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March 15, 2006
Rescue remedy for rail: better service, not higher road tolls
TransCare study proves that better service rather than increasing the price of road transport is the solution for rail to gain market share
Dubai - A study being conducted by TransCare AG, a consulting group specialising in rail goods transport, is examining the impact higher road tolls in Europe will have on the modal split between road and rail in particular and on the European economy in general.
According to the preliminary results released today, a 1 Euro per km road toll increase will only lead to a less than 1.22% shift of road transport volume to rail. The study finds that only increased quality service will foster a potential increase in rail transport.
The Railroads claim through a previous study, conducted by Mc Kinsey, that an increase of 0.60 Euro per km will lead to a considerable modal shift. Transcare, through its preliminary findings, today showed that an increase of 1 Euro per km will only have a marginal effect at best on the modal shift. Moreover, making goods transport by rail more attractive through higher charges for road will not result in the desired shift to rail as 70% of the volume of goods transported by road does not respond to changes in transport prices.
Hubert Linssen, Delegate General of the IRU Permanent Delegation to the EU, said "The preliminary results of this study actually prove what the IRU has been saying for a long time, and that is that rail transport can only gain market share by responding to the needs of its clients, which include road transport operators, and the needs of modern economies and business processes by dramatically improving the service provided!"
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