Barriers to and enablers for European rail freight transport for integrated door-to-door logistics service. Part 2: Enablers for multimodal rail freight transport

The objective of this paper is to examine and identify barriers to and enablers for the European rail freight transport services as a transport chain partner along the supply chains in the changing market scenario. The changing market scenario includes, among others, requiring 'door-to-door' rather than 'terminal to terminal' and integrated service, competitive ability to attract non-rail cargo type, changes in the customer requirements (e.g. reliable service) and changes in the operational requirements and practices. Using a literature review method, the paper is presented in two parts. The part 1 focuses on the identification of barriers to the European rail freight service by reviewing freight logistics services for global supply chains followed by the current performance of European rail freight transport followed by a discussion on the rail freight market liberalisation in Europe. Then rail freight transport in the Unites States (U.S.) is discussed. The research notes that although the background, scope and necessity for reform measures in Europe differ from those of the U.S., some lessons can be learned and the main lesson is that an appropriate reform measure can enhance rail sector competitive ability in Europe. The part 2 of the paper is dedicated to recommend some concrete steps and actions as enablers to remove the barriers identified in the part 1 to develop multimodal rail freight transport. The enablers for multimodal rail freight transport include: • European rail freight transport market needs full liberalisation so that incumbent and new entrants can compete freely. • The rail operators need to acquire service (e.g. customer tailored services, door to door service) quality offered by road freight operators. • They need to conduct a combination of ‘terminal-to-terminal’ and door-to-door operations, as and when needed; • They must build partnership with freight forwarder or 3PLs to include all types of customers including SMEs and customers of non-rail (low density high value) cargo. • They need to use the consolidation centres that facilitate bundling of cargoes in particular for the urban areas which are the location of majority European customers

How to make modal shift from road to rail possible in the European transport market, as aspired to in the EU Transport White Paper 2011

The total demand for freight transport in Europe has increased significantly in recent decades, but most of it has been handled by road transport. To fulfil the modal shift targets set in the EU White Paper 2011, it will be necessary to double rail’s market share from today’s 18 %, by 2050. Translating this into reality means rail will have to handle 3 to 4 times the cargo volume it does today. With this in mind, the paper develops a vision of an efficient rail freight system in 2050. Methodology To achieve the above objective, the research applies literature survey and group discussion methodology and applying a system approach. Keeping on board the EU Transport White Paper 2011 modal shift targets, as well as future freight demand and customer requirements, the current research attempts to answer the following three critical questions: -How can rail offer the quality of service that will attract customers and fulfil the targets? - How can rail offer its customers a price that is competitive with road? - How can rail offer the capacity to meet the increased demand from modal shift

Examining the Mediating Role of Strategic Integration of Purchasing, And Advance Purchasing Practices in the Relationship between Purchasing Operational Performance and IT Investment in Purchasing

The main purpose of the current study is to investigate the mediating role of strategic integration of purchasing, and advance purchasing practices in the relationship between purchasing operational performance and IT investment in purchasing. In this research, some other practices have been considered including involvement of suppliers, evaluation and assessment of suppliers and integration of logistics. Strategic integration of purchasing is referred as the degree to which the strategic relevance of purchasing function is recognized by a company. This has been regarded as an important antecedent of supply management practices and advanced purchasing. In the relation of performance, supply and purchasing practices and IT investments, one of the important factors is strategic integration of purchasing. The study has used survey-based method and data is collected by the aid of questionnaire. The collected data is analyzed with the SEM-PLS. The findings of the study have shown agreement with the proposed results. In author knowledge it is among the pioneering studies on the issues related to strategic integration of purchasing, advance purchasing practices, purchasing operational performance and IT investment in purchasing. This study will provide guidelines to policymakers, researchers and corporate personnel in understanding the relationship between strategic integration of purchasing, advance purchasing practices, purchasing operational performance and IT investment in purchasing

Brand Equity and Usage Intention Powered by Value Co-Creation: A Case of Instagram in Kazakhstan

Purpose: Unprecedented communication features of social media noticeably reinforce the active role of consumers in the value co-creation (VCC) of offline and online brands including social media. From the consumer perspective, this study examines a contribution of VCC behavior to consumer-based brand equity (CBBE) and consequent intention to use social media based on Instagram as the most popular platform in Kazakhstan. Methodology: A web-based survey provided data from 550 Instagram users in Almaty city. Empirical analysis includes testing statistical assumptions using SPSS 23, conducting confirmatory factor analysis (CFA), and structural equation modeling (SEM) using Warp PLS 7.0. Findings: With the result of this study investigation, the paper develops the model that explains the effect of VCC on continuous usage intention to use social media through CBBE comprising brand associations, brand loyalty and brand perceived quality. Originality: Even though the importance of social media in the brand VCC process is widely recognized, a brand equity view of social media brands with users’ participation is under-investigated. However, brand equity’s importance for firm sustainability in terms of long-term business strategy is indisputable. This research enhances brand equity theory and VCC concept with the empirical data within the modern social media context. Practical implications: Owners and managers of social media brands can use the conceptual model to grow, maintain and assess their brands’ equities through their marketing efforts on the consumer motivation for brand VCC activities driving continuous usage of the brands

