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"Encarna Pitarch: "Railways must be promoted in the short term for the Spanish horticultural sector to remain competitive"

Spain: Anecoop working to boost rail transport to Europe by 30%

Anecoop's Logistics Director, Encarna Pitarch, addressed the factors playing a role when choosing the form of transport for horticultural products, as well as the future prospects for rail transport in Europe.

Anecoop has consolidated as the world's first exporter and second largest marketer of citrus, with 87% of its business abroad and a network of companies and clients in various countries. Europe is its main destination, with France and Germany at the lead, followed by Sweden, the UK, Italy, Poland, Czech Republic, the Netherlands and Belgium.

What forms of transport do you currently use for your shipments to Europe?

The main form of transport used by Anecoop is road transport. Last season, exports shipped by road represented 95% of the total, while 4% went by sea and 1% by rail. Although this has been the case for several years now, it is worth noting that in the 70's and 80's railway transport was used for over 40% of all citrus exports to Europe.

What factors are deemed more important when choosing the form of transport?

While transport costs are one of the most relevant, as they represent 30% of the final price of horticultural products, for us the most important are transit time and reliability, both in terms of punctuality and the condition the goods arrive in. Flexibility and frequency of service are equally important factors.

Another essential aspect is the two-way flow balance, so that any form of transport can be profitable. Logistics platforms must be well developed both at origin and at destination.

How do you assess these factors for road and rail transport in the export of fruit and vegetables to Europe?

Road transport has lost competitiveness in recent years. On the one hand, costs are constantly growing due to increasing fuel prices. On the other hand, restrictions in transit times and driving days, as well as the growing traffic congestion in the Pyrenees, also reduce competitiveness.

The road-rail combination is becoming a real alternative to road transport for large, long distance shipments. In recent years, Spanish fruit and vegetable exports have entered countries like Poland, Russia, the Baltic republics and Belarus, and due to the good results achieved and the long distances, rail transport has been promoted. While costs haven't yet been reduced with this form of transport, its competitiveness in terms of transit times and reliability makes it a very attractive alternative.

What intermodal services are you currently using?

Anecoop's exports to Europe are currently shipped in trains departing from Silla's terminal bound to Luxembourg. The trains have to go through changes in rail gauge and train composition in the French border, and once in Luxembourg, the goods are brought to the distribution centre. From Luxembourg they are distributed to Sweden, Norway and Finland by road and to Sweden by rail.

We are working to increase the share of rail transport by up to 30% for northern European countries and by 15% for central Europe.

We have recently been working with rail operators in a project for the launch of a new service to connect Valencia and the Netherlands, as the latter is a very important logistics distributor towards northern Europe.

What other services are functioning well for the transport of fruit and vegetables to Europe?

One of the operative services currently in use is a train transporting refrigerated containers with horticultural products from the town of Silla, in Valencia, to Barking, UK, with a transit time of around 60 hours. This initiative, attractive for the horticultural sector, is not a competitive alternative for Anecoop, as our company's distribution centre in the UK is in Spalding, almost 200 kilometres from Barking. This entails having to use road transport and increasing transit times and costs.

Another intermodal maritime-rail initiative is the service for refrigerated containers connecting Murcia and the port of Bilbao, from where they are shipped by sea to the UK and northern Europe. This option is not being used by Anecoop due to the excessively long transit times they involve for us.

Do you believe the introduction of the Mediterranean Corridor will allow for the introduction of competitive export services to Europe?

The horticultural sector considers the Mediterranean Corridor as a real need for the introduction of competitive intermodal alternatives allowing us to enter and develop our position in new European markets. According to sources from Ferrmed, the Mediterranean Corridor could save up to 35% of the costs; around 3 cents per kilo marketed overseas.

The Mediterranean Corridor goes through some of Europe's largest horticultural producers, such as the provinces of Valencia, Murcia and Almeria, which are responsible for 60% of all exports to Europe.

All in all, the promotion of rail transport is a short term need if the Spanish horticultural sector wishes to remain competitive in such a globalised market. For the rail Corridor to be a success we need to improve the two-way flow of goods and find the most optimal intermodal options.


Source: LineRail
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