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Tag: road transport

European road freight market grows by 8.6%

Posted on by Keith McKinley

Ti’s latest market projections for 2021 show that the European road freight market is expected to grow by 8.6% year-on-year. Year-on-year growth in the first half of 2021 was very strong at 11.1%. Though H1 growth was against a large contraction in H1 2020, the total 2021 market is expected to be 2.2% larger vs 2019’s pre-pandemic peak, at a total of €352.39bn.

The European road freight market has been on a ‘roller coaster’ ride since the onset of the crisis in Q1 2020. Most recently the strong first half of 2021 was driven by ‘easy’ comparisons against a very weak first half of 2020 throughout which most European economies had instituted lockdown controls of some sort or other. As recovery began in the second half of 2020, there will be a levelling off of year-on-year growth in 2021.

Whilst the general picture through 2021 is one of rebound and recovery there are different stories across the main European economies. When looking at 2021 growth data vs pre-pandemic levels the German road freight industry performed best of the largest markets, growing by 2.6% (projected figures). Germany’s performance is driven largely by trade growth although there have been signs of domestic weakness not least due to issues affecting its important manufacturing sector. Component shortages and supply chain bottlenecks have meant that many automotive manufacturers have been forced to suspend production.

The fact that all of the other large economies experienced such steep drops in market size in 2020 has meant that most are only just recovering to 2019 levels. The disruption to Italy’s manufacturing sector due to Covid has meant that the country’s road freight sector is still 1.9% below its 2019 size. For the UK, international transport proved a drag on the market due to Brexit issues (growth in intra-European trade has only been a third of that recorded by France and Germany) although its domestic performance has been relatively strong.

The 2021 recovery in the international section of the European road freight market has been stronger than domestic, with the international market expected to grow by 11.8% y-o-y, whereas the domestic road freight market was more subdued with 7.2% y-o-y growth. This results from the retail and e-commerce driven nature of the recovery which has stimulated more cross-border flows of consumer goods. Many industrial sectors (such as construction) are still feeling the effects of the downturn and these flows tend to be more domestic in nature, dampening market growth.

The strength and pace of post-pandemic economic recovery since Q3 2020 suggests gathering momentum in the European road freight market over the five-year forecast period to 2025, despite some persistent headwinds in the manufacturing and construction sectors. The total market is forecast to expand at a 4.4% CAGR over the period to 2025, driven by stronger retail sales, notably via online channels, and increased manufacturing and production levels.

Michael Clover, Ti’s Head of Commercial Development, said: “Retail and e-commerce growth has strengthened markedly in the first half of 2021 fuelling the recovery for road freight, however supply constraints in the manufacturing sector have been a drag on overall growth. Over the forecast period we expect continued strong demand from the retail sector and, as we move in the latter years of the forecasts period, we expect to see supply chain challenges in manufacturing and construction unwind to enable stronger growth.”

Ti’s new market projections break down growth in the European road freight market by international/domestic and by country with growth rates provided for H1 and the full year 2021.

CLICK HERE to download Ti’s analysis of overall European road freight growth.

Algorithms helps keep London’s roads jam-free

Posted on by David Priestman

To keep the city of London free of traffic jams and construction site logistics efficient, Battersea Power Station utilises decision-making algorithms designed by software developer INFORM. Its time slot management and truck supply control system SYNCROSUPPLY manages up to 400 truck deliveries daily arriving at the construction site.

Battersea Power Station and its shareholders are working on transforming the 42-acre site around the city’s famous landmark into a modern riverside destination, which will provide 4,239 new homes, shops, restaurants, cafés, office space, leisure and fitness facilities, a hotel, over 19 acres of public space and a Zone 1 London Underground Station which opened in September 2021. Traffic jams in front of the worksite would spread throughout London if the £9bn mega-project was not planned properly. Utilising INFORM’s mathematical optimisation algorithms based on Operations Research (OR), the operators guarantee smooth supply logistics as well as optimised resource utilisation thanks to enhanced transparency and planning reliability.

