14.2.3 Introducing Innovations in Mazo’s Centre EuropeNetwork Design
What follows is an example that will illustrate Mazo’s networktransport design. The example shows how the capacity to incorporateinnovation in the network design is a key factor for transportationcompanies.
This example of intermodal transport network design is based onthe cutting edge strategic positioning of the Group in terms ofEuropean transport trends, and how they implement it to improvetheir competitiveness. It will show how current central Europeanroutes are beginning to be modified due to the combined use of roadand train. The case introduced is based on the product flow fromthe Valencia area in Spain to Central Europe. The example shows howthe use of intermodal transport provides good results in terms ofcost reduction, availability of resources and reduction of CO2emissions.
The central European network background, motivations andobjectives
The Mazo Group is constantly exploring alternative approaches inorder to extend its business options. The three key pointsinfluencing its international positioning are:
1. Alignment with European transport trends
2. Specialized service in refrigerated freights transport
3. Market offer and demand analysis
The European logistics environment is being significantlyredesigned due to a probable overload within road transport in theshort term. The European Commission is promoting alternative meansof transport such as rail and ship. The double objective pursued bypoliticians is reduce the number of lorries driven through Europeand to improve the sustainability of the goods transported usingmodes of transport with lower CO2 emissions through collectivemodes.
All traffic must pass through France when travelling from Spainto Europe by road and France is announcing the implementation of anew tax in the short term for goods crossing this country by road.This directly affects the international transport service providedby Mazo from Morocco and Spain to the centre of Europe (Belgium,Netherlands, Luxembourg and so on).
Mazo foresaw that utilization of alternative forms oftransportation would enable it to overcome this difficulty and toalign more its operations with future expectations. They decided tobecome the first specialized Spanish company in refrigeratedfreight transport to use international intermodal transport inEurope in order to gain a competitive advantage.
Mazo’s approach to intermodal transportation in centralEurope: tactical development
Mazo is looking for alternative modes to deliver perishablefreight from its base in Valencia to the centre of Europe in orderto comply with European transport frameworks and policies. The mainconstraint is the delivery time requested by its customers andrefrigeration conditions. The critical transport characteristics(see Table 14.1) they would need to adopt when using an alternativetransport mode were speed, reliability and cost efficiency. Thetransport mode alternative which accomplishes all three featureswith ease (besides roads) is transport by rail. Transport by shipmode was also studied intensively because of Mazo’s extensiveexperience in carrying freight by ship to different islands. Thistransportation mode has many drawbacks. Among others: scantyexistence of offers, higher costs and longer transportation timesfrom Spain to Central Europe – for example, from Santander to Pooleharbour is more than three days in good weather conditions. Theduration of the trip is not a significant problem for perishablegoods: intermodal transport allows transportation of the wholetrailer with the electrical engines connected to the power insidethe ship. Temperature, humidity and air conditions inside thetrailer remain optimum for the fruit and vegetables. This optionwill become an interesting alternative in the medium term if theshort sea shipping potential improves.
Mazo’s difficulty lies in determining how to supply products toits customers with at least the same level of quality and deliverytime. After several transportation combinations were analyzeddepending on the type of goods, Mazo opted to use road and rail andstarted their first in-depth studies with one of the few railtransportation companies operating along the international routesthat were useful for this project.
Mazo chose the most suitable point to connect the route by roadwith rail to achieve a shorter delivery time between Valencia andcentral Europe: the French town of Le Boulou, located very close tothe Spanish border. The new intermodal transport network is definedbelow (see Figure 14.2):
• From Valencia (origin) to Le Boulou (first intermediate node):by road 6.5 hours
• From Le Boulou to Bettembourg (second intermediate node): byrail 18 hours
• From Bettembourg to the end customer (destination): byroad.
How do European environmental tendencies influencetransportation?