Corridor V. Corridor V Project Agenda A) The Cooperation on Corridor V 1.Project Origin...

Corridor V

Corridor V Project

Agenda

A) The Cooperation on Corridor V

1. Project Origin

2. Performance Against Goals

Marketing Group

Production Group

Quality Group

B) CER’s Freight Focus Group

Corridor V Project

Project Origin

Uncompetitive technical and commercial organizationLimited infrastructure capacitiesUnreliable and uncompetitive transit times compared to the road transportLong border crossing timesLimited availability of proper wagons and traction capacities

Uncompetitive technical and commercial organizationLimited infrastructure capacitiesUnreliable and uncompetitive transit times compared to the road transportLong border crossing timesLimited availability of proper wagons and traction capacities

Project GOALSProject GOALS

Competitive transit timesReliability and punctualityAvailability of traction capacitiesAvailability of right wagonsSafety and SecurityContinuous flow of information

Competitive transit timesReliability and punctualityAvailability of traction capacitiesAvailability of right wagonsSafety and SecurityContinuous flow of information

SITUATIONSITUATION

CU

ST

OM

ER

SC

US

TO

ME

RS

CU

ST

OM

ER

SC

US

TO

ME

RS

Eliminate production and commercial botllenecksObtain competitive and profitable transport service

Build transport service with features enabling competitive positioningProvide regular customer feedback on the Corridor V

Assure regular Q-performance measurement and management

Balancing of transport modeQuality of serviceInformation to customers

Balancing of transport modeQuality of serviceInformation to customers

Corridor V Project

Project Structure

STEERING

PRODUCTION QUALITYMARKETING

Paths & Planning

Traction QM ISO 9000

Profit AnalysisCustomer Care

(Feedback)

Wagons

Commercialization

Corridor V Project

Agenda


1. Project Origin


Marketing Group

Production Group

Quality Group


Corridor V Project

Marketing Group – The Concept

Marketing PlanMarketing Plan

Market ResearchMarket Research

CU

ST

OM

ER

SC

US

TO

ME

RSElasticity of DemandElasticity of Demand

Cost AnalysisCost Analysis

PricingPricing

Technical AnalysisTechnical Analysis

Marketing ActionMarketing Action

1. Prepare elements needed to support actions on the existing and new markets2. Launch marketing actions to increase the traffic volume on the Corridor V

Marketing Group

Corridor V Project

Growing traffic on Corridor V requires acquisition of new traffic in the existing markets and the development of new markets

VeneziaLjubljana

Budapest

Zahony

Hodoš

Bratislava

Kiev, Moskva

Györ

318,1

249,8 126,3

809,5

55,8

658,3

13,4

365,2

17,2

24,0

530,8

2.106,8

Corridor V related transport flows (I-IX 02)

-------------------------------

Marketing Group

export I import I

in 000 tons

Corridor V Project

Modal Splitof traffic flows to/from Italy

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Hungary Slovenia Slovakia Ukraine

Water

Rail

Road

Rail % Export

Import

-------------------------------------

-

Hungary 11%

54%

Slovakia 2%

41%

Ukraine 2%

0%

Slovenia 16%

19%

Rail % Export

Import

-------------------------------------

-

Hungary 11%

54%

Slovakia 2%

41%

Ukraine 2%

0%

Slovenia 16%

19%

(3,0 mio t) (1,2 mio t) (4,8 mio t)

Different conditions on existing and new markets require diversified strategic approach

Strategy

-------------------------------------

-

Existing market Protect

New markets Build

Strategy

-------------------------------------

-

Existing market Protect

New markets Build

42%

58% 57%

26%17%

17%

95%

5%

Marketing Group

(3,6 mio t)

27%

56%

Source: Eurostat, 2000

Corridor V Project

Wood and tiles are the two segments on the Hungarian market that can be acquired by the rail in a short-term action

34 142

160

172167

44

0

20

40

60

80

100

120

140

160

180

200

220

Plasticmaterials

Wood andcork products

Woodsleepers andother wood

Fuel wood Bricks andTiles

Import

Export

in

00

0 t

on

s

Road Transports(Hungary – Italy)

1. Identify original customers in Hungary and Italy

2. Gather information on competitive services and price

3. Build and present the offer

1. Identify original customers in Hungary and Italy

2. Gather information on competitive services and price


Increase of the M/S+10%


Marketing Group

Corridor V Project

Acquisition of goods from Ukraine is a green-field operation that will require new commercial and production solutions

198

1.408

736

615

402

274 232

0

200

400

600

800

1.000

1.200

1.400

1.600

Clay Steelproducts

Fuel oils Fertilizers Pig iron Ironwaste

Bauxite

Import

Export

in

00

0 t

on

s

Sea Transports(Ukraine – Italy)

1. Identify customers in Italy and Ukraine

2. Identify and evaluate potential partners in Ukraine and Zahony

3. Assess competitive services and own technical and commercial requirements


1. Identify customers in Italy and Ukraine

2. Identify and evaluate potential partners in Ukraine and Zahony

3. Assess competitive services and own technical and commercial requirements




Marketing Group

Corridor V Project

Continous improvement of the level of the quality is necessary to defend and develop the rail market share

1.Studying Customer Satisfaction’s results it’s possible to estimate the ELASTICITY of DEMAND in presence of increasing of quality.

