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| April 27, 2023

GT verdict: The potential of multimodality in climate protection is hindered by slow legislation

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Přestože kombinovaná přeprava je v evropské legislativě zakotvena už od roku 1992 a měla určovat trend, kterým se má logistika vyvíjet, implementace a naplnění s ní spojených cílů stále vázne. Multimodální přeprava může významně zmírnit přetížení silniční dopravy, a navíc přispět ke snížení emisí skleníkových plynů. Proč se jí tedy v evropském prostoru nedaří narušit dominanci silniční přepravy? Hlavní důvody shrnuje aktuální Zpráva Evropského účetního dvora.

Although combined transport has been embodied in European legislation since 1992 and was supposed to set the trend, in which logistics should develop, the implementation and fulfilment of the related objectives is still lagging behind. Multimodal transport can significantly alleviate the overload of road transportation and also contribute to reducing greenhouse gas emissions. So why is it failing to break the dominance of road transport in Europe? The main reasons are summarised in the current report of the European Court of Auditors.

What do the terms multimodal, intermodal and combined transport mean? In principle, all of these phrases describe the use of different modes of transport to move people or goods from A to B. The aim of this text is to clarify the meaning of each term and to describe current trends and plans to use this principle to meet the climate targets of the EU. The text will also focus on existing projects, in which Grant Thornton has been involved.

Multimodal, intermodal and combined transport

Multimodal transport is the most general of the above three concepts and in principle captures the main idea of using at least two different modes of transport. The European Conference of Ministers of Transport (ECTM) defines multimodal transport along the same lines, for example. The term “multimodal” can be used for both passenger and freight transport and can include any combination of the four basic modes of transport (road, rail, water and air).

The term “’intermodal” refers to freight transport that uses at least two modes of transport using the same freight unit (e.g. container). Therefore, the difference between multimodal and intermodal transport consists in whether or not there will also be a change in the freight unit (e.g. by dividing the load) during the change of mode of transport.

The term “combined” transport is defined by the Czech Ministry of Transport as intermodal transport, in which the majority of the route is carried out by rail, inland waterway or sea, with the initial (collection) or final part of the transport (distribution) taking place by road, and is usually as short as possible.

A prerequisite for the use of any form of multimodal transport is the existence of the necessary infrastructure. In the context of combined intermodal transport, it is primarily a matter of sufficient railway capacity, navigability of inland waterways and a network of multimodal transhipment points. A multimodal transhipment facility is a facility designed to transfer goods from one mode of transport to another. In the context of combined transport as defined by the Ministry of Transport, it is primarily a transhipment point between rail and road forms of transport

Multimodal transport in the EU context

It is clear from the definitions of the terms above that on a global scale, the use of multimodal transport is a reality of international trade and logistics. However, according to Eurostat data, road transport dominates in the European Union, including in the cross-border movement of goods. Therefore, multimodal transport is becoming an increasingly important issue in the European Union in view of the objectives of reducing transport pollution and sustainability.

Multimodal transport is intended to contribute to these objectives in the following areas:

  • Mitigating congestion (overload) of road traffic: The use of rail and inland waterways for long-distance freight transport will mitigate the impact of increasing freight transport volumes.
  • Reducing greenhouse gas emissions: The development of multimodal transport will contribute to efforts to significantly reduce greenhouse gas emissions from transport by x% compared to figures from the year x. Rail transport has significantly lower greenhouse gas emissions than road transport and road freight transport is currently one of the main contributors to transport-related pollution.
  • Enhancing competitiveness: The development of multimodal transport should also help to integrate smaller and local logistics companies into international transport by increasing the demand for local distribution of goods from multimodal transhipment points.

According to the European Court of Auditors, multimodal transport has the potential to optimise the relative strengths of individual modes of transport in terms of flexibility, speed, cost and environmental impact. In the previous multiannual financial framework 2014 to 2020, the total EU funding allocated to projects supporting multimodality reached around EUR 1.1 billion.

Currently, multimodal transport in the EU focuses mainly on railroad and ship transport. These two modes of transport are the most suitable for transporting larger quantities of goods over longer distances. The main objective of intermodal transport in the EU is to create the conditions for transporting goods between different modes of transport as efficiently and environmentally friendly as possible.

