DSV Road: Demand for intermodal transport is growing rapidly, but development potential is hampered by a lack of infrastructure.

Romania is becoming an increasingly important pole for the intermodal transport of goods, despite the local infrastructure, due to the low costs and the possibility to reduce the impact on the environment. Thus, the demand for intermodal transport increased by 50% in the first half of the year compared to the same period last year, with a predominant interest from the retail, industrial, and chemical fields, according to data from DSV Road, the third largest freight transport company in Europe.

In this context, although the demand for intermodal transport (rail + road) is at the highest level in recent years, the growth potential for this type of transport is limited by the deficient railway infrastructure in the country.

“The interest of companies in transporting goods on rail and road routes is at the highest level in the last 10 years, intermodal transport being preferred especially for bulky goods and in the ADR category. And this increased interest in intermodal is registered even if there is no strong railway network in Romania. The most intense activity on intermodal transport is in the Curtici node, Arad, being also the largest intermodal node in Eastern Europe, is attractive to investors. But Curtici is only a small part of the infinite potential that Romania would have regarding rail transport. If the railway infrastructure were modernized, our country could attract investments of millions or even billions of euros”, says Sergiu Iordache, Managing Director of DSV Road.

Against the backdrop of increased demand, between January and June 2023, DSV Road transported 219,000 tonnes of freight by combined rail and road, particularly for companies in the retail, industrial, and chemical sectors. Thus, intermodal transport is in second place at the top of the most requested transport services within the company, after groupage transport.

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Intermodal transport can reduce CO2 by up to 70%

Intermodal transport is chosen by Romanian companies for the availability of stable transport capacity, for the less fluctuating costs compared to road transport, for the increased useful load capacity, and for the reduced impact on the environment. Intermodal transport can reduce the amount of carbon emissions by up to 70%.

“We anticipate a significant increase in demand for intermodal transport in Romania in the near future. The choice of this type of transport is based on the extended load capacity and reduced environmental impact compared to road freight transport. Consequently, intermodal transport is an ideal solution for promoting green transport. Companies are increasingly looking for sustainable solutions to obtain certifications to reduce carbon emissions, as part of their ESG strategy and for commercial reasons, and we, at DSV Road, have the responsibility to encourage and facilitate the reduction of environmental impact and the achievement of customers’ sustainability goals”, says Mihai Teodorescu, Country General Manager Road Romania, and Sustainability Ambassador.

Moreover, DSV Road plans to develop the Green Transport division, estimating, by the end of the year, a doubling of the demand for green transport solutions in Romania compared to 2022.

The alignment with the standards and directives of the European Union has led to an increase in the interest of companies in reducing the amount of carbon dioxide and, implicitly, in the implementation of Green Transport solutions from DSV Road, among which: monitoring the amount of CO2 through the most advanced analysis technology – CO2 Reporting Tool, using road transport based on biofuel and optimizing the supply chain to reduce the carbon footprint.

Also, at the level of the DSV group, a financing fund with a total value of 1 billion Danish kroner (over 134 million euros) is available, from which investments can be attracted in ESG, CO2reduction, and environmental protection programs in Romania. The company aims to reduce the amount of carbon emissions by up to 40% by 2030, including in Romania.

Romania is one of the most important markets in the region for the Danish group DSV, present locally for almost 30 years. Thus, for 2023, the DSV Road company expects a 10% increase in business, after last year it recorded a turnover of 70 million euros, 40% higher than in 2021, due to the increase in the number of customers and the demand for all types of transport, especially groupage and intermodal.