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World 

MAR/APR 07 

16 

CILT Annual Report 

& Accounts 

CILT International 

Education Courses 

The worldwide newsletter for 

The Chartered Institute of Logistics and Transport 

Developing logistics and transport professionals world-wide 

World's largest cargo ship 

Improving urban transport 

Sir Robert Reid Lecture

2 

CILTWorld issue 16 

contents 

Cover picture: 1 

CILT news and views 2 – 8 

Africa news 9 

China news 10 

CILT Annual Report and Accounts 11 – 14 

Ports and Shipping 15 

Social, policy, economy 16 – 17 

European news 18 – 19 

Sir Robert Reid Lecture 20 – 21 

British Rail privatisation 

— more readers’ views 22 – 23 

Environment 24 

The Chartered Institute of Logistics and Transport, 

founded in 1919 and headquartered in London, 

England, is the largest and best known transport 

institute in the world, comprising more than 

30,000 members world wide. The Royal Charter 

was granted in 1926 and encourages the Institute 

to promote, encourage and coordinate the study 

and advancement of the science and art of 

transportation in all its Branches. 

Forthcoming events 

CILT INTERNATIONAL ANNUAL GENERAL 

MEETING: 

The 2007 Annual General Meeting of the 

Institute will be held at the La Palm Royal 

Beach Hotel, Accra, Ghana on Tuesday 1 May 

2007 at 1.45 p.m. 

CILT NORTH AMERICA ‘TRANSPORT 

SITUATION AND OUTLOOK’ 

CONFERENCE: 

The Chartered Institute of Logistics and 

Transport in North America (CILTNA) has 

announced its ‘Sixth Transportation Situation 

and Outlook’ conference, being held at the 

National Arts Centre (Panorama Room), 

Ottawa, Ontario, on Monday 11 June. 

This conference is a leadership forum to 

review and assess the impact of major global 

and national issues on the future of the North 

American modal (marine, rail, motor carrier 

and air) transport system. For further 

information and registration visit 

www.ciltna.com 

CILT SOUTH AFRICA CONFERENCE ON AIR 

CARGO AND EXPRESS FREIGHT: 

CILTSA will be hosting a world-class Conference on 

“What’s New in Air Cargo and Express Freight”. 

This Conference takes place from 19 to 20 June at 

the Holiday Inn Garden Court OR Tambo / JHB 

International Airport. Local and international 

industry leaders will be delivering presentations at 

this two-day event. Full details will be sent to you 

shortly! For any queries, please e-mail 

cvlarkin@ciltsa.org.za 

NEW ZEALAND — SUSTAINABILITY, INTEGRATION, 

ECONOMIC GROWTH 

CARS, TRUCKS, TRAINS, PLANES, BOATS, BUSES, 

BIKES, FREIGHT AND PEOPLE – WHERE TO FROM 

HERE : 

This international conference is promoted and 

sponsored by the New Zealand Government, 

transport sector agencies and the transport 

industry, 25-27 July 2007, Christchurch 

Convention Centre, Christchurch, New Zealand. 

For conference brochure, programme and online 

registration go to www.transport07.co.nz 

Let CILTWorld Have 

your news and views 

CILTWorld would like to hear about news and 

activities of CILT members and councils, sections and 

branches around the world. In particular we invite 

contributions, letters and possible articles from those 

individual members who do not have a journal 

produced in their own territories. 

Please send your contributions, or letters, to 

The Editor, Alan Marshall. 

If you are communicating written information, 

if possible please send this as e-mail to: 

CILTWorld@aol.com. 

If you want to send information by fax, please dial: (+) 

44 1926 863178 (01926 863178 in the UK) 

Communication by mail is also possible! Please 

address your correspondence to: 

CILT WORLD, 

49 INCHBROOK ROAD, 

KENILWORTH, 

WARWICKSHIRE, 

CV8 2EW, 

UNITED KINGDOM. 

telephone/voice-mail: (+) 44 1926 852944 

© CILT World is published by the Chartered Institute of 

Logistics and Transport. It is designed by Bear Design. 

Printed by PHP Litho Printers,Unit 3, Mount Osborne 

Business Centre, OakwellDrive, Pontefract Road, 

Barnsley, S71 1HH, UK. 

Airport problems in Bangkok 

NEW AIRPORTS, and for that matter any major 

structure, always have teething problems. That is 

the nature of the work. But in Thailand the 

problems seem to have been magnified. 

Suvarnabhumi, the brand new $3.8bn (£1.9bn) 

Bangkok international gateway, has suffered 

numerous management and infrastructural 

difficulties, which many have blamed on poor and 

rushed planning, and corruption. 

Transport minister Thira Haocharoen, after holding 

a meeting with all concerned parties, said a decision 

had been reached to re-commission the old Don 

FRONT COVER 

PICTURE 

Passengers wait at 

Suvarnbhumi International 

Airport in Bangkok. 

See report on this page. 

Muang Airport to handle domestic flights. 

The minister revealed that the new airport had 

about 100 cracks in various taxiways and on one 

of its two runways. The taxiway cracks meant 

that 11 of the airport's 50 aerobridges have been 

out of service, forcing passengers to take buses to 

the terminal. 

However, STAR Alliance issued a statement strongly 

supporting the maintenance of existing operations 

for its member carriers at Suvarnabhum after Thai 

Airways had expressed a firm desire to maintain its 

hub operations at the new airport. 

Star said maintaining operations at Suvarnabhumi 

“will strengthen the region’s hub position” and it’s 

firmly committed to its ‘Move under one Roof’ 

concept where Alliance members share services in a 

single terminal. “By remaining at Suvarnabhumi 

Airport the member carriers will be able to continue 

to provide the best in convenient service to Star 

Alliance passengers for maximum flight 

connectivity,” a statement said.

CILTWorld issue 16 3 

www.cilt-international.com 

CILT NEWS 

Run-in for Ireland’s largest 

infrastructure project 

Light at the end 

of the Tunnel 

By Tom Ferris* 

WHO in their right mind would 

accept an invitation to run 10,000 

metres through the new Dublin Port 

Tunnel It sounds like an invitation 

to become a modern-day canary 

down a mine, testing the facilities 

before any vehicles enter the new 

Tunnel. Yet 7,000 men, including 

myself, and 3,000 women jumped 

at the chance to accept an invitation 

from Dublin City Council and 

Clonliffe Harriers to run through 

Dublin Port Tunnel before it opened 

for public use. 

The run was through the two 

sections of the tunnel, some 20 

metres under the streets of Dublin. 

Like other runners I wanted to get a 

feel of the scale and capacity of the 

tunnel. It took me 63 minutes to do 

the full 10 kilometres. It was a 

wonderful event. It was worth the 

sore limbs, just to experience at firsthand 

this controversial project, the 

subject of much debate about 

construction delays, height limits and 

budget over-runs. 

We are talking about the largest 

single infrastructure project ever 

undertaken in Ireland. It is the 

product of more than ten years of 

planning and construction. 

It is a twin bore tunnel of 4.5 

kilometres (2.8 miles) in length with 

a height clearance of 4.65 metres 

(15.25 ft). It is part of Dublin’s M50 

motorway and completes the 

northern part of the C-Ring around 

Dublin city. It is a dedicated route for 

Heavy Goods Vehicles between the 

Port, located in the heart of the city, 

and the primary road network via 

the M50. 

The tunnel concept emerged from 

the Dublin Transportation Initiative 

back in 1995. The twin bore, twolane 

motorway tunnel links Dublin 

Port to Ireland’s rapidly growing 

motorway network. The Dublin Port 

Tunnel has been fitted with 

comprehensive mechanical and 

electrical systems, and optical and 

gas monitoring equipment in order 

to ensure a safe environment for all 

users. 

Vast improvements promised 

It promises vast improvements in the 

capability of moving goods into and 

out of Dublin Port. Almost the entire 

€751 million (£510m, $990m) 

project has been funded by the Irish 

taxpayer (apart from some initial 

development funding from the 

European Union). The tunnel was 

project managed by Dublin City 

Council, and constructed by an 

international consortium involving 

Irish, British and Japanese 

contractors. 

The opening of the Dublin Port 

Tunnel will enable almost two million 

truck trips each year to access the 

motorway network directly, avoiding 

the narrow streets of Dublin’s city 

centre and relieving the inner 

suburban residential areas. Trucks 

travel free of charge through the 

Tunnel, while private cars have to pay 

tolls. After a short bedding-in period, 

a management plan was 

implemented, taking the very heavy 

trucks off Dublin’s streets. This is 

expected to facilitate improved public 

transport and better pedestrian and 

cycling facilities, as well as traffic 

calming and improved air quality. 

But back to the “tunnel-run.” It took 

place on a cold, wet and windy 

Sunday morning in December. With 

10,000 runners checking-in, I arrived 

in good time to meet my son 

Macdara and his work colleagues, 

who as engineers also had a 

professional interest in the tunnel. 

On the edge of a very congested 

starting-area, we proceeded to jog 

on-the-spot to try to stay warm. We 

also joined in numerous Mexican 

waves. When the start came, it was 

quite a stampede. 

However, the field spread out fairly 

quickly and I was able to run at my 

own pace. 

Many features — and no graffiti 

Runners chanted the familiar "Olé, 

Olé, Olé" on entering the tunnel. 

Once inside the tunnel, the absence 

of wind and rain was very noticeable. 

Encouraged by the good-humoured 

banter and singing, I enjoyed making 

steady progress through the first 

tunnel. I noted many features – the 

emergency lay-byes, the good 

signage, the quality of the 

tarmacadam, the many cross-over 

safety links between the two tunnels 

and the bright yellow lighting. And 

there was no graffiti. 

Of course, the real treat was to see 

the light at the end of the first 4.5 km 

tunnel. Coming out of the tunnel 

marked the end of half of the run. I 

then observed a very rainswept M1 

[the Dublin-Belfast motorway] before 

doing the u-turn into the second 4.5 

km tunnel to the finish. The next few 

kilometers went quite well, but the 

final two kilometres were quite a 

ASI Photo Europe 

climb and had to be taken at a snail’s 

pace. But on reaching the end of 

tunnel I got a ‘second wind’ that 

allowed me to finish strongly. It had 

taken me 63 minutes to get there. 

My son and his colleagues had 

finished well ahead of me. 

The Port Tunnel Run was a unique 

event. The project itself is very 

significant. This is the first of a 

number of big transport 

infrastructure projects to be rolledout 

in Dublin. 

Many new major roads and other 

transport and infrastructure projects 

are on the cards. In particular, delivery 

of an integrated transport system for 

Dublin, to include new Luas light-rail 

projects, some Metro lines, and an 

underground station at St. Stephen's 

Green are planned. But it is only 

when they are actually delivered that 

the congestion problems that affect 

Dublin will truly be solved — and 

more running experiences offered to 

the athletes of Dublin. 

* Tom Ferris is a former President of 

CIT Ireland. He spent most of his 

career in Ireland’s Department of 

Transport. He now practices as a 

consultant economist.

COMMENT 

4 CILTWorld issue 16 LETTERS www.cilt-international.com 

Time to galvanise politicians to 

re-think Britain’s rail structure 

By Alan Marshall, Editor, CILTWorld 

The age of the train 

AS the world’s economies grow, transport 

infrastructure—roads, airports, ports and 

waterways, and railways—is at the very heart of 

economic success. 

Sitting in the Editor’s chair I glean news from all 

over the world about logistics and transport 

developments, far too many to include them all in 

the magazine. What is so striking these days is the 

extent to which railways are being developed, or 

plans for new railways promulgated. The major 

exceptions are North America—where plans for 

new high speed networks as far apart as Florida 

and California seem to make little progress—and 

the United Kingdom, where the recent Eddington 

report gave little support for major railway 

developments, including new high-speed lines. 

Yet elsewhere, many ambitious plans are being 

laid, or are already being initiated, notably for highspeed 

railways. The Japanese and French led the 

way 25 years ago, and then much of mainland 

Europe started to follow, as described in Guillaume 

Pepy’s Sir Robert Reid Lecture for CILT(UK). An 

extensive network is now planned to be in place by 

2020 (see page 20) — although in Britain, thus far, 

nothing is planned beyond the Channel Tunnel Rail 

link, now known as High Speed One, to London. 

And, as if to demonstrate the scope for the 

conventional steel wheel on the steel rail, the 

French have raised the world rail speed record to 

513 km/h. 

Beyond Europe, there are many more 

developments. Taiwan has just started running 

clones of the Japanese Shinkansen, and Korea has 

been licensed to build TGV look-alikes. China is 

introducing a massive increase in train speeds this 

spring as (well as planning many new railway 

lines). Even Russia and Vietnam are now planning 

high-speed lines. 

For longer-distance passenger travel, railways are 

becoming increasingly competitive. When TGV 

services began in France 25 years ago, it was held 

that the journey threshold in favour of trains was a 

maximum of three hours. Now, with increasing 

delays in surface access to and from airports, 

including growing road congestion, the 

competitive edge for rail may be moving to around 

four hours. 

Trains enjoy energy consumption benefits over 

aircraft, too, notably if they are built to relatively 

light weights, such as the French double-deck 

TGVs, or the British Pendolinos, which return 17% 

of consumed energy back to the power system 

through regenerative braking. 

Twenty years ago, many people scoffed at the 

former British Rail’s advertising slogan ‘This is the 

age of the train.’ But today this could apply to 

many railways around the world. 

I HAVE READ with interest the many words written 

over recent issues on the subject of the railways of 

Britain, whether pro-nationalisation or proprivatisation 

or neither. There are I believe a number 

of fundamentals to consider when looking at the 

bigger picture. 

