transport industry analysis - germany

Industry Analysis – Transportation

Germany

Candidate Number - 1508588

Table of Contents

Introduction............................................................................................................................. 3

Modes of Transportation................................................................................................... 3Land Transport................................................................................................................................. 4

Rail Network...................................................................................................................................................4Road Network...............................................................................................................................................6Bus Network...................................................................................................................................................9Tram Network...............................................................................................................................................9

Water Transport............................................................................................................................ 10Air Transport................................................................................................................................... 14

PEST Analysis – Transport Industry..........................................................................20

References............................................................................................................................ 23

Introduction

Transport system in Germany is outstanding and is ranked among top

performer in 11 categories including innovation but it is among the

bottom performers in open infringements in air transport (Europa.eu,

2015). The country has effectively interconnected all its major cities to

small towns holding an excellent reputation for reliability, comfortable

and fast. German major cities offer major means of transport but basic

bus network is all over Germany (Study in Germany for Free, 2013).

Germanys infrastructure is awarded excellence by known research

studies including Swiss IDM’s World Competitiveness yearbook and

various investor surveys. (Anon, 2015). Germany has the world’s

second largest container port along with Bremerhaven Europe’s largest

carport for vehicle traffic and continents largest inland port in

Duisburg. Germany has a wide web of airports network out of all 23

offer international services. In road transport the country has one of

the greatest density level road networks with ranking in top10 by

Indexmundi Ranking. (Indexmundi.com, 2015)

Modes of Transportation

Land Transport

Rail Network

Germany has a very dense and contemporary railway infrastructure

that is spreads with 40,000 km of railway tracks. The Railway network

has 14,235km electrified and 14,765km multi tracked. The entire

corridor of the Germany is equipped with dual track to accommodate

the freight flow. The saturation rate is 90% that will help accommodate

the future growth (Koper, 2013)

S-Bahn

S-Bahn is rapid transit system within the public transport and

commuter rail network. It is a common characteristic is high efficiency

and synchronized timetable that syncs with the rest of the

underground. This is achieved by using electric locomotive and

complete use of separate tracks.

U-Bahn

U Bahn (Underground or Subway)runs along the network of the S Bahn

is divided into 10 lines stretches to 146km and 143 stations. This line

operates underground with some running above the ground it is known

by its yellow colored trains. (Berlin.de, 2015)

Deutsche Bahn (DB) was the first company formed due to

privatization of the biggest railway market in combination of East and

West Germany. Federal government is the only shareholder in the

joint-stock company. The company has grown from locomotive

company in 1835 to leading international passenger and logistic

company. The company have adapted various structures and

restructured its operation to business competency to become one of

the leading and innovative companies in the world.

They have divided there business in three segment DB Bahn, DB

Schenker and DB Netze and have grown competence to be top 10

global company to work.

Road Network

The Road network is divided into Autobahn, Kraftfahrstraßen,

Landesstraßen. Germany has total road network of 645,782 km spread

across the country ranking in top 10 by international road federation as

shown in the table 01. (Irfnet.ch, 2015)

Table 01 (International Road Federation, 2010)

Autobahn

Autobahns or Motorway in Germany have no federally mandated speed

limit for certain type of vehicles. (Au.news.yahoo.com, 2015) They

have restricted speed to certain areas that are residential, accident-

prone and sites under-construction. In unrestricted speed limit road

stretch advisory speed limit applies. A 2008 a report by European

Transport Safety Council (ETSC) stated that 52% of the Autobahns

have no limit and only 33% had permanent limit. (German Autobahn:

The Speed Limit Debate, 2008)

(German Autobahn: The Speed Limit Debate, 2008)

Accidents on Autobahn have decreased with the limitation of the speed

by the Deutsche Hochschule der Polizei from 662 to 645 deaths per

year as shown in the figure 2 the accidents dropped from 70% to 67%

from 2005 to 2008.

