Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions - Intermodality and intermodal freight transport in the European Union - A system's approach to freight transport - Strategies and actions to enhance efficiency, services and sustainability
Date: 1997-05-29
Institutions: European Commission
Subjects: carriage of goods, combined transport, common transport policy, organisation of transport

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  29.05.1997 
COM(97) 243  final 

COMMUNICATION FROM THE COMMISSION 

TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 

INTERMODALITY AND INTERMODAL 
FREIGHT TRANSPORT 
IN THE EUROPEAN UNION 

A SYSTEMS APPROACH TO FREIGHT TRANSPORT 

STRATEGIES AND ACTIONS TO ENHANCE 
EFFICIENCY, SERVICES AND SUSTAIN ABILITY 

CONTENTS 

Executive  Summary 

Chapter  1  The concept  of Intermodality 

Chapter  2  Logistics: The complexity  of demand 

Chapter  3  Obstacles  to the use of Intermodal  Freight Transport 

Infrastructure  and transport means 

3.1. 
3.2.  Operations - The use of infrastructure 
3.3.  Modal-based  services and regulations 
3.4.  Conclusion 

Chapter  4  Europe's  Intermodal  Freight  Transport  System: 

Steps towards realisation 

A.  Integrated  infrastructure  and  transport  means 
4.1.  A coherent  infrastructure  network at European  level 
4.2.  Value adding interconnection  and nodes 
4.3.  Harmonised  standards for  loading units 

B.  Interoperable  and  interconnected  operations 
4.4. 
Intermodal  freight  operators 
4.5.  Open access to infrastructure 
4.6. 
4.7. 
4.8.  Co-ordination  of intermodal  freight  timetables 

Infrastructure  charging and transport pricing 
Intermodal transport and competition 

C. Mode-independent  services  and  regulations 
Information  and management systems 
4.9. 
4.10.  Liability 

D.  Horizontal  activities 
4.11.  Research and innovation 
4.12.  Evaluation and benchmarking 
4.13.  National  Round Tables 
4.14.  Intermodal freight  statistics 

page 

I 

1 

2 

3 

4 
5 
5 
6 

7 

7 
8 
8 

9 
10 
10 
10 
11 

12 
13 

14 
15 
15 
16 

/ ^v 

Chapter  5 

Intermodality  and  other  policy  areas 

5.1.  The Information  Society 
5.2.  Regional development and cohesion 
5.3.  The integration of SME's 
5.4.  Environment 

Conclusions 

Table  1 
Table 2 
Figure  1 

Key issues of intermodality 
Key actions towards intermodality 
The Intermodal Transport Chain 

Annex  1 
Annex 2 

The Action  Programme 
Ongoing  Actions 

16 

16 
17 
17 
17 

18 

II 
II 
2 

lb 

EXECUTIVE  SUMMARY 

transport  system 

1.  An  efficient 
lor  the  European  Union's 
competitiveness.  With  the  projected  growth  of  international  trade,  the  possible  extension  of  the 
Union  to  the  Central  and  Eastern  European  countries  and  enhanced  cooperation  with  the 
Mediterranean countries, the role of transport will become even more important. 

is  an  essential  prerequisite 

2.  Since  1970 European  freight  transport has increased by about 70 %. Annual growth of about 2 
% is expected  for the next two decades.  Present  figures  put the costs of traffic  congestion  at  120 
billion ECU  or 2 % of the EU  GDP. Accidents, air pollution  and noise amount  to a further  2 %. 
These  costs  undermine  European  competitiveness,  when  transport  demand  requires  flexibility, 
reliability and  cost-effectiveness. 

3.  Unless the transport  sector considers mode-independent  service requirements and utilizes spare 
capacities  in other  modes,  road  transport  is  likely  further  to  increase  its  present  market  share  of 
72 % (from  almost 50 % in  1970). The share of rail transport has since  1970 decreased  from  about 
32 % to less than  15 % in  1995. This decline is likely to continue if present trends persist. 

4.  In order to achieve socio-economic and environmental  sustainability, the efficient  and balanced 
use of existing capacities throughout the European transport system has become a key challenge.1 

5.  The  policy  instruments  used  for  a  "business  as  usual"  approach  cannot  solve  the  future 
problems  associated  with  transport.  The  present  approach  must  therefore  be  changed  into  a 
systems approach. 

6.  The  promotion  of  Intermodality  is  a  policy  tool  enabling  a  systems  approach  to  transport. 
Transport  services  are offered  as mode-independent  door-to-door  connections  based  upon  a range 
of  viable  modal  transport  alternatives  by  making  a  new,  efficient  use  of  the  transport  system, 
reducing  transport costs and allowing the generation of added value. 

The  objective  is  to  develop  a  framework  for  an  optimal  integration  of 
different  modes  so  as  to  enable  am  efficient  and  cost-effective  use  of  the 
transport  system 
through  seamless,  customer-oriented  door-to-door 
services whilst favouring competition» between transport operators» 

7.  A  number  of  obstacles  have  been  identified  which  prevent  the  extensive  use  of  intermodal 
transport. These include the lack of a coherent  network  of modes and  interconnections, the lack of 
technical  interoperability  between  and  within  modes,  a  variety  of  regulations  and  standards  for 
transport  means,  data-interchange  and  procedures.  There  are  uneven  levels  of  performance  and 
service  quality  between  modes,  different  levels  of  liability  and  a  lack  of  information  about 
intermodal services. As a result, mode-independent door-to-door transport is underdeveloped. 

8.  Implementing  a  European  intermodal  transport  system  requires  coordinated  development  of 
transport  policy  on  European,  national  and  regional  level.  Four  key  strategies  will  provide  the 
necessary  impetus  to  the  development  of  intermodal  transport  in  the  overall  context  of  the 
Common Transport Policy (see table 1). 

1  The Community  thus inter alia aims at the "right balance ol' policies  favouring the development  of coherent,  integrated  transport  systems lor the 
Community  as a whoie." (see White paper:  The future  development  ol the common  transport  policy  - A global  approach  to the construction  of 
a Community  framework  for sustainable  mobility, ISBN 92-826  591,1-9, §4()b) 

U 

Table 1: Key issues of intermodality 
>  A European  strategy on infrastructure:  trans-European transport networks and nodes 
>  The Single transport market: harmonisation  of regulation  and competition  rules 
>  Identification  and elimination of obstacles to intermodality and the associated 

friction  costs 

>  Implementing the Information  Society in the transport sector 

9.  Since  intermodal  transport  is  more  data-intensive  than  conventional  transport,  the  Information 
Society's  role  in  transport  is  of  crucial  importance.  Computer  Aided  Transport  CAT  -  the  use  of 
information  and  communication  technologies  -  is  key  to  efficient  and  customer  oriented  transport 
services.  Open  and  flexible  information  and  decision  support  systems  are  changing  the  way 
transport 
is  organised  and  managed  and  will  enhance  present  and  create  future  market 
opportunities.  In  addition  the  use  of  the  information  infrastructures  and  the  development  of 
additional  specific  capacities  for  intermodal  operations  will  increase  the  attractiveness  of  the  new 
approach. 

10.  Intermodality  does  not  aim  or  relate  to  a  specific  modal  split,  but  addresses  the  integration  of 
modes at three  levels: 

(1) infrastructure  and  transport  means  ("hardware"), 
(2) operations  and  the use of infrastructure  (especially  terminals),  and 
(3) services  and  regulation  (from  a modal-based  to a mode-independent  framework). 

11 .The  Commission  will  take  the  necessary  initiatives  where  regulatory  or  legal  issues  are 
concerned.  While  respecting  the  principle  of  subsidiarity,  the  Commission  will  also  address  areas 
where  intermodality  depends  on coordination  at European  level  (see table  2). 

Table 2: Key actions towards  intermodality 
Integrated  infrastructure and transport  means 

>  Intensify  intermodal design of the trans-European transport  networks 
>  Enhance design and functions  of intermodal  transfer  points 
>  Harmonise standards for transport means 

Interoperable and interconnected  operations 

>  Integration of freight  freeways  in an intermodal  context 
>  Development of common charging and pricing principles 
>  Harmonise competition rules and state aid regimes on an intermodal  basis 

Mode-independent services and  regulations 

>  Harmonisation  and standardisation  of procedures and EDI 
>  Intermodal  liability 
>  Research and demonstration 
>  Benchmarking 
>  Intermodal  statistics 

12. Together  with other  policies already  proposed  by the Commission,  the  actions proposed  in  this 
communication  are  aimed  at  eliminating  the  current  barriers  to  the  development  of  intermodal 
door-to-door  transport,  and  thereby  promote  a  greater  use  of  environmentally  friendly  modes  of 
transport  with  spare  capacity.  By  improving  the  potential  of  rail  and  waterborne  transport  and  by 
offering,  where  appropriate,  effective  alternatives  to  unimodal  road  journeys,  intermodality  will 
help  to  overcome  congested  road  networks.  Performance  improvements  in  railways,  the  full 
internalisation  of  external  costs  and  the  promotion  of  intermodality  are  part  of  an  overall  strategy 
for  sustainable  mobility. 