1. Whether staffed by the state or private enterprise, 

the problems associated with safety are largely ‘manmade,’ 

accepting that occasionally there is always the 

possibility of ‘acts of God.” 

2. The basic difference between the British Railways 

operation and the operating structure post 

privatisation is that BR had (quite naturally) a ‘job for 

life’ culture and a ‘money was no object’ attitude (the 

reverse of the profit motive) until the decision was 

made to dissolve BR — whilst the new operating 

companies were on very short franchises with no 

scope for long term planning and lacking the taxpayers 

bottom-less pocket, unlike BR. It could be said 

that once the decision had been made to privatise, the 

business began to go down hill because of its then 

short-term future and lack of investment. 

3. It is too simplistic to blame the profit motive for 

the rail accidents. The fragmented structure of the 

private sector is clearly part of the problem but also 

the equally fragmented responsibilities between the 

public players — Department for Transport, the 

Strategic Rail Authority, Franchise Director, Rail 

Safety, the Health & Safety Executive and 

Railtrack/Network Rail. 

4. In contrast to the railways, British Airways were not 

saddled with such great disadvantages. Despite the 

Pints and litres 

‘CILT WORLD’ is usually quite good in quoting 

measurements in both English (imperial) and 

French (metric) and often US as well (I wish the 

UK's ‘Logistics & Transport Focus’ would do the 

same). 

However, the Guinness article in Issue 15 quoted 

"23,000 hectolitres of Guinness" transported 

every day. I'm sure this figure would be more 

impressive and more understandable in imperial 

pints! 

Peter G. Scott, 

M.Phil., MIIE, CMILT. 

PS: Thanks for the excellent BR Privatisation 

articles in Issue 15. 

• For the record, 23,000 hectolitres are equivalent 

to 5,059,292.7 imperial gallons, which amount to 

40,474,341 pints … transported by Guinness 

EVERY DAY! 

separation of air traffic control and airport operation 

from the various airline operators, there does not 

appear to have been the same problems of 

privatisation in these profit-motivated businesses. 

In conclusion, instead of looking back to the era of 

British Railways and its predecessors since 1948, 

which was not exactly a golden era, I wonder why no 

one seems to be thinking about the structure of the 

previous private railway companies — LMS, LNER and 

GWR (‘God’s Wonderful Railway’) and others — and 

whether a similar well tried and tested system would 

not work again in the 21st century. Although I was 

very young when the railways were nationalised in 

1948, my recollection is that there were two main 

reasons for it; (1) the railways had suffered a great deal 

of physical damage and under-investment (not 

surprisingly) during the 2nd World War, and (2) the 

political dogma of the Labour Government. Some 

may say there was a vision of better services to come 

under the monolithic British Transport Commission. 

So let us hear about the railway system pre-2nd World 

War while there are still many people around who can 

recount their experiences, either from within or 

outside the rail business. Could it be that this will then 

galvanise the politicians into re-thinking the present 

railway structure But don’t hold your breath. 

CILT World is a good read — keep up the good work! 

Geof Murray 

MCILT 

• See more comments on this subject on pages 22 

and 23. 

Historical accuracy 

ON PAGE 2 (of CILT World 15) you include under the 

contents list a resume of the Institute starting with 

the CILT being founded in 1919. May I make a plea 

for accuracy as it was The Institute of Transport 

which was founded in 1919 which after a change 

of name to The C I of T and merger with the I o L 

and became the ILT and then the CILT. 

This may be a bit of a long story to tell but it is surely 

false to show the CILT being founded in 1919 when 

it was then clearly not even a gleam in anyone's eye. 

It also would give credence to the old pioneers of 

the I o T who first achieved the Royal Charter and 

chartered status for its members. 

Geof Murray 

MCILT 

• The list of contents in the last edition was only a 

summary, and we endeavoured to set out the 

history in a little more detail in the special article on 

page 13 of the last edition.



CILT NEWS 

CILT International Education Courses 

By Dr David Maunder, Director International Development 

IN CILT WORLD edition14 I informed readers that CILT 

International is now able to offer CILT Independent 

Sections and National Councils, and their training 

providers, three education courses aimed at different 

levels of management namely: the Certificate, Diploma 

and Advanced Diploma in Logistics and Transport. 

The teaching material for the Certificate and Diploma 

courses is provided when the Training Provider has been 

accredited by CILT International to run a course. 

Standards [syllabus] are available for the Advanced 

Diploma, with the Training Provider left to provide its 

own teaching materials. The basis for CILT International 

to offer such courses and material is to enable CILT 

Sections and National Councils worldwide to run 

courses locally and be affordable to students using local 

Training Providers and Institutes. 

However, Standards will be maintained by CILT 

International by monitoring and moderation of 

examination papers and marked scripts so that 

wherever the course is taught the level will be similar 

throughout the CILT worldwide community. 

The Certificate in Logistics and Transport is aimed at 

new or aspiring supervisors and first line managers to 

increase their knowledge, skills and confidence in 

logistics and transport management. The course is set 

out in units, which are then broken down into topics, 

knowledge and competencies. Students have to 

undertake three core subjects namely: Managing 

Resources, Customers Services and Quality 

Management in Transport Operations and Managing 

the Logistics and Transport Environment. They then 

have to choose one elective from: Freight Operations, 

Fleet Management, Passenger Transport or 

Warehousing and Stores Operations. 

The course material has been refreshed and made user 

friendly both for lecturers and students alike. It is 

available in CD format and all lecturers have to do is to 

use the material and then ‘localise’ it by providing 

examples and issues from a local perspective. 

Training Providers have to be accredited by CILT 

International to run the course. Accreditation costs just 

£50, which also includes the cost of the teaching 

material — so is very affordable for all Sections wishing 

to offer the course. 

As an example of the extent of the course content the 

topics included for the three core subjects that have to 

be studied by all students is shown below: 

Managing Resources comprises 3 topics namely: 

People, Finance and Technology 

Managing the Logistics and Transport Environment 

comprises: Internal structures and processes, 

external factors, stakeholder interests, marketing 

and commercial needs, legal and environmental 

issues. 

Customers Services and Quality Management 

comprises topics such as: Customer service and 

competition, customer service culture, developing, 

maintaining and improving service quality, setting 

and monitoring service standards, analysing quality 

problems and service failures, TQM, MIS, 

benchmarking, legal requirements, admin systems 

and communications. 

The elective modules are equally extensive in terms of 

topics covered. 

Depending on how the Certificate course is taught it 

should be completed within six months of study. With 

suitable employment experience successful students 

can apply to become a Member, Institute of Logistics 

and Transport [ MILT]. 

The CILT International Diploma in Logistics and 

Transport builds on knowledge gained from studying 

the Certificate course or from the working environment 

itself. It is set at a higher level than the Certificate and 

will consequently take longer – possibly 12 months 

depending on how it is taught. The qualification is 

basically for those already in middle management posts 

who wish to develop a strategic view of logistics and 

transport operations and be capable of reviewing and 

modifying operational activities. 

It is a modular course comprising six units, all of which 

have to be studied. The units comprise: Managing 

Transport and Logistics Operations, Resource 

Management, Transport Economics and Finance, 

Supply Chain and Logistics, Inventory Management and 

Passenger Transport. 

For each unit, detailed PowerPoint presentations are 

provided as teaching material, which is user friendly for 

lecturers and easily understandable for students. As 

with the Certificate course, however, lecturers will need 

to localise the presentations by incorporating additional 

material to cover the local economy, transport and 

logistics sector and environment. 

Topics for three of the six units are shown below as an 

example of the entire course for readers and potential 

lecturers and students alike. 

The Transport Economics and Finance unit 

comprises topics such as: Transport supply and 

demand, externalities, economics and finance, costs 

and budgetary measures, decision making and 

evaluation and statistical research methods. 

The unit Managing Transport and Logistics 

Operations includes topics such as: Organisational 

structure and relationships, transport characteristics, 

logistics and supply chain, customer service, 

information technology, the business environment 

and planning, controlling and decision making. 

Passenger Transport comprises: Movement of 

people, origins, destinations and routes, handling of 

passengers, modes of passenger transport and 

services. 

The Advanced Diploma in Logistics and Transport is 

basically the equivalent of a university degree level 

qualification and is aimed at middle/senior 

management level. It is concerned more with strategic 

management and decision making/ planning than 

operational issues. Students who study for the 

Advanced Diploma are expected: 

1. To become familiar with certain elementary analytical 

concepts useful to analyse logistics and 

transportation environmental trends, customers, 

organization, finance, and cost dynamics. 

2. To develop an understanding of logistics and 

transportation strategic planning methods including 

strategic management and leadership, strategic 

environment, and organization level planning. 

3. To integrate and apply the concepts discussed into 

their daily workplace. 

4. To be aware of ethical issues, sustainability and 

minimizing the impact of the organization and its 

operations on the global environment 

5. To develop skills in research methodology and 

produce a work-based project. 

Teaching material has not been developed at the 

present time though Standards or a Syllabus has been 

finalised. Therefore, a Training Provider who wishes to 

offer the course will need to create teaching material 

based on the Standards provided by CILT International. 

It is expected that students will study for at least a 2 year 

period before completing the course. 

Four core Units comprise the course which all students 

have to study and they are: Strategic Management and 

Leadership, the Strategic Environment for Logistics and 

Transport, Organisation Level Planning in Logistics and 

Transport and Research Methodology which includes a 

work based research project. 

The course content comprises the following: 

Strategic Management and Leadership topics 

include: organisational culture, leadership, 

collaboration and ethical management. 

The Strategic Environment for Logistics and 

Transport comprises: Society and sustainability, 

government and politics, economics, finance and 

risk and contingency planning. 

The topics included in Organization Level Planning in 

Logistics and Transport comprise: vision and 

strategy, transportation planning, delivering 

customer service, innovation and change, supply 

chain performance 

Research Methodology and Work-based Project 

includes topics such as: nature of business and 

management research, research approaches, 

sampling and data and a work based project 

management approach. 

Please contact Dr Maunder at CILT International for any 

queries you may have or if you wish to be accredited to 

run any of the above courses. Costs for each course 

were discussed in CILT World edition 14 but are also 

available on the CILT International web site (www.ciltinternational.com) 

or can be obtained from Dr 

Maunder.

6 


CILT MALAYSIA NEWS ROUND-UP 


New Chartered Members 

graduate in Kuala Lumpur 

By P R Gopal, CILT Malaysia 

THE Chartered Institute of 

Logistics and Transport, Malaysia, 

recently held its sixth 

Convocation Ceremony and CILT 

Award Nite at a prominent resort 

hotel in Kuala Lumpur the capital 

city of Malaysia. 

This is an annual event which has 

created a platform to recognise 

and award organisations and 

individuals who has achieved 

excellence and has contributed to 

the improvement of the logistics 

and transport industry. 

CILTM, in its endeavour to expand 

its membership base, has been 

working in full force in promoting 

the CILT’s programmes through 

its training providers, Universiti 

Teknologi Mara (UiTM) and 

Malaysian Association of 

Productivity (MAP). 

And the culmination was this 

year’s convocation, witnessed by 

the international CILT community. 

It was a memorable moment for 

the graduates to see the presence 

of large number of 

representatives from CILT sections 

around the world. Two hundred 

and thirteen (of which 37 from 

UiTM and 176 from MAP) were 

graduated in the morning, and 

those who were qualified with all 

the requirements, received their 

Chartered Membership scrolls in 

the evening. 

D-G Cyril Bleasdale (left) with President Joe Walsh (centre) with new 

members at the convocation ceremony in Kuala Lumpur 

The CILT Award Nite is another 

milestone for CILTM, as it has 

been accepted as the industry’s 

standard. It was further 

demonstrated by the 

overwhelming support by the 

logistics and transport fraternity. 

Nominations for the various 

categories of awards are on the 

increase yearly. Such an event has 

created the presence and the 

activities of CILT to the public and 

that augurs well for the 

expansion of membership. 

This auspicious event was 

officiated by YBM Tengku Dato’ 

Seri Azlan Ibni Sultan Abu Bakar, 

Deputy Minister of Transport, 

Malaysia. The winners received 

their awards from the Deputy 

Minister of Transport. 

Training the 

Trainers 

IT WAS an enlightening day to the trainers and 

resource personnel of CILT Malaysia when the 

Malaysian Association of Productivity (MAP), 

which is the training provider of CILT 

programmes, made a congregation of 27 

participants (trainers and resource personnel) 

possible. 

The Training the Trainer’s Part II was held in 

February, with the presence of Dr. David 

Maunder (Director, International Development) 

as the principal trainer. It was also attended by 

representatives from UiTM, and Organisations 

which are working together. The 4-day session 

was propelled with dual purpose of adopting 

new training modules cum enhancing of 

learning and teaching methodology. 

The overall outcome of this Training the Trainer’s 

session was very impressive as it could be easily 

measured from the diligent participation. A 

mock training session was added to the event. 

The Managing Director of KTM 

(The Malaysian Railway) YBhg. 

Dato’ Mohd Salleh Abdullah was 

conferred with a fellowship 

(FCILT) in recognition for his 

continuous contribution to the 

rail industry and to CILTM. 

The convocation was graced by 

the International President, Mr 

Joe Walsh FCILT, Director General 

Mr Cyril Bleasdale FCILT, together 

with Mr Abd Radzak Abd Malek 

FCILT, the National President of 

CILT Malaysia and the National 

Council.



Princess Anne to attend International 

Council Meeting in Ghana 

HRH The Princess Royal, Princess Anne, is due to 

attend this year’s International Council Meeting in 

Accra, Ghana. 