High requirements on logistics

The construction site is developing dynamically, with up to 10,000 trucks registered each month delivering tools and materials. The planning software’s task is to optimally utilise the gates, loading points and resources of the construction site. Previously, this often proved difficult, as planning data from the numerous carriers, suppliers and construction companies all need to be centrally managed. Additionally, the layout of the construction site changes every week as construction progresses.

Duncan Pickard, Head of Programme Management and Delivery at Battersea Power Station Development Company, said: “The INFORM system was selected for its ability to transcend construction deliverables into an operating campus, and is now being utilised to complete the program of works, whilst managing our retailer and residents’ delivery requirements in this exciting new mixed-used destination for London. Using the system at Battersea Power Station has enabled us to match lifts, hoists and cranes to each delivery and review the optimisation of each.”

In the past, delivery traffic was only planned up to the gate. It was not possible to take into account whether a specific loading point on the construction site was occupied or whether the right resources were available at the time of arrival to unload a truck’s specific load. With the enormous number of daily deliveries and the distribution of responsibilities among various construction companies, individual schedulers could no longer manually estimate if a truck should deliver at a specific time, what freight was needed where, or what throughput times could be expected when. However, the tight and varying space conditions on the construction site do not allow for errors.

Decision-making enhanced by algorithms

SYNCROSUPPLY’s time slot management module provides transparency about which trucks and loads will arrive where and when, and about the capacity utilisation of all resources required for unloading at that time. The system also stores information on when materials are to be delivered. After all, some orders must be placed months in advance. Time slots can be accepted or, if required, allocated automatically according to the availability of resources like freight elevators or cranes.

Matthias Wurst, Director Business Development Industrial Logistics at INFORM, added: “Our time slot management also helps to coordinate non-construction traffic around the development site. We assign optimised time slots for deliveries to retailers already located in the area, private moving traffic of new residents and parcel services, so that all stakeholders will reach their destinations as desired.”

The truck supply control module assists in dealing with everyday disruptions. If, for example, forwarding agencies report a delay, within seconds the system can take these deviations into account, recalculate suitable parking and unloading locations, optimise the sequence of all transports to suit the new situation and inform all parties involved about the changed circumstances. Even within the construction site, trucks can be individually guided and dispatched to the appropriate loading point.

With a peak of 140 vehicles per hour accessing the site via only two feeder roads, London’s streets would be jammed by trucks without SYNCROSUPPLY’s optimisation algorithms. In the future, the numerous data on throughput times and the duration of the unloading process will be used to further optimise planning.

Eco-friendly truck park of the future

Posted on by Keith McKinley

With climate change firmly under the spotlight thanks to COP26, SNAP, a leading European smart payment solutions provider for lorry drivers and fleet operators, has unveiled what a truck park of the future might look like. A vision including eco-friendly technology to help the UK meet national and international environmental goals.

Considering the UK government’s 2040 ban on the production of diesel-based trucks and the United Nation’s target to secure a global net zero by 2050, the haulage industry is having to evolve, and fast.

SNAP’s depiction of “Truck Park 2049” – a year before the climate-neutral target – transports the industry to a pivotal moment in time when a new era is about to begin.

By then, it is anticipated that deliveries will be in demand more than ever, but trucks will be smarter, more efficient, and running on renewable energy.

According to the heads of the two biggest truck makers, Volvo and Daimler, hydrogen-powered trucks capable of driving long distances will reach a tipping point towards the end of the decade; an essential step as both groups set 2040 as a target for 100% zero emissions.

Electric batteries will advance by 2049 to allow trucks to travel further distances without recharging. 350kW charging technology will enable HGVs to travel up to 100 miles from a five-minute charge – and payment will be via contactless solutions.

Despite all of this, drivers will still have a crucial role, but will need maintenance skills to keep more automated vehicles on the road. The need for secure parking and fast-charging stations will also be vital, meaning the humble truck park will have a central role to play in enabling the logistics and haulage industry to progress into an exciting future.