Id 

Chapter  1  The  concept  of  Intermodality 

13.  Because  of  growing  freight  traffic  and  an  increasing  imbalance  in  the  use  of  the  various 
transport modes and infrastructure,  the transport system in the European Union is showing signs of 
inefficiency  from  a  socio-economic  point  of  view.  Increasingly,  freight  transport  appears  as  a 
source of environmental and social costs to its citizens. 

14. The "business as usual" scenario, based on modal  policies, is unlikely  to be able to cope with 
the  complexity  of  today's  and  tomorrow's  mobility  requirements  in  a  sustainable  manner.  An 
overall  systems  approach  is  called  for.  The  furthering  of  intermodality  is  a  promising  and 
innovative policy tool  which can support  an overall transport  systems approach  aimed  at a more 
balanced  and  efficient  use  of  the  available  transport  capacity  (infrastructure,  rolling  stock, 
handling equipment etc.). 

15.  In order to create  a common  understanding  of the  concept  of  intermodality,  the  Commission 
proposes the following  definition  of intermodality.  Intermodality  is a characteristic of  a transport 
system, that  allows  at  least two  different  modes to  be used  in an  integrated  manner  in  a door-to-
door transport chain. 

16.  Intermodality 
is  a  quality  indicator  of  the  level  of  integration  between  the  different  modes: 
more intermodality  means more integration  and complementarity  between  modes, which  provides 
scope for a more efficient  use of the transport system. The economic basis for intermodality  is that 
transport  modes  which  display  favourable  intrinsic  economic  and  operational  characteristics 
individually,  can be integrated  into a door-to-door  transport  chain  in order to  improve the  overall 
efficiency  of the transport system. The integration between modes needs to take place at the levels 
of infrastructure  and other hardware  (e.g. loading units, vehicles, telecommunications),  operations 
and services, as well as the regulatory conditions (see figure 1)). 

The  objective  is  to  develop  a  framework  for  an  optimal  integration  of 
different  modes  so  as  to  enable  an  efficient  and  cost-effective  use  of  the 
transport system through seamless, customer-oriented  door-to-door services 
whilst favouring competition between transport operators 

17. Intermodal policy should provide the framework  in which the transport user himself can decide 
the  optimal  use  of  the  different  transport  modes.  The  door-to-door  approach  of  intermodal 
transport will therefore entail a strong consideration of the transport user's requirements. 

2  Intermodal  transport  can  then  be  understood  as  the  movement  of  goods  whereby  at  least  two  different  modes  are  used  in  a  door-to-door 

transport  chain. 
The  Commission's  understanding  of  intermodality  and  intermodal  transport  goes  beyond  earlier  definitions  that  have  been  put  forward  by 
several  institutions.  The  definitions  proposed  by  the  European  Conference  of  Ministers  of  Transport  restricts  intermodal  transport  to  unitised 
transport, while unitisation  is but one possible, though  important, means to facilitate  the transfer  of goods between  modes. Regarding  combined 
transport the EU uses e.g.  in the framework  of Directive 92/106 a more restricted  definition,  aiming to promote only  such  types that  limit road 
use in specified  ways. 
Intermodal  transport  (ECMT): The  movement of goods  in one and  the same  loading  unit or  vehicle  which  uses successively  several  modes of 
transport without handling of the goods themselves in changing modes. 
Combined  transport  (ECMT):  Intermodal transport,  where the major  part of the  European journey  is by  rail, inland  waterways  or sea and  any 
initial  and/or final  leg carried out by road are as short as possible. 

/e 

18.  Intermodality  is  not  bound  to  certain  modes.  It  is  a  trading  and  mobility  issue  in  which  rail, 
water,  air  and  road  are  called  on  to  contribute  to  the  optimisation  of  the  whole,  where  they  are 
supported  by  advanced  information  and  communication  services.  On  the  level  of  transport 
operations  new  services,  information  and  communication  technologies  will  improve  the  utilisation 
of the existing  capacities. 

Figure  1:  The Intermodal  Transport  Chain 

The  framework: 
Mode-independent  regulation 
& services - logistics support 

V 

V 

•<—=>  The transport chain: Operations & utilisation of infrastructure  -*?—>• 

ÎZ 

operation on 
one mode 

mode transfer 
point / node 

Source: CEC 

19.  Intermodality  clearly  is  not  about  forcing  a  specific  modal  split.  However,  by  improving  the 
connections  between  all  modes  of  transport  and 
into  a  single  system, 
intermodality  allows  a  better  use  to  be  made  of  rail,  inland  watcrborne  transport  and  short  sea 
shipping  which,  by  themselves,  in  many  cases  do  not  allow  door-to-door  delivery.  Intermodality 
is,  therefore,  complementary  to  other  EU  transport  policies  such  as  liberalisation  of  transport 
markets, developing the TENs  and  the  promotion  of  fair  and  efficient  pricing. 

integrating  them 

Chapter 2  Logistics: The complexity of demand 

20.  Freight  transport  is  a  derived  demand.  It  is  therefore  part  of  the  economic  process.  The 
requirements  of  industrial  processes  have  changed  drastically  during  the  past  10 years  and  can  be 
characterised  by  global  competition,  shorter  production  processes  and  product-life-cycles  and  the 
need to cut costs.  The use of just-in-time  delivery, customised  production  and the concentration  of 
supply-  and  distribution  centers  has  led  to  a  close  interrelationship  of  production  and  distribution 
processes  and  transport,  aimed  at  high  service  performance,  reduced  time-to-markct  and  lower 
costs. At the  same time, competition  in global  markets  has  increased  the  number  of  players  and  the 
geographic  scope of the  supply-and distribution  chains. 

21. Efficient  logistics have become a crucial  factor of competitiveness. 

Logistics can be defined  as managing the flow  and storage of raw materials, 
work-in  process,  finished  goods  and  the  associated  information  from  the 
point  of origin  to point  of final  consumption  in  accordance with  customers 
requirements. In a wider sense it also includes  the recovery  and disposal  of 
waste. 

22.  Transport  plays  a  major  role  in  the  logistics  and  service  quality  of  the  overall  supply  and 
distribution  chain.  Freight  transport  has  to  meet  increasing  quality  requirements  in  terms  of 
flexibility,  speed  and  reliability  in  order  to  deliver  the  goods  at  a  precise  time  and  place.  This 
includes  the  movement  of  goods  as  well  as  storage/warehousing  functions,  packaging  or 
customisation.  Depending  on  the type  of  good,  logistics  costs  can  account  for  up  to  one third  of 
the final market  price, although  this proportion  is often  smaller  and has  generally  decreased  over 
the last decades. About one quarter of these can be transport-related costs. 

23.  Taking  into  account  the  complex  interaction  of  sourcing,  suppliers,  manufacturers,  retailers 
and  consumers,  intermodality  will  allow  the  integration  of  a broad  range  of transport  services  in 
the supply- and distribution chains. 

24. Well functioning  information  and communication  flows  are indispensible  for the  management 
of  multi-party  supply- and distribution  chains. They allow pre- and on-trip information  exchange, 
including  service  availability,  negotiation  procedures,  tracking  and  tracing,  information  on 
disruptions and the flow  of transport documents. Advanced  services such as real-time  information 
accelerate the information  flow and make it more reliable which enhances service quality. 

25. As a result of business strategies which concentrate on core-competences, third party  logistics 
services  are  a  growth  market.  Specialised  logistics  service  providers  stem  from  production 
management,  warehousing  or  transport  operations.  They  are  entering  the  market  in  greater 
numbers.  Their  function  is  to  offer  sector  and  customer-tailored  solutions  for  integrating  intra-
company  flows  of material and goods with inter-company  transport procedures. Increasingly, they 
will  play  a  major  role  in  defining  transport  demand  requirements  on  behalf  of  their  industrial 
clients, and explore how transportation can add value to the overall logistics chain. 

Chapter 3  Obstacles to the use of Intermodal  Freight Transport 

26.  In  the  current  modally-oriented  transport  system,  any  change  of  mode  within  a  journey 
involves a change of system rather than just a technical transshipment.  This creates friction  costs 
which can make intermodal transport uncompetitive in comparison with unimodal haulage. 

