The LTE-group is adapting to the changing dynamics in the transportation industry by venturing into rail logistics to distinguish itself from emerging competitors among container shipping companies. The conflict in Ukraine has reshaped supply chains, resulting in increased revenue for rail transport firms handling the transportation of grain, iron ore, alumina, and steel. Despite a positive trajectory with 13,000 trains and a sales volume of nearly 200 million euros, Mag. Andreas Mandl highlights the need for caution and emphasizes the underutilized potential of rail infrastructure.
Two crucial points shape the future landscape of rail logistics. Firstly, there’s a growing trend of transitioning more transports to the sometimes deteriorating rail system, posing a risk of network collapse due to prolonged construction projects. Secondly, the emergence of new players in European rail freight transport, particularly container shipping companies building their own train systems. Andreas Mandl envisions a shift where locomotive providers may dictate routes, challenging the traditional influence of state railways. He also points out the challenges posed by state railways’ inflexible tariff structures, which struggle to align with the constantly fluctuating freight rates in road transport.
Looking ahead, Mandl envisions the future of rail logistics as a consolidation of smaller rail freight forwarders and private railway companies, emphasizing specialization in industry sectors. The LTE-group, currently boasting 96 locomotives, strategically focuses on product groups like grain/agricultural goods, automobiles, and intermodal services. In response to the expanding presence of large shipping companies in European rail freight transport, Andreas Mandl advocates for a comprehensive customer service approach. This involves handling terminal bookings, organizing first and last-mile transportation by road, investing in freight wagons and container systems, and providing additional services in customs clearance, blurring the lines between rail transport and logistics companies.
Image source: https://portofklaipeda.lt/en/naujienos/the-second-offshore-wind-farm-tender-in-lithuania-was-launched-klaipeda-port-is-designing-offshore-wind-installation-quays/