Maritime Transport and DB Cargo UK unveil major intermodal partnership

Container haulage specialist will take on commercial responsibility for DB’s rail freight services out of Felixstowe and Southampton and its terminals at Trafford Park and Wakefield.

Two of the UK’s largest freight operators, Maritime Transport and DB Cargo UK, have announced plans to combine their expertise in a 10-year partnership that they claim will increase capacity and competition in the UK intermodal market.

The move effectively brings to an end DB Cargo UK’s attempts to compete as a full-service provider in the UK’s cut-throat intermodal market, with the UK’s largest rail freight operator’s intermodal services having operated on a loss-making basis for several years. DB Cargo UK will instead limit its commercial exposure by focusing on running intermodal rail freight services on behalf of and fully contracted by logistics companies.

The partnership comes at a time of container haulage capacity shortages in the UK, with the UK’s largest container haulage provider Maritime Transport keen to make increasing use of intermodal capacity in order to fulfill its customers’ needs. Maritime already charters some regular scheduled rail freight services to and from the two existing terminals it manages at Tilbury and Birmingham, using DB Cargo, GBRF and Freightliner to provide the train operations.

Under the agreement in principle with DB Cargo UK, Maritime Transport has announced the launch of a new division – ‘Maritime Intermodal’ – which will initially contract four daily dedicated services to and from each of the UK’s two leading container ports, Felixstowe and Southampton that are currently already run by DB Cargo. The two companies said the long-term agreement “will enable each organisation to operate to its strengths, driving up service and efficiency, which will result in increased intermodal capacity and growth in rail freight”.

DB Cargo UK will be contracted to run Maritime Intermodal’s rail operations out of Felixstowe and Southampton. Maritime Intermodal will take on responsibility for DB Cargo UK’s terminals in Trafford Park, Manchester and Wakefield in West Yorkshire, thus strengthening the road haulier’s national network of strategic hubs.

The two said that Maritime Intermodal was “committed to significant investment in both equipment and ground works at the two sites, improving terminal turnaround times, whilst also increasing container storage capacities. The terminals will remain open-access to both intermodal and non-intermodal services. Maritime Intermodal will retain existing services and seek additional services from all UK ports with all freight operating companies with the intention of increasing its intermodal offering.”

As part of the agreement, Maritime Intermodal will take responsibility for DB Cargo UK’s existing intermodal customers on its Felixstowe and Southampton services. DB Cargo acknowledged that in some cases this would mean customers who regard themselves as competitors to Maritime, with those customers having the option to take whatever commercial decisions they need to.

DB Cargo UK stressed that it would retain and grow its remaining intermodal business including key flows to and from Scotland, services that were operated under contract for specific customers. A spokesman said the launch of a new intermodal service between Southampton and Rotherham, in partnership with container haulage and logistics group Newell and Wright, would continue unaffected.

Hans-Georg Werner, CEO of DB Cargo UK, said: “This is an exciting new agreement that brings together two of the largest and most successful freight companies in the UK to offer an industry-leading service to customers. It will enable DB Cargo UK to focus on what it does best – the efficient and reliable running of rail freight services, while giving Maritime the platform to offer its customers further capacity to move its container traffic.

“Intermodal is the fastest growing freight market, yet our terminals were under-utilised. Maritime is a very successful logistics business and has the volumes and desire to turn these assets into sustainable and profitable distribution centres. It’s a real win-win and we look forward to working with Maritime going forward.”

John Williams, executive chairman of Maritime Group, said: “We are delighted to announce the launch of Maritime Intermodal, a new division of our business created with the intention of offering increased resource to our customers in an increasingly difficult market place. In addition, over the four services alone, more than 32 million miles will be taken off the UK road network each year, reducing both congestion and carbon dioxide emissions. This further enhances our creativity in developing intermodal solutions for our customers.”

Maritime is currently Road Haulier of the Year and DB Cargo UK is Rail Freight Operator of the Year within the Global Freight Awards.

Source: Lloyd’s