Friction costs are a measurement of the inefficiency  of a transport 
operation. 
They are expressed in the form of 

•  higher prices, 
longer journeys, more delays, or less reliability on time, 
• 
lower availability of quality services, 
• 
limitations on the type of goods, 
• 
•  higher risk of damage to the cargo, 
•  more complex administrative procedures. 

27. In order to make intermodal  transport  attractive  for the user,  friction  costs must  be  identified, 
quantified,  qualified  and reduced. 

28. At the same time, logistics services within the intermodal transport chain will need to provide 
added value  in order to offset  friction  costs. The nodes  and transfer  points  in the  network  should 
be particularly  well  suited  to  offering  services  such  as warehousing,  information  management  or 
product  customisation.  The market  must  be able to  identify  and  exploit  these  opportunities,  and 
intermodal  transport  policy  must  eliminate  any  bottlenecks  which  may  prevent  operators  from 
realising such opportunities. 

29.  Intermodal  transport  users  incur  friction  costs  because  of  lack  of  interconnectivity  at  three 
levels: 

(1) infrastructure  and transport means, 
(2) operations and the use of the infrastructure,  especially terminals, and 
(3) modal based services and regulations. 

3.1. Infrastructure  and transport means 

30.  For  a  number  of  high  density  corridors  in  Europe,  a  coherent  network  of  modes  and 
interconnections  between  the  modes  is  lacking.  Missing  stretches  of  infrastructure  within  one 
mode  or  missing  links  between  modes,  however  small  they  might  be,  can  prevent  seamless 
intermodal  chains.  They  impose  additional  transfer  and  friction  costs  on  operators.  Inadequate 
access by rail, road  or waterborne  transport  to existing  transfer  points  can  hamper  the  integration 
of these modes and transfer between modes. They can also prevent an efficient  dispersion  of large 
volumes into smaller ones, e.g. on intercontinental or long-distance transport. 

31.  Because  the current  system  is financed  and  managed  separately  for  each  mode,  responsibility 
for  strenghtening  the links between  them  is unclear. Moreover, the existence  of different  forms  of 
ownership and charging for the use of infrastructure  and terminals docs not facilitate  a transparent 
and co-ordinated  infrastructure  planning at local and regional  level, let alone at European  level. 

32. Intermodal transport  is as strong as the weakest  link  in the transport chain. Therefore,  the lack 
of  interoperability  within  some  modes  poses  significant  problems.  The  obstacles  are  well 
documented.  For  example,  the  different  railway  signalling  systems  and  loading  gauges,  and 
different  bridge heights along Europe's inland waterways are  hindrances. 

33. Technical  specifications  for transport means are often  regulated  differently  by country  and by 
mode,  which  also  raises  questions  of  interoperability.  In  addition,  individual  operators  have  a 
tendency  to  acquire  the  rolling  stock  and/or  vehicles  which  suit  their  operation  and  choice  of 
loading  units.  Dealing  with  a  variety  of  vehicle  types  for  different  operators  is  a  source  of 
congestion  at terminals  and causes inefficiency.  Different  measurements  for  transport  means and 
infrastructure  lower  the  levels  of  interoperability  between  different  modes  as  well,  for  example 
between air and rail cargo. 

34.  The  wide  variation  of  loading  unit  dimensions  across  modes  is another  factor  which  reduces 
interoperability  between  modes.  The  incompatibility  of  the  transport  equipment  for  road,  rail, 
short  sea  and  inland  waterway  traffic  raises  transfer  and  handling  costs  and  necessitates 
cumbersome  transshipment  techniques.  If left  unchanged,  the growing  complexity  of the  logistics 

3  The obstacles and friction  costs have been discussed  and to a large extent  listed by industry experts within the Task  Force  Transport 

Intermodality. 

requirements,  and  the  projected  growth  in  international  trade,  will  reinforce  the  tendency  of 
transport  units  to  diverge.  The  use  of  specialised  loading  units  will  increase  the  occurrence  of 
their empty returns. 

3.2. Operations - The use of the infrastructure 

35. The weakest  links in the current intermodal  transport  system and a major  generator  of  friction 
costs, are the points of transfer  between modes. One reason  is the lack, or inadequacy  of technical 
interoperability  between  modes  and  loading  units.  Another  is that  present-day  terminals,  which 
are usually  marked  by a combination of heavy engineering and manual  processes, are not managed 
efficiently  with  appropriate  telematics  support.  Also,  functionalities  such  as  the  identification  of 
vehicles, loading units and cargo, or the advance information  for disposition  purposes arc often  not 
available on an intermodal  basis.  In order to minimise  the risk  of a break  in the  intermodal  chain, 
operators  increasingly  set  up their own dedicated  terminals. Although  this increases their  control, 
it also raises the cost of the door-to-door transport service to the user, particularly when there is no 
optimal utilisation of capacity. 

36.  Road,  rail,  air  and  waterborne  transport  are  marked  by  unequal  levels  of  performance  and 
service  quality.  This  is  due  partly  to  intrinsic  differences  in  their  cost  structures,  but  also  to 
diverging  levels  of  competition  and  liberalisation  within  each  mode.  The  user  perceives  road 
haulage  as  the  benchmark  for  freight  transport  in  Europe:  it  is  competitive  and  dynamic  and 
continues  to  improve  service  performance  and  reduce  operational  costs.  Modes  where  operators 
are  confronted  with  a  high  threshold  for  access  to  their  infrastructure  tend  to  involve  a 
monopolistic behaviour resulting in a lack of customer-oriented  operations and sub-optimal  use of 
capacity.  Operators,  who  receive  state  aid  and  who  are  not  challenged  within  a  mode  may  be 
tempted  to  use  the  revenues  from  their  dominant  position  to  cross-subsidise  their  operations  in 
another mode, thus distorting competition. 

37.  Because  operators  own  their  own  fleets  or even  infrastructure,  they  often  tend  to  stay  to  one 
mode of transport  and disregard  better options which  may exist on other  modes.  They do not co 
ordinate their information  and marketing  activities and  in many cases are not  fully  able to control 
all the operations and activities that take place within the transport chain from  door to door. 

38.An added  source of friction  costs in intermodal transport is the unequal levels of working time 
in  each  mode.  The  problem  is  not  only  the  effective  duration  of  work,  but  also  the  lack  of 
flexibility  for  arranging  the  working  time  of  drivers  and  crews  in  ways  which  will  match  the 
operations  between  modes.  This  is  particularly  valid  for  terminals.  As  an  interface  between 
modes, terminals are not always able to respect the schedules of trains and ships which operate 24 
hours a day. 

39. Potential intermodal transport users may be discouraged by unnecessary delays in the transport 
chain due to the non-alignment  of timetables between modes.  A consignment  which remains  idle 
for  several  hours, even  days, while  it  is waiting  to  be transferred  to the  next  mode  adds  friction 
costs compared to unimodal  transport. 

3.3. Modal-based  services and  regulations 

40. The absence of a systematic network  for data interchange along the entire intermodal  transport 
chain is a source of high costs and service deficiencies.  It has given rise to the progressive  growth 
of  modal  and  local  systems,  and  in-house  procedures.  Existing  modal-based 
information 
transmission  systems require  users to re-enter  similar data at each  interface,  possibly  according to 

different  message  or  EDI  standards. The  lack  of generalised  systems  for  electronic  communication 
between  the  different  partners  in the  intermodal  chain  prevents  sufficient  forward  and  just-in-time 
planning  of  operations.  The  absence  of  systems  which  enable  tracking  and  tracing  during  the 
whole journey  across modes, does not allow  for  a quick  detection  of errors and  false  routings. 

41.  In the  event  of  damage  to  cargo,  it  is difficult  for  intermodal  transport  users  to  determine  who 
in  the  transport  chain  is ultimately  responsible  for  the  failure,  given  that  international  transport  in 
Europe  is regulated  by  different  liability  conventions  for  each mode.  Operators  in  one mode  have 
a higher  degree  of  liability  than  those  in another  mode.  The  situation  is further  complicated  by  the 
special  liability  regimes that countries  still have  in Europe for  national  transport. 

42.  The  competitiveness  of  intermodal  transport  is  also  being  hampered  by  administrative 
bottlenecks.  Transport  documents  are  to  a  large  extent  still  based  on  paper  and  differ  according  to 
specific  modes,  as  e.g.  in  maritime,  rail,  road  or  air  transport.  The  rules  for  customs  transit 
operations  also differ  according to the  mode. 

