall from the present 14 per cent to 8 or 10 per cent unless the detrimental framework conditions change. Suffi ciently high road tolls could harmonise the competitive conditions between road and rail and thus help to revert that trend. “A Europe-wide toll system like the Swiss one would give the European railways a future,“ comments Michael Cramer, Member of the European Parliament. This would enable the railways to achieve growths of between 10 and 20 per cent in volume, raising the market share to 16 or 17 per cent in EU 15. A toll level of 20 cents per kilometre (as in France) could only stabilise the market shares at 10 to 11 per cent. Both these scenarios clearly show that despite its own restructuring eff orts to reduce costs, rail can only be competitive if infrastructure charges are allocated fairly. Without a standardised Europe-wide toll system which also includes external costs, competition between rail and road will remain distorted. 25
26 By using all the diff erent transport modes, the logistics industry can off er a full range of services. Logistics – Germany’s strong boom industry The globalisation of production processes and commerce generates increasing demand for international logistics services. As a business location, Germany profi ts from its well developed infrastructure and hub function at the centre of the enlarged EU. The growing world market and increasing international division of labour mean that more and more goods have to be transported. To attract global players as customers, a company has to have a worldwide network. Customers demand logistics services far beyond the mere transport of goods – ideally handled by just one company. Contract logistics are one of the largest growth areas in this sector of the economy. Transport and logistics companies are thus expanding their range BAX Global – facts and fi gures Headquarters: Irvine, California, USA Worldwide workforce: 12,000 Worldwide offi ces: 500 National agencies: 136 Revenues 2004: EUR 2.06 billion Profi ts 2004: EUR 35 million Core business: air and seafreight forwarding, transport services, supply chain management Strong customer base in the automotive, healthcare, electronics and consumer goods sectors Source: DB data of products and now handling additional tasks such as assembly, complete warehouse management and distribution. This harbours attractive growth prospects for logistics services providers and returns which are far higher than the margins available from pure transport. Forecast is for further growth Asia is now one of the largest growth drivers of international trade. In recent years, China in particular has built up immense production capacities and now sells goods the world over. The inner-European fl ow of goods is also increasing, not least because of the EU enlargement to the East. As Germany evolves into the hub of European freight transport, it becomes more and more interesting as an investment location. <strong>Deutsche</strong> Post is currently building a central European cargo handling terminal for its logistics subsidiary DHL at Leipzig/Halle airport for an investment volume of EUR 300 million. With revenues of some EUR 150 billion and a workforce of approx. 2.7 million, the logistics industry is one of the strongest sectors of the German economy. The latest forecasts show that this growth trend is set to continue. A study by Bundesvereinigung Logistik (Federal Association of Logistics) shows that three
Page 1 and 2: Deutsche Bahn AG Communications Pot
Page 3 and 4: 2 Impressum Published by Deutsche B
Page 5 and 6: 4 Dynamic Developments in an Attrac
Page 7 and 8: 6 Keen competition and the trend to
Page 9 and 10: 8 who have the power to make decisi
Page 11 and 12: 10 The attractiveness of the German
Page 13 and 14: 12 Del dit loreet ametum etum quipi
Page 15 and 16: 14 More and more passengers use Deu
Page 17 and 18: 16 The high number of operators ind
Page 19 and 20: 18 Market share of other railways i
Page 21 and 22: 20 Unresolved legal issues and a di
Page 23 and 24: 22 Fair framework conditions are vi
Page 25: 24 performance, while the fi gure f
Page 29 and 30: 28 In Dialogue with a Scientifi c E
Page 31 and 32: 30 Joachim Fried, born 1948, is a f
Page 33 and 34: 32 Equal Rules for Opening the Tran
Page 35 and 36: 34 The unequal treatment of the dif
Page 37 and 38: 36 New national regulatory framewor
Page 39 and 40: 38 The position of the infrastructu
Page 41 and 42: 40 EBA proceedings in the year 2005
Page 43 and 44: 42 Cartel Offi ce has its sights on
Page 45 and 46: 44 Movement in the Euro pean Rail M
Page 47 and 48: 46 The excellent economic developme
Page 49 and 50: 48 Train path pricing in the EU Mem
Page 51 and 52: 50 Important new-build lines will b
Page 53 and 54: 52 EU initiative for public transpo
Page 55 and 56: 54 Company L R F M Shareholder Comp
Page 57 and 58: 56 Company L R F M Shareholder VTG
Page 59 and 60: 58 Company L R F M Shareholder Muni
Page 61: 60 Company L R F M Shareholder Rint

Competition Report 2006 - Deutsche Bahn AG

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?