Explaining the purpose behind the creation of Truck Park 2049, Emma Westwood, Commercial Manager for SNAP, comments: “This is a truly transitional period for the haulage industry. Technology is already accelerating rapidly, which means truck parks of the future will be very different to what we know today. By visualising what a truck park in 2049 might comprise, our aim is to help support and guide drivers and fleet operators so they can better prepare and plan for this new landscape.”

Westwood continues: “In the years ahead, we expect to see advances in future fuels, alternative propulsion and multi-functional spaces, which will benefit the industry and the climate. We also anticipate the acceleration of automatisation and digitisation, providing an opportunity to reduce the time and resources spent on operational tasks. This will allow for the optimisation of workflows and greater efficiency to help reduce the impact on the environment, while also helping to address some of the other challenges we face, notably the driver shortage.”

SNAP Account’s smart payment system for truck parks is just one example of technology that is allowing fleets at nearly 300 HGV locations across Europe to digitally manage their businesses more efficiently, safely and effectively: something expected to become a fundamental feature of the new-age truck park.

HGV recruitment app sees surge in demand

Posted on by Keith McKinley

A UK recruitment platform for HGV drivers has seen a surge in demand amidst government efforts to encourage trained drivers to get back behind the wheel. AVAILTechnologies is on target to double the number of registered users on its platform to over 20,000 by the end of the year.

The number signing up has risen sharply following a letter from the Department of Transport to the UK’s one million licensed HGV drivers, asking those who had stopped driving to reconsider, and including a link to industry body Logistics UK which lists AVAIL as one of only five official recruitment providers.

AVAIL’s platform and driver app remove the need for traditional recruitment agencies for short-term contracts, allowing hauliers to reduce costs and drivers to earn more and comply with IR35 legislation.

Founded in 2018, the company is backed by NPIF – Mercia Equity Finance which is managed by Mercia and is part of the Northern Powerhouse Investment Fund.

Steven Rogers, Head of Marketing for AVAIL, said: “The AVAIL driver app is perfect for the current environment. It means that employers can simply post their job and it will be sent to all appropriate drivers, while drivers out on the road can receive notifications of new work and apply with a few taps of the screen.

“We were thrilled to have Logistics UK give us their seal of approval. The volume of sign-ups suggests that there are many HGV licence holders out there who are actively looking for work.

“We are proud to be doing out bit to help drivers and hauliers navigate this difficult situation and get the supply chain working more efficiently again.”

Connie Smith of Mercia added: “AVAIL is revolutionising the way haulage firms recruit drivers for short-term contracts and is playing an important role in the current crisis.

“By enabling hauliers to recruit drivers remotely and reduce recruitment fees, it is helping to improve wages, entice drivers back behind the wheel and keep the nation’s shelves stocked.”

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

IPP launches campaign to cut carbon emissions

Posted on by David Priestman

Pallet pool provider IPP has pledged to play its part in preventing empty running by launching an educational campaign targeting UK hauliers, retailers and the entire supply chain within the FMCG markets.

The campaign, called It’s What’s Inside That Matters, has been developed alongside the many other collaborative solutions IPP offers, but focuses on empty running. Working in such turbulent times, IPP understands that maximising all empty trailers is imperative. This campaign seeks to show how the solutions that IPP employ ensure supply chains can continue to run seamlessly, leading to a more efficient and sustainable way of working. A reduction of empty vehicles significantly reduces the amount of carbon emitted and supports IPP’s commitments towards a sustainable future.

As part of the campaign, IPP is running a competition to thank customers and the haulier heroes who the industry relies on. To do this, 500 free IPP branded mugs are being given away and placed inside delivery vehicles nationwide. Hauliers who find an IPP mug are then invited to show their support to prevent empty running by entering IPP’s competition. Anyone else who would like to enter is also welcomed to get involved by following the below instructions.