43.  In  order  to  guarantee  that  goods  will  arrive  at  their  destination  within  the  given  timeframe, 
intermodal  transport  requires  a  full  and  effective  management  and  control  of  the  door-to-door 
chain.  However,  users  claim  that,  since  most  transport  operators  are  modal-based,  they  are  not 
fulfilling  this  management  and  control  function.  This  is  partly  explained  by  the  competitiveness 
and  flexibility  of  road  transport  in  Europe.  Another  reason  is  that  new  intermodal  services  may 
require  more  planning  than  alternative  single-mode  journeys,  inter  alia  because  of  the  need  to 
ensure that  sufficient  demand  is available to support  regular  services. A further  reason  is a  possible 
lack  of  awareness  of  the  potential  benefits  of  intermodal  transport  and  a  desire  of  operators  to 
optimise the use of their own  assets and  vehicles. 

3.4.  Conclusion 

44.  In  conclusion,  intermodal  freight  transport  in  Europe  today  seems  unable  to  meet  the 
increasingly  complex  logistics  requirements  of  an  economy  which  operates  in  a  competitive  and 
global  market.  Transfers  between  modes  generally  create  too  many  friction  costs  and  do  not  allow 
sufficient  scope  for  offering  value  added  services  in  the  door-to-door  chain.  A  better  use  of  all 
infrastructure  across  the  different  modes  will  therefore  become  imperative,  particularly  in  view  of 
the projected  growth  of freight  transport. 

4 Maritime Transport:  Hague - Visby Rules 1968 
Warsaw Convention  1929 
Convention on the Contract for the International Carriage of Goods by Rail (CIM) 1985 
Convention on the Contract for the International Carriage of Goods by Road (CMR) 1956 

Air Transport: 
Rail Transport: 
Road Transport: 

Chapter 4  Europe's Intermodal  Freight Transport System: 

Steps towards  realisation 

45.  The  challenge  for  policy  makers  is to  provide  a policy  framework  for  an optimal  integration 
between  transport  modes.  Interoperability  and  interconnectivity  will  enhance  the  efficient  and 
effective  use  of  transport  infrastructure  and  capacity.  This  will  facilitate  customer-oriented  door-
to-door transport services which draw on the strengths of each mode. 

The  Commission  advocates  an 
transport  system  which 
encourages co-operation  and complementarity  between the transport  modes 
and which favours competition between transport operators. 

intermodal 

46. The actions described  below represent steps which need to be taken to realise a truely 
intermodal transport system  in the long term.  These actions will require the commitment of 
policy-makers and those involved  in the transport market. 

47. The actions can be grouped in four areas: 

A. Integrated infrastructure  and transport means 
B. Interoperable and interconnected  operations 
C. Mode-independent  services and regulations 
D. Horizontal  activities 

A.  Integrated infrastructure  and transport means 

4.1. A coherent infrastructure  network at European  level 

48.  Infrastructure  planners and managers  in Member  States should co-operate  more at a  European 
level  on a cross-modal  basis  in order to establish  coherent  infrastructure  networks. The  definition 
of  intermodal  links  will  result  in  a  European  network  of  transfer  points,  based  on  criteria  which 
take  into  account  the  actual  and  prospective  flows  of goods, the  requirements  of  the  supply-  and 
distribution  chains, and land-use and environmental  constraints. 

49.  In  the  long  term,  this  co-operative  strategic  approach  at  European  level  should  lead  to  an 
intermodal  infrastructure  network  which provides  for  interoperability  as well  as  interconnectivity 
between the modes (i.e. at a systems  level).  This approach  should  assess the potential  integration 
of  local  and  regional  infrastructure  programmes  into  the  European-wide  framework.  The 
feasibility  of reviving available but unused infrastructure  at relatively low cost should be discussed 
with the Member  States with a view of bridging any missing links.  Furthermore, the  importance 
of evolving operational and service concepts for the overall transport chain and for the functions  of 
transfer  points on short- and medium-hauls should be taken into account. 

Action: Revision of the trans-European transport networks 

50.  The  Community  has  recognised  the  need  for  a  network  approach  to  transport  infrastructure 
planning6 
the  Guidelines  for  Trans-European  Transport 
Infrastructure  Networks  (TEN-T)7.  The  first  general  revision  of  the  1996  TEN-T  guidelines, 

and  has  consequently  adopted 

* A number of European  R'I'O actions, such as EUI'RANET (rail) or EUDET (inland  waterways) can  provide valuable input  in this regard. 
6  Article  129b of the EU  Treaty, While Paper:  "The  future  development of the common transport policy". 
7  Decision on Community  guidelines  for the development of the Trans-1 European transport network  (Decision Nr  1692/96/EC of 23 July  1996, 

envisaged  for  1999, will  reinforce  the  intermodal  design of the TENs. The  European  Commission 
has  therefore  set  up  a  Multimodal  Working  (iroup  with  experts  from  Ihe  Member  Slates.  This 
group will develop an  intermodal  outline  plan  for all  modes of transport  and  will  propose  criteria 
locating  interconnections  and  terminals.  The  work  will  take  account  of  the  results  of  ongoing 
research  projects  related  to  intermodal  policy  and  transport  concepts.  Examples  include  the 
EMOLITE  (Evaluation  Model  for  the  Optimal  Location  of  Intermodal  Terminals  in  Europe), IQ 
(Quality  Improvement  of  Intermodal  Networks  and  Terminals)  and  IMPULSE  (Technological 
Improvements in Intermodal Networks and Terminals) projects. 

4.2. Value adding interconnections and nodes 

51. The points of transfer  between  modes will be the nodes of the intermodal  network.  Activities 
and  services  there  should  add  value  to  the  overall  transport  chain.  Some  of  these  nodes  will 
become  centres of economic  activity,  integrating  regional  economic  supply  and  demand  potential 
into  competitive  logistics  structures  and  markets.  The  establishment  of  production  or  product 
customisation  facilities, the networking of local  supply-chains  and the organisation  of  distribution 
patterns  centered  around  nodal  points  will  take  these  nodes  beyond  simple  transport-related 
functions.  For  transport  service  providers  and  transport  operators,  support  functions  such  as  the 
possibility  of  returning  (leased)  vehicles  or  loading  units  for  a  range  of  modes  could  be  an 
interesting argument in support of intermodal  transport. 

52. New  transshipment  concepts  and  enhanced  automation  can  reduce  friction  costs  for  users  by 
speeding up transfers  between modes.  They  will  allow  for  an efficient  dispersion  of high  density 
transport  flows  into  lower  density  regional  flows.  They  will  also  increase  the  opportunity  for 
consolidating transport  flows  from  different  origins into common  flows  on the principal networks. 
Terminals and nodes will  function  as interfaces  between  high  volume  transport  corridors and  low 
volume regional and local networks. 

Action: Identification of opportunities and elimination of bottlenecks 

for  adding value to logistics 

53. The Commission  will  support a study and finance demonstration  projects  on the  opportunities 
for providing  logistics services in the transfer  points, and the potential  of these  services for  adding 
value to the overall  supply  and distribution  chain.  The  study  will  highlight  the  requirements  for 
integrating transport and logistics, and, in this regard, will assess the economic efficiency  of nodes 
and  transfer  points.  The  Commission  will  take  appropriate  initiatives  with  the  sector,  e.g.  the 
establishment  of Round Tables, to eliminate possible bottlenecks such as restrictive opening hours 
or burdensome administrative procedures. 

4.3. Harmonised standards for loading units 

54.  The  variety  of  loading  units  (such  as  containers  of  different  sizes,  swap-bodies)  should  be 
assessed  according  to the  requirements  of  intermodal  transport  and  their  users. Harmonisation  of 
standards for  sizes, weights and other features  across modes will facilitate  intermodal transfers  for 
a  high  proportion  of  goods  to  be  transported.  New  loading  units,  especially  for  smaller 
consignments, and  flexible  transshipment  technologies  will  allow  modular  capacity  planning  and 
utilisation.  Flexible  leasing  solutions  will  enhance  innovation  and  enable  transport  operators  to 
reduce their fixed costs. The more efficient  use of  loading  units in pooling  or circulation  systems 
will contribute to higher load factors and avoid empty hauls. 

