A.P. Moller – Maersk expands its railway network
Damco rail introduces weekly block train service from China to Europe
A.P. Moller - Maersk, through its own company Damco Rail - which from 1st January 2019 will go to market as Maersk Logistics and Services - introduces weekly block train service from China to Europe; the launch comes one year after Damco established its first block train on the same route, a testimony that the customer demand for rail services to transport their cargo is on the rise.
The growth in the rail sector further contributes to A.P. Moller - Maersk’s 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. “The continued rail growth is evident in the increased China-to-Europe freight train capacity of 69% the China Railway Corporation recorded for first half of 2018. We also see continued rail growth due to the competitive advantages the service provides for our customers who demand speed, reliability and sustainability” stated Kasper Krog, Head of Rail at Damco. “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.”
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 intermodal footprint, in close cooperation with our customers and to play an active role in helping to keep their business on track” says Krog.
The block train is able to cover the 11,000 km journey from China to Europe in 18-20 days thanks to 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.
“About 4,3% of cargo between China and Northern Europe is moved via rail; although still a relatively small contributor to global trade this service is poised for growth” stressed Caroline Wu, Area Manager for Greater China at Damco. “Due to the government’s support and efforts made in developing the BRI Belt and Road Initiative, we are now seeing great opportunities and strong interest from our customers in using our rail services.”
With a presence in 100 countries, employing 10,000 people worldwide, in 2017 Damco generated turnover of 2.7 billion USD, managed 664,000 TEUs ocean freight and 206,000 tons of air freight.