Decarbonising European Supply Chains with Intermodal Solutions
18th November 2024
Railways have long been a reliable mode of transporting goods. However, in recent years, road transport has taken the lead, offering faster and more flexible delivery options. Now, with decarbonisation goals in focus, rail is making a comeback as a powerful solution for reducing emissions.
Intermodal solutions, especially rail transport, have proven effective in reducing emissions. When powered by green energy sources, rail can significantly cut emissions by up to 65%1. Thanks to the long distances covered by a single train, equivalent to 20–30 fully loaded trailers, the railway network offers a safe, sustainable, and efficient way to transport goods for long distances across Europe.
High-value goods on trains
With supply chains accounting for a large portion of companies’ overall emissions, up to 90% in some cases 2, shifting a significant portion of transport to rail can greatly impact carbon footprints. One example is a leading cosmetics company that decided to move up to 80% of its high-value goods transport to the railway network. By transporting up to 1500 fully loaded trailers, only in 2022, the company achieved a significant 80% reduction3 in emissions compared to traditional road transport.
“We knew the company wanted to make significant strides in reducing emissions, so we explored possible solutions together, analyzing all available alternatives. Thanks to our extensive network and minimal changes to operations, we utilized rail transport effectively. Paired with our broad trucking network, from and to terminals, we have delivered a large volume of goods most conveniently and sustainably,” says Larisa Senkevičienė, Intermodal Business Development Manager from Girteka, the company securing the deliveries.
This case, as the majority of the loads were transported via railway, required precise coordination with the customer to plan both loading and unloading. Time slots were established to align with production and delivery schedules, knowing the need for smooth transitions between rail and road. Internally, planning teams collaborated with the customer to manage every step, adjusting resources to fit the rail transport requirements. This co-creation approach optimized logistics, allowing for on-time deliveries with minimal delays.
Combination of sustainable solutions
Though the railway network has its limitations, when combined with alternative fuels like HVO100 or battery-electric vehicles (BEVs), emission reductions can reach up to 100%, while using clean green energy. Another example from the food and beverages sector involved optimizing both the start and end of the transport process to reduce emissions. Due to network limitations, the company opted for a combined transport method, using both the railway network and HVO-fueled trucks for delivery to and from train terminals. The results were impressive.
“We had to approach this differently, as the entire supply chain couldn’t be covered solely by intermodal transport. However, with our trucks being compatible with alternative fuels like HVO, we used this option to handle the transport to and from the railway terminal. The outcome? A 90% reduction4 in emissions, which can be easily reported,” explains Senkevičienė.
Measuring Impact through Data
Reporting and data collection are crucial for evaluating the efficiency and real impact of sustainable solutions. The goal is simple: reduce emissions as much as possible without compromising the timing or stability of supply chains.
“Monitoring and data are essential for us, therefore we provide the option to oversee the full cargo journey, and our calculations of reduced emissions from chosen sustainable transport solution, customer can receive a comprehensive report on the exact number of kg of CO2 reduction. In a time of data approach and ESG reporting soon in place, this value information is additional benefit customer receive,” – emphasizes Senkevičienė.