Tuesday 24 February 2009

New project International Freight Contracts (IFC)

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B-Cargo, DB Schenker Rail, Green Cargo, Rail Cargo Austria and SBB Cargo have started a project to re-define the architecture of the commercial cooperation model between railway undertakings for single wagon load business in Europe.

Based on the production logic of the single wagon load transport most European railways are convinced to continue international Single Wagon Load in cooperation. Nevertheless, the current commercial model of cooperation suffers from a number of significant shortcomings: Volume losses due to lengthy offer process, due to cost-plus pricing logic and due to unattractive incentives, as well as high administrative costs per contract.

The project is organised as special group and the project team consists of the project leaders of the participating five railways, two UIC senior freight advisors and a team of McKinsey & Company. The UIC Special Group International Freight Contracts (IFC) will be managed by Oliver Sellnick, Director Railway Undertakings, and will be attached to UIC Freight Forum with a dotted line. The project will be steered by a Decision Board consisting of CEOs and COOs of the participating railways including Geert Pauwels (B-Cargo), Sören Belin, Olle Wennerstein (both Green Cargo), Dr. Christoph Wolff (DB Schenker Rail), Ferdinand Schmidt (RCA), Adrian Keller (SBB Cargo).

The kick-off meeting was used to define the solution space for potential new models as well as to organise the work for the next 11 weeks of Phase I of the project.

For more information please contact Oliver Sellnick: sellnick@uic.asso.fr

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