Get on the right track

Hauliers, because of the sheer volume they deal with, used to be able to be extremely flexible and wholly responsive to customers, he explains, but because they too have come under pressure, a lot of the bigger operators are trying to put controls on responsiveness.

Rather than travelling up to Doncaster and Selby, road operators are travelling shorter distances from the southern ports so that they can complete more trips in a day. The same cannot be said for rail in the north-east however. While the road from Teesport to Manchester may be congested, the distance is not that far and hauliers can still fit in two deliveries a day.

Northern rail operators also have to contend with gauge issues, as there isn’t a lower-wagon solution like that from Felixstowe, adds Robinson.

First GBRf runs two services a day from Felixstowe to the north: one to Selby for MSC five days a week; and a second, multiuser service to Doncaster, which runs six days a week. It is looking at adding three more trains over the next 12 months.

Robinson says these will be from deepsea ports and hints that they could involve new ports and new destinations.

In Cleveland, Leeds and Doncaster, Freightliner runs its own road fleet for local deliveries.

"This is an area we believe we can increase, " says Gray. He explains that currently when hauliers offer a price from a rail depot to the final destination, it works out more expensive than using an all-road solution from the port. Gray believes that by offering a door-to-door service, Freightliner could reduce the rate and increase the use of rail freight to the hinterland.

If this is of interest to customers, he says the operator will consider expanding its road fleet.

Gray admits that the lower rates offered by hauliers over the past year have forced average rail rates down, and Freightliner has had to "do deals around commitment of volume and quality of service".

In the region, competition over the last year has primarily come from feeder operators. Freightliner’s Cleveland terminal, near Teesport, is underused, says Gray.

The operator runs one train a day from Felixstowe to Cleveland and volumes are in decline.

Three years ago, it was handling 18,500 containers a year, but last year’s total was around 15,000.

"Volumes are declining and it is difficult to keep it going as a profitable site because it is so close to Teesport. So the major competition to rail comes from feeder ships from UK ports but also directly from Europe, " says Gray.

However the strength of the euro is making rail more competitive. Feeders deal in euros, so rail might be able to win back lost volumes, he adds.

Rail volumes at Freightliner’s site in Leeds, which handles 110,000 boxes annually, have also been hit by the recession, with an estimated 10% drop in volume last year. Freightliner dropped its Southampton service early in 2009 due to the Maersk change to Felixstowe.

However, volumes at the Doncaster site are up 15% since Freightliner’s takeover of the facility from DHL in early 2008.

Last year, Freightliner introduced a new daily service from Southampton.

"We didn’t believe there was enough volume and it was a case of ’let’s try’, says Gray.

"It’s been a bit slow and not the bestutilised service, but volumes have steadily increased."