This will take place on 30 April and 1 May, and 

will be followed by CILT International’s annual 

general meeting. 

The council meeting is being hosted by CILT, Ghana, 

and coincides with celebrations of the 50th 

anniversary of their country’s gaining independence. 

Any member of CILT may participate in the 

UNDER charismatic nationalist Kwame 

Nkrumah, the former Gold Coast colony — renamed 

Ghana — became the first black nation 

in sub-Saharan Africa to win independence, 

in 1957. 

Its freedom triggered a wave of independence 

movements that transformed Africa from a 

largely European-ruled continent into a 

constellation of new states. 

After a chequered history since 1957, 

punctuated by a spate of military coups, Ghana 

has emerged as one of Africa's most respected 

democracies. 

But many ordinary Ghanaians have questioned 

the decision to spend $20 million (£10.5m) on 

the year-long celebrations. The commemoration 

is due to continue for the whole of 2007. 

International Council’s visit, and attend meetings as 

observers — but they must give advance notice to 

the Director General, Cyril Bleasdale 

(cyril.bleasdale@ciltinternational.org). He 

commented: “Ghana is very welcoming. Security is 

not an issue, and it is a very stable country. But 

visitors should take medical advice on health 

precautions before making the journey.” 

The CILT International AGM will take place in La 

Palm Royal Beach Hotel, Accra, Ghana,on 

Tuesday 1 May 2007 at 2.30 p.m. For full details, 

see pages 11 – 14. 

Ghana celebrates first 50 years 

The BBC reported that many of Ghana’s years 

following independence were like a 

rollercoaster, with coups and economic 

meltdown, but recent stability has offered hope. 

The country is often cited as an example of 

stability, steady growth, and low inflation, with 

increases in its output of major exports including 

cocoa and gold. 

CILT Section for Sierra Leone 

RECENT discussions in London may 

lead to the setting up of a new CILT 

Section in Sierra Leone. 

Mr. Abu-Bakarr Kamara is pictured 

here with Director General Cyril 

Bleasdale and CILT International’s 

Executive Administrator Adam 

Prickett in their Buckingham Gate 

office. The original Royal Charter, 

granted to the Institute of Transport in 

1926, is also visible in the background. 

“He was very enthusiastic about the 

concept of CILT in Sierra Leone, and is 

keen to quickly develop the CILT 

International educational 

programmes,” said Adam Prickett. 

Obituary 

CILT NEWS 

R. Raja Ratnam, Malaysia 

Mr. R. Raja Ratnam, founder of CILT Malaysia, sadly 

passed away on 7th January 2007. Mr. Ratnam did 

much through his personal efforts and through his 

delegation and leadership to place CILT Malaysia on 

such a firm footing. 

Through regular visits and constant communication, he 

remained at the forefront of CILT Malaysia advances. 

His dedication to the Institute lead him to work right 

into his last few days of life. 

P R Gopal, of CILT Malaysia, writes: The sudden demise 

of the founder member of CILT Malaysia, Mr 

Rajaratnam, is a great loss to CILT. He had contributed 

tremendously to the development of CILT in Malaysia. 

Our condolences to his family and CILTM, on behalf of 

the family of the late Mr Rajaratnam, take this 

opportunity to thank to all those who have sent their 

condolences. 

Mr Rajaratnam was seen with Mr Joe Walsh, and Tan Sri 

Aziz, past president of CILT during the award night’s 

dinner on 3rd December 2006. 

Ron Martin, Dubai 

Mr. Ron Martin, Committee Member, CILT Dubai, died 

on 12th February 2007, aged 65. 

He was much respected for his achievements as 

General Manager of Freightworks, a major logistics 

company in Dubai. 

At the International Council Meetings in China and 

New Zealand, he represented CILT Dubai and made an 

impact on many members of the Council. 

Shortly before his demise he was heavily involved in 

Institute matters in Dubai, and was planning to launch 

the CILT International Professional Qualifications 

around the United Arab Emirates. 

World's first doorless 

intermodal cargo container 

WHAT IS being billed as the World's first doorless 

intermodal cargo container has been unveiled in 

Hamburg, Gewrmany. 

With its patent-pending, revolutionary doorless 

design the Cakeboxx container will be the world's 

first intermodal container set to tackle one of the 

biggest security threats facing global economies 

which have become dependent on overseas trade. 

Once a Cakeboxx doorless intermodal cargo 

container is closed, nothing will get out or in 

whether the container is on board a ship, in a 

stack of containers in a port, or on a railcar or 

truck, as the interior of the Cakeboxx cannot 

be accessed without specialised container 

handling equipment. 

However, during customs or security screenings 

the cargo inside can easily be accessed and quickly 

and fully inspected by authorised staff using 

commonly available container handling 

equipment. 

For further details see http://www.cakeboxx.com

8 


CILT NEWS 


CILT AFRICA FORUM CONFERENCE 

Over 100 delegates 

flock to Kampala 

This report was compiled by Kiyimba Richard 

Matovu,New Vision Publications, Uganda 

CILT’s African Forum conference took place in 

February 2007 at Hotel Africana in Kampala, 

hosted by CILT Uganda, and was attended by 

over 100 delegates from Tanzania, Zambia, 

Ghana and Nigeria —plus many local delegates 

attending from Uganda. 

Present was the CILT International President, 

Joe Walsh, the Director General, Cyril 

Bleasdale, and Director International 

Development, Dr David Maunder. The Institute 

was also honoured to have the presence of the 

minister of transport and communication in 

Uganda, the Hon. Eng. John Nasaasira, who 

opened up the conference. 

The presence of the Minister of transport 

contributed to the recognition of the impact of 

the CILT activities in Africa and especially 

Uganda where the CILT was represented at 

National level by the Uganda section led by 

their chairman Dr. E. Olupot. 

The Minster said he was impressed by the 

objectives and program of the institute in 

building Education and Training capacity for 

transport and logistics. He pledged his 

government’s support for the activities of the 

institute in Uganda. The Minister suggested 

that the institute could have an input in the 

forth-coming Commonwealth heads of 

government meeting (CHOGM) to be held in 

Uganda in November 2007. 

International President Joe Walsh, in introducing 

the conference theme, referred to the institute’s 

record in delivery of professional qualifications 

and the institute’s unique position in 

representing transport and logistics in all modes 

of transport services in the supply chain. 

Importance of CPD 

Director General Cyril Bleasdale gave an 

overview of the CILT on issues concerning 

training and education, and recruitment of new 

members. He said he was impressed by 

enthusiasm of the African section to deliver the 

institute’s professional qualifications. He 

stressed the importance of the continued 

professional development CPD if individual 

members are to remain relevant in his or her 

profession in the changing world. 

Director of International Development David 

Maunder introduced the new institute 

professional qualification curriculum for the 

international Certificate, Diploma and Advanced 

Diploma. The introduction of the international 

professional qualification (see page 3) would 

bring about greater recognition for the individual 

and contribute to economic development and job 

growth in the country. 

Mr Kim Johansen, the Chief Logistician of the 

International Committee of the Red Cross, spoke 

of the role of the Red Cross in Humanitian 

Logistics. He stressed the importance of good 

human resource management in the delivery of 

the humanitarian logistics. 

Mr kavuma, an economic analyst in the National 

Planning Authority in Uganda, noted that the 

development of any country is dependent on the 

transport and logistics capacity. He stressed the 

importance, which must be attached to reducing 

costs of operation to improve production. 

Logisticians need adequate training 

Mr kidede said all Logisticians should know the 

regulations governing the freight movement in a 

country where the freight is destined to be 

passed and also to liaise and organise the 

different transport modes necessary for the 

delivery. Failure to know all the technicalities 

involved would lead to higher costs. Without 

adequate training it would be hard for any 

Logistician to perform effectively. 

The chief executive of Uganda’s Civil Aviation 

Authority, Mr. Ambrose Akandonda, pointed out 

the need to equip the logistics and transport 

training centres in Africa with the necessary 

equipment that would enhance the training and 

education of the people working in the industry. 

He added there is a need to facilitate the training 

and education of people because of the rapid 

growth in technology. 

Mr. Roger Wamala, the Marketing and Sales 

Manager of SN Brussels, pointed out the need to 

use up-to-date ideas and systems to maintain 

quality. He further said that there is also need to 

enforce the safety management standards as 

evidence of a service with professional standards, 

which CILT insists upon. 

Outgoing CILT International 

President Joe Walsh (top), 

attended the Kampala 

conference. 

Local transport (above) waits 

outside the Hotel Africana 

(below), the Kampala 

conference venue. 

Dr Olupot, Chief Executive of the Uganda CILT 

section, cautioned the participants to protect the 

standards of the Institute; because of increasing 

competition in the higher learning sector, many 

students were pursuing courses to which little 

attention is attached to quality of education. He 

pledged that the CILT Uganda will uphold the 

Royal Charter in implementing the code of 

conduct and maintaining a high level of 

professional standards. 

African countries reported on the remarkable 

growth in the membership of the institute but still 

more has to be done on a local level to recruit 

new members and to encourage them to take the 

professional qualifications offered by institute.



Nigerian state plans 12km 

mono-rail project 

NIGERIA’S Cross River State government has 

signed a $25 million (£13m, €19m) contract 

agreement for an initial 12 kilometre Monorail 

project in Calabar, the state capital. The project, 

which is expected to be completed within a year. 

will link the Margraret Ekpo International Airport 

with the Tinapa Business Resort and Free Zone. 

A contract has been signed with Africa Export 

Import Bank (AFREXIM Bank). State Governor 

Donald Duke said the signing of the agreement 

was a further confirmation of his government’s 

commitment to the development of Tinapa into 

a world class business and leisure destination. 

He said: "This Monorail link is being put in place 

to ensure continued free movement of vehicular 

traffic within the Calabar metropolis regardless 

of the expected inflow of over three million 

visitors annually to Tinapa. 

"The rail gives added value to both the Tinapa 

Resort and the modern development of the 

Calabar metropolis because it will ensure that 

visitors to and from the resort are transported by 

a direct light rail link under 15 minutes to and 

from the airport. Needless to add that we are 

also laying today the foundation for the 

expansion, in the near future, of this initial 12- 

kilometre line into a public light rail system that 

links various parts of the fast-growing Calabar 

Metropolis and helps to take some of the 

inevitable pressure off Calabar City roads,” the 

Governor added. 

Ghana looks to improve rail system 

GHANA is bidding to make dramatic improvements 

to its existing rail infrastructure, hoping to implement 

effective changes in the coming future. 

The West African nation has suffered a decline in the 

pace of economic development in past decades but 

officials are now hoping to invest in an improved rail 

system as part of ongoing development plans, 

reports the Accra Daily Mail. 

It is thought that the successful development of 

Ghana's rail network will act as key economic driver 

in the long term, providing a transport infrastructure 

Nigeria’s first standard gauge rail line 

NIGERIA has constructed its first standard gauge rail 

line, adjudged the first in Africa, which is to be used by 

Global Infrastructure Nigeria Limited (GINL), reports 

This Day in Lagos. 

Mrs Irene Chigbue, Director General of the Bureau for 

Public Enterprises (BPE), handed over the certificate of 

concession to GINL. She described the event as a 

significant milestone in the Federal government's 

efforts to reform and modernise Nigeria’s rail system. 

"At the completion of the current reforms, it is 

envisaged that Nigeria would have developed an intermodal 

transport system that takes advantage of the 

strength of each transport mode. The rail mode is 

expected to play very significant roles in achieving these 

objectives," said Mrs Chigbue. 

Map shows 

location of 

Calabar in 

Nigeria 

upon which the nation can continue to develop. 

"The transport sector is the vehicle that moves 

every other sector," explained James Kwabena 

Bomfeh Jnr, executive director of Youth for Action 

Ghana. "We need to as a matter of urgency look 

at how we can take advantage of the railway 

system to better our lot." 

The employment benefits of an improved railway 

system have also been highlighted, on the basis that 

a development programme would provide new jobs 

and many permanent roles. 

In his remarks, the state governor, Alhaji Ibrahim 

Idris, commended the Federal government's 

comprehensive reforms in the transport sector. 

GINL Chief Executive Officer Mr Krishna Rao said 

the development marked the end of a major bottleneck 

to the realisation of an effective rail system. 

It is the first time in Nigeria’s history that that a 

private sector organisation will manage and 

operate rail lines in a concession arrangement to 

run rail services. 

The new line is expected to boost the performance 

of Itakpe Iron Ore Mining Company and Ajaokuta 

Steel Company in the transportation of raw 

materials and finished goods. 

AFRICA NEWS 

Virgin Atlantic to 

launch Kenya 

services 

NAIROBI is to become Virgin Atlantic’s fourth 

African destination with the launch of a daily 

London service on 1 June 2007. The route will 

be operated by an Airbus A340-300 with 34 

Upper Class, 35 Premium Economy and 171 

economy seats. 

Virgin Atlantic chairman Sir Richard Branson 

commented: “Around 500,000 people fly to 

Nairobi each year to enjoy the beautiful Kenyan 

scenery and wildlife it has to offer at its 

outstanding game reserves with large numbers of 

passengers also flying to and from America, via 

London. It is also the leading hub providing a 

gateway for the whole of East Africa and the 

Indian Ocean. Nairobi is an important city in its 

own right with many international institutions 

based there.” 

Kenya Ministry of Tourism and Wildlife’s 

permanent secretary Madame Rebecca Nabutola 

said in response: “Virgin Atlantic is an airline we 

have actively pursued for the past few years to 

begin flights to Kenya and we are overjoyed with 

their decision to add Nairobi to their route 

schedule. Virgin Atlantic’s quality, high standards 

and distinction as one of the world’s premier 

airlines is what we have been pursuing and we 

know that they will build not only the visitor travel 

to Kenya but also the business travel sector from 

the UK and North America.” 

