Future-proofing freight
RSSB’s newest Board member, Andrea Rossi, shares his thoughts on freight growth and the opportunities that lie in digital transformation.
Andrea Rossi is new to the RSSB Board and brimming with optimism for freight growth, digital transformation, and the intersection between them.
Andrea RossiChief Executive, DB Cargo UK
Congratulations on becoming an RSSB Board member. How do you hope to support rail companies through this appointment?
The industry is seeing significant change, including: rail reform; the rollout of European Train Control System (ETCS); climate change and decarbonisation; a new rail freight growth target; and modal shift from road to rail.
I’m involved in all of these discussions from various forums. We need to keep the overall picture, and the connections between these topics, in the forefront of our minds when delivering value for our customers and improving our businesses.So, it’s vital that I bring these whole-industry perspectives, with a freight-specific angle, to the RSSB Board. I also need to ensure that our members’ interests are adequately represented, and that they can benefit from RSSB services that take their needs into account.In short, I’ll make sure that rail freight will play an active role in each of our Board discussions and deliberations for a safer, healthier, and greener rail industry.
You’ve been in the freight sector for nearly 20 years. How has it changed in that time?
During my first 10 years with DB Cargo in Germany, I saw a large increase in the number of rail freight companies active on the continent. At DB Cargo, this was reflected in going from a ‘patchwork’ of national freight companies to a network of cross-border freight corridors.The development in the UK over the past 10 years has been quite different. Shortly after I arrived, I saw the unprecedented decline in coal traffics due to the change in legislation for coal-fired power plants. One of the biggest revenue generators for rail freight companies dramatically disappeared over a period of 18 months. This had huge consequences. And for me was the start of a transformation journey—with Brexit, COVID-19, and global supply chain issues following suit—that has continued until this day.This was a stark message to an industry that was somewhat static and change-resistant. We had to change and adapt with our environment if we wanted to survive and be relevant.
What will it take to safely, and sustainably, meet the government’s goal to increase rail freight by 75% in the next 25 years?
The safety piece needs a continuous collaborative effort among freight operators. We need to focus on addressing the key risks and combating complacency. We must always be pushing for a safety mindset. The tone from the top is essential in my view, paired with bottom-up solutions.
To grow the modal shift from road to rail, we need to address the gap between road and rail costs. While there’s the political and environmental will to push freight to rail, we’re facing the economic reality of rail freight costs going up quicker than road costs. This affects our competitiveness versus that of road. That’s the harsh reality of our business, as we have private customer contracts we need to serve.
What role does technology play in achieving this growth?
Technology plays a fundamental role in making our industry fit for the future. Digitalising the East Coast Main Line and retro-fitting rolling stock with ETCS equipment is the first step towards a safer railway. But it’s also where more capacity on the network will be created. This will allow for a higher frequency of freight trains to be operated on the network.Digitalising processes will also be crucial in supporting the growth of our industry, as we’ll get enhanced transparency and more visibility of our business data. This will help identify areas of inefficiency. I strongly believe that by doing that, we’ll be able to sustainably grow for our customers.
The changing digital landscape is something rail companies are facing. What can they learn from DB Cargo UK’s digital transformation, in which you played a big part?
An important lesson for me was to avoid customising your IT landscape too much. Otherwise, you won’t be able to capitalise on the improvements and benefits of newer software releases. You also need to have the courage to press ‘reset’ on some of these. That can be very difficult. For example, we literally went back to the drawing board and mapped all our end-to-end processes on paper that covered three walls of a meeting room! It’s that level of detail you need to be prepared to go into to ask, ‘How we can do this better and quicker for our customers?’ Keeping that customer-centric focus in such exercises is key.
Thank you. Finally, what’s your parting message for our rail leader readers?
We’re living a moment of significant transformation for the rail industry. We have a fantastic opportunity to contribute and make a positive difference to our customers, members, and stakeholders. We can do this by embracing these changes and focusing on creating a safer and more sustainable railway—and of course, one where freight belongs on rail.
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