To enter, entrants will need to take a photo with their free IPP branded mug or any other IPP branded item they may own, follow the IPP Pooling page on LinkedIn and then tag the photo with #ItsWhatsInsideThatMatters and @IPP-Pooling. The best photos will win either the top prize of a 102cm toy IPP 12v lorry, which is ideal for the next generation of hauliers, or one of two £25 Greggs vouchers. The deadline for all entries is 12th December 2021*.

Shelley Harris, commercial director at IPP, said: “Empty running is an issue throughout the supply chain – it is inefficient, costly, and ultimately doesn’t positively contribute towards sustainability targets.

“We are committed to raising awareness that throughout the supply chain we can achieve more by working together. It’s critical to ensure we are maintaining and promoting strong communication in the ever changing fast paced networks. Eliminating empty running is greatly beneficial for not only the businesses but also the environment.

“As well as the promotional engagement with our customers through the giveaways and social media competition, three of our partners are now out on the road with specially branded It’s What’s Inside That Matters curtains on their vehicles. These not only look amazing and will remind others of our campaign message, but they demonstrate the value we place on working in partnership with others to make a real difference to the supply chain.”

Keith Clark at Clark Transport Ltd/UKPC (UK Pallet Collections Ltd) said: “There is a growing awareness in the industry that something needs to be done to prevent empty running and we are delighted to be working in partnership with IPP and to proudly have the campaign promoted on our curtain. We would encourage other hauliers to join us in working with retailers to prevent empty running as it’s beneficial to everyone.”

In addition to Clark Transport, key partners, Hawkins Logistics and Robert M Lawson are also backing the campaign with their customer lorries already on the road across the country.

* The competition is open to UK, 18+ only. Enter by 23:59 on 12.12.2021 by following the steps. Prizes: 1 x IPP branded licensed 12v Mercedes-Benz ride on lorry, 2x £25 Greggs gift cards. Max 1 prize per person.

 

Hydrogen fuel HGV trials to start

Posted on by Keith McKinley

CNG Fuels, the UK’s largest supplier of alternative low-carbon fuels for HGVs, is planning to host hydrogen fuel trials across its rapidly expanding UK network of public access biomethane refuelling stations to support the future decarbonisation of HGVs.

A new branch of the company, HyFuels, has been established to identify the best hydrogen production pathways and infrastructure solutions for HGVs so it can support customers in adopting hydrogen quickly and easily when it becomes commercially viable. The first trials are due to begin in mid-2022, with the company currently in discussions with international partners and undertaking feasibility studies across its upcoming development sites. By 2025, the company plans to allocate 100 acres of its land to public access hydrogen refuelling.

Philip Fjeld, CEO of CNG Fuels, said: “HGVs alone account for 5% of all UK emissions, making their decarbonisation one of the single most important things the UK can do to meet our net zero ambitions.

“Renewable biomethane is and will continue to be the most effective decarbonisation solution for heavy transport for many years. However, we have launched HyFuels to ensure we are ready to support our customers’ journey to a multi-fuel future as new technologies become commercially viable and the fuel readily available.”

HGV fleet operators face a significant challenge to rapidly switch to more sustainable fuel sources to meet climate targets. HGVs account for 16% of UK transport emissions, despite representing just 5% of total road miles on UK roads. For high-mileage HGVs, renewable biomethane is the lowest carbon, most cost-effective alternative fuel today, cutting emissions by more than 85% and lifetime costs by 30-40% compared to diesel.

Mid-weight trucks (<26 tonnes) will be among the first to be commercially viable for new technologies such as hydrogen. The trials carried out by HyFuels will be particularly important for hauliers that operate <26 tonne trucks, helping them to navigate challenging decarbonisation targets proposed by government, including a potential ban on diesel engines by 2035.

CNG Fuels already supports major fleets with 100% renewable biomethane sourced from food waste and manure across its UK-wide network of public access refuelling stations. Major brands already on board include the John Lewis Partnership, Waitrose, Hermes, Warburtons, and Royal Mail.