Kenya Tourist Board’s managing director Dr 

Ongong’a Achieng added: “This announcement 

by Virgin Atlantic is great news for Kenya’s 

tourism. In the last few years we have focused on 

delivering quality to travellers to Kenya and Virgin 

Atlantic is a key component in this initiative. We 

have seen significant increases in the demand for 

Kenya in Europe and North America and this is 

great news for those markets, which we are sure 

will be flying Virgin Atlantic in droves.” 

2007 will also see new Virgin Atlantic routes from 

London to Chicago (April) and Mauritius (October) 

bringing its total destination up to 27.

10 


CHINA NEWS 


China will soon surpass North 

American logistics market 

CHINA’S VAST territory presents both enormous 

potential and immense challenges for logistics 

companies operating within its boundaries, 

according to a major survey of third party logistics 

providers (3PLs). 

China's doubledigit 

growth can 

be seen 

everywhere 

Success is within reach for those who take the time to 

achieve sufficient market knowledge, pick the right 

time to form the right partnerships, and make prompt 

decisions to adapt to the evolving context. This is the 

conclusion of the survey, conducted by 

‘eyefortransport’ of “3PLs’ Views on the Logistics 

Landscape in China.” 

Due to its double-digit sustained growth, China’s 

growth will soon surpass that of the North American 

logistics market. Given the size and growth of 

domestic demand, the decision to set up operations 

in China must start with identifying and targeting a 

niche market segment to gain legitimacy, before 

expanding into the wider market. 

Discouraging obstacles 

However, any foreign company wishing to benefit 

from China’s economic boom will face discouraging 

obstacles. 

First are the difficulties in obtaining the necessary 

government authorisations in order to conduct 

operations. 

Furthermore, security-related issues in China, such 

as cargo security and goods tracking, are 

unsophisticated when compared with other 

countries. 

New security systems and technology have been 

adopted in North America and Europe to fight 

tampering and counterfeiting, and to protect supply 

chain integrity. These have delivered good results 

during the past few years, confirming the return on 

these investments. Plus, RFID technology to track 

shipments has been improving supply chain visibility. 

The questions are: 

When will China meet these new standards and 

eventually achieve its leading role in the world 

economy 

Does it have the necessary resources and 

capabilities to directly switch to the latest 

technologies, as its neighbouring Asian countries 

have already done 

The answers to these questions will determine 

when China’s transportation and logistics industry 

will meet international standards, which may be 

sooner than we expect. 

The ‘eyefortransport’ survey showed that the 

development of China’s coastal regions still offers a lot 

of opportunity for logistics’ businesses, with a trend of 

increasing trading of goods. It also indicates that there 

is an increasing focus on moving inland, which 

corresponds with the increase in China’s domestic 

consumption, led by the flourishing coastal cities and 

the inland migration of manufacturing. 

An interesting belief of the majority of international 

logistics companies is that some of the best 

potential lies in the intra-China market, according 

to the research. 

However, the key is in securing access to this market in 

the long-term, and only a few companies have so far 

implemented viable business plans for the domestic 

Chinese market, says ‘eyefortransport.’ This reflects the 

high level of risk involved in doing business within 

China, and the need to better understand how to 

successfully conduct business in this specific market. 

China’s port handling capacity will increase to 6.1 billion tonnes by 2010 

ACCORDING TO a new report from Research & 

Markets – China Port Industry Report, 2006-2007 – 

China plans to increase its port handling capacity by 

80% to 6.1 billion tonnes by the year 2010. 

At the end of 2005, China owned 1,030 production 

berths (over 10,000 tonnes); ten ports had joined 

the global Top 10 ports (100 million tonnes); China’s 

port handling capacity had risen 17.7% to 4.91 

billion tonnes; and container handling capacity had 

increased by 23% to 75.8 million TEU. 

With a freight handling capacity of 443 milliontonnes, 

Shanghai Port climbed from the fourth 

largest to the largest port in the world; the container 

handling capacity of Shanghai Port and Shenzhen 

Port achieved 18 million TEU and 16.18 million TEU 

respectively, putting them into third and fourth place 

accordingly. 

During 2005, another 129 berths were built, 

including 76 deep water berths (over 10,000 

tonnes); handling capacity increased by 190 million 

tonnes; development around Bohai bay, the Yangtze 

River Delta and Pearl River Delta is being done in a 

more professional way; and China was ranked first 

in the world for the third consecutive year in 

handling capacity of freight and containers. 

China’s current port construction will focus on 

specialised docks for coal, petroleum, ore and 

containers: 

The construction and reconstruction of coal 

loading docks in Qinhuangdao, Tangshan and 

Tianjin 

Accelerated construction of crude oil handling 

docks (over 200,000 tonnes) in the ports of 

Dalian, Qingdao and Ningbo 

Accelerated construction of 200,000-ton ore 

docks in coastal ports and the Yangtze river 

estuary 

Accelerated construction of Shanghai 

International Shipping Centre and large-sized 

container docks in the hub ports of Dalian, 

Tianjin, Qingdao, Xiamen, Shenzhen, 

Guangzhou 

Construction of related feed ports 

By 2010, the annual handling capacity of Chinese 

ports will reach 6.1 billion tonnes, and the container 

handing capacity will be 120-140 million TEU.



PRESIDENT’S REPORT 

ANNUAL REPORT & ACCOUNTS 2006 

I AM VERY privileged and honoured to have been 

asked by you to serve as President of the CILT 

International Council for two years and I am pleased 

to present my report for 2006. My term as President 

is drawing to a close and I will hand over to Richard 

Hunt at our International Council meeting in Accra 

on 1 May. 

I would like to place on record my deep appreciation 

to each and every member I came in contact with 

over the last two years for their kindness and 

consideration and thank them for their help and 

contribution to running the affairs of the Institute. As 

the International President of this great organisation 

I enjoyed my term. It was busy, hectic at times, 

challenging, but always very rewarding. As always 

much has been done, but much remains to do. 

It has been our second year of operation following 

the major strategic review of the Institute, which had 

been carried out by the Strategic Review Committee 

headed up by Prof. Alan Waller. Our International 

Council meeting took place in New Zealand in May 

2006. The Council agreed the strategy and policies 

to be followed by the various committees. The 

Council meeting was preceded by an education 

workshop and the meetings of the various 

committees. It was followed by a major logistics and 

transport conference on Human Relations in the 

Management of Logistics and Transport and a 

technical visit organized by CILT New Zealand. The 

one council meeting a year and the number of 

activities surrounding the council meeting are in 

keeping with Council’s policy of operating at 

minimum cost and the value for money concept. 

The Management Committee under the 

Chairmanship of Len Harper of Australia, together 

with our Director General Cyril Bleasdale, is 

proving very successful in contributing to 

managing our Institute effectively. I am also 

indebted to the Director General for his support 

throughout the year and the initiative he is 

undertaking developing membership, particularly 

in new countries which have been given 

membership status. 

The Communication and Promotion Committee 

under the Chairmanship of Richard Hunt is looking 

at ways to improve our communications to all our 

members, Councils, Sections and indeed all our 

other stakeholders. For CILT World No. 15, we had 

major sponsorship from Diageo Ireland. I wish to 

place on record my thanks to Larry Kirwan, Head 

of Logistics Ireland, for his support. I am pleased to 

advise you that a new website is currently being 

developed and will be launched in 2007. 

The Membership and Education Committee under 

the Chairmanship of Dr. Dorothy Chan, Hong 

Kong, has developed new international 

educational qualifications. We now have 

developed our own International Certificate, 

International Diploma and International Advanced 

Diploma. There is a strong demand around the 

world for educational qualifications and we are 

now ready to meet this demand. 

The Audit and Finance Committee under the 

Chairmanship of Prof. Alan Waller of the U.K., ably 

assisted by our part time Director Finance John 

Kinley and our Honorary Treasurer Mike Pestereff, 

monitor the finances to the best accounting 

practices. 

The Africa Forum under the Chairmanship of Dr. 

Ibrahim Chikolo, Nigeria, with the assistance of our 

part time Director International Development, Dr. 

David Maunder, are working hard on helping to 

further develop the Institute in Africa and seeking 

ways and means to make our Institute more 

relevant. I was pleased to be able to attend the 

Africa Forum meeting in Uganda. I was impressed 

by the commitment and enthusiasm of the 

delegates from across our African membership 

countries. I am satisfied that our newly developed 

international educational qualifications will be of 

great value to them. 

The Asia Forum under the Chairmanship of Dr. 

Radzak Malek, International Vice-President 

Malaysia, continues to look at ways and means of 

expanding and growing our membership in the 

Asian countries where there is also a growing 

demand for transport and logistics education 

programmes. I attended the Convocation 

ceremonies in Kuala Lumpur in December and 

presented certificates to over 200 students who had 

achieved their diploma qualifications. 

Prof Alan Waller is also heading up a committee that 

is looking at, together with CILT North America, 

ways and means of expanding and growing our 

membership in North America and also with the 

assistance of CILT(UK), at ways and means of 

expanding into Mainland Europe. 

I believe we stand at a crossroads in regards to the 

expansion and development of our Institute. In this 

global village of ours in the 21st century, logistics 

and transport is one of the key political and 

environmental priorities. Supply chain 

management sits alongside globalisation and 

technology in shaping our global environment. 

The core of our Institute has to do with the 

education and training of professionals in the 

transport and supply chain. We must be ready and 

equip our organisation to grasp these opportunities. 

“I would like to place on record my deep appreciation to each and 

every member I came in contact with over the last two years for 

their kindness and consideration and thank them for their help 

and contribution to running the affairs of the Institute.” 

Joseph P Walsh FCILT, President 

It is proper that I take this opportunity to 

acknowledge the contribution of all those who 

assist this Institute personally and I acknowledge 

their work. Our members are key to our future and 

determine our relevance and strength. 

Joseph P Walsh FCILT, President 

6 March 2007

12 



ANNUAL GENERAL MEETING 

FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2006 

Unrestricted Funds Endowment Total 15 months to 

General Other Total Funds Funds 31 December 2005 

£'000 £'000 £'000 £'000 £'000 £'000 

Incoming Resources 

From generated funds:- 

Voluntary income - Subscriptions and fees 77 21 98 - 98 126 

Investment income 7 - 7 12 19 21 

From charitable activities:- 

Professional Development - 4 4 - 4 1 

Total Incoming Resources 84 25 109 12 121 148 

Resources Expended 

Cost of generating funds:-. 

Voluntary income 60 31 91 - 91 99 

Investment management costs 2 - 2 3 5 5 

On charitable activities – Professional Development 9 29 38 9 47 26 

Governance costs 12 - 12 - 12 8 

Total Resources Expended 83 60 143 12 155 138 

Net incoming/ (outgoing) resources 

before transfers 1 (35) (34) - (34) 10 

Gross transfers between funds - - - - - - 

Net incoming/(outgoing) resources for the period 

before other recognised gains and losses 1 (35) (34) - (34) 10 

Other recognised gains and losses 

Gains on investment assets: 11 1 12 22 34 66 

Net Movement in funds 12 (34) (22) 22 - 76 

Reconciliation of Funds 

Funds bought forward, 1 January 2006 180 8 188 336 524 448 

Funds carried forward, 31 December 2006 192 (26) 166 358 524 524 

NOTICE IS HEREBY GIVEN that the 2007 Annual General Meeting of the 

Institute will be held at the Palm Royal Beach Hotel, Accra, Ghana, on Tuesday 

1 May 2007 at 13.45 to conduct the following business: 

As Ordinary Business 

1. To consider and if thought fit adopt the Accounts for the year ended 31 

December 2006 and the reports of the Council and Auditors. 

2. To re-appoint Mazars LLP as Auditors and to authorise Council to agree their 

remuneration. 

By Order of the Council 

Cyril Bleasdale OBE FCILT 

Director General and Secretary 6 March 2007 

Notes: 

1. An Institute Member (A Chartered Fellow or Chartered Member) entitled to 

attend and vote at the meeting convened by the above notice is entitled to 

appoint a proxy to attend and vote instead of him or her. A proxy must be an 

Institute Member or the chairman of the meeting. 

2. The appointment of a proxy will not prevent you from subsequently attending 

and voting at the meeting in person. 

3. To be effective the instrument appointing a proxy, and any power of attorney or 

other authority under which it is executed (or a duly certified copy of any such 

power or authority), must be deposited at the office of the Institute, as set out in 

the Form of Proxy, not less than 48 hours before the time of holding the meeting. 

Summarised Financial Statement for the year to 31 December 2006 

Members should note the following regarding the summarised financial information now 

provided:- 

1. The summarised financial information is not the statutory accounts of the Institute, 

but a summary of information relating to both the Statement of Financial Activities 

and the Balance Sheet. 

2. The full accounts of the Institute from which this summarised financial information 

has been derived have been audited by a firm of Registered Auditors. 

3. The Registered Auditors of the Institute have given an unqualified opinion on the full 

accounts of the Institute. 

4. The full accounts, including the Registered Auditors’ opinion and the Trustees’ 

Report can be obtained on request to Mr J Kinley, Director Finance, The Chartered 

Institute of Logistics and Transport, 11/12 Buckingham Gate, LONDON, SW1E 6LB, or 

by emailing cilt@kinley.org.uk 

5. The full accounts were approved on behalf of the Council on 6 March 2007. 

6. The full accounts and Trustees’ Report will be filed with the Charities Commission for 

England and Wales.