Lethal Accidents in Germany - (German Autobahn: The Speed Limit Debate, 2008)

Figure 2 – Source: German Autobahn: The Speed Limit Debate, 2008

Kraftfahrstraßen

Kraftfahrstraßen or Dual Carriageway roads are designed for vehicles

that travel with minimum speed of 60km/hr and maximum height of 4

meters. (Gesetze-im-internet.de, 2015)

Landesstraßen or state roads are responsibility under the federal state.

These roads that cross the urban boundary are classified under this

category.

Bus Network

Buses are an important means and a great way of transportation at

nighttime. The urban town are linked into the network as a cheapest

mode of transport. It is a slow means, as they don’t have their own

tracks like the trams and lack flexibility Example: Trams have a higher

capacity and travel on its tramlines.

Tram Network

The Stadtbahn is a concept dated back in the late 1940’s. It was

considered after the World War II to rebuild the city centers. Later on in

1970’s few cities abolished the trams and constructed full scale U

Bahn. Many cities build tunnels and linked it is more of a mix tram-like

operations and U Bahn stations in the city centers. (Gesetze-im-

internet.de, 2015)

Water Transport

Germany has two major inland waterway network toward west it has

Unterweser and Hunte rivers, the coastal canal and Dortmund-ems

canal that links to the Rhein River. In the south destinations

Mittelweser river and the Mittelland canal connecting to Minden,

Hannover and Braunschweig. (http://www.gtai.de, 2015). Germanys

logistics are mostly carried out by the sea transport in terms of weight

as it plays a major role in the goods flow across different regions. North

sea and Baltic ports area is crucial as they provide a link to the

Benelux countries, UK and developing a rapid growth to and from

Scandinavia, Baltic States and Russia. As you can see in the figure

WT01 400,000 people are directly employed in Maritime industry

having the largest turnover in the shipping sector with 61 billion euros

turnover in 2006. The third largest industry is the shipbuilding and

maritime suppliers generating 10 billion euros.

Figure WT01 - (Source: Gesetze-im-internet.de, 2015)

Hamburg is the largest port in Germany that has shown steady growth.

The global crisis in 2009 did disrupt its turnover as seen in figure WT02

but after the first quarter of 2010 it has capitalized on the global trade

flow with a vigorous turnover of 8%. The location of the port played a

major factor to its growth. In the graph (Gesetze-im-internet.de, 2015)

Table WT02 - (Source: Gesetze-im-internet.de, 2015)

Graph WT01 - (Source: Gesetze-im-internet.de, 2015)

Hamburg being a multimodal logistics hub is optimally connected to

various locations across Europe and beyond with its different

transports. Vessel docking at the Hamburg port regularly route

throughout the globally to around 920 destination in 177 countries.

Picture WT01 - (Source: Gesetze-im-internet.de, 2015)

Germany is home to the two of the European Union’s top 4 ports.

Hamburg ranked second in Europe for years still the global downturn.

Seeing the static growth since 2010 it is more likely that it will reclaim

its spot again in the ranking. Germany has invested 1 billion euros in

its deep-sea ports JadeWeser Port and Wilhelms haven that will bring

prospects in its future trade. Looking at table WT02 and WT03

analyzing the container across EU top 4 ports its is more likely

Hamburg will hold its position back.

Forecasted Plan - JadeWeser Port (Source: Gesetze-im-internet.de, 2015)

Table WT03 - (Source: Gesetze-im-internet.de, 2015)

Growing trade volumes are increasing demands on Germanys ports

container expected exceptional growth as per the forecast of the

Germany Trade and Invest report it is expecting 11% increase in the

volume. This expected results could only be achieved if the entire

infrastructure is build and ramped up in line with the port

development. The highways, waterways and airways are necessary as

they are interconnected in order to keep the cargo moving smoothly.