Official  Journal, L228, Volume 39, 9  September  1996) 

g 

Part of the Transport programme  in the 4th  Framework  Programme  for Research,  Technological  Development and  Demonstration  1994-98 

Action: Steering the process  of harmonisation of loading units 

55.  Whilst  respecting  the  existing  EC-legislation  for  dimensions  for  road  trucks  and  buses9,  and 
building  on  the  work  of  different  standardisation  bodies,  the  Commission  will  set  up  working 
groups  with  different  market  sectors to analyse  bottlenecks  and the opportunities  for  harmonising 
the  standards  of  loading  units  across  transport  modes  and  industries  in  Europe.  Given  the 
importance  of  global  trading  practices,  harmonised  standards  will  need  to  be  identified  and 
developed.  They  will  also  need  to  take  account  of  the  impact  of  vehicle  certification  on  the 
interconnectivity  between  modes. The conclusions  of a study  on the  impact of different  standards 
for rolling stock, vehicles and vessels will be included.  The work will result in a definition  of best 
practices and  strategies  for  harmonisation  efforts.  The Commission  intends that  it  should then act 
as a driving force  in the relevant standardisation  bodies and international  organisations. 

B. Interoperable and interconnected  operations 

4.4. Intermodal freight operators 

56. Europe's transport market will see intermodal  operators compete with each other across modes 
and  increase  their  market-share.  In  addition  to  operators  specialised  in  carrying  goods  on  certain 
modes  of  transport,  a new  generation  of  integrated  operators  will  provide  transport  services  on a 
door-to-door  basis. These operators will have a neutral view of the different  modes.  They will try 
to  find  the most  cost-effective  combination  of modes  and  services,  in such  a way  that  it adds the 
most  value  to the  entire  supply  chain. Their  services  will  be tailored  to the needs of the  end-user 
and will  include a full  control of the operations and management  of the  information  on the  goods 
transported from  door-to-door. 

57.  Management  and  control  of  the  complete  door-to-door  chain  will  be  essential.  In  order  to 
achieve  this  control,  the  integrated  operator  will  either  have  to  operate  the  vehicles  in  which  the 
goods are carried  (carrier-type) or ensure the control through the effective  organisation of the chain 
and management of the relevant information  (freight  forwarder-type). 

Action: Market analysis aiming at further  integration of transport and logistics 

58. The  Commission  will  conduct  a survey  of the various types  of  actors  in the transport  market, 
analysing  their  size  and  the  type  of  services  they  offer  or  require.  The  survey  will  identify  the 
obstacles  and  opportunities  that  each  type  of  actor  faces  in  order  to  fulfil  intermodal  transport 
functions  and  meet  logistics  requirements. 
It  will  highlight  the  commercial,  technical  and 
regulatory  areas  where  there  is  scope  for  action  by  the  authorities  or  the  actors  involved  in  the 
market. 

Action: Prolongation of PACT 

(Pilot  Actions  for  Combined  Transport)  supports  operators  in 
59.  The  PACT  programme 
launching  market-oriented  and  innovative  projects  in  the  field  of  combined  transport  (rail,  road, 
inland  waterways  and  coastal  shipping).  Under  the  first  PACT  programme  (1992  -  1996),  66 
projects  on  33 routes  in  all  Member  States  were  co-financed.  The  Commission  has  proposed  to 
extend the programme until 2001 and has included  Short Sea Shipping as an additional  mode. 

9  Directive 96/53, O.J.L. No. 235, 17.09.96 

Commission  Decision  concerning financial assistance to pilot actions  for combined  transport 93/45/liEC of 22.12.92, O.J. No.  16,25.01.93, 
and the Proposal  for a Council  Regulation concerning the grant of Community financial assistance  for actions to promote combined  goods 
transport, COM(96) 335 final, 24.07.1996, O.J. No. 343, 15.11.1996 

10 

4.5. Open access to  infrastructure 

60.  The  separation  of  infrastructure  management  and  operations  will  guarantee  open  and  non 
discriminatory  access to the network to new and existing  operators."  It will  include  an  adequate 
level of transparency as far as infrastructure  charges and rules are concerned. 

Action: Integration of rail freight freeways  in an intermodal context 

61.  The  issue of open  access  to  infrastructure  for  all  licensed  operators  is  particularly  relevant  in 
rail.  The  Commission  proposed 
the  creation  of  trans-European  Rail  Freight  Freeways, 
characterised by open access and the removal of a wide range of obstacles to international  traffic12. 
The  idea  is  being  implemented  by  railway  companies,  Member  States  and  shippers.  The  first 
freeways  are  expected  to  become  operational  before  the  end  of  the  1997.  As  the  freeways  are 
likely  to become  an  important  element  of  the  intermodal  transport  system,  the  Commission  will 
give priority to their development1  . 

4.6. Infrastructure  charging and transport pricing 

62. Taxes and charges are currently  set in very different  ways across different  modes of transport 
and  there  are  large  differences  in  the  extent  to  which  infrastructure  and  external  costs  are 
covered 
.  This  causes  two  problems.  First,  modal  choices  are  distorted,  due  to  different  cost 
coverage ratios and the use of different  bases for cost imputation  (e.g. average, marginal  costs and 
lump  sum  charge).  This  leads  to  inefficiencies  in  combining  different  modes  in  an  intermodal 
transport chain. Secondly, the existence of different  pricing  systems, which have developed  along 
purely  modal  lines, implies that the charges for the constituent parts (e.g. road  and  rail) are based 
on  different  and  sometimes  conflicting  principles.  It  is  therefore  generally  hard  to  establish  the 
price  base  for  the  intermodal  operations.  This  is  hindering  the  very  development  of  intermodal 
services. 

Action:  Development of common charging and pricing principles. 

63.  The  Commission  will  develop  common  charging  and  pricing  principles  for  the  different 
modes.  The  development  of  such  a  set of  principles  will  obviously  have  to  be  gradual  and  take 
account  of the  specifics  of the various  modes. The  objective  is to evolve  existing  legislation  and 
develop new legislation where required with a view to ensuring a greater degree of homogeneity in 
underlying principles for infrastructure  charging. 

4.7. Intermodal transport and competition 

64. Basic principles will have to apply to all transport operators, irrespective of the mode in which 
they  operate.  This  should  create a level  playing field across  Europe  for  all  transport  modes. The 
autonomy  of  the  operator  will  be  maintained.  Operators  undertaking  business  at  their  own 
commercial  and  financial  risk  should  not  find  themselves  unduly  disadvantaged  by  competitors 
who enjoy  state aids. 

1 '  For rail transport see Art. 6 and  10 of Dir. 91/440/EEC, Dir. 95/19/EC and Dir. 95/18/EC. 
12 European Commission  White Paper:  A strategy  for revitalising the Community's railways", COM(96) 421 final, 30.07.96, 

and COM(96) 42112 final June  1996 

13  see the Communication  on trans-European  Rail Freight Freeways [COM(97)242 final] 29.05.1997 
14 see Green Paper on Fair and efficient  pricing (COM(95) 691 final) 

11 

65. New rules will  need to address the competition  between  intermodal  operators which operate in 
several  modes at the same time.  A key element will be the scrutiny and regulation  of any abuse of 
dominant  positions  by  carriers  and  operators.  Examples  of  illegal  practices  by  dominant  players, 
which carry heavy fines under EC law, include the cross-subsidisation  of revenues from  operations 
in  one  mode  in  order  to  eliminate  competition  in  another,  structural  foreclosures  of  markets, 
predatory pricing and the exploitation of sub-contractors. 

Action: Revision of Regulation 1107/70 with regard to aid in combined transport 

66.  The  Commission  will  propose  the  necessary  modifications  to  update  Regulation  1107/7015 
which,  among  others, covers aid to combined  transport.  The  update  will  bring  the  Regulation  in 
line  with  recent  developments  and  take  account  of  the  need  to  improve  the  competitiveness  of 
combined  transport.  At  a  later  stage  the  Commission  will  undertake  a  general  revision  of  Reg. 
1107/70 in order to create a coherent framework  for aid in all inland transport modes. 

Action: Intermodal guidelines for  state aid 

67.  Furthermore,  the  Commission  will  continue  to  examine  several  existing  state  aid  regimes  in 
transport  and assess their potential  for  distorting  the transport  market  and to ensure  that  any  state 
aids  given  within  one  mode  do  not  affect  the  efficiency  of  intermodal  transport  chains.  Where 
necessary,  it  will  revise  existing  state  aid  regimes.  The  Commission  will  also  examine  the 
possibility  of defining  guidelines  for the provision  of state aids to  intermodal  transport  operators, 
for sectors not covered by Regulation  1107/70. 