BALANCE SHEET AT 31 DECEMBER 2006 

2006 2005 

£'000 £'000 

FIXED ASSETS 

Investments 548 520 

CURRENT ASSETS 

Debtors 10 6 

Due by The Chartered Institute of Logistics and Transport in the UK 1 15 

Cash at bank and in hand 12 16 

23 37 

LIABILITIES 

CREDITORS: Amounts falling due within one year (47) (33) 

(47) (33) 

NET CURRENT (LIABILITIES)/ASSETS (24) 4 

NET ASSETS 524 524 

Signed on behalf of the Council 

on 6 March 2007 

J P Walsh 

President 

M N Pestereff 

Honorary Treasurer 

C Bleasdale 

Director General and Secretary 

The Funds of the Institute: 

Endowment funds 358 336 

Unrestricted income funds 166 188 

TOTAL INSTITUTE FUNDS 524 524 

The Chartered Institute of 

Logistics & Transport 

PLEASE COMPLETE IN BLOCK CAPITALS 

Membership No. 

International 

Address 

Name 

Form of Proxy 

Please complete, cut out and return this form to: 

The Chartered Institute of Logistics and Transport, 11/12 Buckingham Gate, LONDON, SW1E 6LB, United Kingdom 

I being an Institute Member (Chartered Fellow or Chartered Member) of The Chartered Institute of Logistics and Transport, and entitled to vote hereby 

appoint the chairman of the meeting* 

................................................................................................................................................................................................................................ 

as my proxy to vote for me on my behalf at the Annual General Meeting of the Institute to be held on 1 May 2007 and at any adjournment thereof. 

I desire my vote(s) to be cast as indicated below: 

(Please indicate below with a X how you 

wish your votes to be cast) FOR AGAINST 

1. To adopt the Reports and Accounts 

2. To re appoint Mazars LLP as Auditors and to 

authorise Council to agree their renumeration 

SIGNATURE............................................................................................................................................................................................................... 

DATED THIS .............................................DAY OF.......................................2007 

Note: Proxies must be lodged at the office of the Institute not later than 48 hours before the meeting. Unless otherwise instructed the proxy will vote or abstain as he thinks fit. A proxy 

must be an Institute Member (a Chartered Fellow or Chartered Member) of the Institute or the chairman of the meeting.* If you wish to appoint a proxy other than the chairman of the 

meeting please insert his or her name and address and delete “the chairman of the meeting”.

14 




REPORT OF THE COUNCIL 

FOR THE YEAR ENDED 31 DECEMBER 2006 

“There is a growing worldwide interest in our Institute because of our 

unique position offering professional qualifications and chartered 

membership in logistics and transport.” 


Director General 

I HAVE PLEASURE in submitting the annual report 

for the year to 31 December 2006. 

In my last report I referred to the progress in 

introducing our new international professional 

qualifications. I am pleased to report that the suite 

is now complete. The Institute is now able to 

introduce these new qualifications to Councils and 

Sections, which would wish to take advantage of 

them to enable students to study for the 

International Certificate, International Diploma 

and International Advanced Diploma. 

These three qualifications are available to Councils 

and Sections in a CD format and training providers 

can apply for accreditation with a memorandum of 

understanding for the use of this material. The 

new international qualifications should give a 

boost to the recruitment of members. I have to 

emphasise of course that those sections with their 

own accredited qualifications may of course 

continue to use them. 

Sometime ago I took the opportunity to recommend 

to the President the appointment of a Director 

International Development who would work part 

time to assist in the administration of our educational 

qualifications and to develop membership. Towards 

the end of 2005 Dr David Maunder joined us on a 

part time basis and he has already made a substantial 

contribution. 

At each of the meetings of the International 

Management Committee, a performance review of a 

Council or Section where the meeting is held is 

conducted concurrently. This enables us to keep in 

closer touch with Councils and Sections and to learn 

from and assist sections on better governance. 

There is a growing worldwide interest in our Institute 

because of our unique position offering professional 

qualifications and chartered membership in logistics 

and transport. Members benefit from our 

international networking opportunities. 

Communication is an important role for our Institute 

and, whilst we have published two editions of CILT 

World in the year, we do need to review how we 

communicate, given the increasing use of the 

internet. 

During the year, apart from the International Council 

meeting held in New Zealand, I have visited sections 

in China, Thailand, Africa, Dubai, and Malaysia. In 

Malaysia, together with the President, I attended 

their Annual Convocation where students are 

presented with their awards. This is a formal 

ceremony and, apart from the reward and 

recognition it gives to the students and their families, 

it also provides an excellent profile for the Institute 

and I would commend other Councils and Sections 

to adopt this approach. 

“On a pro rata basis income increased marginally, but expenditure 

greatly increased. However, this greater expense was in 

development work and this “investment” should benefit the 

Institute in future years” 



In contrast to 2005, the overall financial outcome 

of the Institute was a significant deficit. However, 

as in previous years unrealised investment gains, 

including those of the Endowment Fund, offset 

the deficit. On a pro rata basis income increased 

marginally, but expenditure greatly increased. 

However, this greater expense was in 

development work and this “investment” should 

benefit the Institute in future years. Balance sheet 

strength was maintained with further growth 

forecast in the current three-year budget. Fuller 

financial details are included in the Trustees’ 

Report. 

CILT (UK), as a result of reorganisation, was able to 

make space in their London offices for CILT 

International and the move to the Buckingham Gate 

offices has worked well. In the year, Adam Prickett 

was appointed as Executive Administrator with 

responsibilities for projects, including web 

development. It is our intention to introduce a new 

CILT International website during 2007 to replace 

the existing one, which needs modernising. Our 

website will of course be a portal, enabling enquirers 

to "click" to a local section. 

It is not always recognised how much the Institute 

owes to the voluntary work of those who serve the 

Institute in so many ways and without whose 

support we could not function. I acknowledge the 

contribution of our many volunteers throughout our 

Councils and Sections. 

On a personal note, I would like to thank senior 

officers in the UK who have given me so much 

support. I am also indebted to John Kinley, Director 

Finance, Dorothea Carvalho, Director Professional 

Development, and David Maunder, Director 

International Development, for their work and advice. 

I commend you to the Trustees' Report, which is an 

important part of the full report and accounts of the 

Institute. While complying with current best practice, 

it sets out in significant detail the governance and 

performance of the Institute. 



6 March 2007



PORTS AND SHIPPING 

Global shipping lines to sustain 15%-20% 

annual growth, says DP World 

SHIPPING LINES are expected to maintain robust 

annual growth of 15%-20%, provided extra 

attention is paid to planning and deployment of the 

right mix of tonnage and routes, supported by 

prudent supply chain management, according to 

Abdulla Bin Damithan, DP World’s deputy director - 

commercial. 

Addressing the Middle East Port Development 

Conference, Bin Damithan said current growth 

trends are being driven by massive demand for the 

materials and supplies needed to sustain the physical 

growth of the region and the Far East, and meticulous 

planning and a strategic focus are required for port 

operators to provide a competitive platform for 

customers and ensure continued commitment. 

Bin Damithan underlined the need for the 

development of proper infrastructure to maintain the 

handling capabilities of ports worldwide, if the 

shipping industry was to sustain its growth in line 

with regional development. 

THE world largest, longest container 

ship, ‘Emma Maersk,’ has entered 

service. Nominally capable of carrying 

11,000 TEUs, it can be operated by a 

crew of just 13. 

Our picture shows the vessel in 

Rotterdam on its maiden voyage from 

Gothenburg, Bremerhaven, Rotterdam, 

Algeciras via the Suez Canal to 

Singapore, Japan and Hong Kong. 

When she was launched, Emma Mærsk 

became the largest container ship ever 

built, and as of 2007 is the longest ship 

in use. It has a length of 397 metres and 

width of 56 metres. 

According to naval architects and 

Dubai Port (left) and Jebil Ali Free Port (right) 

World’s largest cargo ship 

490m TEU in 2009 

“If we look at the total global container port 

capacity in 2006, it peaked at 455.9 million TEU. In 

2009, this global container demand is forecast to 

touch 490.28 million TEU, which means we need 

to expand significantly to cope with the demand.” 

As mega-ships play an increasing role in 

transportation efficiencies, ports looking to 

expand are factoring in the need to cater to a 

200% increase in 7,500-plus TEU ships this year, 

according to forecasts by industry experts. 

industry experts the capacity of the ship 

could be as high as 15,000 TEUs based 

on its length and width. The difference 

between the official and estimated 

number results from the fact that 

Maersk calculates the cargo capacity of 

a container ship by using the number of 

containers with a weight of 14 tons that 

can be carried on a vessel. 

The vessel was built by the corporation's 

own Odense Lindo shipyard in Denmark 

and cost an estimated $145 million 

(£75m). 

She hit the headlines in the run-up to 

Christmas 2006, dubbed ‘SS Santa’ 

because she was bound for the United 

Kingdom from China loaded with 

Port of Rotterdam at full capacity 

Christmas goods. After Christmas 

2006 she returned to southern China, 

this time loaded with thousands of 

tonnes of UK waste exported for 

recycling to China 

The Emma Mærsk is powered by a 

Wärtsilä-Sulzer RTA96-C engine — 

currently the world's largest single 

diesel unit, weighing 2,300 tons and 

Bin Damithan pointed out that DP World’s new 

expansion at Jebel Ali Port includes a two-phase 

development that will add 2,500 metres quay 

length with a draft of 17 metres. The expansion will 

increase capacity from 9 million TEU to between 

14-15 million TEU. 

The first phase is due to begin operations in July 

2007, with the whole project scheduled for 

completion in 2008. 

The 'Emma 

Maersk 'towers 

above the 

quayside 

capable of 110,000 horsepower. 

Environment-friendly silicone paint 

covers the hull below the waterline, 

reducing water resistance and cutting 

the vessel's fuel consumption by 1,200 

tonnes per year. 

The ship is named after Arnold Maersk 

Mc-Kinney Moeller's late wife, Emma, 

who passed away in December 2005. 

THE PORT of Rotterdam handled 

377 million tonnes of goods in 

2006 – 1.7% more than the prior 

year and a new record — and 9.6 

million TEU in actual container 

numbers, 4% more than in 2005. 

Outgoing trade (4%) showed more 

marked growth than incoming 

(1%). General cargo increased by 

2.5%, whilst bulk remained static. 

“Virtually the whole of the port is 

continuing to operate at full 

capacity,” said Hans Smits, CEO, 

Port of Rotterdam Authority. 

“With the current terminal 

capabilities, it's possible to 

approach the maximum growth 

scenario.” 

He noted that only when the major 

expansions, such as the EMO coal 

terminal and the Euromax container 

terminal, have been completed will it 

be possible to accelerate the growth. 

“It doesn't matter how big the site is, 

there are always a number of 

candidates and from a number of 

different sectors. Virtually every global 

player wants a strategic position with 

deep water and plenty of rail capacity.” 

He said that container throughput in 

2007 will again be limited, physically, 

so that growth of around 6% is 

realistic. Expectations for total 

throughput are also good, with a 

predicted increase of 2.5% to about 

386 million tonnes.

16 


SOCIAL, POLICY, ECONOMY 


Improving the urban transport 

system in Kuala Lumpur 

By Dr Pola Singh* 

WHEN the new mayor of Kuala Lumpur in Malaysia, 

Dato’ Abdul Hakim Borhan, announced that road 

pricing could be a way out of KL’s current chaotic 

traffic congestion, there was an immediate public 

outcry that it will not work. While it may be 

premature to shoot down the mayor’s suggestion 

without getting the details, it is an understandable 

reaction from KL’s commuters who drive their own 

vehicles to work, having been hit hard by rising fuel 

prices and toll hikes. 

What is road pricing Simply put, it involves charging 

vehicles a toll for entering the Central Business District 

(CBD) or using designated busy roads during peak 

hours on a working day. Its objective is to deter 

vehicles from unnecessarily using certain roads during 

peak hours thereby averting a gridlock that would 

have otherwise paralysed those roads. Road pricing 

has proven to work well in cities such as Singapore 

and London. But will it work in KL too 

Transport planners will remind us that road pricing 

seeks to impose a premium on those commuters 

who, in spite of an efficient, reliable, and affordable 

public transport system, choose to have the 

convenience of driving their own vehicle to the 

doorstep of their destination. 

These transport experts also point out that road 

pricing is practised as a complement to a slew of 

other measures already in place to reduce road 

congestion. 

Currently, measures taken to “regulate”/reduce 

vehicular traffic in the CBD of KL involve diverting 

non-city bound traffic via outer and middle ring roads 

and the provision of an improved public transport 

system comprising the Light Rail Transit, Monorail, 

Intra-city buses, Rapid KL buses and the Commuter 

Services. 

It is estimated that more than 70% of KL’s daily 

commuters drive their own vehicles (including 

motorbikes) to work. These mostly single-occupancy 

vehicles dominate the roads during peak hours. 

Coaxing and cajoling a majority of them to switch to 

public transport will certainly free up the roads 

significantly! The push factors are already in place— 

the mental stress , rising cost of fuel and motor spare 

parts, toll hikes, just to name a few. What the 

Authorities need to do is to create an irresistible pull 

factor—by providing them affordable, reliable, 

frequent, convenient and comfortable train or bus 

rides to their destinations! 

LRT expansion being studied 

The public transport system in KL has improved 

considerably compared to a decade ago. Yet much 

remains to be done to entice more commuters to 

switch over. The LRT is becoming increasingly popular 

and is now “sardine packed” particularly during peak 

hours. As the LRT takes off a lot of pressure from the 

roads, widening its currently small network (complete 

with park and ride facilities) to serve more commuters 

living in densely populated areas such as Desa 

Petaling, Kepong, and Kota Damansara makes 

economic sense. This expansion is now being studied 

by the Government. 