Demand for the fuel has been doubling every year for the last five years. CNG Fuels expects that with the rapid expansion of its UK wide network, this will continue to accelerate with around 10% of the UK’s high-mileage HGV fleet running on Bio-CNG by 2025.

However, in future, other low carbon technologies will start to become more prevalent as technology develops and costs fall. The Committee on Climate Change expects hydrogen-powered HGVs to play a major role in decarbonising freight transport from 2030 onwards and the government’s Net Zero Strategy, released earlier this month, includes a policy to expand trials for zero emissions HGV technologies.

HyFuels is already in advanced discussions with major international providers of both hydrogen infrastructure and the fuel to deploy their first trials. Among the first initiatives will be a number of hydrogen-ready mobile refuelling units that are able to quickly deliver hydrogen to refuelling sites on demand.

Findings from the trials will be used to inform government, industry, and existing customers on the effectiveness of different hydrogen solutions and outline key infrastructure considerations for a hydrogen refuelling network. The company is also planning to incorporate the findings into a wider business strategy, with a complete roadmap for companies to switch fleets from diesel to net zero fuels.

CNG Fuels currently operates seven public access bio-CNG refueling stations and plans to open at least 12 more every year from 2022. The company plans to have 60 stations in operation by 2026, supporting the mass adoption of renewable biomethane fuel by fleets across the UK.

Baden Gowrie-Smith, CFO of CNG Fuels and head of hydrogen development for HyFuels added: “We build our sites with our customers’ future needs in mind, acquiring additional space so we can expand as demand grows. This means up to 30% of our future land will be perfectly placed to deploy multi-fuel trials on some of the busiest haulage routes in the UK.

“As soon as these technologies are viable, we will be ready to support our customers in adopting the latest and greatest in low carbon technology. With increasingly aspirational decarbonisation targets set by government, our role is to support fleets in their journey to net zero, making it as simple and affordable as possible.”

Simple solution for loading bay bottlenecks

Posted on by Keith McKinley

There is a Europe-wide HGV driver shortage, which is very acutely felt in the UK. Part of this is caused by the pandemic. Essential goods continued to move during the lockdown, but as non-essential goods were out of circulation, many hauliers went bust and the drivers sought employment elsewhere.

As the economy is reopening, demand is skyrocketing, and with hauliers struggling to cope they are forced to turn down work owing to lack of capacity. If the loading or unloading time is several hours, it is better to opt for shorter runs so in the same time more jobs can be completed.

Of course, turning down jobs means turning down money and risking the future of some client relationships, with these contracts going to other operators in the future.

ConFoot, a Finnish manufacturer of legs for shipping containers, believes it has the solution to solve these loading bay bottlenecks. Using ConFoot container legs the container can be left on the legs at the loading bay for loading and unloading, freeing the truck and the driver to continue with other jobs in the meantime.

The hauliers will have a bigger time window for collecting the containers in most cases, making it easier to manage. This allows for the hauliers to plan more effective routes, maximising revenue and client satisfaction.

Retaining drivers is also easier, as many drivers are paid by the mile, not by the hour, so delays means loss of income for them.

ConFoot says its container legs require no maintenance, and have a lifespan of up to 20 years, providing a very ample return on the investment. The air suspension chassis and dump valve of the trucks trailer is used to lift and lower the container, and only one person is required to attach the legs, which means the driver can do it alone with no help required from the personnel at the site.

The loading bay model has the maximum capacity of 30 tonnes (container + content).

Five ways to upskill your HGV drivers

Posted on by David Priestman

Upskilling your drivers is important for numerous reasons. Road transport is a heavily regulated industry so there are naturally several mandatory training requirements, depending on the work being carried out. But more generally, it also promotes safe driving, reduces road collisions, and can help keep your workforce feel supported in their job. HGV training and recruitment expert, Driver Hire Training, has revealed some top tips for keeping your drivers’ skills fresh.

