October 24, 2018, The Hague — Damco’s growth in the rail sector further contributes to A.P. Moller - Maersk’ goal to expand in the non-ocean segment and connect and simplify supply chains. Damco’s block train service offers a fast, cost-effective, flexible and reliable way to transport cargo from China into Europe. Block trains are customer-dedicated rail transport services that transport goods from origin to destination without splitting them up en route. This not only helps simplify customers’ supply chains, but together with Damco’s “no-rolling” policy where the container is directly loaded from the warehouse onto the train, brings further reliability to the service by providing a faster and more flexible service.
Kasper Krog, Head of Rail at Damco commented, “The continued rail growth is evident in the increased China-to-Europe freight train capacity of 69% the China Railway Corporation recorded for the first half of 2018. However, we also see continued rail growth due to the competitive advantages the service provides for our customers who demand speed, reliability and sustainability.” He continued, “We have cleared the clutter, complexity and disruption that add time and costs to our customers’ supply chains and created a reliable, weekly end-to-end service that can also be incorporated as part of a multi modal solution where two or more different modes of transport are being used.”
The Damco block train solution leverages the experience within the A.P. Moller-Maersk organization to ensure that the customers benefit from a wider range of options to transport their goods whether via ocean, air or rail. “Our target is to continue the expansion of the rail and inter-modal footprint, in close cooperation with our customers and to play an active role in helping to keep their business on track” says Krog.
Block train benefits
The block train is able to cover the ca. 11,000 km journey from China to Europe in 18-20 days thanks to the prioritizations that rail operators are able to grant the train throughout its route. By using the latest technologies, customers are also given visibility of their goods during the transportation. This service makes it easy for the customer to place a booking with a dedicated specialist team who handle the cargo all the way to its final destination. Furthermore, with carbon emissions comparatively lower than those for air, the block train service offers a more environmentally conscious option for the transport of goods.
Caroline Wu, Area Manager for Greater China at Damco added: “Approximately 4,3% of cargo between China and Northern Europe is moved via rail. So, although it is still a relatively small contributor to global trade, it is a service which is poised for growth.” Caroline continues, “Due to the government’s support and efforts made in developing the Belt and Road Initiative, we are now seeing great opportunities and strong interest from our customers in using our rail services.”
For more information on Damco’s rail service as well as customer case studies please visit Damco Rail page or contact your nearest Damco office.
About Damco Rail
Damco Rail was established in 2014 initially with a focus on the high-tech sector. Our rail products and services have been developed to enable organizations, supported by our expertise, to design end-to-end solutions that are tailored to meet their specific needs. Our rail solutions include: rail services between China and Europe; cross-border truck-rail services from Vietnam to Europe via China; and short sea-rail from Taiwan/ASEAN to Europe via China. Damco rail now covers a variety of vertical market segments including retail and lifestyle.
We are experts in the field of complex, rapidly changing markets such as Fashion, Retail, Chemical, FMCG and Technology. With a presence in over 100 countries, employing more than 10,000 people worldwide, we combine global reach with depth of local understanding. In 2017 we reached a turnover of 2.7 billion US dollars, managed 664 thousand TEUs (twenty-foot equivalent units) of ocean freight and 206 thousand tons of air freight.
We are proud to be a part of A.P. Moller – Maersk.