Clemens Först
is CEO of the Rail Cargo Group
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RCG Inside

More quality at the same price?

The economy is on the upswing and is bringing increasing volumes to the logistics industry. Transport by land, sea and air is enjoying increased demand. But there are two sides to every story – because prices have not kept pace with the constantly growing costs.

It is gratifying that logistics companies – and therefore also the Rail Cargo Group – are benefiting from the current positive economic situation and transporting more goods. On the other hand, there are extremely low margins, which leave virtually no scope for urgently-needed investments in the future. The RCG’s aim is to meet the justified quality requirements of its customers. To this end, investments will have to be made, for example, in the training of train drivers, in digitization as well as in new wagon equipment and locomotives. For the RCG, this means continuing to use all internal levers and increasing prices in the high single-digit and sometimes double-digit range.

Present & Future

Since 2017, the Rail Cargo Group has also been successful in driving across European borders. Traffic between Asia and Europe on all three Silk Road routes – north, south and maritime – runs regularly. This year, 400 trains rolled between the neighboring continents, and 600 trains are scheduled for 2019. This shows that the RCG has already successfully entered this new market. In addition, the RCG has succeeded this year in establishing new products such as the connection for conventional wagonloads between the Ruhr area and Austria, or in further expanding its own production radius in Germany and thus systematically expanding its operator network. In 2018, the innovative TransANT platform wagon was also developed, setting new standards in the freight transport market: With a payload advantage of up to four tons and its flexible superstructures, this wagon innovation can be used in various sectors as well as for single wagon transports. With a view to 2019, the RCG will continue its growth and internationalization strategy and invest massively in the future. For example, the GPS equipment of around 13,700 RCG wagons by 2020 will offer customers genuine added value. For this reason, the RCG is relying on its customers’ understanding in the course of the upcoming price increases. This will enable us to invest in the RCG’s future viability and meet the quality requirements of our customers.