Training and upskilling your drivers is ultimately an investment in your people, and one of the best ways to motivate and get the best performance from your workforce is by helping them understand that their employer values them and wants them to improve. And although there is an aspect of compliance, through the mandatory Driver CPC training and various other qualifications, this should always be seen as an opportunity for growth rather than a burden, alongside other development opportunities.

Ultimately a skillset is vital, with HGV drivers in demand more than ever, employers should be focusing on ways to keep their staff happy and motivation high, as well as looking to attract the best talent in the area. Recent surveys have shown that companies that score highly on their employee development opportunities see 93% less attrition and this also tends to be a contributing factor within the businesses that rank highly in studies such as the Sunday Times Best Places to Work.

There’s a substantial amount that managers can do to upskill drivers, in driving and lots of other related things too, for example encouraging healthy lifestyles to training in first aid. Employers should think about the direct benefit to the business that such upskilling can provide, but also how the wider investment in people can aid each individual.

These are five ways to look to upskill your drivers:

1: Driver CPC

There is a legal requirement to meet the 35 hours of training every five years and if uncompleted, this can result in £1,000 fine. That said, such training should always be viewed as genuinely useful and a chance to gain new skills. With this in mind it’s important to make sure you’re willing to get the most out of your Driver CPC training courses, as if not you’re missing out on vital upskilling opportunities.

Some of the most popular CPC courses are around Drivers Hours, Digital Tachograph and Road Traffic Laws. There’s also a lot of interest in additional training such as Safe Urban Driving, City Driving and Vulnerable Road Users showing that people do want socially responsible training but also that these situations are often required standards for many operations.

2: Upgrade Licences

Upgrading licences so your drivers have the options to drive a variety of vehicles can be beneficial for a number of reasons, for example upgrading licences from just van work to larger vehicles such as artic lorries.

3: Specialist licences

It may be worth considering upskilling your workforce to drive specialist vehicles such as forklifts or ADR training for transporting dangerous good. This means your workforce has the versatility to handle a variety of transport issues and in turn, build greater flexibility into your operations.

4: First Aid Training

Training your staff in first aid can be extremely helpful for your staff, the company and for wider society. For instance, if your driver is the first at the site of an accident they can respond immediately and appropriately to any injuries and maybe even save a life.

5: Healthy Living Tips and Tricks

Keeping your workforce motivated to live a healthy lifestyle can be very worthwhile. It can be easy to fall into unhealthy habits when living between truck and service stations, but it also helps in understanding nourishing ways to live outside of work.

Employers can also consider looking for ways to upskill themselves in order to better support their drivers, such as engaging in accreditations like Investors in People. Organisations like the CIPD (Chartered institute of Personnel and Development) should be a go-to body for any HR professional or employer wanting to improve what they do in this area.

John Keelan-Edwards, Managing Director at Driver Hire Training, said: “Training and upskilling your employees to help them both in and out of work should be of the utmost importance for all employers. Investing in your people is one of the most vital things you can do, it helps both your brand as well as the people in your company as a business that wants to see their people succeed.

“There are so many ways to help upskill your drivers, from specialist licences to helping them lead healthy lifestyles. It’s also important to remember about your own development and constantly learning how as an employer you can be the best boss you can be, especially in an industry with high demand.”

Quantron aims to become zero-emission vehicle OEM

Posted on by Keith McKinley

Quantron AG, specialist for commercial vehicles with electric and hydrogen drive trains, is setting out to become an OEM for zero-emission vehicles. To strengthen the identity of the products and the Quantron brand, the company is bringing international design expertise on board.

The aim of the “Quantron vision 2025” project is to build a strong brand DNA by creating a unique Quantron look and feel. Vehicle design not only has an aesthetic function, but also has a major impact on aerodynamics and thus on the vehicle’s energy consumption.

The experts accompanying Quantron on this journey are well-known figures in the mobility-industry: Italian car designer and design strategy consultant Fabio Filippini – who led for more than six years the Pininfarina Transportation Design in Turin – and Spanish design and innovation consultancy Mormedi, led by Jaime Moreno.