(Gesetze-im-internet.de, 2015)

SWOT Analysis – Water Transport

Air Transport

Airports

Germany has 25 operational airports out of 26. It is a very high number

compared to the size of the country. It plays a vital role in the

Industries growth and logistics. Germany being in the center of the

Europe it acts a transit for many airlines. As the countries public

transport network is very strong with high-speed trains the air

transport is relatively economical. Across European airports Germany

has maximum number of paved runways. Across all airports has seen

a growth in its passengers since last year with a maximum of 10.3%.

Out of 25 airports 17 have seen increase in passenger from 2013 to

2014. As per the map in the picture AT02 airports are found all around

Germany that gives industries access to the different mode of

transport.

Table AT01 (Source: Indexmundi.com, 2015)

Table AT01 (Source: German Airports Association – 2014)

Picture AT02

German airports only grew by 1.1 percent in 2012. As the domestic passenger

demand has declined by 3.8% the terminal passenger has risen 0.6% in first 10

months of 2013. This confirms the growing trend of the airline industry of cutting

capacity in the off peak months

Airport industry is mostly privatized and is dominated by three types

Public Airports

Airports that are owned by joint local, regional or federal governments

and operated by local governing body Example: Munich and Stuttgart.

Partially privatized Airports:

It is partially owned by the federal government and partially privatized

Example: Hamburg and Düsseldorf

Fully privatized Airports

These airports are owned and managed by the private company the

first privatization of the airport started in 90’s when Düsseldorf airport

need to be repaired after the fire destroyed the airport. The airport is

still in process of the ownership.

AIRPORT OPERATING

COMPANY

SHAREHOLDERS SHARE

Düsseldorf

International (DUS)

Flughafen Düsseldorf

GmbH

City of Düsseldorf 50%

Airport Partners GmbH 50%

Frankfurt/Main (FRA) Fraport AG

Federal Republic of Germany 18,38%

Federal State of Hessen 32,13%

Stadtwerke Frankfurt Holding 20,52%

Portfolio Investments 28,97%

Hamburg (HAM) Flughafen Hamburg City of Hamburg 51%

GmbHHamburg Airport Partners

GmbH Co KG 49%

Hanover (HAJ)Flughafen Hannover

Langenhagen GmbH

Hannoversche Beteiligung

GmbH 35%

City of Hannover 35%

Fraport AG and Nord LB 30%

Munich (MUN) Public Airport

Federal State of Bavaria 51 %

Federal Republic of Germany 26 %

City of Munich 23 %

Stuttgart (STR) Public Airport

Federal State of Baden-

Wuerttemberg 50%

City of Stuttgart 50%

SWOT Analysis – Air transport

PEST Analysis – Transport IndustryPolitical Factor

- Negative impacts caused by the limitation of the state regulation

on the transport Industry.

Economic Factor

- Petrol prices have been fluctuating drastically since past few

years until they run out of fossil fuels.

- Consumers have limited the use of transportation after the

economic downturn in the economy as they are looking for

saving in there everyday life.

- Increase in disposable income or joint revenue in the family-

making automobile an affordable means of transport will

negatively affect the transport industry.

Social Factor

- Growing population and number of tourist or visitors will increase

demand for transport industry

- Ageing population caused by baby-boomer entering retirement

stage will change the trend to maintain mobility and social

contact (House of Representatives Standing Committee on

Health and Ageing, 2005)

- Greater focus on environmentally friendly energy or renewable

energy will give impact on the industry. Example: BMW –

Hydrogen Cell vehicle and Electric Cars.

- People have become time-poor due to it they cant afford traffic

jams and have to rely on public transport as they operate on its

tracks.

Technological Factors:

- Rapid development of application to videoconference or to

operate at there convenience not obliged to visit office will cause

negative impact on the transportation industry.

- Application like UBER and BlahBlah are providing cheaper means

of transport for consumers to prefer private hire to public

transports.

References Anon, (2015). [online] Available at:

http://www.eurofound.europa.eu/sites/default/files/ef_files/emcc/publications/2006/ef0540enC5.pdf [Accessed 24 May 2015].

