Challenges Ahead for European Rail Freight and Intermodal Transport
During a recent interview with Railfreight.com, Marc Vollet, the EVP of the European Road Network at Geodis, a multimodal operator owned by SNCF, discussed the challenges facing European rail freight and intermodal transport. Vollet highlighted the impact of the flat-to-low-growth economic environment in Europe, leading to a decline in freight demand and a subsequent decrease in road haulage rates. This decline has made it more challenging to sustain existing rail freight and intermodal services, hindering further sector development.
As a result of these market conditions, Geodis made the decision to temporarily suspend its Łódź-Barcelona rail service that was initiated in June 2024, underscoring the direct impact on their operations. Despite being a prominent provider of road haulage in Europe, with around 90 percent of their freight volumes coming from road transport, Geodis remains committed to promoting an intermodal and multimodal approach to freight transportation. The company operates a weekly program of approximately 120 trains throughout France and Europe, emphasizing the importance of offering multiple modal solutions to reduce supply chain risks and align with their decarbonization goals.
Vollet acknowledged the challenge of shifting shippers away from a traditional ‘all-by-truck’ mindset towards incorporating rail into their shipping strategies. He noted that historically, rail freight and intermodal transport have been perceived as more costly than road transport, with the decline in road haulage rates since 2023 further impacting the competitiveness of rail freight. However, the upheavals caused by the COVID-19 pandemic highlighted the benefits of rail/intermodal transport when road haulage rates spiked, driving a surge in demand for rail freight services.
Despite the advantages of rail freight, the sector faces challenges similar to road haulage, such as a shortage of train drivers and concerns regarding the reliability of rolling stock. Vollet emphasized the importance of ensuring sufficient trained personnel and reliable locomotives to maintain operational efficiency and address delays effectively. Looking ahead, Vollet expressed concern about the market outlook for rail freight, noting the ongoing battle to retain existing customers and attract new ones in the face of declining road haulage rates.
In conclusion, Vollet emphasized the importance of promoting rail freight as a sustainable and environmentally friendly transport solution. While some shippers may be hesitant to embrace rail freight due to operational constraints, others are motivated by the opportunity to reduce their carbon footprint and contribute to sustainable transport practices. As the industry navigates these challenges, Vollet remains optimistic about the potential for rail freight to play a significant role in the future of European transportation, provided that economic conditions and customer perceptions align in favor of rail transport.