The legal basis for the pan-European promotion of combined transport is the Combined Transport (CT) Directive (Council Directive 92/106/EEC) and the European Parliament and Council Regulation No. 1315/2013. These documents establish the objectives and support the development of combined transport by removing permit procedures and quantitative restrictions on combined transport operations, clarifying the non-application of road cabotage restrictions to road sections and the provision of financial support.

The main idea of European policy in this area is to replace long-distance road transport of goods by rail or waterways. Road transport should be used for local distribution of goods from the nearest transhipment point. The aim of European policy is to build a backbone transport network consisting of major transport corridors and regularly spaced multimodal transhipment points.

Although the original Combined Transport Directive dates back to 1992, implementation and achievement of EU targets have been stagnating due to regulatory and infrastructure barriers on the level of the member states. The report of the European Court of Auditors on EU support for intermodal transport summarises the current state of development of multimodal freight transport as unsatisfactory in relation to the resources spent. The following conclusions are reached in the report: 

  • EU support for multimodal freight transport lacks effective targets and their monitoring, leading to insufficient development of the necessary infrastructure.

  • The implementation of EU rules in national legislation is insufficient or counterproductive, leading to a reduction in the attractiveness of multimodal transport.

  • The level of infrastructure for the purposes of multimodality is insufficient, which puts multimodal transport at a disadvantage in favour of road freight transport.

The European Court of Auditors concludes that for these reasons multimodal transport and rail cannot currently compete with road freight transport. For this reason, the EU focus for the current Multiannual Financial Framework is on developing multimodal infrastructure and removing regulatory and technical constraints. The report expresses a recommendatory opinion on the revision of the EU rules on the development of the TEN-T (trans-European transport network), which it sees as an opportunity to remedy these shortcomings. Proper regulation with clearly defined and measurable objectives will lead to the expansion of multimodal infrastructure and make this transport mode more attractive to freight forwarders and logistics companies.

At Grant Thornton, we agree with the conclusions of the ECA Report and believe that investment in intermodal transhipment can significantly help the EU meet its ambitious environmental targets. We see that the development of multimodal transport has potential not only in terms of climate protection, but also in terms of road safety. The potential for making freight transport more efficient by using rail for long-distance freight transport is far from exhausted.

Our projects

The European Union supports the development of multimodal infrastructure through funding under the Connecting Europe Facility (CEF) for the development of the TEN-T transport network. Grant Thornton participated in the implementation of such a project, the subject of which is the reconstruction of one of the main multimodal transshipment points in the Czech Republic. The project primarily involves increasing the capacity of the combined transport terminal by expanding and reinforcing the handling areas up to 37,000 m2. The project also included technologies that will make material handling as well as the overall operation of the terminal more efficient.

The main objective of the project is to cover the increased demand from clients for transhipment services. The implementation of the project will result in the transfer of part of the traffic load from road to alternative (rail) forms of transport. Within the region, traffic will become more efficient and major road junctions will be freed up, which will also contribute to road safety. The reconstruction of the multimodal transhipment point is also an important project in terms of the cross-border transport network, as it is directly linked to EU objectives. The implementation of the project will contribute to the implementation of strategies at the level of the Czech Republic and the EU. For example, the project will have an impact on the following strategies:

  • White Paper (Roadmap to a Single European Transport Area – Creating a competitive and resource-efficient transport system)
  • Green Deal for Europe
  • Transport policy of the Czech Republic for the period of 2021 to 2027 with a view to 2050
  • Freight transport concept for the period 2017 to 2023 with a view to 2030

Investment in intermodal transport has a significant impact on environmental objectives by reducing excessive pollutants from conventional truck transport, confirming the fulfilment of the above-mentioned strategies. A benefit of rail transport is the ability to transport hundreds of tonnes of materials or goods over long distances in a far more environmentally friendly way than road transport, which emits far more emissions for the same amount of cargo.

Due to the CEF grant programme, which in this case covers approximately half of the costs, the project can be implemented in its entirety while maintaining the highest quality of services. If the subsidy were not provided, the project implementation would be considerably prolonged and there would be a risk of limiting the measures implemented.

Author: Adam Pavlík