Rail transport

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What international rail freight is

Rail freight means carrying goods in wagons, or in containers on flat wagons, from the station of departure to the station of destination, often across several countries and several railway administrations. For large volumes and long overland distances, rail combines a moderate price, a high payload per wagon and independence from weather and road driving bans.

Rail carries raw materials and bulk cargo, steel, grain, chemicals, building materials, machinery and containers of goods. Cargo can run from a company’s private siding to the consignee’s siding or, where there is none, with road delivery to and from the station. Between Ukraine and the EU, rail has one feature that shapes the whole process: a different track gauge.

ETIKO organizes rail freight both on its own and in combined schemes with road or sea: it chooses the rolling stock, agrees the transport plan, prepares documents and coordinates the gauge change and customs clearance.

Wagon types

The wagon is chosen by the type of cargo, the loading method and how the goods must be protected. Some wagons belong to the railways and some to rolling stock operators, which affects both the rate and availability.

Wagon typeCargoFeatures
Covered wagonPackaged goods, pallets, bagged goods, household appliancesProtects from weather, loaded through side doors
Gondola (open wagon)Coal, ore, scrap, timber, rolled steelOpen top, loaded by crane or grab
Flat wagonMachinery, structures, long itemsOpen floor with or without sides, securing required
Container flat20 and 40 ft containersFitting pins to lock containers, the basis of container trains
Tank wagonOil products, chemical and food liquids, liquefied gasesDedicated to a specific product, separate cleaning requirements
HopperGrain, cement, fertilizers, bulk materialsLoaded through top hatches, discharged by gravity from below
Insulated or refrigerated wagonPerishablesKeeps temperature on the way
Heavy-load (Schnabel or well) wagonVery heavy and oversized items: transformers, reactorsMulti-axle wagon, each movement agreed separately

1520 and 1435 mm gauge: how cargo crosses the border

Ukraine’s track gauge is 1520 mm, while most EU countries use 1435 mm. An ordinary wagon cannot simply roll from one network to the other, so at the gauge break either the cargo or the wagon is prepared to continue. Besides the gauge, the loading gauge also differs: a load that passes freely on the 1520 mm network may not fit the smaller European profile, and this is checked in advance.

  • Transshipment from a wagon of one gauge to a wagon of the other at border stations, directly or via a warehouse.
  • Container transfer by crane from flat wagons of one gauge to those of the other: the simplest and fastest option for containerized cargo.
  • Bogie exchange under the wagon without unloading, so the cargo stays in the same wagon.
  • Variable-gauge wheelsets that change width while passing through a special installation.
  • Transfer to road when the final consignee is near the border.

Each method has its own cost, time and risks. Transshipment adds handling and requires securing a second time, and bogie exchange is not available for every wagon or station. The gauge-change method is therefore chosen together with the route.

The rules: SMGS, COTIF/CIM and the common consignment note

International rail law has two main systems. Across the 1520 mm area and in a number of Asian and European countries, the Agreement on International Goods Transport by Rail (SMGS) of the Organisation for Co-operation between Railways (OSJD) applies. In the EU and other member states of the Intergovernmental Organisation for International Carriage by Rail (OTIF), COTIF applies with its CIM Uniform Rules on the contract for the carriage of goods.

In the past, cargo was re-consigned from one consignment note to another at the boundary between the systems, which took time and invited errors. The common CIM/SMGS consignment note, developed by the International Rail Transport Committee (CIT) and OSJD, lets the whole journey run on one document recognized by both systems. Carrier liability on each part of the journey follows the law that applies there: under CIM, for example, compensation for loss is limited to 17 SDR per kilogram of gross mass.

Carriage charges are calculated under each railway’s tariff for its section and under transit tariffs. Different parties may pay for different sections, which is set out in the consignment note and the contract.

Container trains and combined schemes

A container train is made up of container flats and runs as a single unit between terminals, either to a timetable or once enough cargo is collected. It is faster than single-wagon shipments because it is not broken up at marshalling yards. On long routes between Asia and Europe such trains are used as an alternative to sea and air in terms of price and transit time.

A container makes it easy to change gauge and mode: it is lifted by crane onto a flat of the other gauge, a truck or a ship without opening or rehandling the cargo. That is why rail is often part of a multimodal chain, where a container arrives by sea at a port, continues by train and covers the last kilometers by road.

Loading, securing and dangerous goods

Cargo in a wagon must be placed and secured to withstand shunting and braking shocks and stay within the loading gauge. On the 1520 mm network the Technical Conditions for Loading and Securing Goods (SMGS Annex 3) apply, and on 1435 mm networks the International Union of Railways (UIC) loading guidelines. For oversized and heavy cargo, a loading and securing plan is drawn up and approved by every railway on the route.

Dangerous goods travel under SMGS Annex 2 in the OSJD area and under RID (COTIF Appendix C) in the OTIF area. Both are based on the UN Recommendations on the Transport of Dangerous Goods but differ in detail, so cargo crossing between the systems is prepared to both sets of requirements: classification, packaging, marking, wagon placards and entries in the consignment note.

Order of work

  1. Request: cargo, volume, weight, stations or addresses, preferred shipping period.
  2. Signing a mutual non-disclosure agreement (NDA) before work starts.
  3. Choosing rolling stock, the route and the gauge-change method.
  4. Checking the loading gauge, securing requirements and dangerous goods rules.
  5. Agreeing the transport plan with the railways, calculating carriage charges.
  6. Placing the wagon or container, loading, securing, sealing.
  7. Issuing the CIM, SMGS or CIM/SMGS consignment note and customs documents.
  8. Gauge change: transshipment, container transfer or bogie exchange.
  9. Tracking wagons, customs clearance at the border and at destination.
  10. Unloading, delivery to the consignee, return of the empty wagon or container.

