Laude organises these last-mile operations from its terminals in Zamość, near the Ukrainian border, and Sosnowiec in the Silesian-Dąbrowa industrial regions. It also does last-mile operations from partner terminals, including Duisburg.

New connection to Italy

The Polish operator is also thinking about further business development: “The next step will be an intermodal connection linking Warsaw and Silesia with northern Italy. In each of these transport options, there is a possibility to extend the route to Ukraine and Turkey”, Laude says.

Laude points out that their greatest advantage – the ability to load and unload from the side, top, and rear – makes its transport solution “comparable to traditional road transport.”

Laude uses both trailers that allow unloading of bulk cargo from containers and the transport
of heavy steel coils thanks to specially designed containers with a trough. “Additionally, […] we are able to transport any type of cargo, provided it is palletised or loaded into big bags”, commented Marcin Witczak, CEO of Laude Smart Intermodal. “In full train transport, we carry biomass, grain, fertilisers, and similar cargo.”

In other words, Laude wants to offer flexible single wagon load services around the Old Continent. In order to do that, it also has some technological cards to play, it says. “Laude wants to be a creator of this market, not just its participant”, Witczak said. “We have a large investment plan ahead of us exceeding one billion zloty, and completely new, unknown technologies on the market that we want to offer to allow for the transport of loads at prices and times that are competitive for road carriers.”

Regular connections

As part of the billion złoty investment, the company has already spent 400 million złoty on “proprietary solutions” for transporting various goods, which includes steel and grain products. It says that it has developed a closed system with innovative tractor units, semi-trailers, container platforms, and seven types of special containers, all of which is managed via an internet browser.

Lastly, Laude is betting on becoming the bridge between Poland, Ukraine and the rest of Europe. To that end, it is looking to expand its network of regular connections. “We continue to focus on increasing our presence in transport to the ports of Greater Odessa and back. This, together with the connection of Ukraine with the European Union, is one of the key elements of our preparations for the period when the reconstruction of Ukraine will begin”, Witczak concluded.

Regardless, the company also transports goods in the opposite direction, point out Polish media. The Sosnowiec terminal has long handled the transportation of steel coils and rods to the Netherlands and Belgium, while it takes in a lot of artificial fertilisers from those countries.

Connectivity

Oss is an attractive destination for Laude’s rail service. The city’s region offers convenient and fast shipping to various regions in the Netherlands and Germany. The city is well-connected to infrastructure, not least due to its inland port.

The increase in rail freight between the two countries was largely caused by a modal shift to rail, as the number of import trucks entering Poland dropped by 35.4 per cent and import ones fell by 28.9 per cent. This was one of the main consequences of the various road blockades carried out by Polish farmers in protest against the European Union, especially in the first half of the year. These blockades lead to much longer waiting times for trucks at the borders, pushing shippers to turn to the railways for more efficient solutions.

Rail border checks need to improve

However, there is still room for improvement when it comes to border checks at rail border crossings. One of the main issues is staff shortages in the border services sector, but some technical problems also contribute to sometimes impaired services. It also seems that moving border checks to ports or other locations away from the actual border crossing is not on the table in Poland. Once these issues are resolved, the Polish sector seems to agree that rail freight between Ukraine and Poland will grow even further.

Laude Smart Intermodal transports containers from Ukraine, as well as pallet loads, steel products, fertilisers and oil. It also carries steel and grain to the ports in the Odesa region. The company now focuses on the transportation of goods from Ukraine to Germany, the Netherlands and Romania. “We are cooperating with our Ukrainian partners to integrate Ukraine with European logistics chains”, a company representative said.

Growing business

Laude’s Ukrainian business is expanding. In 2023, it carried 89,3 thousand TEU through Ukraine. “This year, we are assuming transport at a similar or slightly higher level, in the three quarters of this year we have already transported over 80 thousand TEU”, according to the company.

Need for realism

When discussing Ukraine’s position in global and European supply chains, both Witczak and Demenko accepted the harsh reality that rail cannot undertake the heavy duty of handling all Ukrainian exports. Specifically, Witczak explained that up to 70 per cent of Ukraine’s trade used to take place by the sea. When it came to general agricultural products and cereal exports, 90 and 97 per cent of them, respectively, were exported by sea ports in 2021. Only 11 per cent of the country’s total cargo was transported by rail.

On his behalf, Demenko underlined that “even half of Ukraine’s seaborne volumes are a huge challenge for European logistics to carry by rail”. He added that land “transport corridors are already on the verge of collapse,” and if problems are not resolved by boosting more sea exports, then “Ukraine will be unable to export anything next year”. Both highlighted frankly that rail is not the holy grail for Ukraine and that the logistics industry should be aware of that and move with realism.

Lack of equipment the main issue

On top of that, both experts stressed that looking for long-term solutions to integrate Ukraine into the European corridors and network could prove misleading. “Support is ineffective without sending containers and equipment to Ukraine” to facilitate loading and transhipment operations. Demenko also confirmed that total equipment shortages are one of Ukraine’s main issues overtaking infrastructure and border crossing terminals.