Action:  Application  of competition rules to Intermodal Freight Transport 

68.  Equally  important  is  the  permanent  monitoring  and  regulation  of  restrictive  agreements 
between  operators  across  different  modes  leading  to  undue  distortion.  The  Commission  is 
increasingly  adopting  a horizontal  approach  to the transport  market,  whereby  a transport  mode  is 
not considered as a specific  sector with special needs.  It is on this basis for instance that the inland 
rate fixing  by  liner  shipping  conferences  is reviewed.  The report  of a Committee  of wise men  set 
up  to  advise  on  the  inland  rate  fixing  will  be  taken  into  account  by  the  Commission  when  it 
elaborates  this part of its policy 
.  The co-operation  agreements  between  railway  companies  will 
be reviewed  in the same light. On the basis of an assessment  of a sufficient  number  of  individual 
cases  the  Commission  will  examine  the  need  for  guidelines  covering  intermodal  collaboration 
agreements with the view to clarify  the application of the competition rules. 

4.8. Co-ordination of intermodal timetables 

69. The co-ordination  of timetables across modes, both  at European  (for  long-distance  hauls)  and 
at regional (for  local hauls) level, will be facilitated  through an information  network  which acts as 
a  clearing  mechanism  (electronic  forum)  where  transport  operators,  infrastructure  managers  and 
service providers will meet. From a Community  point of view such co-ordination will  particularly 
be important for cross-border hauls and high-density, fast-flowing  corridors where different  modes 
contribute to an intermodal chain. 

15 Regulation of the Council: Granting of Aid for Transport by Rail, Road and  Inland  Waterways, O.J. No.  130,  15.06.70 
16  At this  stage  there  hardly  are  any  convincing  arguments  that  collective  inland  price  fixing  is  indispensable  for  the  provision  of  intermodal 
transport  services.  Accordingly,  the  Group  currently  takes  the  view  that  there  is  no  reason  to  grant  exemption  in  respect  of  collective  inland 
price fixing.  (Part III: Conclusions  and Recommendations  of the "Interim  Report of the  Multimodal  Group", Office  for  Official  Publications of 
the European Communities, March  1996 (ISBN  92-827-6964-X)) 

Action: Electronic forum for  coordination of timetables 

70. The  European  Commission,  in co-operation  with relevant  service providers,  will  promote  the 
use  of  information  networks  for  establishing  an  electronic  forum  where  operators  of  transport 
services can meet to align their timetables in an intermodal context.  The Commission will act as a 
catalyst in identifying  best practices.  The service will be mn by third parties. 

12 

C. Mode-independent services and regulations 

4.9. Information  and management systems 

71.  The  use  of  telematics,  combining  informatics  and  telecommunications,  will  increase  the 
importance  of  customer  oriented  transport  services  which  provide  automated  interfaces  between 
the  order  of  goods,  transport  management,  invoicing  and  payments.  Open  and  easy-to-use 
information  systems will enhance the widespread  use of advanced electronic services. 

72. In order to facilitate  the management and control of the transport  chain from  door to door, the 
information  and management  systems will cover several  modes and will be open to any  interested 
service provider through an open systems architecture. The systems will provide the end-user with 
real  time  information  on  possibilities  for  intermodal  transport  as  well  as  the  status  of  their 
consignments.  At the  same time, they  will  enable  an optimal  co-ordination  between  operators  in 
the  same  transport  chain.  The  systems  will  allow  a  high  degree  of  forward  planning  and  offer 
further  opportunities for integrating transport to the management of the full  supply chain. 

73.  Harmonised  communication  standards,  procedures  and  transport  documents  (waybills)  on  an 
EDI  basis  will  increase  the  use  of  electronic  transactions  in  transport.  Tracking  and  tracing  of 
cargoes  across  modes  in  Europe  will  be  possible  by  the  adoption  of  standard  procedures  for 
Automatic  Equipment  Identification  (AEI)  and  for  reading  barcodes.  The  dissemination  of 
electronic  commerce  will  provide  the  platform  for  the  paperless  administration  of  transport 
operations. 

Action:  Intermodal  real-time electronic information  and transaction  systems 

74.  The  Commission  is  setting  up  a  working  group  of  experts  in  order  to  formulate  a  common 
architecture  for  intermodal  real-time  electronic  information  systems  and  to  identify  the  obstacles 
which stand in the way of creating such systems. 
75. Information  systems should provide for such functionalities  as: 

- the provision of information  (timetables17, operators and terminals, average prices, 
average transit times,...); 
- booking and reservation of space and services; 
- contracting; 
- tracking and tracing of consignments; and 
- communication between operators in the door-to-door transport chain. 

76.  Once  the  intermodal  real-time  systems  architecture  has  been  established,  it  should  become 
commercially driven and  self-supplying. 

77.  The  Commission  will  provide  recommendations  on  a  legal  framework  where  that  may  be 
deemed indispensible, on the type of information  that is required and possible message  formats. 

Hence the importance of the electronic forum for coordination of timetables. 

13 

Action: Information Society technologies to the benefit of intermodal transport 

78. The use of existing information  infrastructures  fixed  or mobile as short range communications^ 
satellites  or  GSM  to  determine  and  communicate  the  position  of  consignments  can  substantially 
enhance  the  tracking  and  tracing  of  cargo  across  modes.  However,  despite  the  readiness  of 
technical  solutions,  the  exploitation  of  the  possibilities  offered  by  these  technologies  is  mostly 
limited  at this stage to modal-based  systems.  Therefore,  the Commission  will  continue to  support 
research  for  the  creation  of  interoperable  tracking  and  tracing  systems  in  intermodal  transport, 
including  a  cost-benefit  assessment  of  the  use  of  satellite  technology  in  intermodal  transport. 
Together  with  the  relevant  market  parties,  the  Commission  will  define  a  process  architecture 
integrating  the  positioning,  communication  and  identification  functions.  The  issues  covered  will 
include  standardisation  requirements  (message  formats  and  type  of  information  transmitted),  the 
choice  of  transmission  means  (frequencies,  bandwidths,  and  infrastructure)  and  the  system's 
financing  on an intermodal  basis (cost allocation). The Commission  will examine the  possibilities 
offered  by  the  guidelines  on  the  trans-European  Telecom  networks  to  support  the  creation  of 
intermodal freight  logistics services that are interoperable at a European level. 

Action:  Paperless transport: Harmonisation of standards 

79.  In  an effort  to  disseminate  electronic  commerce  in  transport,  and to  harmonise  standards  for 
EDI, AEI and barcodes, the European  Commission  will act as a driving force  by bringing  together 
representatives  from  different  market  sectors  and  stimulating  further  efforts  for  voluntary 
standardisation  frameworks  for electronic systems. 

80.  At  present  transport  documents  and  procedures  differ  between  modes  and  operators.  The 
transition from  paper-based documents to electronic messages, which is currently taking place in a 
number  of transport  modes, provides  a window  of  opportunity  for  creating  a uniform  system  for 
electronic  transport  documents  and  procedures.  In  order  to  establish  the  appropriate  criteria  for 
standardisation,  the  Commission  will  start  a  dialogue  with  relevant  parties  (industry,  operators, 
authorities).  This  effort  will  encompass  the  customs  procedures  for  transit  and  import/export,  in 
the  framework  of  the  current  computerisation  of  the  Community  Transit  regime  and  the 
implementation  of the Customs 2000 programme. 

4.10. Liability 

81.  The  intermodal  operators  should  be  able  to  offer  their  customers  a  clear  set  of  transparent 
liability  conditions  and procedures  for  any cargo that  is damaged  or lost  in its journey.  From  the 
end-user's point of view, the liability rules should not be mode-specific  and should not  distinguish 
between national and international transport.  In addition to covering the actual transport  of goods, 
these  rules  will  also  cover  the  damage  or  loss  that  may  result  from  the  performance  of  a  value 
added logistics activity in the intermodal chain, for example warehousing or product  customisation 
at the nodal point. 

Action: Promotion of voluntary intermodal liability regime 

82.  The  Commission  has  called  for  a  working  group  of  experts  to  examine  the  possibility  of 
creating  an  intermodal  liability  concept.  The  Commission  will  support  initiatives  by  those 

IK It will  also promote actions  for participation  by relevant companies in the INK) 2000 programme which can support the creation of  intermodal 
information  content services. The Commission will also continue to promote standardisation  activititcs within CEN TC 278 (Road Traffic  and 
Transport Telematics). In particular, emphasis will be given to work on a European Freight and Fleet Management  Architecture  standard  which 
takes account of freight  intermodality  architecture needs. 

involved  in  the  market  to  establish  voluntary  liability  rules  as  part  of  a door-to-door  intermodal 
service.  It  will  play  the  role  of  a  catalyst  in  bringing  relevant  operators,  users  and  insurance 
companies together.  In a second  phase, the  Commission,  in close  cooperation  with  the  Council, 
will  examine  how  to  reopen  the  discussion  on  the  International  Convention  on  Multimodal 
Transport which was adopted in the UNCTAD framework  in 1980. 