2.It has been considered production indexes (“delivery time of trains”) from 1997 to 2000.

3.Two kind of customers have been considered:1. Customers that in 2000 have had a better index (respect 1997);2. Customers that in 2000 have had a worse index (respect 1997).

4.The variations 1997-2000 of indexes and revenues of the customers have been:

1.Studying Customer Satisfaction’s results it’s possible to estimate the ELASTICITY of DEMAND in presence of increasing of quality.

2.It has been considered production indexes (“delivery time of trains”) from 1997 to 2000.

3.Two kind of customers have been considered:1. Customers that in 2000 have had a better index (respect 1997);2. Customers that in 2000 have had a worse index (respect 1997).

4.The variations 1997-2000 of indexes and revenues of the customers have been:

Kind of Customer1997 2000

With a better index 4,39 6,17

With a worse index 7,00 5,88

Delivery time index

1997 2000

293,1 328,2

160,4 137,3

Revenues(billions of liras)

Var. %

+12%

-14,4%+4% per year

5. From these results it’s possible to foresee the elasticity of demand:in presence of a quality service we could have an increase of demand of

3-5 % per year.

5. From these results it’s possible to foresee the elasticity of demand:in presence of a quality service we could have an increase of demand of

3-5 % per year.

Marketing Group

Corridor V Project

Marketing GroupProduction Group

Corridor V Market AnalysisCorridor V Market Analysis

New Pricing ModelsNew Pricing Models

Structure of transportations costsStructure of transportations costs

Balancing RIVBalancing RIV

Corridor V Project

Production GroupProduction Group

Corridor V AnalysisCorridor V Analysis

Border Station OperationsBorder Station Operations

Technical TrustTechnical Trust

Transport PlanningTransport Planning

Balancing RIVBalancing RIV

Corridor V Project

Dealing with the Corridor V as a virtual company

WESTWEST EASTEASTTITI SŽSŽ MAVMAV

TITI SŽSŽ MAVMAV

Quality PolicyAll three companies will strive to increase transport volume to improve the market position.By linking the separate segments of the Corridor V, we build a “virtual company”, with interlinked internal processes.Our engagement will be to increase the customer satisfaction and to improve the performance of the companies.We will endeavor to make customer feel like partners.We will commit to organize our processes coherently with international standard ISO 9001:2000

Quality Group

Quality Group

Corridor V Project

The planQuality Group

PreparationPreparation

Organization of work. First technical and market analysis.Quality parameters to be defined.Draft of Q-Documents (Quality Policy, Train Control, Codes of Delay, Customer Satisfaction, Customer Complaints).

ImplementationImplementation

To organize processes in accordance to standard ISO 9001:2000 national project teams and responsibilities will be defined. Processes will be identified and described, and Q-Documentation will be prepared.

Quality Group

Corridor V Project

Agenda


1. Project Origin


Marketing Group

Production Group

Quality Group


Corridor V Project

CER’s Freight Focus Group

Iberian Peninsula - Eastern Europe

Iberian Peninsula - Scandinavia - Czech Republic

Rotterdam - Antverpen - Milan via Bettembourg

•Among the nine corridors has been selected three like a priority for the freight traffic in Europe;

•The Corridor V is one of these three pilot corridors and the results of the analysis on it will be presented to the Commission within June 2003.

•CER, in accordance with UE Commission-DG TREN, has identified nine corridors relevant to international rail freight ;•The development of « freight performance improvement plans » on the above mentioned European Freight Corridors appeared as one of the necessary step to improve international freight flows;

Corridor V Project

CER’s Freight Focus Group- Corridor V (Iberian Peninsula-East Europe)

•Multinational task forces have been recruited on each of the first three corridors selected. They are composed of representatives of RUs, IM and National Authorities of each of the countries concerned by each corridor.

•The Corridor V is the only connection analysed regarding the East and Mediterranean European Countries.

BARCELONA

MARSEILLE

LYON

ALGECIRAS

Cordoba

VALENCIA

Tarragona

Cerbére/Port Bou

Avignon

V.m

igliaGENOVA

Cervignano

VENEZIA

Miramas

MADRID

MILANO

Alcazar

Nîmes

Narbonne

Amberieu

Modane

TORINO

BUDAPESTSzombathely

Györ

Hatvan

Záhony

Hodos

Čierna n.T.

BRATISLAVA

V.Opicina/Sezana

LJUBLJANAVerona

V.Q.Europa

Milano

T.Orb.

Genova

Corridor V. Corridor V Project Agenda A) The Cooperation on Corridor V 1.Project Origin...

Documents

Transcript of Corridor V. Corridor V Project Agenda A) The Cooperation on Corridor V 1.Project Origin...