The unanimous arguments of the two experts underlined that the war in Ukraine is not over. Consequently, logistics companies and policymakers should focus on implementing short-term solutions that will help resolve real-time problems like insufficient equipment to carry Ukrainian cargo. The lack of equipment is also getting worse by the current energy crisis, and inflation skyrocketing wagon prices, said Demenko, but also by the unwillingness of European companies to send equipment to Ukraine for security reasons, added Witczak.

Get used to the reality

On another note, Dominik Landa urged the rail freight industry to accept the fact that the new reality logistics face is here to stay. He said that even if the war ends, cargo flows could take years to return to Russian Baltic ports like St. Petersbourg, for instance.

Cetnerowski added that a new reality caused by war is always negative” and that the industry needs to consider everything resulting from it. He specifically mentioned that the energy crisis is coming hand in hand with the war saying, “we do see a shift back to diesel. For intermodal connections, there should be special prices in traction energy to make it work”.

Bartłomiej Felczyński agreed with Landa and Cetnerowski’s remarks, while he accepted Witczak and Demenko’s notes that Ukraine needs instant help. However, he explained that DCT Gdansk cannot overlook the integration of Eastern Europe and Ukraine into its expansion plans. “We do not only plan our expansion based on the Polish market but the broader Eastern European market, including Ukraine.”

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Why through Poland?

This year, this rail freight network was one of the most viable export options for Ukrainian products such as grain and other agriculture products. This was true when the port of Odessa was not an option, but even as the port is now open, the rail route is considered top priority. Yet, the capacity of the lines is limited, and more facilities are much-needed.

Volodymyr Demenko from Levada Group is a logistics provider from Ukraine and one of the partners of the terminal in the Ukrainian border city Mostyska. Marcin Witczak from Laude Smart Intermodal invested in the aforementioned terminals in Poland. What they both have in common is that they are actively involved in the development of the Ukraine-Poland rail freight network.

Mostyska terminal in Ukraine

Near the border with Poland, the Ukrainian Container Terminal Mostyska is a successful example of a new transshipment facility for rail freight between Ukraine and Poland. In July, it was opened for traffic by N’Unit and Levada Group, who have partnered up to develop a terminal network in Ukraine.

One of the main advantages is that it offers broad gauge and standard gauge, so that it is able to reload traffic moving between the east and the west. It has a capacity of 100,000 TEUs in the first phase, when the focus is on handling trains. Later on, the partners will focus on warehousing and other services such as reloading and packaging.

The terminal was designed and constructed with the intention to encourage Eurasian traffic through Ukraine. Although this traffic has now come to a halt, the terminal is perfectly suited to handle Ukraine-Europe traffic. It was originally scheduled to open in April this year, but finally saw the first trains running this summer.

Zamość and Sosnowiec in Poland

Laude Smart Intermodal has invested nearly 52 million Polish Zloty in the expansion and equipment of their terminals in Zamość and Sosnowiec, both of which are ideally situated to handle Poland-Ukraine traffic. Zamość is located on the broad-gauge LHS line, about 60 km from the Polish-Ukrainian rail border crossing Hrubieszow-Izov. Sosnowiec is located a little further west, closer to Katowice.

The terminal in Zamość was officially launched in June 2022, co-financed from EU funds.
Because of the broad gauge, trains from Ukraine can run up till the terminal without the need for transhipment. It is able to handle ten trains a day, allowing the shipment of much larger volumes of cargo than before from Ukraine, explains Witczak. “The new facility increases the handling capacity to 15 thousand TEU annually.”

The terminal in Sosnowiec already existed, but Laude Intermodal invested in in increasing the handling capacity. “This is in line with our long-term strategy for the development of regular scheduled container trains from Ukraine, Poland to Germany and European countries as part of our Time for Revolution Project”, Witczak explains.

Coordination and legislation

In order for Poland to be perceived as the main logistics hub for Ukraine, not only high-capacity transport infrastructure and transshipment terminals are needed, Witczak adds. “Coordination and legislative measures at the government level are also necessary. It will create conditions for transport and logistics companies to organise deliveries of goods in a more efficient way – cheaper and faster. At the same time, it is necessary to change the approach to the transport technology itself.”

The discussion on how to increase Ukraine-Poland rail freight capacity will continue this week at the RailFreight Summit Poland, where both Demenko and Witczak will be present. Do you want to join the discussion? Registration for this event is still open, but seats are limited.

Although this number is not surprising concerning the traffic volumes on the Eurasian corridor, Cetnerowski commented that “We had to start somewhere, and we decided to dive in head and build these containers to show the possibilities in shape and form instead of on paper.”

Special design

“Our main point was to increase the capacity of the container at the same time, allowing the container to be handled like any other 40′ unit. In this sense, there is no need for special cranes as the container can be handled with standard reach-stackers or cranes,” continues Cetnerowski. The new Laude containers have a different form. They have a narrower-than-usual top and a wide bottom. However, according to Cetnerowski, these characteristics do not interfere with their stacking and storage in freight yards.