Au.news.yahoo.com, (2015). Fun, fun, fun on the autobahn. [online] Available at: https://au.news.yahoo.com/thewest/motoring/a/18958067/fun-fun-fun-on-the-autobahn/ [Accessed 25 May 2015].

Berlin.de, (2015). Underground (U-Bahn) - Berlin.de. [online] Available at: http://www.berlin.de/en/public-transportation/1742343-2913840-underground-subway.en.html [Accessed 25 May 2015].

Europa.eu, (2015). European Commission - PRESS RELEASES - Press release - EU Transport Scoreboard â€“ How is your country doing?. [online] Available at: http://europa.eu/rapid/press-release_MEMO-14-277_en.htm [Accessed 24 May 2015].

German Autobahn: The Speed Limit Debate. (2008). 1st ed. [ebook] Brussels, Belgium: ETSC. Available at: http://archive.etsc.eu/documents/Speed_Fact_Sheet_1.pdf [Accessed 25 May 2015].

Gesetze-im-internet.de, (2015). BOStrab - Verordnung ï¿½ber den Bau und Betrieb der Straï¿½enbahnen. [online] Available at: http://www.gesetze-im-internet.de/strabbo_1987/BJNR026480987.html [Accessed 25 May 2015].

Gesetze-im-internet.de, (2015). StVO - Einzelnorm. [online] Available at: http://www.gesetze-im-internet.de/stvo_2013/__3.html [Accessed 25 May 2015].

http://archive.northsearegion.eu, (2015). The Economic Impacts of

Regional Airports: GSA Case Study. [online] Available at: http://archive.northsearegion.eu/files/repository/20141216170754_ROM&N13040306-EconomicImpactsRegionalAirports-compleet%28LR%29.pdf [Accessed 26 May 2015].

http://nhts.ornl.gov, (2012). Demand for Public Demand. [online] Available at: http://nhts.ornl.gov/2009/pub/DemandForPublicTransport.pdf [Accessed 25 May 2015].

http://www.adv.aero, (2014). ADV-Monatsstatistik - ADV Monthly Traffic Report. [online] Available at: http://www.adv.aero/fileadmin/pdf/statistiken/2014/12.2014_ADV-Monatsstatistik.pdf [Accessed 26 May 2015].

http://www.gtai.de, (2015). Germanyâ€™s Seaports - Connecting Europe with the World. [online] Available at: http://www.gtai.de/GTAI/Content/EN/Invest/_SharedDocs/Downloads/GTAI/Brochures/Industries/germanys-seaports-connecting-europe-with-the-world-en.pdf [Accessed 25 May 2015].

Indexmundi.com, (2015). Countries ranked by Roads, total network (km). [online] Available at: http://www.indexmundi.com/facts/indicators/IS.ROD.TOTL.KM/rankings [Accessed 25 May 2015].

Indexmundi.com, (2015). Countries ranked by Roads, total network (km). [online] Available at: http://www.indexmundi.com/facts/indicators/IS.ROD.TOTL.KM/rankings [Accessed 26 May 2015].

Irfnet.ch, (2015). IRF World Road Statistics - IRF | International Road Federation - Fï¿½dï¿½ration Internationale de la Route. [online] Available at: http://www.irfnet.ch/world_road_statistics.php

[Accessed 25 May 2015].

Koper, J. (2013). Strategic Planning Report - SLOVENIA: LUKA KOPER D.D, PORT AND LOGISTICS SYSTEM. [online] http://ifreightmed.eu. Available at: http://ifreightmed.eu/sites/default/files/Services_Mapping_Slovenia.pdf [Accessed 25 May 2015].

Study in Germany for Free, (2013). A Foreigner's Guide to Public

Transport in Germany. [online] Available at: http://www.studying-in-

germany.org/a-foreigners-guide-to-public-transport-in-germany/

[Accessed 24 May 2015].

transport industry analysis - germany

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