Fabio Filippini comments on his collaboration with Quantron AG: “Quantron has built very strong roots in its past. Transforming these into the new world of Quantron, which is a much more complex ecosystem of services, existing and new products, presents a great challenge for any creative. That’s why I wanted to include Mormedi, which are specialized on this type of brand identity within the transportation industry. That way we can make sure we’re up to the big challenge as one team.”

Jaime Moreno of Mormedi complemented his words: “This is a great opportunity. Today we need brands like Quantron that are committed to zero emissions. And they are not dreamers, they are already building vehicles. What we want to offer Quantron is a vision of what the new products will look like in the next five to ten years.”

Quantron vision 2025

The “Quantron vision 2025” project begins with a unique Quantron design for its 12m bus, which will be launched in the near future. A Quantron design for a light truck and a heavy US truck are also in the planning stages.

Michael Perschke, CEO of Quantron AG, explained: “Quantron AG has the vision to become a global leader in zero-emission global transportation services and products. Therefore the unique touch and feel of the design has to be in sync with the brand DNA of Quantron, which stands for clean technology and zero-emission.

“There is no better team to give Quantron a global identity than Fabio Filippini and Moreno. Our ambition has to be that by 2025 latest, our sustainability focussed customers will recognise a Quantron product at first sight, clean, sophisticated, high-tech and representing the future of sustainable transportation.”

CLICK HERE to view a video of the cooperation announcement

 

Hungary strengthens potential as intermodal hub

Posted on by Keith McKinley

Hungary is strengthening its potential as an intermodal transit hub by investing in the country’s railways. In this article, Botond Kovacs-Mate (pictured), Branch & Country Manager in Hungary AsstrA-Associated Traffic AG, analyses the ramifications of Hungary’s current infrastructure projects for trade between China and Europe.

Trade relations between Hungary and China have been strengthening year by year. Currently, the Middle Kingdom is Hungary’s largest trading partner outside the EU. In turn, Hungary, after Poland and the Czech Republic, is China’s third largest trade partner in Central and Eastern Europe. In terms of volume, Hungary’s primary exports to China are plastic products, machine products, and wood. Hungarian imports from China are mainly machine goods and chemical products.

For now, the vast majority of trains from China to Hungary cross the EU border at the Polish town of Małaszewicze near the border with Belarus. It is the world’s largest rail dry port where goods to be reloaded from broad-gauge trains to standard-gauge ones. The facility’s capacity is limited, however, and investments in infrastructure are becoming increasingly essential. A central logistic terminal must be built to improve transport flows to and from Poland’s northern ports and logistic terminals, and railway line improvement must be accelerated.

These investments will be considerable but insufficient, and supply chain participants are actively seeking alternatives. By investing significant funds in rail infrastructure, Hungary aims to service more rail traffic from China and overtake Poland as the key European logistics hub for Asian cargo.

In this race for a “trade monopoly” in Asian rail traffic, one of Hungary’s first investments was the modernisation of the Budapest-Belgrade railway line. This investment began in 2013 and was financed largely by a Chinese loan. Despite general delays, the project is expected to be completed by 2025. The main goal of the venture is to shorten shipping time by providing direct access to Central and Eastern Europe from the Greek Port of Piraeus.

Meanwhile, due to rapidly growing cargo volumes in 2020 and insufficient capacity on existing transport corridors, international businesses have been looking for alternative routes via, for example, Ukraine. At the beginning of January 2021, Hungary began constructing the East-West Gate container terminal in Fenyeslitke, 20km from the Ukrainian border.

Progress has been fast, and in May a standard-gauge railway line was commissioned to connect the Fényeslitke railway station with the new terminal. The facility will enable the reloading of containers from wide-gauge to standard-gauge lines. The target reloading capacity of the new terminal is to amount to 1 million TEU per year.

AsstrA Hungary, working closely with the corporate group’s well developed network of offices in other countries, constantly seeks to provide customers with solutions meeting their unique requirements and tailored to current market conditions wherever they do business.

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