Moreover, the 40’ SBOT containers are heavier than regular containers. They weigh 6,950 kilograms, while their maximum payload is 2,950 kilograms gross. “Yes, it is a heavier unit, but it allows the transportation of heavier cargo. High-density cargo is perfect for the container, but multiple loading options allowed by its shape and size does not limit its purpose”. However, “the ultimate goal is to run mixed trains both with standard 40’ and 40’ SBOT containers. In this way, different types of cargo will have a suitable place in the containers,” explained Centerowski.

As far as limitations go, the container’s increased capacity could become an issue for last-mile operations. Nevertheless, “the maximum payload in Eurasian rail freight is the number one prerequisite,” said Cenetrowski, “and that is why the increased capacity option is worth exploring”.

New player on the New Silk Road

The new container offer is not the only move the Polish company has made to enter the China-Europe shipping market. In addition to designing new containers, Laude Smart Intermodal is expanding its terminal in Zamość on the Polish-Ukrainian border. The project aims to respond to the growing number of China-Europe trains passing from the border point. The terminal is considered a high-quality facility that can provide an effective alternative to the congested border point of Malaszewicze-Brest on the Poland-Belarus route. Upon completion of the expansion, the terminal’s capacity will reach 150,000 TEUs.

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Where is Zamosc?

Zamosc lies 60 kilometers away from the border point Hrubieszow-Izov. It currently has a processing capacity of 2,000 TEUs and has two 700-meter-long wide and standard gauge tracks. After the expansion project is completed, the station’s capacity will be increased to 150,000 TEUs. In addition, two new 900-meter-long standard gauge tracks and wide gauge tracks will be available to handle longer trains.

“This station is very valuable for trains on the New Silk Road and for rail transport within Europe”, said Maciej Cetnerowski, multimodal transport development director of Laude Smart Intermodal to Railfreight.cn, our Chinese sister publication.

Extensive connections

Zamoshic may be a relatively unfamiliar terminal, but it has rich experience as a container cargo transfer station. “Chinese goods are transported through Kazakhstan and Ukraine to Zamość terminal, and then distributed to major European destinations through our network”, Cetnerowski said. “In addition, goods from the Port of Gdansk, Poland are also transshipped here, to follow their journey through Ukraine. So, the role of a transshipment station is nothing new to Zamosc.”

The ultimate goal of increasing the capacity of the stations is to achieve a wider range of connections. “When the expansion project is completed and the trains start to operate normally, we will also strengthen the connection with the Port of Gdansk and strengthen the ties with Eastern and Western Europe”, Cetnarowski continued.

Transit Ukraine

Cetnerowski is very optimistic about the development potential of this Polish-Ukrainian station. “We believe that Zamość will become an important logistics center for China-Europe railway transportation. Transit through Ukraine may be affected by local instability, but currently, the main route of the China-Europe train is also facing bottlenecks due to the congestion in Malaszewicze and the situation in Belarus.”

The route through Ukraine has become a popular alternative in recent years, and all major logistics companies hope to profit from its huge potential. Obviously, the Zamość terminal is not a standalone project on the Polish-Ukrainian border. PKP Cargo is also trying its best to turn another border city, Medyka (Poland) into a ‘new Malaszewice’. This ambitious plan will start this summer. Moreover, Global Ocean Link (GOL) has put into use a new container terminal in Mostyska, a Ukrainian border city near Medika, and the trains are now running smoothly.

UWC will produce 200 Sgmmns flat wagons for Laude Smart Intermodal. They will be used for transporting high-cube containers on the rail network with a standard gauge of 1,435 milimetres (in a contrast to the previous batch constructed for operations on the broad gauge network of 1,520 milimetres). Each wagon will have a length of 40 feet in length, a bogie with an axle load of 22.5 tonnes and a loading capacity for carrying up to 74.5 tonnes.

As a result, a flatcar will be able to transport two 20-foot containers with a gross weight of 37.25 tonnes per each, a single 40-foot standard container with a gross weight of 40 tonnes, or a specialised container with a gross weight of 74.5 tonnes. Also, these wagons have a reduced tare weight – 15.5 tonnes compared to 16 tonnes. According to the agreement, UWC will deliver the ordered rolling stock by the end of the first half of 2020.

Laude’s network

Polish company Laude Smart Intermodal is one of the most dynamic logistics providers in Poland as well as in Central and Eastern Europe. It purchases new wagons in order to boost its service and develop the network. “We are doing everything we can in order to become a leader in selling logistics services in Central and Eastern Europe”, said Marcin Witzchak, CEO of Laude Smart Intermodal.

Currently, Laude’s network consists of three rail connections – from its intermodal terminal in Zamość to Moldova (Chișinău, Bălți, Râbnița), Ukraine (Kyiv, Dnipro, Kharkiv, Zaporizhia, Mariupol, Odesa) and Russia (Moscow, Saint Petersburg, Cherepovets, Magnitogorsk). This has resulted from the geographical location of the Laude’s facility. It is situated in 70 kilometres from the Ukrainian border and has direct access to the broad-gauge railway known the Metallurgy Line (Linia Hutnicza Szerokotorowa) operated by PKP LHS.

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