Tuesday, August 7, 2012

French Car-Peugeot-Citroen Transported by German Railway Company

French Car-Peugeot-Citroen Transported by German Railway Company
Seock-Jin HONG, Professor, Bordeaux Management School (BEM)


Euro Cargo RailECR replaced the French freight company Fret SNCF for transporting the PSA groups new Peugeot and Citroën cars on behalf of GEFCO since December 2011. ECR, the French DB subsidiary has been transporting cargo using rail since 2005 in France. GEFCO, subsidiary company of Peugeot-Citroen (PSA), is transporting cars since 1949. GEFCO has a large fleet of its own wagons for transporting new Peugeot and Citroën cars. Euro Cargo Rail provides the long-haul and shunting locomotives and puts the trains together in the two hubs. ECR also uses the extensive network of DB Schenker Rail, Europes leading rail freight company. ECR has leased half of the tracks from the French infrastructure operator RFF.ECR is also relying on cooperation with the private French rail freight companies Europorte and Colas, each of which takes on part of the transport



Euro Cargo Rail has made Gevrey near Dijon the central hub for its transports for GEFCO. Gevrey is one of the largest shunting yards in the country. The shunting yards around 3,500 metres long - about the same length as the runway for an Airbus A380 or a jumbo jet. This hub in Burgundy is where almost all trains meet with new cars from the five PSA plants in France and two other factories in the Czech Republic and Slovakia, to be sorted into trains to 15 distribution centres in France and other European countries. ECR has leased half of the tracks from the French infrastructure operator RFF. GEFCO has set up a second, smaller hub in Achères, near Paris, so that it can also process wagons from the PSA factories in Aulnay and Poissy. ECR and its partners run approx. 50 trains a day for GEFCO, most of them via Gevrey. 50 trains every week - 550,000 new cars transported every year between Paris and Marseille. For this route, ECR connects the longest wagon train with 833 meters (before 750 m) with the fastest speed 120 kilometers per hour (before 100 km/h)



Nowadays in Europe, the ability of small cargo improves a lot using rail transport by wagonload. In Gevrey, ECR handles cargo in two and half hour because of their innovative logistics capacity. So, Gevrey transformed from simple railway station to complex logistics hub.



The automobile market is a strategic market for European industry and especially for logistics company closely linked to the automotive sector. Western European have almost 500 cars per 1,000 people. With regard to the economy and the environment, this means that the market will continue to maintain the level: short-term leasing, car sharing and car hire are becoming more and more popular. DB Schenker Rail UK contracted also BMW for Mini cooper transport 78,000 cars yearly between Oxford and Southhampton. The trend of rail transport of car is increasing.



Privatization is a vital factor to succeed eco-friendly logistics service using rail. More freedom and motivation, more innovative environment to develop diversified service will be given. To pursue the privatization of rail industry, separation of infrastructure and network will be considered. Furthermore, more logistics service provider will be participated easily without any barrier to enter. That is, the privatization is not a goal. The  privatization is a mean to provide more free market to innovate the market and industry.


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GEFCO is one of Europes leading transport and logistics firms. The company, founded in 1949 and part of the PSA Peugeot Citroën automotive group, works for a number of international groups, including big names from the  automotive industry and components suppliers, air and space travel, electronics, consumer goods, investment goods and equipment industries. GEFCO employs 9,400 people in 29 countries throughout Europe, North Africa, Asia and South America. In 2010, the group recorded a turnover of 3.4 billion, more than three quarters of which came from overseas markets. A good third of the annual turnover stemmed from outbound automotive logistics. GEFCO transported 2.7 million cars, half of them by rail and half by sea. But PSA has a plan to sell a majority stake (more than 50%) to raise cash and lower debt because of recent European economic crisis. One of candidate would be GEODIS which is subsidiary company of SNCF.

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The private French rail freight company Euro Cargo Rail (ECR) was founded in 2005 and became part of the DB Group in November 2007 with the takeover of the British company EWS (now DB Schenker Rail UK). The company, based in Paris, is an important link in the European DB Schenker Rail network today, allowing international long-haul transport from central Europe to Spain and Great Britain in addition to national transport in France. ECR employs 830 people and holds 2,000 wagons, 135 locomotives and 60 French customers with 155 destinations in Europe. In 2010, the company recorded a turnover 110 million.


Figure 1 The Network for GEFCO Source; railways, No.1, 2012


Figure 2 ECR new Hub in Gevrey, France, Source; railways, No.1, 2012


Figure 3 A shunter at the Gevrey hub, near Dijon, puts together trains of wagons carrying new cars
from the PSA group. Source; railways, No.1, 2012 //End//

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