At the same time, operational issues such as frequent 

system breakdowns must be resolved to restore 

public confidence. Newspaper reports of stalled 

trains, broken ticket vending machines, and irregular 

feeder bus services have turned off many a potential 

LRT user. There are also those who switched back to 

using their private cars when they could not face up 

to the inconveniences of using the public transport 

system. 

While the intra-city buses provide travel convenience 

within the CBD, the same cannot be said of the buses 

plying between the CBD and the sprawling 

residential areas. They remain too few, too packed 

and unpredictable in their frequency. Providing more 

buses per route and regular preventive vehicle 

maintenance would certainly help. Dedicated bus 

lanes (with kerbs separating them from the other 

lanes) similar to the ones in Jakarta, Indonesia, will 

shorten ride time greatly and convince many to leave 

their cars at home. 

No integrated ticketing 

What is also grossly lacking is an integrated public 

transport system where a single ticket can be used for 

all bus and rail rides, and where train-stops are linked 

to bus-stops by covered walkways. 

As LRT network expansion and other infrastructure 

improvements require huge capital outlay and long 

gestation periods, strategic planning is imperative so 

that provided capacity is always ahead of needs. 

Therefore, formulation of an urban transport policy 

framework is urgently needed, with special focus on 

addressing the growing transport needs of the 

urbanites. Guided by this policy framework, hopefully 

there will be less ad hoc/”band-aid” solutions to road 

congestion woes, leaving less room for expensive 

mistakes. 

The Federal Government (i.e. Economic Planning Unit 

and Ministry of Transport) together with KL City Hall, 

Municipalities in the Klang Valley, Penang and Johore 

Baru should draw up this urban transport policy 

framework with technical assistance from Public 

Works Department (JKR) and transport experts. 

Some of the issues that require honest deliberation 

when formulating this urban transport policy 

framework include: 

1. How committed (read: political will) is the 

Government in making bus and rail the transport 

mode of choice of the city dweller 

2. How much is the Government willing to invest (and 

subsidise) to improve and expand the coverage of 

public transport services 

3. What role, if any, will privatisation or Private 

Finance Initiatives (PFIs) play in the construction and 

operation of these infrastructure and transport 

systems How will this affect fares and affordability 

4. What funding priority will be given to improving 

and maintaining urban transport systems over other 

public amenities 

5. To what extent do we want to reduce our reliance 

on petrol and diesel (currently constitutes 95% of 

total fuel consumption) as our primary fuel and 

thereby meet our national oil conservation policy 

objectives 

6. What complementary measures (e.g., car pooling,



SOCIAL, POLICY, ECONOMY 

IATA forecasts steady, more 

profitable growth 

Aircraft at Dubai 

Airport - the 

Middle East is the 

fastest growing 

region 

Opposite page: 

Monorail serving 

Kuala Lumpur 

CBD. 

Above: Queues 

for toll booths. 

Left: Buses 

trapped in 

congestion in 

the CBD 

road pricing, heavy vehicle entry restriction) will be 

adopted to ease road congestion 

7. Should motorbikes be taken off the city streets (as 

Quangzhou in China has done) 

8. How should technology be applied to encourage 

public compliance of regulations and enhance 

enforcement effectiveness 

9. What premium should be placed on public safety, 

noise and air pollution 

10. Will the needs of the disabled and the elderly 

receive special attention 

This urban transport policy framework should ideally 

be prepared as part of an overall national transport 

policy which will encompass sub-sectors such as 

maritime, air and land transport. 

As the Malaysian economy grows, there will be more 

movement of goods—by road, rail, air and sea. The 

number of freight vehicles on the road will soar; so 

will the number of private cars as Malaysians become 

richer and our population expands. The challenge 

for policy makers and transport planners is to ensure 

that transport system capacity is not outpaced by 

demand, resulting in late deliveries, higher fuel costs, 

higher cost of doing business and loss of 

competitiveness. 

THE INTERNATIONAL Air 

Transport Association (IATA) 

released full-year traffic results 

for 2006 showing slower but 

more profitable growth. 

Global passenger growth slowed 

from the 7.6% recorded in 2005 

to 5.9% in 2006. While the 

cargo growth rate increased 

from 3.2% in 2005 to 4.6% in 

2006, it remains below the 

historical growth trend of 5.6%. 

Average passenger load factors 

in 2006 rose to a record high of 

76.0%, up from 75.1% in 2005. 

"The lesson for 2006 is that 

pursuing profitable growth pays 

off. While passenger growth 

slowed, the bottom line 

improved. The industry showed 

an estimated operating profit of 

US$10.2 billion for 2006 while 

net losses were reduced to a 

projected US$500 million. Cost 

reduction, improved efficiencies 

and careful capacity 

management have positioned 

the industry to achieve a 

projected net profit of US$2.5 

billion in 2007," said Giovanni 

Bisignani, IATA’s Director General 

and CEO. 

The Middle East was the fastest 

growing region for both 

passenger and cargo recording 

full-year growth of 15.4% and 

16.1% respectively. 

Although the cargo growth rate 

improved marginally to 4.6%, 

the key markets of Europe and 

Asia were relatively subdued at 

1.7% and 4.7% respectively. 

High fuel costs and strong 

competition from other 

transport modes (particularly in 

Europe) constrained growth in 

2006. North America was the 

most improved market as freight 

growth increased from 0.4% to 

6.0% as airlines switched 

capacity towards cargo. 

All regions except the Middle 

East saw a decline in passenger 

traffic growth rates compared to 

2005. The largest decline was in 

Latin America where 11.4% 

growth turned to a 2.4% 

contraction in 2006, primarily 

due to restructuring of the 

industry in the region. North 

America saw the second largest 

decline—from 8.9% to 5.7%— 

as carriers withdrew unprofitable 

capacity. 

“Load factors—at a record high 

of 76.0%—were the good news 

story for 2006,” said Bisignani. 

North American carriers led the 

way with an 80.2% load factor, 

up from 79.5% in 2005. Load 

factors improved in all regions 

except the Middle East and 

Africa. 

“The focus for 2007 is efficiency. 

Slower traffic growth rates and a 

less buoyant global economy will 

impact revenue growth. 

Industry-wide we expect revenue 

growth to slow from 8.0% in 

2006 to 4.5% in 2007. While 

lower oil prices are a welcome 

relief, they remain around 

US$60/barrel—more than 

double the price in 2000. Bottom 

line improvement depends on 

achieving further efficiencies 

across the board. 

Airlines have reduced non-fuel 

unit costs by an average of 3.5% 

per year over the last five years. It 

is time for our industry partners 

across the value chain— 

including airports and air 

navigation service providers—to 

deliver similar results,” said 

Bisignani. 

In India, rail tickets at petrol pumps 

Hopefully the inadequacies of Malaysia’s urban 

transportation system will be addressed in the 

forthcoming mid-term review of the 9th Malaysia 

Plan to be undertaken in mid 2008 

* Dr Pola Singh is a member of CILT(UK). He holds a 

PhD in Marketing from the University of Alabama, 

US. He was attached to the Economic Planning Unit 

of the Prime Minister’s Department. He can be 

contacted at pola8@streamyx.com 

INDIA’s Railway Catering and 

Tourism Council (IRCTC) has 

tied up with the PSU oil major, 

BPCL, and launched an e- 

ticketing initiative to help 

people book tickets at BPCL 

outlets. 

Initially, tickets and other valueadded 

services of the Indian 

Railways will be available at 38 

BPCL outlets, like petrol pumps 

and LPG distributor locations in 

seven cities. But the facility is to 

be extended to 100 locations. 

A person can go to these 

outlets, pay cash and take the 

ticket. Payment can also be 

made using credit cards and 

debit cards. However, railways 

will charge 20 rupees (£0.23, 

$0.48) while BPCL will levy 15 

rupees extra as service charge. 

The cities where the scheme has 

been launched are Mumbai, 

New Delhi, Chennai, 

Hyderabad, Kolkata, Bangalore 

and Pune.

18 


EUROPEAN NEWS 


EU parliament backs down 

on rail liberalisation 

THE EUROPEAN PARLIAMENT has backed down 

from calls to open up the EU’s domestic rail markets 

to competition, reports www.eupolitix.com. 

In a key vote in Strasbourg on the “third rail 

package,” MEPs voted down a proposal to liberalise 

national railways after meeting strong resistance 

from France, Belgium and Austria. The countries 

that blocked the move all have markets dominated 

by powerful state monopolies. 

In their vote, however, MEPs said international 

passenger rail services should be open to crossborder 

competition by 2010. The member states 

have already agreed to international liberalisation, 

in a bid to boost railway passenger number in the 

face of stiff competition from airlines. 

UK road casualties 

increase 

THE number of people killed in road accidents in Great 

Britain has increased despite the proliferation of speed 

cameras. According to Government figures, a total of 

3,210 people died in crashes in the 12 months to 

September last year, compared with 3,177 in the same 

period a year earlier. 

The Department for Transport statistics come three 

months after the House of Commons Transport Select 

Committee said use of speed cameras was responsible for 

a “deplorable” drop in the number of police officers 

patrolling Britain's roads. Much of the rise was 

concentrated in the summer between July and 

September, when 840 people died on the roads, 

compared with 818 in the corresponding period in 2005 

— up three per cent. 

During that time, the number of fatal accidents rose by 

five per cent, from 745 to 780 crashes. 

But parliament is also pushing for enhanced rights 

for passengers and stricter certification rules for 

train crews, two points opposed by EU 

governments. This makes it likely that the railway 

package will go into conciliation, with the 

parliament and council attempting to reach a 

compromise proposal. 

MEPs want to extend a proposal on international 

passenger rights to apply to domestic passengers, 

not just the five per cent who use cross-border rail. 

Under the rules, passengers could be compensated 

25% for an hour’s delay and 50% for a delay of two 

hours or more. This is being resisted by ministers, 

who want to limit compensation rights to 

international travellers only. 

IRELAND saw the second-highest rise in passenger rail 

traffic in Europe in 2005 and the second-largest fall in 

rail freight. 

While passenger transport across the European 

Union's 25 nations rose by 2.2% overall, in Estonia it 

jumped by 28%, followed by Ireland which saw the 

second-highest increase at 13%. 

Conversely, rail freight transport, which remained 

stable overall, decreased by 24% in Ireland, second 

only to Luxembourg which saw a 34% drop. 

At 147 tonnes per train, Ireland had one of the lowest 

load averages for freight trains in Europe. Ireland also 

had an average of 127.4 passengers per train. 

The EU statistical office Eurostat said rail passenger 

transport in the EU rose to 357 billion in 2005 from 

the year before. 

Parliament also wants better access to trains for 

disabled people, and a designated area on trains for 

baby carriages and bicycles. 

Finally, MEPs want to extend the certification system 

for train drivers to all train crews to show they meet 

professional, medical and linguistic standards. 

EU rail passenger transport up slightly in 2005 

France handled the biggest volume of rail 

passenger transport among EU members, with 76 

billion passenger-kilometers in 2005, followed by 

Germany with 75 billion, Eurostat said. 

These two countries, plus Italy and Britain, 

accounted for almost 70 percent of the EU's total 

volume of rail passenger transport in 2005. 

In 2004, almost 80 percent of the use of railways 

in the EU was by passenger trains. 

In goods transport, Germany continued to be the 

biggest rail freight transport handling country 

with 95 billion ton-kilometers in 2005, followed 

by Poland with 50 billion. 

Five countries —Germany, Poland, France, Italy 

and Britain — represented almost 60% of the 

total EU rail freight transport in 2005. 

More woes for Channel Tunnel freight 

THE FUTURE of freight services 

through the Channel Tunnel has 

been dealt another severe blow 

with the news that two major 

customers have abandoned the 

service due to rising costs. 

Unilog, Belgium, has withdrawn all 

of its intermodal services from 

Muizen in Belgium to Daventry and 

Manchester after announcing plans 

to cease trading. In a letter to its 

customers, the company, which 

had accounted for around 20% of 

cross-channel railfreight, says new 

surcharges have increased traction 

costs to the point that the 

operation is no longer sustainable. 

According to the Rail freight Group 

(RFG), traction providers’ rates have 

increased by 24% in two months. 

The RFG also reported that GTS 

Transport, Italy, was ending its fourtimes-a-week 

service from Bari, 

Italy, to Manchester. 

The withdrawal of these services 

came less than two months after 

operator English Welsh & Scottish 

Railway (EWS) reached an 

agreement with the British 

government on access charge 

levels. 

Minimum revenues, underwritten 

by the British government, were 

guaranteed to Eurotunnel until the 

end of last November, but the 

proposed charges levied by 

Eurotunnel beyond this date 

prompted EWS to threaten 

withdrawal of the service on cost 

grounds. 

A longer-term deal is still required 

to guarantee the future of the 

remaining flows.



EUROPEAN NEWS 

Track maintenance failure suspected five years 

after Potters Bar train crash 

Tilting train derailed by 

faulty switch points 

THE DESIGN and crashworthiness of Virgin Trains’ 

tilting ‘Penlolinos’ was put to a tragic test when a 

nine-car unit, travelling at night at 95 mph (153 

km/h), plunged down an embankment in a remote 

part of North-west England. Of the 111 

passengers and four staff on the train, one elderly 

passenger was killed and four more, as well as the 

driver of the train, were seriously injured. 