14 

P> Horizontal activities 

4.11. Research and innovation 

83.  Through targeted projects for research and technological development (RTD), the  Commission 
is giving  support to the market for  innovation in the use of new technologies, the development  of 
new  services  and  the  improvement  of  productivity.  At  this  stage  in  the  Fourth  Framework 
Programme  for  RTD  (1994  -  1998),  the  Commission  is  co-financing  more  than  25  large-scale 
projects dealing with intermodal network efficiency,  transfer  points and the use of information  and 
communication  technologies.  Other  projects  develop  new  appropriate  instruments  for  decision 
making support in order to link market and policy requirements.  The latter projects  address legal, 
institutional and economic issues. 

84.  In  1995,  the  Commission  set  up  the  Task  Force  Transport  Intermodality  with  the  aim  of 
developing  a  consistent  intermodal  transport  development  effort,  co-ordinating  the  different 
relevant  RTD  programmes 
at  European  level  and  linking  research  with  policy  and  industry 
needs.  Numerous  consultations  with  all  intermodal  interests  have  ensured  that  the  Task  Force's 
work and the Commission's RTD priorities meet the market's needs.2<) 

Action: Additional  Call for  Proposals for  demonstration projects 

85.  The  adoption  of  the  Commission's  proposal  concerning  supplementary  funding  under  the 
Fourth  Framwork  Programme  by  the  European  Parliament  and  the  Council  will  enable  the  Task 
Force Transport  Intermodality to co-finance  RTD projects which demonstrate the  competitiveness 
of  intermodal  transport  over  short  and  medium  distances,  the  potential  contribution  of  freight 
freeways, and the implementation of new concepts for distributing goods in urban areas. 

Action: Establishment of a research network 

86.  In order to enhance the  synergy  between  researchers  and  the  intermodal  transport  market, the 
Commission  has  launched  the  establishment  of  an  open  European  network  of  universities  and 
research  institutes  dealing  with  intermodality,  INTERACT.  The  network  will  be  a  forum  for 
discussing  and  planning  RTD projects  and  linking  their  results  to  market  needs.  It  will  work  in 
close connection with the Task Force Transport  Intermodality. 

Action: Research in the 5th Framework Programme 

87.  In the  5th  Framework  Programme  the  Commission  has proposed  to  cover  Transport  research 
under  the  two  major  themes  "sustainable  growth  and  development"and  "creating  a user  friendly 
information  society".  In  both  themes  the  issues  of  promoting  intermodal  transport  will  be 
addressed;  in the case of the  first  programme  through  the  key  action  on  sustainable  mobility  and 
intermodality,  in the  second  through  the development  of appropriate  information  society  systems 

19 

The relevant programmes are the Transport research  programme, Transport  telematics, Industrial  and materials technologies, the  Information 
technologies  programme ESPRIT, and the Energy programmes JOULE/TIIERMIE. 

20 

Task Force reports: Diagnosis report from  01/03/1996, Inventory report from  28/02/1996, Progress report from  12/03/1996, Priority  report 
from  29/02/1996, Prioritisation of RTD tasks, Reports of the  Working Panels from  23/05/1996, Final report from  27/09/1996. 

15 

and  applications.  Aiming  at  sustainability  it  will  look  at  possibilities  for  enhancing  efficiency, 
quality,  safety,  security  and  environment-friendliness,  and  will  highlight  human  aspects. 
Intermodality  is, in addition  to the developments  within  the  individual  modes* a crucial  point  for 
developing  sound  solutions  for  interconnecting  networks  and  nodes  to  a  common  European 
transport system which reinforces  industrial  competitiveness and increases the quality of life of the 
European citizens. Demonstrations  will play a prominent role in the programmes  in order to show 
the feasibility  of innovative solutions. 

4.12. Evaluation and  benchmarking 

88. Benchmarking  is used by many companies in different  sectors in order to measure their output 
against the performance  of their competitors.  It will also be applied to certain policy areas 2I. 

Action: Development of methodologies for  benchmarking in transport policy and intermodality 

89.  The  Commission  will  develop  appropriate  methodologies  and  criteria  for  evaluation  and 
benchmarking  in transport policy. On this "macro-economic" level, the assessment  for  intermodal 
transport  policies will incorporate the needs and expectations of the European citizens, i.e. impact 
on the environment, employment and social and regional development and cohesion. 

90.  Benchmarking  on "micro-economic"  level  will  focus  on the  possibility  of common  standards 
for  the  quality  performance  of  terminals  and  transport  chains.  The  Commission  has  already 
launched a study on benchmarking  in the railway sector. 

Action: Establishment of an European Intermodal Reference Center for  Freight Transport 

91.  In  order  to  identify  best  practices  in  intermodal  transport  the  Commission  will  support, 
together  with  relevant  parties, the  establishment  of  a European  Intermodal  Reference  Centre  for 
freight  transport.  In  addition  to  monitoring  trends  in  intermodal  demand  and  supply,  this 
Reference  Centre will  disseminate  best practices  in intermodal  transport  from  around  Europe  and 
raise the awareness of the innovative potential of intermodality. A call  for tender will be published 
in the course of 1997. 

4.13. National Round Tables 

92.  Competitive  intermodal  networks  require  the  full  participation  of  all  actors  in  the  chain. 
Several  actors  such  as a number  of  road  hauliers,  freight  forwarders  or  shippers  are  traditionally 
working  in  modally-oriented  or  segmented  transport  markets  and  are  not  aware  of  their  possible 
function  in  an  intermodal  transport  chain.  A  lack  of  awareness  and  information  often  creates 
unnecessary  bottlenecks,  which  can  be  removed  through  co-operation  between  actors  at  a  local 
level. 

Action:  Organisation of Round Tables by Member States 

93. The Commission  will encourage national  authorities to launch a Round Table  in each  Member 
State.  The  Round  Tables  should  aim  to  facilitate  the  formation  of  regional  or  local  intermodal 
communities  where  different  industries  and  public  and  administrative  bodies  adopt  common 

21  Communication  from  the Commission  to the European  Parliament and the Council  "Benchmarking the competitiveness of European  industry" 

COM(96)  463 final, 09.10.1996 

16 

approaches to  intermodality  and jointly  remove local  obstacles.  The transfer  nodes would  appear 
to be the appropriate platform  for such  intermodal communities to grow. 

4.14. Intermodal freight  statistics 

94. In order to improve the basis of transport policy  measures in a competitive market,  intermodal 
statistics  which  can  provide  details  on  the  volume  and  structure  of  transport  flows  are  needed. 
Data on the transport modes and loading units used, on the types of goods transported  and on other 
quality  parameters  of  transport  is  required  in  order  to  allow  a  comparison  to  be  made  with 
unimodal transport. The organisation of intermodal  statistics in some countries shows that shippers 
as well as transport  operators can be direct  suppliers of relevant  data, and that data collection  can 
be  organised  by  private  organisations  on  a  self-supporting  basis.  In  order  to  collect  the  relevant 
information  in  a  cost-effective  way,  the  future  system  should  be  based  on  sample  services, 
complemented by information  from modal statistics and traffic  counts. 

95.  The  increasing  use  of  electronic  data  interchange  and  new  technologies  such  as  GPS  will 
facilitate  the collection  of intermodal transport  statistics  in the future.  The promotion  of the use of 
EDI  techniques  for  assessing  transshipment  points  and  the  successive  parts  of  a  transport  chain 
will be an essential component in the new statistical system to be considered. 

Action: Development of concepts for  intermodal statistics 

96.  The  Commission  is  currently  examining  the  appropriate  concepts  for  future  intermodal 
transport statistics, in order to direct further  work on the collection  and analysis of data. 

Chapter 5  Intermodality  and other policy areas 

97.  The  inter-relationship  between  transport  policy  and  other  areas  of  policy  making  must  be 
highlighted  clearly.  For  intermodality,  this  means  further  cross-fertilisation  and  coordination 
between the following  areas: 

5.1. The Information  Society 

98.  As  far  as  the  technologies  of  the  Information  Society  have  been  introduced  in  industrial 
production  processes they  have  led to significant  changes in the structure  and  management  of the 
supply  and  distribution  chain.  Information  technologies  have  become  key  instruments  for  the 
management of complex, multi-party cooperation, and thus in logistics. In addition, the continuous 
development  of  the  communication  infrastructures  in  Europe,  particularly  the  mobile  networks 
(GSM) and the development  of multimedia  devices offering  easy  use and  access to the  European 
citizen  are  creating  new  opportunities.  It  is  necessary  that  appropriate  actions  are  undertaken  to 
exploit these opportunities and new technologies  for intermodal  operations and  to inform  and train 
intermodal operators and users. 