ETIKO coordinates the railways, wagon operators, terminals, the customs broker and road carriers for the first and last mile.

Cost, transit time and risks

The price of rail freight depends on the route and tariff distance, the wagon type and owner, cargo weight, the gauge-change method, transshipment and terminal costs, the empty return of the wagon, customs clearance and road delivery to and from the station. Transit time is set by wagon placement schedules, train formation, queues at border stations, the gauge change and customs procedures.

  • Loading gauge mismatch with the 1435 mm network discovered at the border, so the cargo has to be reloaded.
  • Weak securing shifts during shunting, and the wagon is detached for re-securing.
  • Errors in the consignment note stop the wagon at the border station until corrected.
  • Excess wagon time during loading or unloading is charged separately.
  • Damage during transshipment at the gauge break if packaging is not designed for an extra handling.

The customer should prepare a description and HS code of the goods, weight and dimensions of the pieces, packaging, stations or addresses, shipper and consignee details, and for dangerous goods the UN number and safety data sheet (SDS).

What it includes

  • Choosing rolling stock: covered wagon, gondola, flat wagon, container flat, tank wagon, hopper, heavy-load wagon.
  • Route planning and agreeing the transport plan with the railways.
  • 1520/1435 mm gauge change: transshipment, container transfer, bogie exchange.
  • Container shipments in container trains.
  • Loading gauge and securing checks, loading plans for oversized cargo.
  • Documents: CIM, SMGS or CIM/SMGS consignment notes, dangerous goods documents.
  • Customs clearance for export, transit and import.
  • First and last mile by road where there is no siding.
  • Tracking of wagons and containers.

Cargo

  • Bulk cargo: ore, coal, scrap, building materials.
  • Steel and rolled products.
  • Grain, fertilizers, cement in hoppers.
  • Liquids and liquefied gases in tank wagons.
  • Containers of 20 and 40 ft.
  • Machinery, equipment, structures on flat wagons.
  • Very heavy and oversized cargo on heavy-load wagons by separate approval.
  • Dangerous goods under RID and SMGS Annex 2.

Requirements

International law

  • The Agreement on International Goods Transport by Rail (SMGS) of OSJD in the 1520 mm area and other member countries.
  • COTIF and the CIM Uniform Rules in OTIF member states, including the EU.
  • The common CIM/SMGS consignment note (CIT and OSJD) for carriage between the two systems without re-consignment.

Track and loading gauge

  • Track gauge: Ukraine 1520 mm, most EU countries 1435 mm.
  • Loading gauges differ between networks, so the dimensions of the load on the wagon are checked for the whole route.

Loading and securing

  • Technical Conditions for Loading and Securing Goods (SMGS Annex 3) on the 1520 mm network.
  • UIC loading guidelines on 1435 mm networks.
  • A loading and securing plan for oversized and heavy cargo, approved by the railways on the route.

Dangerous goods

  • SMGS Annex 2 in the OSJD area.
  • RID (COTIF Appendix C) in the OTIF area.

Documents

Transport documents

  • Rail consignment note: CIM, SMGS or the common CIM/SMGS.
  • Loading and securing plan for oversized and heavy cargo.
  • Wagon or container documents from the rolling stock operator when the wagon is not railway-owned.

Commercial and customs documents

  • Commercial invoice and packing list.
  • Export declaration, transit declaration and import declaration.
  • Proof of origin if the consignee claims a preferential duty rate.
  • Certificates for specific goods: phytosanitary, veterinary, conformity.

For dangerous goods

  • Dangerous goods entries in the consignment note under RID or SMGS Annex 2.
  • Emergency card or instructions in writing as each system requires.
  • Safety data sheet (SDS).

Frequently asked questions

Why is cargo transshipped at the EU border?

Ukraine’s track gauge is 1520 mm and most EU countries use 1435 mm, so an ordinary wagon cannot continue unchanged. At the gauge break the cargo is transshipped, containers are moved to other flats, or the wagon’s bogies are exchanged. The method is chosen together with the route.

What is the CIM/SMGS consignment note?

It is a common rail consignment note recognized by both systems of international rail law: CIM in OTIF countries and SMGS in OSJD countries. It lets cargo cross between the systems without being re-consigned on another note. This saves time and reduces the risk of errors.

Which wagon does my cargo need?

Packaged goods usually go in covered wagons, bulk in gondolas, granular cargo in hoppers, liquids in tank wagons, machinery on flat wagons and containers on container flats. The final choice depends on weight, dimensions, loading method and protection requirements. It is made after checking the loading gauge for the whole route.

Can dangerous goods be carried by rail to the EU?

Yes. SMGS Annex 2 applies in the OSJD area and RID in the OTIF area. Cargo crossing between the systems is prepared to both: classification, packaging, marking, wagon placards and entries in the consignment note.

What does the cost of rail freight depend on?

On the route and tariff distance, the wagon type and owner, cargo weight, the gauge-change method, terminal work, empty wagon return and road delivery to and from the station. Customs clearance and possible wagon demurrage are added. The exact price is calculated once the route and rolling stock are chosen.

Why is a container train better than single wagons?

A container train runs as one unit between terminals and is not broken up at marshalling yards, so it is faster. A container is easily moved to a flat of another gauge, a truck or a ship without rehandling the cargo. That makes it convenient for multimodal schemes.

Transport request

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