One of Virgin’s new fleet of 53 electricallypowered 

Pendolinos — based on Italian design, 

and capable of operating at up to 140 mph (225 

km/h) on Britain’s West Coast Main Line, the 

busiest mixed-traffic railway in Europe — the train 

was travelling from London to Glasgow, Scotland, 

when it derailed. Despite substantial damage to 

the train, all carriages retained their basic 

structural integrity, said the Rail Accident 

Investigation Branch which led invedstigations 

into the crash. 

The RAIB quickly established that a set of switch 

points at Lambrigg, in Cumbria, were defective 

and had caused the derailment. 

"Investigation of the locking and stretcher bars in 

the facing points at Lambrigg crossover showed 

that one of three stretcher bars was missing, and 

bolts that secured the lock bar and another 

stretcher bar were not in place – some of these 

bolts and the associated nuts and washers were 

found in the ballast, but others were not. There is 

no evidence that the bolts had been wrenched 

free. Two of the stretcher bars were fractured; in 

one case the nature of the fracture surface 

indicates that it may have been consequential to 

the derailment. In the other case the fracture 

surface indicates that it may have pre-dated the 

derailment. The latter will be confirmed by further 

analysis," said the RAIB’s interim report. 

Chief Executive John Armitt of Network Rail — the 

‘not for dividend’ company that owns Britain’s 

railway infrastructure — said his organisation was 

“devastated” by the report and he offered an 

“unreserved apology.” 

Tilting Pendolino in 

normal service near 

Lambrigg (above) 

Aftermath of 23 

February 2007 

derailment (left) 

The circumstances were eerily similar to those at 

Potters Bar, in southern England, where a 100 mph 

(160 km/h) train was derailed by faulty points in 

2002, killing seven people. 

Coincidentally, a full Coroner’s inquest into the 

deaths at Potters Bar was due to begin only days 

after the Lambrigg crash. The start of this inquest, 

after five years of delays, was further postponed 

but the High Court judge heading the inquiry said 

the fact that both disasters involved points could 

not be ignored. Mr Justice Sullivan said he would 

write to British transport secretary, Douglas 

Alexander, asking whether investigations should 

proceed "by way of inquest, or public inquiry, or 

some other route."

20 


EUROPEAN HIGH-SPEED RAIL PLANS 


French set new world rail 

speed record of 553 km/h 

Europe at High Speed 

ROBERT REID RAILWAY LECTURE 2007 

WITHIN a week of the Chief Executive of French 

National Railways forecasting to CILT(UK) members 

that the commercial speed of passenger trains in 

Europe could reach 360 km/h (225 mph) from 2010, 

a French TGV high-speed train broke its own world 

rail speed record, achieving 553km/h (343.6 mph). 

High-speed test runs were held in secret on the new 

Paris-Strasbourg “TGV Est” line on 13 February 

2007. The previous record, 515.3 km/h (320.2 mph), 

was set by another TGV on 18 May, 1990, a few 

months before the opening of the TGV “Atlantique” 

service to west and south-western France. 

TGV trains carrying passengers now regularly 

reach speeds of 300 to 320km/h, with the higher 

speeds more usual on the new line linking 

Strasbourg with the capital. TGVs using the new 

Est high-speed line are due to be extended to 

Luxeumbourg in June this year. 

Guillaume Pepy, CEO of SNCF and Chairman of 

Eurostar, told this year’s CILT(UK) Sir Robert Reid 

Lecture in London that an unprecedented 

opportunity now exists to shape the rail industry (see 

next page). 

25th anniversary 

Pepy explained that investment has never been 

greater, customers are expecting more mobility and 

flexibility, and global warming considerations are 

creating a demand for “collective transport” — 

writes Jonathan Bullock. 

Last year was the 25th anniversary of TGV, which has 

served 1.2 billion passengers travelling at between 

168 and 186 mph (270 – 300 km/h) without 

casualties, other than at level crossings — which 

Pepy called a scourge in France, as in the UK. 

SNCF is now tendering for 300 to 400 trains to run at 

over 200mph (320 km/h). This investment is decided 

by three factors, explained Pepy: 

the colossal level of investment in the 

infrastructure 

the demand for sustainable development 

the requirement for the renewal of the train fleet 

Pepy posed the following question to the audience: 

“What do our customers want for the future and 

how will their behaviour change” Service will 

become increasingly personalised and the industry 

needs to prepare for customers who are taller, larger 

and older, he said. Pepy pointed out that in 2020 

40% of the French population will be over 60 and 

10% will be obese. 

Business model 

Pepy then asked how the high-speed business 

model should develop. He paid tribute to Eurostar 

Chief Executive and CILT(UK) Vice-President Richard 

Brown who manages the group that operates 

international high-speed services between London 

and Paris and Brussels, and where prices start from 

just £55 (€110, 82) for a London-Paris return ticket. 

From November this year, Eurostar services will 

operate to and from St Pancras International 

station — using Britain’s only high-speed line, 

which is now nearing completion from London to 

the Channel Tunnel. 

TGV’s success in France, Pepy argued, was through a 

Europe's high-speed rail 

network, present and future 

(above). 

TGV in Luxembourg (left) 

combination of conventional lines and high-speed 

lines, a selective stopping policy and the use of both 

stations in the city centres and new stations on the 

outskirts. Pepy called for fair conditions for 

competition and collaboration with the rest of the 

European High Speed Rail network. 

Pepy also paid great tribute to Sir Robert Reid 

(Chairman of the former British Railways Board, 

1983-90) as someone who had transformed the 

UK Railway industry – streamlining its structure, 

making it customer and business driven, and 

restoring confidence that it could compete in a fast 

changing world. 

Steve Agg, Chief Executive of CILT(UK), said: “We 

were delighted to attract a speaker of Guilliume 

Pepy’s standard and the lecture was top-end of 

expectation. The industry can certainly learn from 

the French example and no doubt there will be 

further collaboration in the future as the European 

High Speed Rail Network becomes established.”



SIR ROBERT REID LECTURE 

TGV on the new 'Est' 

route (right). Plans 

to extend trains to 

Luxembourg later 

this year have been 

unveiled (below). 

TGV - 25 Years 

On and Still 

Developing 

CILT(UK) was delighted to welcome Guillaume 

Pepy, Chief Executive Officer of SNCF and the 

Chairman of Eurostar, to present his lecture. The 

title ‘TGV – 25 years on and still developing’ was 

highly appropriate, not only to celebrate such a 

significant milestone, but also of considerable 

interest to a UK audience, given the disappointing 

stance taken in the Eddington report towards 

high-speed rail in Britain. 

Around 150 people listened with keen interest as 

Monsieur Pepy delivered a wealth of facts and 

figures about the development of TGV. For 

example, he said that more than 1.2 billion 

passengers have used the TGV service since its 

inception. SNCF currently has a fleet of 430 TGV 

sets and will be acquiring 15 Duplex (double-deck) 

trains every year until 2009, each capable of 

carrying over 500 passengers. These will be 

designed to remain in service for 40 years. 

2007 will be a hugely significant year for highspeed 

rail travel in Europe, with the opening of 

High Speed 1 (the last stage of the Channel Tunnel 

Rail Link into St Pancras station), the East European 

TGV, the Brussels-Cologne link and HSL Zuid, the 

new high-speed line in the Netherlands. 

These will be followed by the Barcelona-Perpignan 

link between Spain and France, the Rhine-Rhône 

TGV and the Tours-Bordeaux TGV, the first lines 

built in France with PPP-type financing. All these 

links will be capable of 350 km/h operation. 

Between now and 2020, the European high speed 

network will therefore effectively double in size. 

Having set the scene, so to speak, Monsieur Pepy 

then began to pose some questions and asked the 

audience to consider how they would answer 

them. He talked of customer expectations and how 

these are managed. For example, every 30 minutes 

a TGV Duplex shuttle service operates between 

Paris and Lyon, able to carry more than 1,000 

customers, including 400 first class passengers. 

Plans are already in hand to cope with customers 

who are, on average, becoming taller, heavier and 

older. He said it is seen as a duty to study trends in 

depth and to anticipate them. 

Volume policy replaced yield management 

At the start of the 1980s, the TGV took air transport 

as its economic model and in 1992 began to 

introduce the yield management principle. This was 

not as successful as was hoped and the model was 

changed to a volume policy. This was a real winner 

and, by the end of the first year, the customer base 

had increased by 12%. 

The TGV model is now based on simple convenience 

— a low price with a broad pricing range both for 

first and standard class passengers. Monsieur Pepy 

said that fares from Paris to Marseille, a journey of 

750 km (466 miles), start as low as £17 ($33), with 

the highest being £87 ($170) in first class. These 

prices prompted a ripple of surprise from some 

members of the audience, clearly making rapid 

comparisons with British rates for shorter journeys. 

At present, two thirds of passengers are travelling for 

leisure purposes and the average occupancy rate of 

the 680 TGVs that run each day is 71%. In terms of 

operational costs, track access charges represent 

some 30% of operating charges. Monsieur Pepy 

then made comparisons with Eurostar and the 

German ICE. 

Eurostar track charges are 54% of overheads 

With Eurostar the major cost centre is that of 

charges, which include the journey through the 

Channel Tunnel, and represent 54% of overheads. 

The ICE operated in Germany by Deutsche Bahn 

drew high praise for its quality and comfort. 

However, Monsieur Pepy pointed out that 

maintenance charges are 30% higher than for the 

TGV and the current average occupancy rate is 

below 50%. 

The wide-ranging nature of the lecture 

encompassed the important role of seamless links 

between TGV and other regional trains on 

conventional lines. Environmental issues were also 

covered, including querying whether high-speed 

rail can ever be a true alternative to air travel. In 

competitive terms, Monsieur Pepy said the journey 

time threshold has been 3 hours and it is gradually 

moving in rail’s favour to between 4 and 4.5 hours. 

Interestingly, the host of security measures post 

9/11 on a global level and post 7/7 in the UK has 

made a major contribution to increasing this 

competitive edge. 

Technology and manufacturers 

The audience heard about the present global market 

for train manufacturers and their approach to 

development. Monsieur Pepy pointed out that the 

current five major makers could soon see be joined 

by Korean constructors, since Alstom has sold them 

the technology under the KTX agreement. It is also 

highly likely that Chinese manufacturers will emerge 

in the longer term. He said that the railway industry 

frequently passes on to the operators the burdens of 

breaking in or even finishing their products. As of 

today, the reliability of a TGV Duplex train is on 

average 6 incidents per million kilometres, which is 

good, but an incredible 60 times worse than 

Japanese Shinkansen reliability. 

How fast 

Finally, Pepy asked “how fast is fast enough” He 

said SNCF is already carrying out research and 

development to test a commercial TGV speed of 

225mph (360 km/h), perhaps as soon as 2010, but 

this raises issues of safety, motorization and energy 

consumption. 

He admitted that reducing journey times is almost an 

obsession for the TGV. Any saving in time is 

accompanied by overall growth in the market and, 

for the train, a gain in market share. To increase 

speed is also to contribute to the country's economic 

growth. He noted Sir Rod Eddington’s report 

published last December had mentioned that a 5% 

saving in journey times for all business travellers in 

the UK would allow a saving of £2.5 billion - in other 

words, approximately 0.2% of the UK's GDP.

22 


BRITISH RAIL PRIVATISATION 


‘The railway serves the public, but 

that does not make it a public service’ 

The railway is an industry whose function is the movement of 

people and goods, in competition with other modes, and it is 

subject to the normal processes of economics, argues John Hibbs* 

WHEN THE RAILWAY emerged in Britain in the 

1840s it provided a better service than had been 

possible for the canals and the stage coaches. Its 

impact was comparable to that of the internet in 

the past 20 years. But because there was then no 

statutory provision for limited liability the 

companies had to obtain their own Acts of 

Parliament, in order to attract investment and 

protect themselves form landowners charging 

excessive prices for the track and terminals. 

Parliament added requirements for fencing to 

protect livestock, and in due course set up Her 

Majesty’s Inspectors of Railways to ensure safety. 

From the beginning there was fear that the 

companies would merge and become territorial 

monopolies, as the bus companies sought to do 

after 1916. This led to moves to control railway 

charges, and in due course legislation set the 

permitted rates for goods and passenger traffic. In 

the early 20th century approval was sought for 

several mergers, but they were forbidden (though 

they proceeded secretly). Then after 1919 the new 

Ministry of Transport examined the future of the 

supposed monopoly. Three options were 

considered: to leave things alone, to nationalise the 

companies, or to restructure them. In the event the 

Transport Act 1921 established the ‘four main lines’ 

in 1923 — the Great Western, the London Midland 

& Scottish, the London & North Eastern and the 

Southern — but also imposed strict price control, 

designed to enable them to obtain the same level of 

profit as in 1913. 

What the Ministry had failed to realise was that the 

end of the ‘Railway Age’ was in sight. Recent 

research shows that road transport remained 

competitive throughout the 19th century, and by 

1929 the motor lorry and the motorbus were eating 

into the railway companies’ revenue. Standard 

charging for rail traffic gave road transport a 

competitive advantage, and by 1930 long-distance 

coach services and diesel trucks were serious 

competitors. Legislation in 1930 and 1932, 

designed to protect the railway from road 

competition, had little effect, apart from weakening 

the management competence of the bus industry. 

The decision in 1947 to nationalise all public 

transport looked back to the ideas of Sir Eric 

Geddes, a former railway director, whose command 

of logistics saved the army on the Western Front in 

1916. With Lloyd George, the World War I Prime 

Minister, he proposed a Ministry of Ways and 

Communications, which was to acquire or control 

all forms of inland transport, and the telephones. In 

those days parliamentary consent was needed to set 

up a new ministry (that was the last time), and it was 

watered down to the Ministry of Transport, with 

powers of regulation. Geddes left a political 

influence, which remains today. 

