ABSTRACT

There are three main freight train services: block trains (full trains), single car services, combined transport (intermodal). Block trains are composed of at least 20 to 30 wagons, all from the same shipper (producer). The transport operation from point A to point B is without transshipment. It is a low cost, easy operation, at lower prices than the two other services generally. Single car services are also called less than train-load services (comparable to less than truck load services in road transport). The wagons that compose a train come from different shippers. It is a high cost complicated operation, sold at higher prices than a block train service. Currently it is a highly deficit generating segment of the rail freight business. Combined transport is the transport of containers, swap bodies or trailers including two short distance road hauls and one long distance rail haul. It has been steadily growing for the past twenty years in Europe. Currently in many countries (but not in the U.S.), it is a deficit generating segment of the rail freight business and requires subsidies in many cases because of the high cost of transshipment operations. Public subsidies for combined transport are specifically authorized by E.U. competition law.