99. Electronic  services may  in certain  cases be able to replace physical  transport  (e.g.  in the field 
of  printed  information,  software  transfer  in  concurrent  engineering/proto-typing/manufacturing), 
but they also  increase  it, e.g. the number of trips  for  delivery, the number  of  small  consignments, 
the dispersion of receivers due to electronic commerce'  . 

Communication  of the Commission  "A European  Initiative  in Electronic Commerce" COM(97)  157,  16.04.1997 

17 

100.  Research  is  needed  in  order  to  estimate  and  assess  the  interrelationship  of  electronic 
commerce,  logistics  and  transport  operations  and  the  long-term  effects  of  information  and 
communication  technologies. 

5.2. Regional  development  and  cohesion 

101.  Intermodal  infrastructure  planning  should  take  account  of  the  interaction  between  nodes  and 
terminals,  transport  flows,  industrial  relationships  and  the  size  of  regional  markets  on  the  one 
hand,  and the  impact  on their  surrounding  regional  and  local  environment  on the other  hand. 

102.  Intermodal  transport  provides  a  new  opportunity  to  choose  between  modes.  Taking  into 
account  the  peripheral  status  of  many  cohesion  countries,  intermodal  transport  can  contribute  to 
their  better  integration  into  the  trans-European  network.  Intermodality  is  expected  to  enhance 
cohesion  and  retain/attract  industrial  locations,  services  and  employment  if  regional/local  nodes 
integrate  the  supplier  and  consumer  market  into  larger  structures.  Therefore,  investment  in 
intermodal  transfer  points  and  modes  is  important,  e.g.  in  order  better  to  integrate  short-sea 
shipping  and/or  rail  transport. 

103.  Research  will  provide  new  approaches  for  the  localisation  of  nodes  and  terminals  and 
improve  the  knowledge  about  the  interactions  between  industrial  locations  and  activities,  transport 
systems  and  regional  markets.  It  will  therefore  facilitate  the  necessary  decisions  and  contribute  to 
evaluation  and  benchmarking  exercises on policy  level. 

5.3. The  integration  of  SME's 

turnover.  Because 

104.  Small  and  medium-sized  enterprises  (SMEs)  account  for  almost  70%  of  the  total  EU 
in  short-distance  procurement  and 
company 
distribution,  they  influence  the  structure  of  the  Community's  trade  flows.  They  also  play  an 
important  role  in  the  transport  sector.  Their  needs  and  opportunities  are  therefore  important  in 
defining  the  intermodal  transport  system  of  tomorrow. 

involved  mainly 

they  are 

105.  In  order  to  retain  their  competitiveness,  specific  actions  should  be  considered  to  prepare 
SME's  for  the  substantial  changes  they  have  to  face  due  to  intermodality.  These  actions  may  lie  in 
education,  training  and  information  on  the  market  as  well  as  in  the  application  of  new 
technologies, providing  easy  access to information  systems and  services. 

5.4.  Environment 

106.  Sustainable  mobility  in  line  with  environmental  objectives  is  the  main  objective  of  the 
Common  Transport  Policy.  As  different 
the 
environment,  for  example  in  terms  of  their  emissions,  energy  efficiency,  noise  and  land-take, 
promoting  the  development  of  more  environmentally  friendly  transport  modes  in  the  transport 
market  is a major  way  of  improving  the transport  system's  environmental  performance  as  a  whole. 
In  this  light,  the  decline  in  the  modal  share  of  railways  is  of  special  concern.  Environmental 
problems  caused  by  road  traffic  are  particularly  severe  in  certain  transit  regions  where  a  shift  to 
rail transport  offers  an obvious  remedy. 

transport  modes  have  difièrent 

impacts  on 

107.  The  action  programme  put  forward  in  this  communication  will  promote  a  shift  to  railways 
and  waterborne  transport  by  reducing  friction  costs  in  the  transport  chain  and  facilitating  modal 
transfers.  It is thus part of an overall policy of sustainable mobility. The effectiveness  of these and 
of other  measures  already  put  forward  by the  Commission  in,  inter alia,  its  Green  Paper  of  Fair 
and Efficient  Pricing and in its White Paper on Revitalising  the Community's  Railways will  have 
to be measured not least on whether they will halt and reverse the decrease in the railways' market 
share in Europe. 

Conclusions 

108. Intermodality  is an essential  component  of the  European  Union's  Common  Transport  Policy 
for  sustainable mobility.  It provides the policy tool  for a systems approach to transport  in view of 
integrating  the  different  modes  into  one  coherent  transport  system  which  caters  for  the  needs  of 
Europe's citizens and industry. 

109. The  action  programme  for  intermodal  freight  transport  in  Europe  is  a next  step  in  realising 
the  Common  Transport  Policy. 
It will  require the co-operation  of transport  operators  and users, 
the  relevant  supply  industries,  Member  States,  and  regional  and  local  authorities.  The  main 
challenge  will  lie  with  the  market,  namely  to  organise  seamless  and  customer-oriented  door-to-
door  transport  services  which  draw  on  the  strengths  of  all  modes  and  which  make  use  of  all 
transport infrastructure  and capacities. 

110. The role of the Commission  and the Member  States is to define  the framework  in which  the 
market  can  operate.  The  rules  and  conditions  must be  such  that  they  create  a level  playing field 
for all operators and that they  foster  innovation.  Limiting new Community  legislation to where it 
is most cost-effective,  the Commission rather advocates a co-operative  approach  with all  relevant 
interests.  It therefore  intends to  act  as a catalyst  in these  areas where the  market  does  not  easily 
solve problems on its own and where a Commission action can bring clear  benefits. 

111.  The  Commission  will  undertake  activities  to  promote  the  opportunities  for  intermodal 
transport  and raise the awareness  of the relevant  bottlenecks to be eliminated.  It will  increase  its 
support to the development  of competitive  intermodal  transport  solutions through positive actions 
such as the financing of research and demonstration projects. 

Annex  1 

}^^^KÈ§^^^^^^M^^K 

Commission  Community 

Member 
/:.:;':States^: 

Actors 

involved 

*  Revision  of the  trans-European 

* 

transport  networks 
Identification  of opportunities and 
elimination  of bottlenecks  for 
adding  value to  logistics 

*  Steering the process of 

harmonisation  of loading  units 

X 

X 

X 

(Legàlàcts) 

X 

X 

Regional/ 
•'•;••• Local'W<;,: 
a0imities 

^ 

Research  & 
Development 

X 

X 

^IHWHMBH^^HHBHHS^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^HI^^^^^^K 
*  Market  analysis  aiming at  further 

X 

X 

X 

integration  of transport and 
logistics 

*  Revision  of Regulation  1107/70 
with  regard to aid in  combined 
transport 

*  Electronic  forum  for  coordination 

of  timetables 

X 

X 

Mode4ruiepettd<ïnt aërvfëëé ao<ï r*gwtatïo»$ 
X 

* 

Intermodal  real-time  electronic 
information  and  transaction 
systems 

*  Promotion  of  voluntary 

* 

intermodal  liability  regime 
Information  Society  technologies 
to the benefit  of  intermodal 
transport 

*  Paperless  transport: 
Harmonisation  of 
message  and document  standards 

Horizontal  activities 

*  Additional  Call  for Proposals  for 

demonstration  projects 

*  Establishment  of an  intermodal 

freight  transport  research  network 

*  Research  on intermodal  freight 
transport  in the 5th  Framework 
programme 

*  Development  of  methodologies 
for  benchmarking  in transport 
policy and  intermodality 
*  Establishment  of a  European 

Intermodal  Reference  Center  for 
freight  transport 

*  Development  of concepts  for 
intermodal  freight  statistics 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

/*? 

Annex 2 

WÊÊ^^^^^^^^^^^ÊÊÊ 

Commission 

Community 
(Legal acts) 

Member 
States 

Regional/ 
Local 
authorities 

Industry 

Research & 
Development 

AcWrs  involved 

X 

X 

*  Prolongation of PACT 
* 

integration of rail freight  freeways 
in an intermodal context 

*  Application of competition  rules 
to intermodal freight  transport 

*  Further development of 
Community rules for 
infrastructure  charging and 
transport pricing 

*  Transport  Intermodality Task 

Force 

*  Research on intermodal  freight 

transport in the Fourth  Framework 
Programme 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

fa 

ISSN 0254-1475 

COM(97) 243 final 

DOCUMENTS 

EN 

07  02 

Catalogue  number  :  CB-CO-97-261-EN-C 

ISBN 92-78-20758-6 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

A\