Assessing the impact of the 2011 EU Transport White Paper - a rail freight demand forecast up to 2050 for the EU27

Purpose This paper presents a rail freight forecast for the EU27 for the period up to 2050. Background Rail freight’s market share of the transport sector in Europe has been falling or remained stagnant since 1970. In contrast, the share of road freight has been increasing. As rail freight transport is generally considered an environmentally friendly option, various measures have been implemented for more than two decades, at national and European level, to encourage a modal shift from road to rail. In the latest EU Transport White paper policy paper of 2011, an optimistic target is set for greater use of rail freight transport, in both the near and the longer term future. Specifically: a modal shift, from road to rail, and waterway transport, of 30 % by 2030 and 50 % by 2050 - for distances greater than 300 km. Methodology With the aforesaid policy objectives, the current research examines the possible effects of these aims in terms of future levels of rail freight demand. This research relies heavily upon the EU TRANS-TOOLS modelling tool and explores three scenarios. A Reference scenario - with no significant change to current rail freight policy, infrastructure and existing trends is considered alongside two White Paper scenarios (High and Low) which take more optimistic views of the white paper policy objectives. Results The study finds that the Reference and White Paper Low scenarios demonstrate similar results in terms of growth and modal split. In stark contrast, the White paper High scenario results show that demand for rail freight services almost doubles compared to the Reference values. Conclusions The rail sector is expected to attract new commodities from road transport such as foodstuffs and building and transport materials. To meet this demand, the rail industry - including operators, infrastructure managers and governments - will have to invest in technologies, infrastructure and terminals with a view to significantly increasing productivity against current levels

Assessing the impact of the 2011 EU Transport White Paper - a rail freight demand forecast up to 2050 for the EU27

Purpose This paper presents a rail freight forecast for the EU27 for the period up to 2050. Background Rail freight’s market share of the transport sector in Europe has been falling or remained stagnant since 1970. In contrast, the share of road freight has been increasing. As rail freight transport is generally considered an environmentally friendly option, various measures have been implemented for more than two decades, at national and European level, to encourage a modal shift from road to rail. In the latest EU Transport White paper policy paper of 2011, an optimistic target is set for greater use of rail freight transport, in both the near and the longer term future. Specifically: a modal shift, from road to rail, and waterway transport, of 30 % by 2030 and 50 % by 2050 - for distances greater than 300 km. Methodology With the aforesaid policy objectives, the current research examines the possible effects of these aims in terms of future levels of rail freight demand. This research relies heavily upon the EU TRANS-TOOLS modelling tool and explores three scenarios. A Reference scenario - with no significant change to current rail freight policy, infrastructure and existing trends is considered alongside two White Paper scenarios (High and Low) which take more optimistic views of the white paper policy objectives. Results The study finds that the Reference and White Paper Low scenarios demonstrate similar results in terms of growth and modal split. In stark contrast, the White paper High scenario results show that demand for rail freight services almost doubles compared to the Reference values. Conclusions The rail sector is expected to attract new commodities from road transport such as foodstuffs and building and transport materials. To meet this demand, the rail industry - including operators, infrastructure managers and governments - will have to invest in technologies, infrastructure and terminals with a view to significantly increasing productivity against current levels

Experiences of rail intermodal freight transport for low-density high value (LDHV) goods in Europe

Abstract Objective Previous studies have suggested an upward growth trend in low density, high value (LDHV) goods in Europe. Such goods require time sensitive, reliable services and currently, most LDHV goods are transported by road. The paper presents the findings of four case studies which detail the barriers and enablers to intermodal rail services for transporting LDHV goods. Methodology We applied a methodological pluralism, quantitative and qualitative, on an inductive basis. Using a case study approach, the research investigates the requirements of shippers, identifies key barriers to intermodal rail service offerings and, based on the findings, suggests enablers for intermodal rail freight transport. The current research applies parallel top down and bottom up streams, with a final integration synthesis. Findings Terminals may appear as an important barrier or enabler towards achieving a competitive intermodal rail service. By making rail terminal as an enabler, the research suggests that it is possible to carry LDHV goods by intermodal rail in a cost-efficient manner. The research attempts to seek a potential innovative solution to the barriers identified. The research compares road with an intermodal rail-road solution, in terms of cost and time, for a door-to-door service along the selected routes/corridors. Recommendation The research recommends that technical solutions, such as automated transhipment and temperature controlled systems, are required for rail freight services for LDHV goods, but that they must be complemented by collaborative operational solutions and viable service planning for an intermodal rail transport service to be reliable and competitive with road transport