It could well be said that the British Transport 

Commission of 1947 was ‘not fit for purpose’, and 

eventually British Rail and the National Bus 

Company came to be the only fully nationalised 

sectors of the industry. Unaware of the competition 

of the private car, and managed by people who 

thought that their job was just to run trains, BR 

depended increasingly on government money, until 

it was rescued by Dr Beeching in the 1960s. 

Gradually thereafter it became more professional 

and more competitive, under the management of 

some outstanding railwaymen, and by the 1990s it 

was beginning to be seen to be suitable for 

privatisation as a going concern. 

Privatisation — little short of a disaster 

Sadly, the lessons of the past had not been learned, 

and under a weak Prime Minister its privatisation 

was little short of a disaster, whose consequences 

we know. My own advice to John Major was to set 

up a number of companies whose subsidy would 

have been steadily reduced until they were 

independent of government; to give them 

ownership of track, terminals and signalling; to have 

a strong controller [regulator] such as had worked 

well for telecommunications; and to re-invent the 

Railway Clearing House, to own and manage ticket 

offices and sales, allocating freight and passenger 

revenue to the companies on a mileage basis. 

Malcolm Rifkind, the Transport Minister, suffered 

from ‘malevolent misinterpretation’ (CILT World 15, 

page 22) of the EU requirements, regarding the 

separation of the wheel from the rail, so we got into 

today’s mess. 

The consequences of privatisation must not be seen 

Note: 

to counter the argument for a fully competitive 

transport industry. The benefits of competition in 

the bus and coach industry are only now being 

recognised. The market is not perfect, but managers 

are far more concerned with the satisfaction of 

consumer demand than they were between 1931 

and 1985. As well as that, the bus industry is far less 

wasteful of resources than it used to be under public 

ownership. Road haulage and distribution is highly 

competitive, and efficient. And it is efficiency we 

should be looking for in the railway. 

This is not a matter of dogma, as Joel Kosminsky 

argues (CILT World 15, page 23). It is a matter of 

economics. There is never a perfect market, but a 

competitive industry always tends to satisfy two 

desirable objectives, at the same time, balancing 

each against the other. One of these is the 

satisfaction of customers – the people who pay; and 

the other is the optimal allocation of scarce 

resources (and thus the avoidance of waste). The 

first means getting the price ‘right,’ for both buyer 

and seller; the second means a reasonable return on 

investment – i.e. ‘profit.’ No better way of achieving 

these two has ever been found, and state 

intervention inevitably gets in the way. 

There will always be problems where ‘utilities’ are 

concerned; defence, civil and criminal courts, 

policing, public health. Transport is not a utility; it is 

an industry. The railway serves the public, but that 

does not make it a public service. And it is relatively 

unimportant in the whole field of movement. 

Neither its history nor its sentimental attraction 

should give it a special place in society; it must 

justify its own existence. I used to work in British 

Railways, and ‘once a railwayman always a 

railwayman’, so I hope I may be accepted as a critic 

who is loyal to the cause. 

* John Hibbs is Emeritus Professor of Transport 

Management at the University of Central England in 

Birmingham. In 1968 he was Market Research 

Officer at BR Eastern Region at Liverpool Street. 

SINCE we reviewed the first ten years of British railway privatisation in CILT World 13, there has been 

considerable reaction from readers. Here, two more distinguished members of the Chartered Institute add 

their comments (in addition to the letter from Geof Murray on page 4). 

But, as this is the fourth consecutive edition in which space has been devoted to this topic, I must now 

declare correspondence on the subject is closed. — Editor.



Rail safety and 

privatisation 

BRITISH RAIL PRIVATISATION 

Figure 1: Fatal 

movement and 

non-movement 

accidents per trainkm: 

1967-2005 

By Andrew W Evans, FCILT* 

I HAVE READ with interest the 

correspondence on rail privatisation 

and rail safety in Britain in CILT World 

Nos. 13-15. I hold no brief for 

privatisation as enacted, but I believe 

that the indictment that privatisation 

led to a worsening of safety does not 

stand up. Even if one accepts the 

arguments of your correspondents 

Andrew Sharp (No. 15, page 4) and 

Peter Rayner (No. 15, page 25) that 

Hatfield and other accidents would 

not have happened under British 

Rail, it does not follow that safety 

deteriorated following the demise 

of BR. 

My argument that safety did not 

deteriorate is based on the accident 

record of the main line railway before 

privatisation (1967 to 1993/4) and 

after privatisation (1994/5 to 2005). BR 

achieved long-term reductions in the 

accident rates for all the main classes of 

accident over the 27 years 1967 

to1993/4, and it is reasonable to 

suppose that the improvements would 

have continued if BR had continued. 

Therefore it seems reasonable to judge 

the safety performance of the 

privatised railway against the yardstick 

of BR’s improving trend. I have done 

this for all the main classes of accident 

and, with one important exception, the 

privatised railway bettered BR’s trend. I 

do not claim that privatisation actually 

improved safety, because the bettering 

of BR’s trend could have other reasons, 

but, given the evidence, it is hard to 

argue that safety got worse. 

The accidents I have analysed are (1) 

fatal movement and non-movement 

accidents, mostly single-fatality 

personal accidents (excluding 

trespassers and suicides); (2) the highprofile 

fatal train collisions, 

derailments, and overruns; (3) fatal 

collisions between trains and road 

vehicles; and (4) significant train 

accidents – mostly non-fatal. I here give 

results just for the first two of these, but 

the patterns for all are similar. 

Figure 1 plots the numbers of fatal 

movement and non-movement 

accidents per million train-km for each 

reporting year 1967-2005. The solid 

data points are for the BR era up to 

1993/94; the open points are for the 

privatised era from 1994/95. The solid 

fitted curve is the exponential trend 

fitted to these data. The dashed line is 

the extrapolation of the BR trend to 

2005. The figure shows that BR 

achieved a long term reduction in the 

accident rate, estimated at –3.6% per 

year. The right-hand side of the figure 

shows that if one takes the 

extrapolation of BR’s favourable trend 

as an estimate of the numbers of fatal 

accidents to be expected if BR had 

continued, the privatised railway has 

bettered that trend in every 

subsequent year. 

If fatal movement and non-movement 

accidents did not get worse, what 

about the fatal train collisions, 

derailments and overruns Because the 

numbers of these accidents are small, 

the annual data are scattered, and the 

data are easier to comprehend if they 

are combined into longer periods. 

Figure 2 plots the number of accidents 

per billion train-km in (mostly) 5-year 

periods. 

Figure 2 shows a similar pattern to that 

of movement and non-movement 

accidents. BR achieved a significant 

downward trend in the train accident 

rate in 1967-1993, estimated to be 

–5.0% per year. If this trend is 

extrapolated, the number of accidents 

that actually occurred in 1994 to 1998 

is about on the trend, and the number 

in 1999 to 2005 is below trend. 

Therefore the number of fatal train 

accidents after privatisation was 

somewhat smaller than would be 

expected from extrapolating BR’s 

favourable trend, notwithstanding the 

four severe accidents in 1997-2002. 

However, although the number of fatal 

train accidents was somewhat smaller 

than expected, the number of fatalities 

in these accidents was higher. This is 

mainly because of the exceptional 

severity of the Ladbroke Grove 

accident in 1999 in a period when train 

accidents generally had become 

infrequent. Nevertheless, it would not 

be reasonable to infer that privatisation 

had caused accidents to become 

systematically more severe, not only 

because the increase is not statistically 

significant, but also because 

privatisation could be expected to 

affect accident frequencies rather than 

accident consequences. 

Why is it believed that safety got 

worse 

Despite the safety performance 

illustrated by Figures 1 and 2, it is 

widely believed that safety did get 

worse. Why The principal argument is 

the one put by your previous 

correspondents that at least some of 

the four high-profile train accidents in 

1997-2002 would not have occurred 

under BR. If accepted, it seems to show 

that there would have been fewer 

accidents under BR. 

However, arguments based on 

accounts of specific accidents are 

biased in the direction of concluding 

that organisational changes are for the 

worse. This is because organisational 

changes may have a mixture of positive 

and negative effects on safety, but it is 

only the negative effects that manifest 

themselves in accidents that would not 

otherwise have occurred, and thus it is 

Figure 2: Fatal 

train collisions, 

derailments and 

overruns per 

train-km: 1967- 

2005 

only the negative effects that are 

recorded in accounts of accidents. 

Positive effects do not appear in 

accounts of accidents, because an 

accident not happening that might 

otherwise have happened is a nonevent, 

and not recorded, not 

necessarily even as a near-miss. Even 

those who had prevented accidents 

might not know that they had done so. 

They were just doing their job. 

Therefore although investigation of 

accidents is vital for improving safety, 

accounts of accidents do not 

themselves indicate whether safety 

performance is getting better or worse. 

The statistics suggest that the railways’ 

safety performance after 1994 

bettered what might have been 

expected if BR’s trends had continued. 

For those interested, more details of 

these analyses are in an article in the 

March 2007 issue of the Royal 

Statistical Society’s magazine, entitled 

Significance, or in a full paper in the 

journal Accident Analysis and 

Prevention. 

*Andrew Evans is Lloyd’s Register 

Professor of Transport Risk 

Management in the Department of 

Civil and Environmental Engineering at 

Imperial College London. As well as 

being a Fellow of CILT, he is a Chartered 

Statistician.

24 


ENVIRONMENT 

World 


Record temperatures ‘consistent 

with climate change’ 

January 2007 — 

hottest on record 

THE FIRST month of 2007 was the 

hottest January ever known around 

the world. Records on the planet's 

temperature have been kept since 

1880. 

Spurred on by unusually warm 

conditions in Siberia, Canada, 

northern Asia and Europe, the 

world's land areas were 3.4 degrees 

Fahrenheit (4 degrees Celsius) 

warmer than a normal January, 

according to the U.S. National 

Climatic Data Center in Asheville, 

North Carolina. 

The world's temperature record was 

driven by northern latitudes. Siberia 

was on average 9 degrees 

Fahrenheit warmer than normal. 

Eastern Europe had temperatures 

averaging 8 degrees Fahrenheit 

above normal. Canada on average 

was more than 5 degrees warmer 

than normal. 

Overall, in the Northern Hemisphere, 

land areas were 4.1 degrees 

Fahrenheit warmer than normal for 

January, breaking the old record by 

about three-quarters of a degree. 

According to U.S. National Climatic 

Data Centre’s scientific services chief, 

David Easterling, these larger 

increases in temperature farther 

north, compared to mid-latitudes, are 

“a sort of global warming signal.” 

January, he said, was a bigger jump 

than the world has seen in about 10 

years. Meteorologists say they are 

not blaming the warmer January on 

global warming alone, but they said 

the higher temperature was 

consistent with climate change. 

The temperature of the world's 

land and water combined — the 

most effective measurement — was 

1.53 degrees Fahrenheit (0.96C) 

warmer than normal, breaking the 

old record for January by more than 

one-quarter of a degree. 

Climate change 

warning for China 

Rains wash away 

Australian trunk route 

Map of Pearl 

River Delta 

Region 

CHINA'S Pearl River Delta, 

adjacent to Hong Kong, will be 

hard hit by climate change in the 

coming years, and leaders need to 

do more to plan for it, a ‘think 

tank’ has said. 

As polar ice caps melt, the sea level 

along the coast of Guangdong 

province is forecast to rise at least 

30 centimeters (12 inches) in the 

coming 25 years, inundating parts 

of the low lying delta, Hong Kongbased 

Civic Exchange said in a 

report. 

Coastal and river defenses in the 

region will be inadequate, roads 

and railways will be damaged by 

higher temperatures and flooding, 

and fresh water supplies —already 

stretched — will come under 

threat, it said. 

"Climate change risk has not been 

adequately addressed by the 

authorities or businesses in Hong 

Kong, Macau and the Pearl River 

Delta," said Christine Loh, a former 

Hong Kong lawmaker and CEO of 

Civic Exchange. 

"The region urgently needs more indepth 

research on how we can adapt 

to the unavoidable aspects of climate 

change, as well as how we can 

reduce our greenhouse gas 

emissions," she said. 

The Pearl River Delta, a giant 

manufacturing hub that helped earn 

the country the nickname "the 

workshop of the world," is home to 

tens of thousands of factories 

producing everything from textiles to 

cars, and is a key link in supply chains 

that extend around the world. 

FOLLOWING heavy monsoon rains 

in northern Australia, a five 

kilometre (three miles) section of the 

Adelaide-Darwin rail line was 

washed away in March. 

A spokesman for the Bureau of 

Meteorology in Darwin said the city 

experienced monsoonal rain, with 

140.8mm (5.5 inches) falling in just 

24 hours. 

Construction of the $A1.2 billion 

(£0.5bn, $0.95bn) Adelaide-Darwin 

rail link began in July 2002, and was 

described as one of Australia's 

greatest infrastructure projects. 

It involved construction of a 1,410 

km (876 miles) standard gauge line 

The inaugural Ghan train 

(left) and its route across 

Australia 

between Alice Springs and Darwin, 

extending the previously existing 

Tarcoola-Alice Springs railway. The 

first passenger train ran in 

February 2004. 

The line is also part of the 2,979 km 

(1,851 miles) route of ‘The Ghan’ — a 

passenger train journey between 

Adelaide, Alice Springs and Darwin, 

taking 48 hours. The train's title is an 

abbreviated version of its previous 

nickname The Afghan Express, which 

comes from the Afghan camel trains 

that trekked the same route before 

the advent of the railway.

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